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 **June
      29, 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.


Yes x No
o





The
      number of shares of common stock outstanding on August 3, 2007 was:


24,351,034





Transitional
      Small Business Disclosure Format.


Yes o No
x




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act).


Yes o 
No
x




10-QSB
          Page
          1




**Command
      Center, Inc.**





**Contents**








**FORM
      10-QSB**




Page**PART I**Item 1. Financial Statements
              (unaudited)
            
            10-QSB
                Page 3Management
                Statement
            
            10-QSB
                Page 3Balance
                Sheet at June 29, 2007
            
            10-QSB
                Page 4Statements
                of Operations for the thirteen and twenty-six week
                periods ended
                June 29, 2007 and June 30, 2006
            
            10-QSB
                Page 5Statements
                of Cash Flows for the twenty-six week periods ended
                June 29, 2007 and June 30, 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 16Item 3. Controls and Procedures
            
            10-QSB
                Page 21**PART II**Item 2. Unregistered Sales of Equity
              Securities
            
            10-QSB
                Page 22Item 6. Exhibits and Reports on Form
              8-K
            
            10-QSB
                Page 22**Signatures**
            
            10-QSB
                Page 23**Certifications**
            
            10-QSB
                Page
                24-27




10-QSB
          Page
          2


PART
      I





Item
      1.  Financial
      Statements.





MANAGEMENT
      STATEMENT





The
      accompanying (unaudited) balance sheet of Command Center, Inc. as of June 29,
      2007, and the related statements of operations for the thirteen and twenty-six
      week periods ended June 29, 2007 and June 30, 2006, and cash flows for the
      twenty-six week periods ended June 29, 2007 and June 30, 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.


August
      13, 2007





10-QSB
          Page
          3




**Command
      Center, Inc.**





**Balance
        Sheet (Unaudited)**


June
                  29, 2007***Assets****CURRENT
                  ASSETS:*Cash
                  and cash equivalents
              
              $
              101,493Accounts
                  receivable - trade, net of allowance forbad
                  debts of $370,000
              
              
              9,554,812Prepaid
                  expenses, deposits, and other
              
              
              1,358,618Prepaid
                  workers' compensation insurance
              
              
              1,849,244Workers'
                  compensation risk pool deposits - current
              
              
              964,000Total
                  current assets
              
              
              13,828,167*PROPERTY
                  AND EQUIPMENT, NET*
              
              
              3,490,792*OTHER
                  ASSETS:*Workers'
                  compensation risk pool deposits - non-current
              
              
              4,251,317Goodwill
              
              
              32,481,129Amortizable
                  intangibles - net
              
              
              780,054Notes
                  receivable, non-current
              
              
              17,155Total
                  other assets
              
              
              37,529,655$
              54,848,614***Liabilities
                  and Stockholders' Equity****CURRENT
                  LIABILITIES:*Accounts
                  payable
              
              
              1,378,786Accrued
                  payroll, benefits and taxes
              
              
              4,054,982Line
                  of credit facility
              
              
              6,011,560Notes
                  payable
              
              
              2,008,446Notes
                  payable affiliates
              
              
              546,238Workers'
                  compensation insurance and reserves payable
              
              
              4,161,480Workers'
                  compensation claims liability - current
              
              
              964,000Total
                  current liabilities
              
              
              19,125,492*LONG-TERM
                  LIABILITIES*Notes
                  payable net of current portion
              
              
              409,911Finance
                  obligation
              
              
              1,125,000Workers'
                  compensation claims liability - non-current
              
              
              1,381,979Total
                  long term liabilities
              
              
              2,916,890*COMMITMENTS
                  AND CONTINGENCIES**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, authorized24,351,034
                  shares issued and outstanding
              
              
              24,350Additional
                  paid-in capital
              
              
              39,384,369Accumulated
                  deficit
              
              
              (6,602,487
              )Total
                  stockholders' equity
              
              
              32,806,232$
              54,848,614


See
        accompanying notes to unaudited financial statements.




10-QSB
          Page
          4


**Command
        Center, Inc.**
 
 **Statements
          of Operations (Unaudited)**


Thirteen
                  Weeks Ended
              
              Twenty-six
                  Weeks EndedJune
                  29, 2007
              
              June
                  30, 2006
              
              June
                  29, 2007
              
              June
                  30, 2006*REVENUE:*Staffing
                  services revenue
              
              $
              25,061,008
              
              $
              17,684,161
              
              $
              47,915,408
              
              $
              17,684,161Franchise
                  fee revenues
              
              
              -
              
              
              122,396
              
              
              -
              
              
              535,745Other
                  income
              
              
              60,400
              
              
              -
              
              
              125,852
              
              
              14,676Total
                  revenue
              
              
              25,121,408
              
              
              17,806,557
              
              
              48,041,260
              
              
              18,234,582*COST
                  OF STAFFING SERVICES*
              
              
              17,899,936
              
              
              13,088,445
              
              
              35,188,446
              
              
              13,094,992*GROSS
                  PROFIT*
              
              
              7,221,472
              
              
              4,718,112
              
              
              12,852,814
              
              
              5,139,590*OPERATING
                  EXPENSES:*Compensation
                  and related expenses
              
              
              4,633,082
              
              
              3,442,598
              
              
              9,214,599
              
              
              3,794,447Selling
                  and marketing expenses
              
              
              354,043
              
              
              90,082
              
              
              844,721
              
              
              228,596Professional
                  expenses
              
              
              405,797
              
              
              359,968
              
              
              941,085
              
              
              419,522Depreciation
                  and amortization
              
              
              211,135
              
              
              74,718
              
              
              407,408
              
              
              104,032Rent
              
              
              644,295
              
              
              485,339
              
              
              1,230,702
              
              
              485,339Other
                  expenses
              
              
              1,910,935
              
              
              1,125,816
              
              
              4,041,473
              
              
              1,667,8648,159,287
              
              
              5,578,521
              
              
              16,679,988
              
              
              6,699,800*LOSS
                  FROM OPERATIONS*
              
              
              (937,815
              )
              
              (860,409
              )
              
              (3,827,174
              )
              
              (1,560,210
              )*OTHER
                  INCOME/(EXPENSE)*Interest
                  expense
              
              
              (384,154
              )
              
              (79,468
              )
              
              (582,912
              )
              
              (79,468
              )Interest
                  and dividend income
              
              
              2,301
              
              
              7,834
              
              
              9,652
              
              
              35,332Total
                  other income/(expense)
              
              
              (381,853
              )
              
              (71,634
              )
              
              (573,260
              )
              
              (44,136
              )*NET
                  LOSS*
              
              $
              (1,319,668
              )
              $
              (932,043
              )
              $
              (4,400,434
              )
              $
              (1,604,346
              )*LOSS
                  PER SHARE - BASIC*
              
              $
              (0.06
              )
              $
              (0.06
              )
              $
              (0.19
              )
              $
              (0.12
              )*WEIGHTED
                  AVERAGE COMMON**SHARES
                  OUTSTANDING*
              
              
              23,844,680
              
              
              16,366,678
              
              
              23,724,395
              
              
              13,233,751




See
      accompanying notes to unaudited financial statements.







10-QSB
          Page
          5


**Command
          Center, Inc.**
 
 **Statements
            of Cash Flows (Unaudited)**


Twenty-six
                  Weeks EndedJune
                  29, 2007
              
              June
                  30, 2006***Increase
                  (Decrease) in Cash****CASH
                  FLOWS FROM OPERATING ACTIVITIES:*Net
                  loss
              
              $
              (4,400,434
              )
              $
              (1,604,346
              )Adjustments
                  to reconcile net loss to net cash used by operating
                  activities:Depreciation
                  and amortization
              
              
              407,408
              
              
              127,032Amortization
                  of note receivable discount
              
              
              -
              
              
              9,948Allowance
                  for bad debts
              
              
              30,000
              
              
              -Stock
                  issued for interest and compensation
              
              
              180,640
              
              
              -Changes
                  in assets and liabilitiesAccounts
                  receivable - trade, net
              
              
              (256,664
              )
              
              (2,466,769
              )Due
                  from affiliates
              
              
              -
              
              
              149,188Prepaid
                  expenses
              
              
              (1,705,096
              )
              
              (1,808,698
              )Workers'
                  compensation risk pool deposits
              
              
              (3,162,607
              )
              
              (2,405,000
              )Accounts
                  payable - trade
              
              
              481,180
              
              
              703,110Amounts
                  due to affiliates
              
              
              (982,315
              )
              
              (122,366
              )Accrued
                  expenses
              
              
              2,096,807
              
              
              759,145Workers'
                  compensation insurance and risk pool deposits
                  payable
              
              
              3,351,815
              
              
              3,441,087Workers'
                  compensation claims liability
              
              
              923,270
              
              
              222,709Total
                  adjustments
              
              
              1,364,438
              
              
              (1,390,614
              )Net
                  cash used by operating activities
              
              
              (3,035,996
              )
              
              (2,994,960
              )*CASH
                  FLOWS FROM INVESTING ACTIVITIES:*Purchases
                  of property and equipment
              
              
              (406,559
              )
              
              (385,343
              )Purchase
                  of Anytime Labor
              
              
              (247,500
              )
              
              -Collections
                  on note receivable
              
              
              118,384
              
              
              89,871Proceeds
                  from sale of investments
              
              
              -
              
              
              404,000Net
                  cash provided by (used by) investing activities
              
              
              (535,675
              )
              
              108,528*CASH
                  FLOWS FROM FINANCING ACTIVITIES:*Net
                  advances on line of credit facility
              
              
              286,414
              
              
              828,064Change
                  in checks issued and outstanding
              
              
              (849,396
              )
              
              369,609Advances
                  payable
              
              
              (200,000
              )
              
              848,915Sale
                  of common stock
              
              
              730,000
              
              
              -Sale
                  of preferred stock
              
              
              -
              
              
              470,000Debt
                  financing
              
              
              2,315,279
              
              
              -Net
                  cash provided by financing activities
              
              
              2,282,297
              
              
              2,516,588*NET
                  INCREASE (DECREASE) IN CASH*
              
              
              (1,289,374
              )
              
              (369,844
              )*CASH,
                  BEGINNING OF PERIOD*
              
              
              1,390,867
              
              
              369,844*CASH,
                  END OF PERIOD*
              
              $
              101,493
              
              $
              -*NON-CASH
                  INVESTING AND FINANCING ACTIVITIES*Common
                  stock issued for acquisition of:Accounts
                  receivable, net
              
              $
              -
              
              $
              6,687,276Property,
                  plant and equipment
              
              
              -
              
              
              603,184Prepaid
                  expenses
              
              
              390,860
              
              
              -Financing
                  liability assumed
              
              
              -
              
              
              (4,258,878
              )Payables
                  assumed in acquisitons
              
              
              -
              
              
              (876,676
              )Goodwill
                  and intangible assets
              
              
              -
              
              
              30,088,752Assets
                  acquired in Anytime Labor purcahse
              
              
              912,000
              
              
              -Total
              
              $
              1,302,860
              
              $
              32,243,658Debt
                  assumed in Anytime Labor purchase
              
              $
              252,500
              
              $
              -




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 2007 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 twenty-six weeks ended June 29, 2007, and required no adjustment to opening
      balance sheet accounts as of December 30, 2006.





In
      September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements, (“SFAS
      157”), which will become effective in our 2008 financial statements. SFAS 157
      establishes a framework for measuring fair value and expands disclosure about
      fair value measurements, but does not require any new fair value measurements.
      We have not yet determined the effect that adoption of SFAS 157 may have on
      our
      results of operations or financial position.





10-QSB
          Page
          7


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


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.





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








Basic
      earnings (loss) 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 June 29, 2007, the Company had 200,000 warrants outstanding
      entitling the holder to purchase 200,000 shares of common stock at $3.00 per
      share. The warrants expire on April 1, 2009.





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








On
      January 1, 2007, we agreed to acquire 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 and twenty-six week periods ended June 29, 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




10-QSB
          Page
          8


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


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. This amount was repaid to Mr. Welstad in the second quarter.





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. The Company has recorded
      the building transaction as a financing lease and records payments to Mr.
      Coghlan as interest expense in the amount of $10,000 per month.





*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 June 29, 2007 and June
      30,
      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 exceeds 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 June 29, 2007, we were not in compliance with these loan
      covenants. Our lender has waived compliance with the covenants as of June 29,
      2007. The balance due our lender at June 29, 2007 was $6,011,560.





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








As
      of
      June 29, 2007, notes payable to affiliates are as follows:


Glenn
                  Welstad(1)
              
              $
              360,654Dwight
                  Enget(2)
              
              
              94,091Tom
                  Gilbert(2)
              
              
              60,306Tom
                  Hancock(2)
              
              
              27,659Ronald
                  L. Junck(2)
              
              
              2,714Todd
                  Welstad(2)
              
              
              814$
              546,238Other
                  affiliated former owners of temporarystaffing
                  stores(3)
              
              $
              409,911





(1)
            Mr.
                Welstad is our CEO and a director. The amount due Mr. Welstad includes
                balances owing for new store surcharge fees, accrued salary owed
                from
                2006, other assumed liabilities in connection with equipment purchases
                and
                other expenses related to our acquisition of temporary staffing stores,
                the Anytime Labor acquisitions, and additional advances for working
                capital.




10-QSB
          Page
          10


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





(2)
            Mr.
                Enget, Mr. Gilbert, Mr. Hancock, Mr. Junck, and Mr. Todd Welstad
                are
                directors and officers of the Company. The amounts due consist of
                liabilities incurred in connection with the purchase of temporary
                staffing
                stores owned or controlled by them in
                2006.





(3)
            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 Company
      has reached agreement with each of the affiliated note holders to convert the
      notes payable into common stock at a conversion price of $1.50 per share. The
      conversion will occur in July, 2007.





***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 13, 2007 through May 12, 2008. 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, 2007 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 $3,920,000
      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 workers’ 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 $7,500,000 or 10.1% of payroll expenses incurred during the
      premium year.





The
      workers’ compensation risk pool deposits totaled $5,215,317 as of June 29, 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 $2,925,679 in the twenty-six weeks ended
      June 29, 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 two 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.





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.




10-QSB
          Page
          12


**NOTES
            TO THE UNAUDITED FINANCIAL STATEMENTS OF COMMAND CENTER,
            INC.**
 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 June 29, 2007, we owed
      the
      entities responsible for these taxes $956,149 in settlement of the acquisitions
      and in repayment of various advances to the Company. We anticipate that we
      will
      convert $546,238 of the balances due to various affiliated responsible parties
      into common stock in the third quarter.





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 $700,000
      and $800,000.





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 $800,000 and $1,300,000.
      Our outside legal counsel has advised us that the potential for successor
      liability on the IRS claims is remote. Through June 29, 2007, the selling
      entities had paid $700,000 toward resolution of the IRS claims.





We
      have
      not accrued any amounts for these contingent payroll and other tax liabilities
      at June 30, 2007, because we believe the selling entities and their principals
      have adequate resources to meet these obligations and have indicated through
      their actions to date that they fully intend to pay the amounts due. We have
      also not accrued any amounts for the contingent IRS liabilities because our
      counsel has advised us that the probability of successor liability is remote.
      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 June 29, 2006 are:




Remainder of 2007
            $
            623,1952008
            
            1,152,3722009
            
            916,3712010
            
            539,4942011
            
            169,114





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.





*Payroll
      Tax Penalties and Interest.* As
      of
      June 29, 2007, the Company was delinquent in the payment of various payroll
      tax
      obligations totaling approximately $720,000. The Company has communicated with
      the various taxing authorities and has or is in the process of making
      arrangements to pay these delinquent tax liabilities. The Company anticipates
      that penalties and interest for late payments may be incurred in connection
      with
      these delinquencies and has accrued $100,000 as an estimated reserve against
      such amounts. If penalties and interest exceed amounts recorded as liabilities
      through June 29, 2007, the company’s financial condition could be adversely
      affected. The amount of any such additional penalties and interest is unknown
      at
      this time. Management is working with the taxing authorities and will attempt
      to
      negotiate reduction or elimination of penalties and interest where possible.





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








In
      the
      twenty-six week period ended on June 29, 2007, the Company issued an aggregate
      of 859,172 shares of Common Stock. The shares of Common Stock were issued for
      asset acquisitions, payment of consulting fees, as severance pay to terminated
      employees, and for new investment in a private placement of 476,666 shares.
      10,000 shares were sold in the first quarter at $3.00 per share and 466,666
      were
      sold in the second quarter at $1.50 per share. 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 Labor asset acquisition at $4.56 per share as provided
      in
      the acquisition agreement (See Note 4). We issued 98,951 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 66,000 shares to terminated employees as severance pay.
      Management estimated the value of the severance pay shares on the dates of
      issuance and recorded an aggregate of $130,640 as compensation expense in the
      period.





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








In
      the
      first quarter, the Company undertook to create a series of Preferred Stock
      to be
      offered in a private placement. The Company received a subscription for $500,000
      of the Series A Preferred Stock prior to the end of the first quarter and
      recorded that amount as a Preferred Stock Subscribed. Upon further discussions
      with the investor in the second quarter, the investor determined that he would
      prefer common stock. The stock subscription was converted to a common stock
      investment as of June 29, 2007, and no Series A Preferred Shares have been
      created or issued.




10-QSB
          Page
          14


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


In
      July,
      2007, the Company converted $546,238 in notes payable to affiliates to common
      stock. The affiliate notes were valued at face value for purposes of the
      conversion. Common stock issued on conversion of the affiliated notes payable
      was priced at $1.50 per share resulting in the issuance of an aggregate of
      364,159 shares.





The
      Company also converted the new store surcharge payable to Glenn Welstad into
      an
      obligation payable in common stock. The new store surcharge agreement was valued
      at the net present value of expected future obligations based on the assumption
      that we will open 250 new stores through December 31, 2011, using a discount
      rate of 15%. The obligation will be satisfied through issuance of common stock
      at the rate of 2,200 shares per new store opening until such time as the Company
      has opened 250 stores. The common shares that will be issued to satisfy this
      obligation will be valued at the time of each new store opening.





10-QSB
          Page
          15


**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 74 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 are
      focusing 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 work for 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
          16




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 twenty-six weeks ended June 29, 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 provide the direction and supervision needed for success.
      We
      consolidated field supervision in the corporate office and we are beginning
      to
      see the results of these steps through rising activity levels, improving margins
      and new customer generation. We have also reorganized our sales force to tighten
      control and accountability for results.





As
      described below, the changes to our business in the first half of 2007 came
      at a
      significant cost. Looking forward to the remainder of 2007, we expect that
      our
      investment in infrastructure and personnel will result in increased business,
      top line sales growth and strong momentum heading into 2008. We will continue
      to
      monitor activity levels and operating results as we move through the busy
      season.





Our
      operating results for the first half of 2007 are not comparable to the results
      of operations in the first half of 2006. We began operating temporary staffing
      stores in the second quarter of 2006. Operating results for the thirteen week
      periods ended June 29, 2007 and June 30, 2006 are comparable.





10-QSB
          Page
          17




**Results
      of Operations**





***Thirteen
      Weeks Ended June 29, 2007 Compared to the Thirteen Weeks Ended June 30,
      2006***





The
      following table compares the operating results for the thirteen weeks ended
      June
      29, 2007 and June 30, 2006:


Thirteen
                  Weeks EndedJune
                  29, 2007
              
              June
                  30, 2006
              
              %
                  ChangeRevenue
              
              $
              25,121,408
              
              
              
              
              $
              17,806,557
              
              
              
              
              
              41
              %Cost
                  of staffing services
              
              
              17,899,936
              
              
              71.3
              %
              
              13,088,445
              
              
              73.5
              %
              
              37
              %Gross
                  profit
              
              
              7,221,472
              
              
              28.7
              %
              
              4,718,112
              
              
              26.5
              %
              
              53
              %Selling,
                  general and administrative services
              
              
              7,948,152
              
              
              31.6
              %
              
              5,503,803
              
              
              30.9
              %
              
              44
              %Depreciation
                  and amortization
              
              
              211,135
              
              
              0.8
              %
              
              74,718
              
              
              0.4
              %
              
              183
              %Interest
                  expense
              
              
              384,154
              
              
              1.5
              %
              
              79,468
              
              
              0.4
              %
              
              383
              %Interest
                  and other income
              
              
              2,301
              
              
              0.0
              %
              
              7,834
              
              
              0.0
              %
              
              -71
              %Net
                  loss
              
              $
              (1,319,668
              )
              
              -5.3
              %
              $
              (932,043
              )
              
              -5.2
              %
              
              42
              %





***Revenues*** .
      Revenues increased 41% in the thirteen weeks ended June 29, 2007 compared to
      the
      same period a year earlier. The increase is primarily the result of the increase
      in the number of stores that operated for the full thirteen week period.
      Revenues were also impacted by the efficiencies gained from consolidating
      separate franchisee operations into a single company with standardized practices
      and a more focused direction. At June 29, 2007 and June 30, 2006, the Company
      operated 74 temporary staffing stores. Of the stores open on June 30, 2006,
      48
      were operated by the company for the entire quarter, 9 were acquired on June
      30,
      2006, and 17 new stores were opened by the company at various times during
      the
      period.





***Cost
      of Services.*** Cost of
      services grew 37% in
      the
      thirteen weeks ended June 29, 2007 compared to the thirteen weeks ended June
      30,
      2006 .
      This
      growth rate was slower than the growth in revenues, resulting in improved gross
      profit between periods. The improvement in cost of services as a percentage
      of
      revenue resulted from our efforts to increase margins through directed sales
      efforts, the institution of margin controls, and our focus on controlling
      workers’ compensation costs. Gross profit margins increased to 28.7% in the
      thirteen weeks ended June 29, 2007 compared to 26.5% for the comparable period
      in 2006.





***Selling,
      General and Administrative Expenses.*** As
      a
      percentage of revenue, selling, general and administrative expenses increased
      to
      31.6% in the thirteen weeks ended June 29, 2007 compared to 30.9% in the
      thirteen weeks ended June 30, 2006. The increase in selling, general and
      administrative expenses was the result of the growth in infrastructure necessary
      to support the company’s business plan and future growth initiatives. In
      addition, the creation of a dedicated selling force near the end of 2006 and
      early in 2007 added significantly to selling, general and administrative
      expenses in the thirteen weeks ended June 29, 2007.





***Depreciation
      and Amortization Expenses.*** Depreciation and amortization expenses increased in the thirteen weeks ended
      June 29, 2007 to 0.8% of revenue compared to 0.4% of revenue for the thirteen
      weeks ended June 30, 2006. This increase is the result of acquisition of
      additional assets and customer lists between periods.





***Interest
      Expense.*** Interest
      expense increased to 1.5% of revenue in the thirteen weeks ended June 29, 2007,
      compared to 0.4% of revenue in the comparable period in 2006. The increase
      is a
      result of additional borrowing in 2007. In the thirteen weeks ended June 30,
      2006, the Company had only recently acquired the operating stores and had not
      yet fully assimilated the businesses into the new corporate operating structure.
      The growth in revenues in the thirteen weeks ended June 29, 2007 compared to
      the
      thirteen weeks ended June 30, 2006 also necessitated higher borrowing
      levels.





10-QSB
          Page
          18





***Net
      Loss.*** As a
      percentage of revenue, our net loss increased only slightly to 5.3% in the
      thirteen weeks ended June 29, 2007 compared to 5.2% the thirteen weeks ended
      June 30, 2006. The slight increase reflects our continuing efforts to control
      costs as we grow. The increase in selling general and administrative costs
      necessary for our growth oriented infrastructure were substantially offset
      by
      improved margins.





***Twenty-six
      Weeks Ended June 29, 2007 Compared to the Twenty-six Weeks Ended June 30,
      2006***





The
      following table provides a side by side comparison of the twenty-six week period
      results for 2007 and 2006. The twenty-six week period ended June 30, 2007 is
      not
      comparable to the twenty-six week period ended June 30, 2006. We operated as
      a
      franchisor in the first quarter of 2006 and did not undertake active temporary
      staffing store operations until April 1, 2006. The temporary staffing store
      operations model generates significantly more revenue and expense than the
      franchisor business model.


Twenty-six
                  Weeks EndedJune
                  29, 2007
              
              June
                  30, 2006
              
              %
                  ChangeRevenue
              
              $
              48,041,260
              
              
              
              
              $
              18,234,582
              
              
              
              
              
              163
              %Cost
                  of staffing services
              
              
              35,188,446
              
              
              73.2
              %
              
              13,094,992
              
              
              71.8
              %
              
              169
              %Gross
                  profit
              
              
              12,852,814
              
              
              26.8
              %
              
              5,139,590
              
              
              28.2
              %
              
              150
              %Selling,
                  general and administrative services
              
              
              16,272,580
              
              
              33.9
              %
              
              6,595,768
              
              
              36.2
              %
              
              147
              %Depreciation
                  and amortization
              
              
              407,408
              
              
              0.8
              %
              
              104,032
              
              
              0.6
              %
              
              292
              %Interest
                  expense
              
              
              (582,912
              )
              
              -1.2
              %
              
              (79,468
              )
              
              -0.4
              %
              
              634
              %Interest
                  and other income
              
              
              9,652
              
              
              0.0
              %
              
              35,332
              
              
              0.2
              %
              
              -73
              %Net
                  loss
              
              $
              (4,400,434
              )
              
              -9.2
              %
              $
              (1,604,346
              )
              
              -8.8
              %
              
              174
              %




***Revenues*** *.* Revenues
      increased 163% to $48,041,260 for the twenty-six weeks ended June 29, 2007
      compared to $18,234,582 for the twenty-six weeks ended June 30, 2006. In 2007,
      we operated as a temporary staffing store business for all twenty-six weeks,
      compared to only thirteen weeks in 2006.





***Cost
      of Staffing Services*** .
      As a
      percentage of revenue, cost of staffing services increased to 73.2% in the
      thirteen weeks ended June 29, 2007 compared to 71.8% the thirteen weeks ended
      June 30, 2006. As noted, the Company generated revenue from franchise operations
      in the first quarter of 2006 and franchise revenues did not include a cost
      of
      services component. This had the effect of decreasing cost of staffing services
      as a percentage of revenue. For the twenty-six weeks ended June 29, 2007, the
      company’s cost of services was above expectations, primarily as a result of
      higher than expected workers’ compensation costs. During the first quarter, we
      experienced an unusual increase in workers’ compensation claims that caused a
      spike in our compensation claims paid. Our loss history normalized in the second
      quarter. As a result of the increase in costs of staffing services in the
      twenty-six weeks ended June 29, 2007, our gross profit for the period was below
      expectations.




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          19




***Selling,
      General and Administrative Expenses.*** As
      a
      percentage of revenue, selling, general and administrative expenses decreased
      to
      33.9% in the twenty-six weeks ended June 29, 2007 compared to 36.2% in the
      twenty-six weeks ended June 30, 2006. The decrease in selling, general and
      administrative expenses was the result of the growth in revenues and the ability
      to spread these costs over a broader revenue base.





***Depreciation
      and Amortization Expenses.*** Depreciation and amortization expenses increased in the twenty-six weeks ended
      June 29, 2007 to 0.8% of revenue compared to 0.6% of revenue for the twenty-six
      weeks ended June 30, 2006. This increase is the result of acquisition of
      additional assets and customer lists between periods.





***Interest
      Expense.*** Interest
      expense increased to 1.2% of revenue in the twenty-six weeks ended June 29,
      2007, compared to 0.4% of revenue in the comparable period in 2006. The increase
      is a result of additional borrowing in 2007. In the twenty-six weeks ended
      June
      30, 2006, the Company had only recently acquired the operating stores and had
      not yet fully assimilated the businesses into the new corporate operating
      structure. The growth in revenues in the twenty-six weeks ended June 29, 2007
      compared to the twenty-six weeks ended June 30, 2006 also necessitated higher
      borrowing levels.





***Net
      Loss.*** As a
      percentage of revenue, our net loss increased to 9.2% in the twenty-six weeks
      ended June 29, 2007 compared to 8.8% in the twenty-six weeks ended June 30,
      2006. The decrease in selling general and administrative costs substantially
      offset the increase in cost of staffing services and interest expense resulting
      in only a small increase in our net loss.





**Liquidity
      and Capital Resources**





At
      June
      29, 2007, we had cash of $101,493, total current assets of $13,828,167, and
      total current liabilities of $19,125,492, including $546,238 due to affiliates.
      Our trade accounts receivable total $9,554,812 net of the allowance for doubtful
      accounts of $370,000.





Weighted
      average aging of our trade accounts receivable was 38 days at June 29, 2007,
      representing a one day improvement over the thirteen week period ended March
      30,
      2006. Actual bad debt write-off expense as a percentage of total customer
      invoices during twenty-six weeks ended June 29, 2007 was 0.5%, which is
      consistent with our expectations. 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.




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
      seasonal fluctuations, the effectiveness of directed selling efforts, and the
      extent to which our actual rate of growth throughout 2007 matches our growth
      projections for 2007.





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          20





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
      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 exceeds 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 June 29, 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 June 29, 2007 was $6,011,560.





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 $3,500,000, and
      that we achieve operating results within a range of projected EBITDA. At June
      29, 2007, we were not in compliance with these loan covenants. Our lender has
      waived compliance with these loan covenants for the period ended June 29,
      2007.





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 June 29, 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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          21





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 thirteen weeks ended June 29, 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.**





In
      the
      thirteen weeks ended June 29, 2007, the Company sold 466,666 shares of common
      stock in a private offering at $1.50 per share or an aggregate of $700,000.
      We
      also issued 40,000 shares of our common stock as severance pay to terminated
      employees, and 17,555 shares of common stock in payment of interest on the
      finance obligation relating to our Post Falls Office Building. Management
      estimated the value of the severance pay shares at $1.40 and $1.64 per share
      based 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 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.**





**·**
            Current
                report on Form 8-K dated May 31, 2007 reporting Item 5.02 - Departure
                of
                Directors setting forth the resignation of John R. Coghlan as a director
                and chairman of the audit
                committee.




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          Page
          22





**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
            
            August
                13, 2007Signature
            
            Title
            
            Printed
                  Name
            
            Date/s/
              Brad E. Herr
            
            CFO,
                Principal Financial Officer
            
            Brad
                E. Herr
            
            August
                13, 2007Signature
            
            Title
            
            Printed
                Name
            
            Date





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