UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


Washington,
      D.C. 20549


FORM
      10-QSB





(Mark
      One)


x
            QUARTERLY
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                1934




For
      the
      quarterly period ended **March
      30, 2007**





o
            TRANSITION
                REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
                ACT




For
      the
      transition period from _____________ to ___________.








Commission
      File Number: **333-60326**








**COMMAND
      CENTER, INC.**


(Exact
      name of small business issuer as specified in its charter)




Washington
              
              91-2079472(State
                  or other jurisdiction of incorporation or organization)
              
              (IRS
                  Employer Identification
                  Number)




3773
      West Fifth Avenue, Post Falls, Idaho 83854


(Address
      of principal executive offices)





(208)
      773-7450


(Issuer’s
      telephone number)





N.A.


(Former
      name, former address and former fiscal year, if changed since last
      report)





Indicate
      by check mark whether the registrant: (1) has filed all documents and reports
      required to be filed by Section 13, or 15(d) of the Securities Exchange Act
      of
      1934 during the preceding twelve months (or for such shorter period as the
      Registrant was required to file such reports), and (2) has been subject to
      such
      filing requirements for the past ninety days.


YesxNo
                  oThe
                  number of shares of common stock outstanding on April 27, 2007
                  was:
              23,826,813Transitional
                  Small Business Disclosure Format.
              Yes
                  oNo
                  xIndicate
                  by check mark whether the registrant is a shell company(as
                  defined in Rule 12b-2 of the Exchange Act).
              Yes
                  oNo
                  x










**Command
      Center, Inc.**




**Contents**





**FORM
      10-QSB**




**PART
                    I**
                
                PageItem
                    1. Financial Statements (unaudited)Management
                    Statement
                
                10-QSB
                    Page 3Balance
                    Sheet at March 30, 2007
                
                10-QSB
                    Page 4Statements
                        of Operations for the thirteen week periods ended March 30,
                        2007 and March
                        31, 2006
                
                10-QSB
                    Page 5Statements
                        of Cash Flows for the thirteen week periods ended March 30,
                        2007 and March
                        31, 2006
                
                10-QSB
                    Page 6Notes
                    to Financial Statements
                
                10-QSB
                    Page 7Item
                    2. Management’s Discussion and Analysis or Plan of Operations
                
                10-QSB
                    Page 17Item
                    3. Controls and Procedures
                
                10-QSB
                    Page 22**Part
                    II**Item
                    2. Unregistered Sales of Equity Securities
                
                10-QSB
                    Page 23Item
                    6. Exhibits and Reports on Form 8-K
                
                10-QSB
                    Page 24**Signatures**
                
                10-QSB
                    Page 25**Certifications**




10-QSB
          Page
          2




PART
      I





Item
      1.  Financial
      Statements.





MANAGEMENT
      STATEMENT




The
      accompanying (unaudited) balance sheet of Command Center, Inc. as of March
      30,
      2007, and the related statements of operations and cash flows for the thirteen
      week periods ended March 30, 2007 and March 31, 2006 were prepared by Management
      of the Company.





The
      accompanying financial statements should be read in conjunction with the audited
      financial statements of Command Center, Inc. (the “Company”) as of and for the
      52 weeks ended December 29, 2006, and the notes thereto contained in the
      Company’s annual report on Form 10-KSB for the 52 weeks ended December 29, 2006,
      filed with the Securities and Exchange Commission.





Management


Command
      Center, Inc.


May
      9,
      2007





10-QSB
          Page
          3





**Command
        Center, Inc.**
 **Balance
                    Sheet (Unaudited)**March
                    30, 2007***Assets****CURRENT
                    ASSETS:*Cash
                
                $
                847,825Accounts
                    receivable - trade, net of allowance for bad debts of
                    $400,000
                
                
                9,768,323Note
                    receivable - current
                
                
                23,606Prepaid
                    expenses, deposits, and other
                
                
                960,785Current
                    portion of workers' compensation risk pool deposits
                
                
                764,105Total
                    current assets
                
                
                12,364,644*PROPERTY
                    AND EQUIPMENT, NET*
                
                
                3,574,277*OTHER
                    ASSETS:*Note
                    receivable, non-current
                
                
                17,154Workers'
                    compensation risk pool deposits
                
                
                874,201Goodwill
                
                
                32,481,129Intangible
                    assets - net of amortization
                
                
                819,763Total
                    other assets
                
                
                34,192,247$
                50,131,168***Liabilities
                    and Stockholders' Equity****CURRENT
                    LIABILITIES:*Accounts
                    payable
                
                $
                1,920,045Checks
                    issued and outstanding
                
                
                1,214,352Related
                    party advances payable
                
                
                300,000Line
                    of credit facility
                
                
                5,947,989Accrued
                    expenses
                
                
                1,610,153Current
                    portion of note payable
                
                
                8,446Current
                    portion of notes payable to affiliates
                
                
                1,487,447Workers'
                    compensation insurance payable
                
                
                199,093Current
                    portion of workers' compensation claims liability
                
                
                764,105Total
                    current liabilities
                
                
                13,451,630*LONG-TERM
                    LIABILITIES:*Note
                    payable, less current portion
                
                
                92,557Notes
                    payable to affiliates
                
                
                535,977Finance
                    obligation
                
                
                1,125,000Workers'
                    compensation claims liability, less current portion
                
                
                1,112,105Preferred
                    stock subscribed
                
                
                500,000Total
                    long-term liabilities
                
                
                3,365,639*STOCKHOLDERS'
                    EQUITY:*Preferred
                    stock - 5,000,000 shares, $0.001 par value, authorized;no
                    shares issued and outstanding
                
                
                -Common
                    stock - 100,000,000 shares, $0.001 par value, authorized;23,826,813
                    shares issued and outstanding
                
                
                23,826Additional
                    paid-in capital
                
                
                38,572,892Accumulated
                    deficit
                
                
                (5,282,819
                )Total
                    stockholders' equity
                
                
                33,313,899$
                50,131,168




See
      accompanying notes to unaudited financial statements.




10-QSB
          Page
          4


**Command
        Center, Inc.**
  **Statements
                  of Operations (Unaudited)**Thirteen
                  Weeks EndedMarch
                  30,
              
              March
                  31,2007
              
              2006*REVENUE:*Revenue
                  from services
              
              $
              22,854,400
              
              $
              -Franchise
                  revenues
              
              
              -
              
              
              413,349Other
                  income
              
              
              65,452
              
              
              14,67622,919,852
              
              
              428,025*COST
                  OF SERVICES*Temporary
                  worker costs
              
              
              15,579,641
              
              
              6,547Workers'
                  compensation costs
              
              
              1,580,284
              
              
              -Other
                  direct costs of services
              
              
              128,585
              
              
              -17,288,510
              
              
              6,547*GROSS
                  PROFIT*
              
              
              5,631,342
              
              
              421,478*OPERATING
                  EXPENSES:*Personnel
                  costs
              
              
              4,581,518
              
              
              351,849Selling
                  and marketing expenses
              
              
              490,678
              
              
              138,514Transportation
                  and travel
              
              
              543,805
              
              
              -Office
                  expenses
              
              
              296,194Professional
                  expenses
              
              
              535,288
              
              
              59,554Depreciation
                  and amortization
              
              
              196,273
              
              
              29,314Rent
              
              
              586,407
              
              
              82,019Other
                  expenses
              
              
              1,290,538
              
              
              460,0298,520,701
              
              
              1,121,279*LOSS
                  FROM OPERATIONS*
              
              
              (2,889,359
              )
              
              (699,801
              )*OTHER
                  INCOME (EXPENSE):*Interest
                  expense
              
              
              (198,758
              )
              
              -Interest
                  and other income
              
              
              7,351
              
              
              27,498(191,407
              )
              
              27,498*NET
                  LOSS*
              
              $
              (3,080,766
              )
              $
              (672,303
              )*LOSS
                  PER SHARE*
              
              $
              (0.13
              )
              $
              (0.07
              )*WEIGHTED
                  AVERAGE COMMON SHARES OUTSTANDING*
              
              
              23,596,415
              
              
              10,066,013


See
        accompanying notes to unaudited financial statements.




10-QSB
          Page
          5


**Command
        Center, Inc.**
  **Statements
                  of Cash Flows (Unaudited)**Thirteen
                  Weeks EndedMarch
                  30,
              
              March
                  31,2007
              
              2006***Increase
                  (Decrease) in Cash****CASH
                  FLOWS FROM OPERATING ACTIVITIES:*Net
                  loss
              
              $
              (3,080,766
              )
              $
              (672,303
              )Adjustments
                  to reconcile net loss to net cashused
                  by operating activities:Depreciation
                  and amortization
              
              
              196,273
              
              
              29,314Increase
                  in allowance for bad debts
              
              
              9,137
              
              
              -Amortization
                  of note receivable discount
              
              
              6,000
              
              
              5,043Common
                  stock issued for employee compensation
              
              
              68,640
              
              
              -Amortization
                  of prepaid expenses paid in common stock
              
              
              36,277
              
              
              -Changes
                  in assets and liabilitiesAccounts
                  receivable - trade
              
              
              (449,312
              )
              
              31,246Accounts
                  receivable affiliates
              
              
              -
              
              
              242,228Prepaid
                  expenses, deposits and other
              
              
              505,704
              
              
              (223,293
              )Workers'
                  compensation risk pool deposits
              
              
              414,404
              
              
              -Accounts
                  payable
              
              
              1,122,439
              
              
              124,393Accrued
                  expenses
              
              
              (348,024
              )
              
              35,302Workers'
                  compensation insurance payable
              
              
              (610,572
              )
              
              -Workers'
                  compensation claims liability
              
              
              453,501
              
              
              -Net
                  cash used by operating activities
              
              
              (1,676,299
              )
              
              (428,070
              )*CASH
                  FLOWS FROM INVESTING ACTIVITIES:*Purchases
                  of property and equipment
              
              
              (318,617
              )
              
              (39,319
              )Collections
                  on notes receivable
              
              
              88,779
              
              
              37,565Cash
                  paid for acquisition
              
              
              (247,500
              )
              
              -Sale
                  of investments
              
              
              -
              
              
              404,000Net
                  cash provided (used) by investing activities
              
              
              (477,338
              )
              
              402,246*CASH
                  FLOWS FROM FINANCING ACTIVITIES:*Change
                  in checks issued and outstanding
              
              
              364,956
              
              
              -Advances
                  on line of credit facility, net
              
              
              222,843
              
              
              -Related
                  party advances payable
              
              
              494,872
              
              
              -Sales
                  of common stock
              
              
              30,000
              
              
              -Preferred
                  stock subscribed
              
              
              500,000
              
              
              -Sale
                  of preferred stock
              
              
              -
              
              
              125,000Principal
                  payments on long-term note payable
              
              
              (2,076
              )
              
              -Net
                  cash provided by financing activities
              
              
              1,610,595
              
              
              125,000*NET
                  INCREASE (DECREASE) IN CASH*
              
              
              (543,042
              )
              
              99,176*CASH,
                  BEGINNING OF PERIOD*
              
              
              1,390,867
              
              
              369,844*CASH,
                  END OF PERIOD*
              
              $
              847,825
              
              $
              469,020




See
        accompanying notes to unaudited financial statements.
 10-QSB
            Page
            6
  **NOTES
        TO THE UNAUDITED FINANCIAL STATEMENTS OF COMMAND CENTER,
        INC.**




***NOTE
      1 — BASIS OF PRESENTATION:***





The
      accompanying unaudited financial statements have been prepared in conformity
      with generally accepted accounting principles and reflect all normal recurring
      adjustments which, in the opinion of Management of the Company, are necessary
      to
      a fair presentation of the results for the periods presented. The results of
      operations for such periods are not necessarily indicative of the results
      expected for the full fiscal year or any future period. The
      preparation of financial statements in conformity with accounting principles
      generally accepted in the United States of America requires management to make
      estimates and assumptions that affect the reported amounts of assets and
      liabilities at the date of the financial statements and the reported amounts
      of
      revenues and expenses during the reporting periods. Actual results could differ
      significantly from these estimates.





The
      accompanying unaudited financial statements should be read in conjunction with
      the audited financial statements of the Company as of and for the 52 weeks
      ended
      December 29, 2006, and the notes thereto contained in the Company’s annual
      report on Form 10-KSB for the 52 weeks ended December 29, 2006, filed with
      the
      Securities and Exchange Commission. Certain
      items previously reported in specific financial statement captions have been
      reclassified to conform to the 2006 presentation.





***NOTE
      2 —RECENT ACCOUNTING PRONOUNCEMENTS:***





On
      January 1, 2007, we adopted Financial Accounting Standards Board Interpretation
      No. 48, Accounting for Uncertainty in Tax Positions (“FIN48”). FIN48 prescribes
      a recognition threshold and measurement attribute for the recognition and
      measurement of tax positions taken or expected to be taken in income tax
      returns. FIN48 also provides guidance on de-recognition of income tax assets
      and
      liabilities, classification of current and deferred income tax assets and
      liabilities, and accounting for interest and penalties associated with tax
      positions.





In
      the
      course of our assessment, we determined that we were subject to examination
      of
      our income tax filings in the United States and various state jurisdictions
      for
      the 2003 - 2006 tax years. Within each of these jurisdictions we examined our
      material tax positions to determine whether we believed they would be sustained
      under the more-likely-than-not guidance provided by FIN48. If interest and
      penalties were to be assessed, we would charge interest to interest expense,
      and
      penalties to other operating expense.





As
      a
      result of our assessment, we have concluded that the adoption of FIN48 had
      no
      significant impact on the Company’s results of operations or balance sheet for
      the thirteen weeks ended March 30, 2007, and required no adjustment to opening
      balance sheet accounts as of December 30, 2006.





The
      FASB
      issued Statement No. 159, “The Fair Value Option for Financial Assets and
      Financial Liabilities — including an amendment of FASB Statement
      No. 115” in the first quarter 2007. The statement allows entities to value
      financial instruments and certain other items at fair value. The statement
      provides guidance over the election of the fair value option, including the
      timing of the election and specific items eligible for the fair value
      accounting. Changes in fair values would be recorded in earnings. The statement
      is effective for fiscal years beginning after November 15, 2007. The
      Company is evaluating the impact the adoption of this statement will have,
      if
      any, on its financial statements.




10-QSB
          Page
          7


**NOTES
        TO THE UNAUDITED FINANCIAL STATEMENTS OF COMMAND CENTER,
        INC.**




***NOTE
      3 —EARNINGS PER SHARE:***





Basic
      earnings per share (“EPS”) is computed as net income divided by the weighted
      average number of common shares outstanding for the period.  Diluted EPS
      reflects the potential dilution that could occur from common shares issuable
      through stock options, warrants, and other convertible securities. At March
      31,
      2007, no common stock equivalents were outstanding that had the potential to
      dilute the Company’s future earnings.





***NOTE
      4 — BUSINESS COMBINATIONS:***





On
      January 1, 2007, we acquired certain assets and liabilities of Anytime Labor,
      Inc. for $247,500 in cash and 200,000 shares of our common stock having an
      estimated value of $4.56 per share. The acquired assets represent three
      temporary staffing stores. Two of the acquired stores are in Oregon and one
      is
      in Washington. We closed the transaction on February 19, 2007, with the
      understanding that we may owe the seller additional contingent consideration
      in
      shares of our common stock based upon the completion of the audit of the
      financial statements of Anytime Labor, Inc. as of December 31, 2006. From
      January 1, 2007 through the closing date of the transaction, we operated the
      stores under the Command Center name pursuant to the acquisition agreement,
      and
      operations from these stores are reflected in our financial statements for
      the
      thirteen weeks ended March 30, 2007.





The
      following represents management’s estimate of the fair value of the assets
      acquired and liabilities assumed in the acquisitions.




Cash
                  consideration
              
              $
              247,500Liabilities
                  Assumed
              
              
              252,500Common
                  stock
              
              
              912,000Total
                  consideration
              
              $
              1,412,000Accounts
                  receivable
              
              $
              0Furniture
                  and fixtures and equipment
              
              
              25,000Intangible
                  assets (customer relationships)
              
              
              125,000Goodwill
                  (estimated)
              
              
              1,262,000Total
                  assets acquired
              
              $
              1,412,000




Prior
      to
      closing the acquisitions, Glenn Welstad, our CEO, loaned Anytime Labor $252,500
      to allow Anytime Labor to payoff an existing contractual obligation. Upon
      completion of the acquisitions, the Company assumed the obligation due Mr.
      Welstad and intends to pay Mr. Welstad the balance owed in the second quarter
      of
      2007. The balance due Mr. Welstad is included in the current portion of Notes
      Payable affiliates.




10-QSB
          Page
          8


**NOTES
        TO THE UNAUDITED FINANCIAL STATEMENTS OF COMMAND CENTER,
        INC.**




The
      Company also assumed certain obligations on existing operating leases and other
      contractual rights in conjunction with the purchase. Management has estimated
      that the fair value of these obligations and contractual rights is immaterial
      and has not assigned any separately identifiable value to these items.
      Management has estimated the fair value of Anytime Labor’s customer list and
      recorded it as an intangible asset that will be amortized over a three year
      period. Goodwill has been recorded based on the excess of the consideration
      paid
      over the net identifiable assets and liabilities acquired.





The
      acquisitions were undertaken as an ongoing part of our growth strategy.





***NOTE
      5 — RELATED-PARTY TRANSACTIONS:***





The
      Company has had the following transactions with related parties:





*Finance
      Lease Transactions.* During
      2005, we purchased a building in Post Falls, Idaho to serve as the corporate
      headquarters for the Company. The purchase price of the building was $1,125,000
      and the amount was paid in $525,000 of the Company’s funds plus $600,000
      advanced from John Coghlan, a director and major shareholder. Subsequently,
      the
      Company’s Board of Directors received an offer from Mr. Coghlan to purchase the
      building from us subject to a finance lease arrangement. The Board accepted
      Mr.
      Coghlan’s offer and sold the building to him at the original purchase price and
      immediately leased the building back on terms that the Board considered to
      be in
      the Company’s best interests. In connection with the sale to Mr. Coghlan, the
      $600,000 advance was extinguished and at December 31, 2005, the Company had
      recognized a receivable from Mr. Coghlan of $523,849 relating to his purchase.
      The receivable was paid in full in February of 2006.





*New
      store surcharge fee.* As part
      of the acquisition of the franchise operations of Command Staffing and
      Harborview in November, 2005, the Company assumed the obligation of Command
      Staffing to pay Glenn Welstad, our CEO and Chairman, $5,000 for each new
      temporary staffing store opened by the Company. As of March 30, 2007 and March
      31, 2006, the Company had accrued $175,000 and $105,000, respectively, payable
      to Mr. Welstad in new store surcharge fees. In connection with the acquisitions
      of the franchisee store operations in 2006, and to consolidate balances owing
      from and to various individuals and entities, the accrued new store surcharge
      fee of $175,000 was converted to a note payable to Mr. Welstad on March 5,
      2007.





In
      future
      periods, the obligation to pay the new store surcharge fee will accrue each
      time
      a new store is opened. This obligation terminates at the earlier of the date
      Mr.
      Welstad has received $1,700,000 (340 new stores), or December 31, 2010. If
      we
      open fewer than 340 stores by December 31, 2010, Mr. Welstad’s payments under
      this arrangement will be limited to the amounts actually paid or accrued to
      that
      date.





10-QSB
          Page
          9


**NOTES
        TO THE UNAUDITED FINANCIAL STATEMENTS OF COMMAND CENTER,
        INC.**




***NOTE
      6 —LINE OF CREDIT FACILITY:***





On
      May
      12, 2006, we entered into an agreement with our principal lender for a financing
      arrangement collateralized by eligible accounts receivable. Eligible accounts
      receivable are generally defined to include accounts that are not more than
      sixty days past due. The loan agreement includes limitations on customer
      concentrations, accounts receivable with affiliated parties, accounts receivable
      from governmental agencies in excess of 5% of the Company’s accounts receivable
      balance, and when a customer’s aggregate past due account exceed 50% of that
      customer’s aggregate balance due. The lender will advance 85% of the invoiced
      amount for eligible receivables. The credit facility includes a 1% facility
      fee
      payable annually, and a $1,500 monthly administrative fee. The financing bears
      interest at the greater of the prime rate plus two and one half percent (prime
      +2.5%) or 6.25% per annum. Our line of credit interest rate at March 30, 2007
      was 10.75%. The loan agreement further provides that interest is due at the
      applicable rate on the greater of the outstanding balance or $5,000,000. The
      credit facility expires on April 7, 2009. In December, 2006, the Company
      negotiated an increase in the maximum credit facility to $9,950,000. The loan
      agreement includes certain financial covenants including a requirement that
      we
      maintain a working capital ratio of 1:1, that we maintain positive cash flow,
      that we maintain a tangible net worth of $2,000,000 through March 31, 2007
      and
      $3,500,000 thereafter, and that we achieve operating results within a range
      of
      projected EBITDA. At March 30, 2007, we were not in compliance with these loan
      covenants. Our lender has not exercised any rights under the loan agreement
      as
      of April 27, 2007 but we have not obtained a waiver of compliance. The balance
      due our lender at March 30, 2007 was $5,947,989.





***NOTE
      7 — NOTES PAYABLE TO AFFILIATES:***





As
      of
      March 30, 2007, notes payable to affiliates are as follows:




Glenn
                  Welstad(1)
              
              $
              1,487,447Tom
                  Gilbert(2)
              
              
              90,306Dwight
                  Enget(3)
              
              
              94,091Ronald
                  L. Junck(4)
              
              
              2,714Other
                  affiliated former owners of temporarystaffing
                  stores(5)
              
              
              348,866$
              2,023,424




(1)
            Mr.
                Welstad is our CEO and a director. The amount due him includes: $175,000
                in new store surcharge fees; $90,000 of accrued salary due during
                2006,
                $351,525 of prior year’s amounts due, $24,233 of other assumed liabilities
                in connection with equipment purchases and other expenses related
                to our
                acquisition of temporary staffing stores; $252,500 advanced in connection
                with the Anytime Labor acquisitions; $500,000 additional cash advanced
                in
                the first quarter of 2007 for working capital; and $94,189 advanced
                in the
                first quarter of 2007 for reimbursable travel
                expenses.





(2)
            Mr.
                Gilbert is a director and an officer. The amount due him consists
                of
                liabilities incurred in connection with the purchase of temporary
                staffing
                stores owned or controlled by Mr. Gilbert in
                2006.




10-QSB
          Page
          10


**NOTES
        TO THE UNAUDITED FINANCIAL STATEMENTS OF COMMAND CENTER,
        INC.**




(3)
            Mr.
                Enget is a director and an officer. The amount due him consists of
                liabilities incurred in connection with the purchase of temporary
                staffing
                stores owned or controlled by Mr. Enget in
                2006.





(4)
            Mr.
                Junck is a director and the Company’s chief counsel. The amount due him
                consists of liabilities incurred in connection with the purchase
                of
                temporary staffing stores owned or controlled by Mr. Junck in
                2006.





(5)
            These
                beneficial owners include the members of the various LLC’s or the
                shareholders of the incorporated entities from which the Company
                acquired
                the temporary staffing store assets. Many are current employees of
                the
                Company and are not officers or directors, with the exception of
                the
                persons named in this paragraph. Amounts due consist of liabilities
                incurred in connection with the purchase of temporary staffing
                stores.





During
      the first quarter of 2007, the outstanding amounts due to the above affiliates
      were converted to notes payable. The notes are due on or before June 30, 2008,
      bear interest at 5%, and are the unsecured general obligations of the company.
      The notes payable are subordinate to our line of credit facility. The balance
      due Mr. Welstad is classified as a current liability. We intend to repay Mr.
      Welstad the balance due during 2007. See Note 9.





***NOTE
      8 — WORKERS’ COMPENSATION INSURANCE AND RESERVES:***





We
      provide our temporary and permanent workers with workers’ compensation
      insurance. Currently, we maintain a large deductible workers’ compensation
      insurance policy through American International Group, Inc. (“AIG”). The policy
      covers the premium year from May 12, 2006 through May 11, 2007. While we have
      primary responsibility for all claims, our insurance coverage provides
      reimbursement for covered losses and expenses in excess of our deductible.
      For
      workers’ compensation claims arising in self-insured states, our workers’
compensation policy covers any claim in excess of the $250,000 deductible on
      a
“per occurrence” basis. This results in our being substantially
      self-insured.





We
      obtained our current policy in May, 2006 and since the policy inception, we
      have
      made payments into a risk pool fund to cover claims within our self-insured
      layer. Our payments into the fund for the premium year will total $2,400,000
      based on estimates of expected losses calculated at inception of the policy.
      If
      our payments into the fund exceed our actual losses over the life of the claims,
      we may receive a refund of the excess risk pool payments. Correspondingly,
      if
      our worker’s compensation reserve risk pool deposits are less than the expected
      losses for any given policy period, we may be obligated to contribute additional
      funds to the risk pool fund. Our maximum exposure under the policy is capped
      at
      the greater of $5,750,000 or 10.6% of payroll expenses incurred during the
      premium year.





The
      workers’ compensation risk pool deposits totaled $1,638,306 as of March 30,
      2007, and were classified as current and non current assets based upon
      management’s estimate of when the related claims liability will be paid. The
      deposits have not been discounted to present value in the accompanying financial
      statements.




10-QSB
          Page
          11


**NOTES
        TO THE UNAUDITED FINANCIAL STATEMENTS OF COMMAND CENTER,
        INC.**




We
      have
      discounted the expected liability for future losses to present value using
      a
      discount rate of 4.5%, which approximates the risk free rate on US Treasury
      instruments. Our expected future liabilities will be evaluated on a quarterly
      basis and adjustments to these calculations will be made as
      warranted.





Expected
      losses will extend over the life of longest lived claim which may be outstanding
      for many years. As a new temporary staffing company, we have limited experience
      with which to estimate the average length of time during which claims will
      be
      open. As a result, our current actuarial analysis is based largely on industry
      averages which may not be applicable to our business. If our average claims
      period is longer than industry average, our actual claims losses could exceed
      our current estimates. Conversely, if our average claims period is shorter
      than
      industry average, our actual claims could be less than current reserves. For
      workers’ compensation claims originating in Washington and North Dakota (our
“monopolistic jurisdictions”) we pay workers’ compensation insurance premiums
      and obtain full coverage under government administered programs. We are not
      the
      primary obligor on claims in these jurisdictions. Accordingly, our financial
      statements do not reflect liability for workers’ compensation claims in these
      jurisdictions.





Workers’
      compensation expense is recorded as a component of our cost of services and
      consists of the following components: self-insurance reserves net of the
      discount, insurance premiums, and premiums paid in monopolistic jurisdictions.
      Workers’ compensation expense totaled $1,580,284 in the first quarter of 2007.
      Prior to April 1, 2006, the Company operated as a franchisor of temporary
      staffing businesses and workers’ compensation costs were not a materially
      significant component of operating costs.





***NOTE
      9 - COMMITMENTS AND CONTINGENCIES:***





*Finance
      obligation.* Our
      finance obligation consists of debt owed to a related party upon the purchase
      of
      the Company’s headquarters (See Note 5). The terms of the agreement call for
      lease payments of $10,000 monthly commencing on January 1, 2006 for a period
      of
      three years. The Company has the option anytime after January 1, 2008 to
      purchase the building for $1,125,000 or continue to make payments of $10,000
      for
      another 2 years under the same terms. The Company accounts for the lease
      payments as interest expense. The building is being depreciated over 30
      years.





*Contingent
      payroll and other tax liabilities.* In May
      and June, 2006, we acquired operating assets for a number of temporary staffing
      stores. The entities that owned and operated these stores received stock in
      consideration of the transaction. As operating businesses prior to our
      acquisition, each entity incurred obligations for payroll withholding taxes,
      workers’ compensation insurance fund taxes, and other liabilities. We structured
      the acquisition as an asset purchase and agreed to assume only the liability
      for
      each entity’s accounts receivable financing line of credit. We also obtained
      representations that liabilities for payroll taxes and other liabilities not
      assumed by the Company would be paid by the entities.




10-QSB
          Page
          12




**NOTES
        TO THE UNAUDITED FINANCIAL STATEMENTS OF COMMAND CENTER,
        INC.**


Since
      the
      acquisitions, it has come to our attention that certain tax obligations incurred
      on operations prior to our acquisitions have not been paid. We have also
      received notice from the State of Washington that it may consider the Company
      as
      a successor and liable for payment of tax obligations incurred prior to our
      acquisitions. The entities that sold us the assets (the”selling entities”) are
      primarily liable for these obligations. The owners of the entities may also
      be
      liable. In most cases, the entities were owned or controlled by Glenn Welstad,
      our CEO.





We
      are
      currently working with the responsible parties to assure that the selling
      entities pay the amounts due in a timely manner. Should the selling entities
      or
      the owners of those entities fail to pay the taxes due, it is possible that
      the
      Company will be required to pay the taxes and pursue an action for reimbursement
      from the selling entities and/or their owners. As of March 30, 2007, we owed
      the
      entities responsible for these taxes $1,616,326 in settlement of the
      acquisitions and in repayment of various advances made by Mr. Welstad to the
      Company. At March 30, 2007, we owed Mr. Welstad $1,487,447. In April 2007 we
      repaid $750,000 of this amount to Mr. Welstad and Mr. Welstad made corresponding
      payments to various tax authorities toward the tax balances due. We expect
      to
      repay the remaining balance due Mr. Welstad in May, 2007, at which time he
      is
      expected make payments to the taxing authorities.





Based
      on
      the information currently available, we estimate that the total state payroll
      and other tax liabilities owed by the selling entities to be between $750,000
      and $850,000. We believe that the amounts due to the entities and Mr. Welstad
      will be adequate to satisfy any claims made by state authorities against the
      Company for these tax balances.





We
      also
      understand that amounts are owed by the selling entities to the Internal Revenue
      Service for payroll taxes relating to periods prior to our acquisitions. From
      currently available information obtained from the IRS and the responsible
      entities, we estimate the IRS Liabilities at between $1,000,000 and $1,500,000.
      Our outside legal counsel has advised us that the potential for successor
      liability on the IRS claims is remote. Through March 30, 2007, Mr. Welstad
      paid
      $500,000 toward resolution of the IRS claims.





We
      have
      not accrued any amounts for these contingent payroll and other tax liabilities
      at March 30, 2007, because we believe the notes payable to affiliates will
      be
      adequate to offset any obligations we might otherwise incur as a result of
      these
      contingencies. If our estimate of our potential liability for these
      contingencies is incorrect, and/or we are held responsible for additional taxes,
      our financial condition may be adversely affected.





We
      understand that the responsible parties have entered into payment agreements
      on
      the substantial majority of the tax obligations and expect to resolve these
      debts in full within the next twelve months. To the best of our knowledge,
      no
      new payroll tax obligations of acquired entities have been raised since December
      29, 2006.





*Operating
      leases.* The
      Company leases store facilities, vehicles and equipment. Most of our store
      leases have terms that extend over three to five years. Some of the leases
      have
      cancellation provisions that allow us to cancel on ninety day notice, and some
      of the leases have been in existence long enough that the term has expired
      and
      we are currently occupying the premises on month-to-month tenancies. Lease
      obligations for the next five years as of December 31, 2006 are as
      follows:




2007
              
              $
              1,269,1572008
              
              
              1,569,1392009
              
              
              1,027,2092010
              
              
              552,2422011
              
              
              209,285




10-QSB
          Page
          13




**NOTES
        TO THE UNAUDITED FINANCIAL STATEMENTS OF COMMAND CENTER,
        INC.**




*Litigation.* On
      December 31, 2005 ProTrades Connection, Inc. filed a lawsuit against Command
      Staffing, LLC and seven individuals in the Superior Court for the State of
      California, Santa Clara County. The individual defendants are employees of
      Command Center, Inc and were formerly employed by ProTrades. In the lawsuit,
      the
      plaintiff alleges that the individual defendants breached written covenants
      against the solicitation of ProTrades employees. Subsequently, the plaintiff
      has
      amended the Complaint to bring in as defendants other entities, including
      Command Center, Inc. and other individuals.





Command
      Center and the remaining defendants intend to continue their vigorous defense
      of
      this case. The Company has not established a contingent loss reserve as the
      outcome of the litigation is uncertain at this point in time.





***NOTE
      10 - STOCKHOLDERS’ EQUITY:***





In
      the
      thirteen week period ended on March 30, 2007, the Company issued an aggregate
      of
      324,591 shares of Common Stock and accepted subscriptions for 5,000 shares
      of
      Series A Preferred Stock. The Series A Preferred Stock is described in Note
      11.
      The shares of Common Stock were issued for asset acquisitions, payment of
      consulting fees and as severance pay terminated employees. 200,000 shares were
      issued as a portion of the consideration for the acquisition of temporary
      staffing store assets from Anytime Labor, Inc. Management estimated the value
      of
      the shares issued in the Anytime asset acquisition at $4.56 per share as
      provided in the acquisition agreement. See Note 4. We issued 98,591 shares
      of
      common stock for prepaid sales force training services. Management estimated
      the
      value of these shares at $3.96 per share in accordance with the consulting
      services agreement. We issued 26,000 shares to terminated employees as severance
      pay. Management estimated the value of the severance pay shares at $2.64 per
      share on the dates of issuance.




***NOTE
      10 - SUPPLEMENTAL CASH FLOW INFORMATION OF NON-CASH
      ACTIVITIES:***







**Thirteen**
            
            **Quarter****Weeks
                Ended**
            
            **Ended****March
                30, 2007**
            
            **March
                31, 2006**Common
                stock issued for prepaid expenses
            
            $
            390,860
            
            $
            —Common
                stock issued for acquisition of temporary labor stores
            
            $
            912,000
            
            $
            —




10-QSB
          Page
          14


**NOTES
        TO THE UNAUDITED FINANCIAL STATEMENTS OF COMMAND CENTER,
        INC.**





***NOTE
      11 - SUBSEQUENT EVENTS:***





The
      Company is in the process of amending our Articles of Incorporation to create
      40,000 shares of Series A Preferred Stock. The Company’s Articles of
      Incorporation establish authority in the Board of Directors to issue up to
      5,000,000 shares of preferred stock which may be divided into one or more series
      bearing such relative powers, preferences, and rights as the Board of Directors
      may decide.





The
      Series A Preferred Stock includes the following powers, preferences and
      rights:





1.
            Cumulative
                Dividend: The Series A Preferred Stock bears a cumulative dividend
                of 8%
                per annum. Such dividends are payable in preference to all dividends
                of
                all of our other shareholders. The dividends are payable only when,
                as and
                if declared by our Board of
                Directors.





2.
            Voting
                Rights: The Series A Preferred Stock has no voting rights unless
                and until
                converted into common stock or, in the event of certain significant
                corporate actions. The Series A Preferred Stock constitutes a separate
                class of securities and may be entitled to class
                voting.





3.
            Optional
                Redemption: The Series A Preferred Stock may be redeemed at any time
                after
                the market price for the Common Stock exceeds $6.00 per share for
                30
                consecutive trading days. In such event, we will pay a redemption
                price of
                $100 per share.





4.
            Mandatory
                Redemption: The Series A Preferred Stock shall be redeemed on or
                before
                March 21, 2011. In such event, we will pay a redemption price of
                $100 per
                share. However, we will not be required to pay more than 25% of our
                consolidated net income, before taxes, in connection with such redemption
                prior to March 21, 2014.





5.
            Optional
                Covnersion: Each share of Series A Preferred Stock may be initially
                converted into approximately 33 shares of our Common Stock at any
                time at
                the option of the holder. The number of shares into which shares
                of Series
                A Preferred Stock may be converted will be subject to adjustment
                to
                reflect stock splits, reorganizations, mergers and other changes
                in our
                capital structure.





6.
            Anti-Dilution
                Protection: The shares of Series A Preferred Stock have anti-dilution
                protections that will adjust the number of shares of common stock
                into
                which shares of Series A Preferred Stock may be converted if we sell
                securities for consideration less than $3.00 per
                share.





7.
            Liquidation
                Preference: The Series A Preferred Stock also bears a liquidation
                preference of $100.00 per share plus any accumulated but unpaid
                dividends.





8.
            Sinking
                Fund: No sinking fund for the redemption of the Series A Preferred
                Stock
                has been established.




10-QSB
          Page
          15




**NOTES
        TO THE UNAUDITED FINANCIAL STATEMENTS OF COMMAND CENTER,
        INC.**


9.
            Registration
                Rights: No registration rights have been granted in respect of the
                Series
                A Preferred Stock or the Common Stock issuable upon conversion of
                the
                Series A Preferred Stock.





Once
      the
      articles of amendment are filed, we will offer the Series A Preferred Stock
      to
      investors for a price of $100 per share in a private offering. As of March
      30,
      2007, subscriptions for 5,000 shares of Series A Preferred Stock have been
      received and are recorded as Preferred Stock Subscribed.





10-QSB
          Page
          16




**FORM
      10-QSB**





**Part
      I, Item 2.**  **Management’s
      Discussion and Analysis or Plan of Operations.**





This
      Form
      10-QSB may contain forward-looking statements. These statements relate to our
      expectations for future events and future financial performance. Generally,
      the
      words “intend”, “expect”, “anticipate”, “estimate”, or “continue” and similar
      expressions identify forward-looking statements. Forward-looking statements
      involve risks and uncertainties, and future events and circumstances could
      differ significantly from those anticipated in the forward-looking statements.
      These statements are only predictions. Factors which could affect our financial
      results are described below. Readers are cautioned not to place undue reliance
      on these forward-looking statements, which speak only as of the date hereof.
      Although we believe that the expectations reflected in the forward-looking
      statements are reasonable, we cannot guarantee future results, levels of
      activity, performance or achievements. We do not, nor have we authorized any
      other person to, assume responsibility for the accuracy and completeness of
      the
      forward-looking statements. We undertake no duty to update any of the
      forward-looking statements after the date of this report. “CCNI,” the “Company,”
“we,” “us,” “our,” and similar references refer to Command Center,
      Inc.





**Executive
      Overview.**





Command
      Center is a provider of temporary employees to the light industrial,
      construction, warehousing, transportation and material handling industries.
      We
      provide unskilled and semi-skilled workers to our customers. Generally, we
      pay
      our workers the same day they perform the job. In 2005 and 2006, we underwent
      a
      series of evolutionary changes to convert our business from financial service
      to
      franchisor of temporary staffing stores to operator of temporary staffing
      stores. We accomplished these changes by rolling up a franchise and software
      company into the predecessor public shell corporation and then acquiring all
      of
      our franchisees for stock. We completed the rollup transactions in the second
      quarter of 2006.





Our
      vision is to be the preferred partner of choice for all staffing and employment
      solutions by placing the right people in the right jobs every time. With the
      acquisition of the temporary staffing stores, we have consolidated operations,
      established and implemented corporate operating policies and procedures, and
      are
      currently pursuing a unified branding strategy for all of our stores.





***Temporary
      Staffing Store Operations*** .
      We
      currently operate 81 temporary staffing stores serving thousands of customers
      and employing thousands of temporary employees. In the months following the
      roll-up we focused on continuity of operations, reporting, and record keeping.
      Significant management attention has been devoted to assuring that the stores
      are seamlessly integrated into the Company’s corporate environment and culture.
      Rather than opening a large number of additional new stores, in 2007 we will
      focus our efforts on consolidating and refining our existing store operations,
      proving our business model, and operating our business in an efficient
      manner.




During
      the remainder of 2007, we will focus on fostering organic growth to increase
      our
      per-store revenue and profitability through directed selling activities and
      system-wide initiatives to improve the efficiency of our business processes.
      We
      may also seek growth from limited new store openings and growth through
      acquisition of existing locations from third party operators when such
      opportunities arise.


10-QSB
            Page
            17
  We
        manage
        our field operations using in-store personnel, store managers, area managers,
        and corporate management personnel. We have established a national sales
        team to
        drive business to our stores. Our compensation plans for store managers,
        area
        managers, and business development specialists have been designed to aid
        in
        securing the qualified personnel needed to meet our business, financial and
        growth objectives. Our human resources practices are designed to support
        the
        need for attracting, screening, hiring, training, supporting and retaining
        qualified personnel at all levels of our business.





During
      the 13 weeks ended March 30, 2007, we made additional changes in our business
      model and strategy. We began the year with a newly established sales force
      and
      the expectation that the sales force will drive increasing revenue to our
      existing stores. As we progressed through the quarter, we reorganized the
      management team to maintain a flat organizational structure and provide the
      direction and supervision needed for success. We consolidated field supervision
      in the corporate office and have opened a call center to address field
      operations questions consistently and efficiently. We are beginning to see
      the
      results of the sales force through rising activity levels, improving margins
      and
      new customer generation.





As
      described below, the changes to our business in the first quarter of 2007 came
      at a significant cost. Looking forward to the remainder of 2007, we expect
      that
      our first quarter investment in infrastructure and personnel will result in
      increased business and higher margins. We will continue to monitor activity
      levels and operating results as we move through the busy season.





Our
      operating results for the first quarter of 2007 are not comparable to the
      results of operations in the first quarter of 2006. We began operating temporary
      staffing stores in the second quarter of 2006 and are not yet in a position
      to
      provide meaningful comparisons of same store operating results.





**Results
      of Operations**





***13
      Weeks Ended March 30, 2007***





***Revenues*** .
      Revenues were $22,919,852 in the 13 weeks ended March 30, 2007. Revenues
      included $22,854,400 from the provision of temporary staffing services and
      $65,452 from other income. First quarter revenues were impacted by the shift
      from branch sales to an autonomous sales force model, the reorganization of
      the
      branch and sales management teams and the sales training programs attended
      by
      our sales and sales management personnel. We expect to see improving performance
      through the second quarter and into the summer as our sales force gains
      experience in our market areas. At March 30, 2007, we operated 79 temporary
      staffing stores located in 22 states. We expect slow growth in new store
      openings through the remainder of 2007 and expect most of our top line growth
      to
      come from existing stores.




10-QSB
          Page
          18




***Cost
      of Services.*** Total
      cost of services in the 13 weeks ended March 30, 2007 amounted to $17,288,510
      or
      75.6% of revenue from services. Cost of services is comprised of the costs
      of
      providing temporary personnel, including wages, payroll taxes and employee
      benefits, workers’ compensation costs, and other direct costs relating to our
      temporary workers, and transportation, travel costs, safety equipment and other
      costs of services. Our temporary workers’ compensation costs represent a
      significant expense of providing temporary staffing services. In May, 2006,
      we
      negotiated a workers’ compensation plan through AIG that has streamlined our
      workers’ compensation plan and allowed us to control workers’ compensation
      costs. Aggregate workers’ compensation costs for the quarter totaled $1,580,284
      or 6.9% of revenue from services. The increase in workers’ compensation costs in
      the first quarter were the result of an unusual increase in workers’
compensation claims during the period that caused a spike in our workers’
compensation claims paid. Other direct costs of services amounted to
      $128,585.





Our
      gross
      margin of 24.4% was below expectations for 2007. Gross margins were impacted
      by
      an unusual increase in workers’ compensation claims in the quarter and a higher
      than expected amount of contract services business with lower margins. We
      anticipate that margins will increase as we replace low margin opportunities
      with higher margin opportunities in the coming periods. Our sales force is
      currently focused on a solution selling approach that looks to the benefits
      our
      services can offer our customers and we anticipate that this approach will
      drive
      an increase in margins in 2007.





***Operating
      Expenses*** .
      Operating expenses totaled $8,520,701 in the quarter ended March 30, 2007.
      Personnel costs included in the selling, general and administrative section
      of
      the income statement accounted for $4,581,518. The “Personnel costs” referred to
      here represent costs relating to our internal company employees as distinguished
      from similar employment costs relating to our temporary workers, which appear
      under “Cost of Services.” We incurred selling and marketing expenses of
      $490,678, transportation and travel costs of $543,805, office expenses of
      $296,194, rent and lease costs of $586,407, and legal, professional and
      consulting services costs of $535,288. Total selling, general and administrative
      costs amounted to 37.2% of total revenue resulting in a loss for the quarter.





These
      expenses reflect the significant costs incurred to add sales personnel and
      build
      the infrastructure necessary to shift our business model from franchisor to
      an
      operating temporary staffing business, and the costs of building a national
      sales force. We spent approximately $200,000 on sales force training meetings
      during the quarter and approximately $1,000,000 supporting the sales force
      while
      the sales team builds its book of business and ramps up selling activities.
      We
      expect to see a positive impact on our business from directed selling activities
      in the second quarter. We are beginning to see margin increases and
      week-over-week increases in revenues. A portion of this is attributed to
      seasonality factors. We will continue to monitor activity to determine the
      portion of the increases attributable to sales activities.





We
      also
      incurred approximately $200,000 in litigation costs in the first quarter of
      2007
      resulting from a lawsuit filed by a competitor. The lawsuit is described in
      the
      footnotes to the financial statements included with this Form 10-QSB. We
      anticipate that operating expenses will decline as a percentage of revenue
      in
      2007 as our business stabilizes and our revenue base grows. The recent rapid
      increases in personnel costs are also expected to slow during the remainder
      of
      2007 as stabilize our business model and focus on execution.




10-QSB
          Page
          19




We
      do
      expect continuing costs from the national sales force through the rest of 2007.
      We expect the sales force will result in an increase in average revenues per
      store when compared to the branch sales model and will be monitoring this
      process closely in 2007. During the remainder of 2007, we expect that our
      operating margins will grow slowly but steadily and our operating results will
      improve.





***Losses
      from Operations*** .
      We
      incurred losses from operations of $2,889,359 in the 13 weeks ended March 30,
      2007. The losses are primarily attributable to the costs of the roll up
      transaction, the costs of establishing a national sales force, and higher than
      normal professional fees relating to the roll-up transactions, the year end
      audit, the Protrades litigation and the the sales force ramp up and training
      costs. We do not anticipate significant acquisition related expenses in the
      remainder of 2007 and expect the litigation costs to moderate in future periods.
      We are also focused on increasing margins in 2007 and, if this is realized,
      it
      will have a positive effect on operating results.





***Net
      Loss.*** Interest
      expense amounting to $198,758 was partially offset by interest and other income
      of $7,351 resulting in aggregate net losses of $3,080,766 or a loss of $0.13
      per
      share. We expect to increase margins and revenue in the remainder of 2007 and
      anticipate that this will narrow or eliminate our losses as we spread our
      operating costs over a broader revenue base.





***Three
      Months Ended March 31, 2006***





In
      the
      three months ended March 31, 2006 the Company operated as a franchisee of
      temporary staffing businesses. Consequently, the results of operations for
      the
      three months ended March 31, 2006 are not comparable to the results of
      operations for the three months ended March 30, 2007.





***Revenues*** *.* We
      generated $413,349 in franchise fee revenues income in the quarter ended March
      31, 2006. As noted above, we were engaged in the finance business in 2005 and
      with the acquisition of Command Staffing and Harborview in November, 2005,
      our
      business focus changed to franchising. Franchise fee revenues were consistent
      with this focus.





We
      also
      generated $14,676 in other income in the quarter ended March 31, 2006. Other
      income consisted of $9,347 gross revenues from company owned temporary staffing
      stores that were opened during the quarter and $5,329 from other sources. Cost
      of sales on temporary staffing stores revenues amounted to $6,547 resulting
      in
      gross margins from store operations of $2,800. With the acquisition of the
      franchised locations, and expected growth in company owned stores opened in
      the
      first quarter of 2006, we expect future periods to show marked growth in
      temporary staffing store revenues and the associated cost of sales.





***Operating
      Expenses*** *.* We
      incurred total operating expenses of $1,121,279 in the quarter ended March
      31,
      2006. These expenses were consistent with our plan to acquire our franchisees
      and convert our business model from franchisor to temporary staffing store
      operator. During the quarter we consolidated our operations at our new
      headquarters building in Post Falls, Idaho. Compensation and related taxes
      of
      $351,849 were driven by our effort to staff up our accounts receivable, accounts
      payable, accounting, information technology, and human resources departments
      in
      anticipation of the change to temporary staffing store operator. Computer and
      software expenses of $161,671 were driven by the new personnel and their needs
      for office workstations and equipment. Rent of $82,019 resulted from the
      addition of the Post Falls, Idaho headquarters building and the carryover rent
      on the Company’s facility in Phoenix, Arizona. The Phoenix office rent ended in
      July, 2006. We also incurred business development expenses of $138,514 for
      new
      company owned temporary staffing stores opened during the first quarter.
      Professional expenses of $59,554 were driven by the accounting and legal
      services required to document the Command Transaction. In total, general and
      administrative expenses amounted to $1,121,279.




10-QSB
          Page
          20




***Loss
      from Operations*** *.* **** We
      incurred a loss from operations of $699,801 for the quarter ended March 31,
      2006. As noted above, the rapid growth in general and administrative expenses
      was driven by the change in business focus from franchisor to store operator.
      The cost structure for the franchise operations under normal circumstances
      would
      be much lower than the cost structure for a scaled up temporary staffing store
      operator. Since revenues were largely limited to franchise fees for the period,
      and expenses were focused on preparing for store operations, the loss was an
      expected result. We do expect that our losses from operations will continue
      for
      some time while we assimilate the temporary staffing stores into the corporate
      infrastructure and while we impose strict operational controls on our newly
      acquired stores.





Other
      income, consisting of interest and dividend income amounted to $27,498 for
      the
      quarter ended March 31, 2006, bringing the total net loss for the quarter to
      $672,303.





**Liquidity
      and Capital Resources**





At
      March
      30, 2007, we had total current assets of $12,364,644 and $13,451,630 in current
      liabilities, including $1,487,447 in amounts due to affiliates. We had cash
      of
      $847,825, less checks issued and outstanding of $1,214,352, and trade accounts
      receivable of $9,768,323 (net of allowance for bad debts of $400,000).





Weighted
      average aging on our trade accounts receivable at March 30, 2007, was 39 days;
      actual bad debt write-off expense as a percentage of total customer invoices
      during first quarter of 2007 was 0.5%, which is consistent with the bad debt
      experience during the last nine months of 2006 at 0.5%. Our
      accounts receivable are recorded at the invoiced amount. We regularly review
      our
      accounts receivable for collectibility. The allowance for doubtful accounts
      is
      determined based on historical write-off experience and current economic data
      and represents our best estimate of the amount of probable losses on our
      accounts receivable. The allowance for doubtful accounts is reviewed quarterly.
      We typically refer overdue balances to a collection agency at ninety days and
      the collection agent pursues collection for another thirty days. Most balances
      over 120 days past due are written off when it is probable the receivable will
      not be collected. As our business matures, we will continue to monitor and
      seek
      to improve our
      historical collection ratio and aging experience with respect to trade accounts
      receivable.




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We
      will
      require additional capital to fund operations during fiscal year 2007, assuming
      we execute our business model and continue to grow our operations as planned.
      Timing of our cash flow requirements will depend in part on the timing of the
      costs to establish a sales force, the dates on which sales begin to ramp up
      due
      to seasonal fluctuations and new directed selling efforts, and the extent to
      which our actual rate of growth throughout 2007 matches our growth projections
      for 2007.





As
      we
      grow, we will require significant new sources of working capital to fund
      continuing operations and finance the growth of operating store accounts
      receivable. We are now pursuing several alternatives to generate growth capital,
      either through debt or equity, to relieve the expected negative cash flow during
      the first half of 2007.





We
      currently operate under a $9,950,000 line of credit facility with our principal
      lender for accounts receivable financing. The credit facility is collateralized
      with accounts receivable and entitles us to borrow up to 85% of the value of
      eligible receivables. Eligible accounts receivable are generally defined to
      include accounts that are not more than sixty days past due. The loan agreement
      includes limitations on customer concentrations, accounts receivable with
      affiliated parties, accounts receivable from governmental agencies in excess
      of
      5% of the Company’s accounts receivable balance, and when a customer’s aggregate
      past due account exceed 50% of that customer’s aggregate balance due. The credit
      facility includes a 1% facility fee payable annually, and a $1,500 monthly
      administrative fee. The financing bears interest at the greater of the prime
      rate plus two and one half percent (prime +2.5%) or 6.25% per annum. Our line
      of
      credit interest rate at March 30, 2007 was 10.75%. The loan agreement further
      provides that interest is due at the applicable rate on the greater of the
      outstanding balance or $5,000,000. The credit facility expires on April 7,
      2009.
      The balance due our lender at March 30, 2007 was $5,947,989.





The
      line
      of credit facility agreement includes certain financial covenants including
      a
      requirement that we maintain a working capital ratio of 1:1, that we maintain
      positive cash flow, that we maintain a tangible net worth of $2,000,000 through
      March 31, 2007 and $3,500,000 thereafter, and that we achieve operating results
      within a range of projected EBITDA. At March 30, 2007, we were not in compliance
      with these loan covenants. Our lender has not exercised any rights under the
      loan agreement as of April 27, 2007 but we have not obtained a waiver of
      compliance. The balance due our lender at March 30, 2007 was
      $5,947,989.





No
      assurances can be given that we will be able to find additional capital on
      acceptable terms. If additional capital is not available, we may be forced
      to
      scale back operations, lay off personnel, slow planned growth initiatives,
      and
      take other actions to reduce our capital requirements, all of which will impact
      our profitability and long term viability.





**Item
      3.**  **Controls
      and Procedures.**





An
      evaluation was performed by the Company’s president and principal financial
      officer of the effectiveness of the design and operation of disclosure controls
      and procedures. On the basis of that evaluation, the Company’s president and
      principal financial officer concluded that disclosure controls and procedures
      were effective as of March 30, 2007, ensuring that all material information
      required to be filed in this quarterly report was made known to them in a timely
      fashion.




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          22




As
      discussed in our annual report on Form 10-KSB for the 52 week period ended
      December 29, 2006, we have identified areas of internal control weaknesses
      that
      are currently being addressed. We have made progress on procedures designed
      to
      assure the accurate and complete transfer of data from our temporary staffing
      store management software into our accounting system. We are also in the process
      of hiring additional professional accounting staff to strengthen the depth
      of
      accounting knowledge within the finance department. We continue to assess the
      internal control weaknesses on a monthly basis and are focused on resolving
      any
      remaining internal control deficiencies by the end of 2007.





During
      2007, we also plan to conduct an assessment of our controls over financial
      reporting using criteria established in “Internal Control - Integrated
      Framework” issued by the Committee of Sponsoring Organizations of the Treadway
      Commission (“COSO”). In connection with the assessment, we will document all
      significant accounting procedures and determine whether they are designed
      effectively and are operating as designed.





Except
      as
      noted above, there have been no changes in our internal controls over financial
      reporting during the quarter ended March 30, 2007 that have materially affected
      or are reasonably likely to materially affect our internal controls over
      financial reporting.





**PART
      II**





**Item
      2. Unregistered Sales of Equity Securities.**





The
      Company is in the process of amending our Articles of Incorporation to create
      40,000 shares of Series A Preferred Stock. The Company’s Articles of
      Incorporation originally established authority in the Board of Directors to
      issue up to 5,000,000 shares of preferred stock in one or more series bearing
      such relative powers, preferences, and rights as the Board of Directors may
      decide.





The
      Series A Preferred Stock includes the following powers, preferences and
      rights:





1.
            The
                shares bear a cumulative dividend of 8% per
                annum.





2.
            The
                shares have no voting rights unless and until converted into common
                stock
                or, in the event of certain significant corporate actions. The Series
                A
                Preferred Stock constitutes a separate class of securities and may
                be
                entitled to class voting.





3.
            The
                Series A Preferred Stock may be redeemed at any time after the market
                price for the shares exceeds $6.00 per share for 30 consecutive trading
                days. The Series A Preferred Stock shall be redeemed on or before
                March
                21, 2011. The redemption price is $100 per share plus unpaid
                dividends.





4.
            The
                Series A Preferred Stock may be converted into common stock at any
                time
                after purchase at a conversion ratio equivalent to $3.00 per share,
                subject to adjustment to reflect stock splits and other changes in
                capital
                structure.






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          23







5.
            The
                Series A Preferred Stock includes anti-dilution provisions that will
                adjust the conversion ratio if the Company issues additional shares
                for
                consideration less than $3.00 per
                share.





6.
            The
                Series A Preferred Stock also bears a liquidation preference of $100.00
                per share plus any accumulated but unpaid
                dividends.


7.
            No
                sinking fund for redemption of the Series A Preferred Stock has been
                established.


8.
            No
                registration rights have been granted in respect of the Series A
                Preferred
                Stock or the Common Stock issuable on conversion of the Series A
                Preferred
                Stock.





Once
      the
      articles of amendment are filed, we will offer the Series A Preferred Stock
      to
      investors in a private offering. As of March 30, 2007, subscriptions for 5,000
      shares of Series A Preferred Stock ($500,000) have been received and are
      recorded as Preferred Stock Subscribed.





We
      also
      issued shares of our common stock for acquisitons, payment of consulting fees
      and as severance pay terminated employees. 200,000 shares were issued as a
      portion of the consideration for the acquisition of temporary staffing store
      assets from Anytime Labor, Inc. Management estimated the value of the shares
      issued in the Anytime asset acquisition at $4.56 per share as provided in the
      acquisition agreement. We issued 98,591 shares of common stock for prepaid
      sales
      force training services. Management estimated the value of these shares at
      $3.96
      per share in accordance with the consulting services agreement. We issued 26,000
      shares to terminated employees as severance pay. Management estimated the value
      of the severance pay shares at $2.64 per share on the dates of issuance.





All
      of
      the unregistered securities described above were subscribed for or issued in
      accordance with exemptions from the registration requirements of the Securities
      Act of 1933 (the Act) under Section 4(2) and/or Rule 506 of Regulation D adopted
      under the Act and D and the corresponding exemption from registration afforded
      under the laws of the various states in which investors may reside. The
      certificates representing the Common Stock and the Series A Preferred Stock
      issued will be restricted securities and will bear a legend restricting further
      transfer unless the shares are first registered or an exemption from
      registration is established to the satisfaction of the Company. The shares
      subscribed for or issued as described above were placed by officers and
      directors of the Company and no commissions were paid in respect of the
      placements.





**Item
      6. Exhibits and Reports on Form 8-K.**




Exhibit
                No.
            
            Description
            
            Page
                #10.1
            
            Acquisition
                agreement: Asset Purchase Agreement dated as of February 19, 2007
                by and
                among Command Center, Inc. (formerly Temporary Financial Services,
                Inc.)
                and Anytime Labor, Inc.
            
            30




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          24




**SIGNATURES**





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





COMMAND
      CENTER, INC.




/s/
                Glenn Welstad
            
            President
                and CEO
            
            Glenn
                Welstad
            
            May
                14, 2007Signature
            
            Title
            
            Printed
                Name
            
            Date




/s/
                  Brad E. Herr
              
              CFO,
                  Principal Financial Officer
              
              Brad
                  E. Herr
              
              May
                  14, 2007Signature
              
              Title
              
              Printed
                  Name
              
              Date




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