| Delaware                                 | 20-5456087                                |
|-----------------------------------------------|-------------------------------------------|
| (State      of jurisdiction of Incorporation) | (I.R.S.      Employer Identification No.) |
|                                          |                                      |

| 10801      Johnston Road. Suite 210                         Charlotte,      NC                          (Address      of Principal Executive Offices) |   |  28226(Zip      Code) |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|

| Large      accelerated filer [  ] |   |   |   | Accelerated      filer [  ] |
|---------------------------------------------|--------|--------|--------|---------------------------------------|

| Non-accelerated      filer [  ] | (Do      not check if a smaller reporting company) |   |   | Smaller      reporting company [X] |
|-------------------------------------------|----------------------------------------------------|--------|--------|------------------------------------|

----

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|                                             | Page                                                                                                                                  |
|--------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|
|                                             |                                                                                                                                  |
| PART      I.  FINANCIAL INFORMATION    |                                                                                                                                  |
|                                             |                                                                                                                                  |
| Item      1.                                     | Financial      Statements                                                                                                             |        4 |
|                                             |                                                                                                                                  |   |
|                                             | Consolidated      Balance Sheets as of March 31, 2009 (unaudited) and December 31,      2008                                          |        4 |
|                                             |                                                                                                                                  |   |
|                                             | Consolidated      Statements of Operations for the Three Months Ended March 31, 2009      and 2008 (unaudited)                   |        5 |
|                                             |                                                                                                                                  |   |
|                                             | Consolidated      Statements of Changes in Stockholders’ Equity for the Three Months      Ended March 31, 2009 (unaudited) |        6 |
|                                             |                                                                                                                                  |   |
|                                             | Consolidated      Statements of Cash Flows for Three Months Ended March 31, 2009 and 2008      (unaudited)                            |        7 |
|                                             |                                                                                                                                  |   |
|                                             | Notes      to Consolidated Financial Statements                                                                                       |        8 |
|                                             |                                                                                                                                  |   |
| Item      2.                                     | Management's      Discussion and Analysis of Financial Condition and Results of      Operations                                       |        19 |
|                                             |                                                                                                                                  |   |
| Item      3.                                     | Quantitative      and Quantitative Disclosures about Market Risk                                                                      |        23 |
|                                             |                                                                                                                                  |   |
| Item      4.                                     | Controls      and Procedures                                                                                                          |        23 |
|                                             |                                                                                                                                  |
| PART      II.   OTHER INFORMATION |                                                                                                                                  |
|                                             |                                                                                                                                  |
| Item      1.                                     | Legal      Proceedings                                                                                                                |        24 |
|                                             |                                                                                                                                  |   |
| Item      2.                                     | Changes      in Securities                                                                                                            |        24 |
|                                             |                                                                                                                                  |   |
| Item      3.                                     | Defaults      Upon Senior Securities                                                                                                  |        24 |
|                                             |                                                                                                                                  |   |
| Item      4.                                     | Submissions      of Matters to a Vote of Security Holders                                                                             |        24 |
|                                             |                                                                                                                                  |   |
| Item      5                                      | Other      Information                                                                                                                |        24 |
|                                             |                                                                                                                                  |   |
| Item      6.                                     | Exhibits      and Reports on Form 8-K                                                                                                 |        25 |
|                                             |                                                                                                                                  |
| Signatures                                       |        26                                                                                                                        |

----

| ANCHOR      FUNDING SERVICES, INC.                                       |   |
|--------------------------------------------------------------------------|--------|
| CONSOLIDATED      BALANCE SHEETS                                         |   |
|                                                                     |   |
|                                                                     |   |
|                                                                     |   |
|                                                                     |   |   |   |   |   |   |
| ASSETS                                                                   |   |
|                                                                     |   | (Unaudited) |   |   | (Audited) |   |
|                                                                     |   | March      31, |   |   | December      31, |   |
|                                                                     |   | 2009 |   |   | 2008 |   |
| CURRENT      ASSETS:                                                     |   |   |   |   |   |   |
|   Cash                                                         |   | $ | 369,387 |   |   | $ | 401,104 |   |
|   Retained      interest in purchased accounts receivable, net |   |   | 4,394,063 |   |   |   | 4,292,366 |   |
|   Earned      but uncollected fee income                       |   |   | 114,130 |   |   |   | 87,529 |   |
|   Prepaid      expenses and other                              |   |   | 92,828 |   |   |   | 116,950 |   |
|   Deferred      financing cost                                 |   |   | 121,212 |   |   |   | 85,131 |   |
|     Total      current assets                        |   |   | 5,091,620 |   |   |   | 4,983,079 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| PROPERTY      AND EQUIPMENT, net                                         |   |   | 67,009 |   |   |   | 70,181 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| DEFERRED      FINANCING COSTS, non-current                               |   |   | 191,734 |   |   |   | 156,073 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| SECURITY      DEPOSITS                                                   |   |   | 19,500 |   |   |   | 19,500 |   |
|                                                                     |   |   |   |   |   |   |   |   |
|                                                                     |   | $ | 5,369,863 |   |   | $ | 5,228,833 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                |   |
|                                                                     |   |   |   |   |   |   |   |   |
| CURRENT      LIABILITIES:                                                |   |   |   |   |   |   |   |   |
|   Due      to financial institution                            |   | $ | 1,538,941 |   |   | $ | 1,187,224 |   |
|   Accounts      payable                                        |   |   | 143,566 |   |   |   | 122,900 |   |
|   Accrued      payroll and related taxes                       |   |   | 60,174 |   |   |   | 35,067 |   |
|   Accrued      expenses                                        |   |   | 19,735 |   |   |   | 45,141 |   |
|   Collected      but unearned fee income                       |   |   | 63,351 |   |   |   | 58,707 |   |
|   Loan      fees payable                                       |   |   | 50,000 |   |   |   | 50,000 |   |
|   Preferred      dividends payable                             |   |   | 129,635 |   |   |   | 0 |   |
|     Total      current liabilities                   |   |   | 2,005,402 |   |   |   | 1,499,039 |   |
|                                                                     |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |
| LOAN      FEES PAYABLE, non-current                                      |   |   | 50,000 |   |   |   | 50,000 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES                                                   |   |   | 2,055,402 |   |   |   | 1,549,039 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| COMMITMENTS      AND CONTINGENCIES                                       |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |
| PREFERRED      STOCK, net of issuance costs of                           |   |   |   |   |   |   |   |   |
|      $1,209,383                                 |   |   | 5,361,512 |   |   |   | 5,361,512 |   |
| COMMON      STOCK                                                        |   |   | 12,941 |   |   |   | 12,941 |   |
| ADDITIONAL      PAID IN CAPITAL                                          |   |   | 1,750,699 |   |   |   | 1,660,516 |   |
| ACCUMULATED      DEFICIT                                                 |   |   | (3,810,691 | ) |   |   | (3,355,175 | ) |
|                                                                     |   |   | 3,314,461 |   |   |   | 3,679,794 |   |
|                                                                     |   |   |   |   |   |   |   |   |
|                                                                     |   | $ | 5,369,863 |   |   | $ | 5,228,833 |   |
|                                                                     |   |   |   |   |   |   |   |   |
|                                                                     |   |

----

| ANCHOR      FUNDING SERVICES, INC.                      |   |
|---------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF OPERATIONS              |   |
| For      the three months ended March 31, 2009 and 2008 |   |
|                                                    |   |
|                                                    |   |
|                                                    |   |   |   |   |   |   |
|                                                    |   | (Unaudited) |   |   | (Unaudited) |   |
|                                                    |   | 2009 |   |   | 2008 |   |
| FINANCE      REVENUES                                   |   | $ | 404,278 |   |   | $ | 211,661 |   |
| INTEREST      EXPENSE, net - financial institution      |   |   | (12,899 | ) |   |   | - |   |
| INTEREST      INCOME                                    |   |   | - |   |   |   | 23,617 |   |
|                                                    |   |   |   |   |   |   |   |   |
| NET      FINANCE REVENUES                               |   |   | 391,379 |   |   |   | 235,278 |   |
| (PROVISION)      FOR CREDIT LOSSES / BENEFIT FOR        |   |   |   |   |   |   |   |   |
|   RECOVERIES                                  |   |   | (6,063 | ) |   |   | 6,096 |   |
|                                                    |   |   |   |   |   |   |   |   |
| FINANCE      REVENUES, NET OF INTEREST EXPENSE          |   |   |   |   |   |   |   |   |
|  AND      CREDIT LOSSES                            |   |   | 385,316 |   |   |   | 241,374 |   |
|                                                    |   |   |   |   |   |   |   |   |
| OPERATING      EXPENSES                                 |   |   | 711,197 |   |   |   | 664,255 |   |
|                                                    |   |   |   |   |   |   |   |   |
| LOSS      BEFORE INCOME TAXES                           |   |   | (325,881 | ) |   |   | (422,881 | ) |
|                                                    |   |   |   |   |   |   |   |   |
| INCOME      TAXES                                       |   |   | - |   |   |   | - |   |
|                                                    |   |   |   |   |   |   |   |   |
| NET      LOSS                                           |   |   | (325,881 | ) |   |   | (422,881 | ) |
|                                                    |   |   |   |   |   |   |   |   |
| DEEMED      DIVIDEND ON CONVERTIBLE PREFERRED STOCK     |   |   | (129,635 | ) |   |   | (136,404 | ) |
|                                                    |   |   |   |   |   |   |   |   |
| NET      LOSS ATTRIBUTABLE TO COMMON STOCKHOLDER        |   | $ | (455,516 | ) |   | $ | (559,285 | ) |
|                                                    |   |   |   |   |   |   |   |   |
| NET      LOSS ATTRIBUTABLE TO COMMON                    |   |   |   |   |   |   |   |   |
|   STOCKHOLDER,      per share                 |   |   |   |   |   |   |   |   |
|    Basic                                 |   | $ | (0.04 | ) |   | $ | (0.05 | ) |
|                                                    |   |   |   |   |   |   |   |   |
|    Dilutive                              |   | $ | (0.04 | ) |   | $ | (0.05 | ) |
|                                                    |   |   |   |   |   |   |   |   |
| WEIGHTED      AVERAGE NUMBER OF SHARES OUTSTANDING      |   |   |   |   |   |   |   |   |
|   Basic      and dilutive                     |   |   | 12,940,378 |   |   |   | 12,100,860 |   |
|                                                    |   |   |   |   |   |   |   |   |
|                                                    |   |

----

|                                                                                         |   |      |      |   |   |   |   |
|----------------------------------------------------------------------------------------------|--------|-----------|-----------|--------|--------|--------|--------|
|                                                                                         |   |      |      |   |   |   |   |
|                                                                                         |   |      |      |   |   |   |   |   |   |   |   |   |
|                                                                                         |   | Preferred |      |   | Common |   |   | Additional |   |   | Accumulated |   |
|                                                                                         |   | Stock     |      |   | Stock  |   |   | Paid      in Capital |   |   | Deficit |   |
|                                                                                         |   |      |      |   |   |   |   |   |   |   |   |   |
| Beginning      Balance, December 31, 2008 (audited)                                          |   | $         | 5,361,512 |   |   | $      | 12,941 |   |   | $ | 1,660,516 |   |   | $ | (3,355,175 | ) |
|                                                                                         |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision      for compensation expense related to issued stock options                      |   |      | -         |   |   |   | -      |   |   |   | 2,607 |   |   |   | - |   |
|                                                                                         |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Benefit      for compensation expense related to expired stock options                       |   |      | -         |   |   |   | -      |   |   |   | (8,424 | ) |   |   | - |   |
|                                                                                         |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock      options issued to directors/officers related to financing agreement      obtained |   |      | -         |   |   |   | -      |   |   |   | 96,000 |   |   |   | - |   |
|                                                                                         |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| To      record preferred stock dividends                                                     |   |      | -         |   |   |   | -      |   |   |   | - |   |   |   | (129,635 | ) |
|                                                                                         |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss for the quarter ended March 31, 2009                                           |   |      | -         |   |   |   | -      |   |   |   | - |   |   |   | (325,881 | ) |
|                                                                                         |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending      Balance, March 31, 2009 (unaudited)                                              |   | $         | 5,361,512 |   |   | $      | 12,941 |   |   | $ | 1,750,699 |   |   | $ | (3,810,691 | ) |
|                                                                                         |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |      |      |   |   |   |   |   |   |

----

| ANCHOR      FUNDING SERVICES, INC.                                                     |   |
|----------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF CASH FLOWS                                             |   |
| For      the three months ended March 31, 2009 and 2008                                |   |
|                                                                                   |   |
|                                                                                   |   |
|                                                                                   |   |   |   |   |   |   |
|                                                                                   |   | (Unaudited) |   |   | (Unaudited) |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                             |   | 2009 |   |   | 2008 |   |
|   Net      loss:                                                             |   | $ | (325,881 | ) |   | $ | (422,881 | ) |
|   Adjustments      to reconcile net loss to net cash                         |   |   |   |   |   |   |   |   |
|     used      in operating activities:                             |   |   |   |   |   |   |   |   |
|     Depreciation                                                   |   |   | 13,047 |   |   |   | 8,531 |   |
|     Provision      for uncollectible accounts                      |   |   | 6,063 |   |   |   | - |   |
|     Compensation      expense related to issuance of stock options |   |   | (5,817 | ) |   |   | 6,398 |   |
|     Amortization      of loan fees                                 |   |   | 24,257 |   |   |   | - |   |
|   Changes      in operating assets and liabilities:                          |   |   |   |   |   |   |   |   |
|     Increase      in retained interest in purchased                |   |   |   |   |   |   |   |   |
|        accounts      receivable                     |   |   | (107,760 | ) |   |   | (491,249 | ) |
|     Increase      in earned but uncollected fee income             |   |   | (26,601 | ) |   |   | (15,284 | ) |
|     Decrease      (increase) in prepaid expenses and other         |   |   | 24,122 |   |   |   | (19,542 | ) |
|     Increase      in accounts payable                              |   |   | 20,666 |   |   |   | 34,946 |   |
|     Increase      in collected but unearned fee income             |   |   | 4,644 |   |   |   | 3,777 |   |
|     Increase      in accrued payroll and related taxes             |   |   | 25,107 |   |   |   | 5,689 |   |
|     Decrease      in accrued expenses                              |   |   | (25,406 | ) |   |   | (39,388 | ) |
|       Net      cash used in operating activities         |   |   | (373,560 | ) |   |   | (929,003 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                             |   |   |   |   |   |   |   |   |
|   Purchases      of property and equipment                                   |   |   | (9,874 | ) |   |   | (5,973 | ) |
|       Net      cash used in investing activities         |   |   | (9,874 | ) |   |   | (5,973 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                             |   |   |   |   |   |   |   |   |
|   Proceeds      from line of credit, net                                     |   |   | 351,717 |   |   |   | - |   |
|       Net      cash provided by financing activities     |   |   | 351,717 |   |   |   | 0 |   |
|                                                                                   |   |   |   |   |   |   |   |   |
| DECREASE      IN CASH                                                                  |   |   | (31,717 | ) |   |   | (934,976 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |
| CASH,      beginning of period                                                         |   |   | 401,104 |   |   |   | 3,499,044 |   |
|                                                                                   |   |   |   |   |   |   |   |   |
| CASH,      end of period                                                               |   | $ | 369,387 |   |   | $ | 2,564,068 |   |
|                                                                                   |   |   |   |   |   |   |   |   |
| See      Note 12 for supplemental disclosures of cash flow                             |   |   |   |   |   |   |   |   |
|                                                                                   |   |   |   |   |   |   |   |   |
|                                                                                   |   |

----

|   | The      consolidated financial statements include the accounts of Anchor Funding      Services, Inc. and its wholly owned subsidiary, Anchor Funding Services,      LLC (“the Company”).  All significant intercompany balances and      transactions have been eliminated in  consolidation. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Anchor      Funding Services, Inc. is a Delaware corporation.  Anchor      Funding Services, Inc. has no operations; substantially all operations of      the Company are the responsibility of Anchor Funding Services,      LLC. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Anchor      Funding Services, LLC is a North Carolina limited liability      company.    Anchor Funding Services, LLC was formed      for the purpose of providing factoring and back office services to      businesses located throughout the United States of  America. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Estimates – The      preparation of financial statements in conformity with accounting      principles generally accepted in the United States of America requires      management to make estimates that affect the reported amounts of assets      and liabilities and disclosure of contingent assets and liabilities at the      date of the financial statements and the reported amounts of revenues and      expenses during the reporting period.  Actual results could      differ from those estimates. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Revenue Recognition –      The Company charges fees to its customers in one of two ways as      follows: |
|--------|----------------------------------------------------------------------------------------------------------------|

----

| 1)   | Fixed      Transaction Fee - Fixed transaction fees are derived from a fixed      percentage of the purchased invoice.  This percentage does not      change from the date the purchased invoice is funded until the date the      purchased invoice is collected. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2)   | Variable      Transaction Fee -  Variable transaction fees vary based      on the length of time the purchased invoice is      outstanding.   As specified in its contract with the      client, the Company charges variable increasing percentages of the      purchased invoice as time elapses from the purchase date to the collection      date. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For      both fixed and variable transaction fees, the Company recognizes revenue      by using one of two methods depending on the type of      customer.  For new customers the Company recognizes revenue      using the cost recovery method.  For established customers the      Company recognizes revenue using the accrual  method. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Under      the cost recovery method, all revenue is recognized upon collection of the      entire amount of purchased accountsreceivable. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company considers new customers to be accounts whose initial funding has      been within the last three months or less.  Management believes      it needs three months of history to reasonably estimate a customer’s      collection period and accrued revenues.  If three months of      history has a limited number of transactions, the cost recovery method      will continue to be used until a reasonable revenue estimate can be made      based on additional history.  Once the Company obtains      sufficient historical experience, it will begin using the accrual method      to recognize revenue. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For      established customers the Company uses the accrual method of      accounting.  The Company applies this method by multiplying the      historical yield, for each customer, times the amount advanced on each      purchased invoice outstanding for that customer, times the portion of a      year that the advance is outstanding.  The customers’ historical      yield is based on the Company’s last six months of experience with the      customer along with the Company’s experience in the customer’s industry,      if applicable. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      amounts recorded as revenue under the accrual method described above are      estimates.  As purchased invoices are collected, the Company      records the appropriate adjustments to record the actual revenue earned on      each purchased invoice. These adjustments from the estimated revenue to      the actual revenue have not beenmaterial. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Retained Interest in Purchased      Accounts Receivable – Retained interest in purchased accounts      receivable represents the gross amount of invoices purchased from      factoring customers less amounts maintained in a reserve      account.  The Company purchases a customer’s accounts receivable      and advances them a percentage of the invoice total.  The      difference between the purchase price and amount advanced is maintained in      a reserve account.  The reserve account is used to offset any      potential losses the Company may have related to the purchased accounts      receivable.  Upon collection, the retained interest is refunded      back to the client. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Management      believes the fair value of the retained interest in purchased accounts      receivable approximates its recorded value because of the relatively short      term nature of the purchased receivable and the fact that the majority of      these invoices have been subsequentlycollected. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Property and Equipment –      Property and equipment, consisting of furniture and fixtures and computers      and software, are stated at cost.  Depreciation is provided over      the estimated useful lives of the depreciable assets using the      straight-line method.  Estimated useful lives range from 2 to 7      years. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Deferred Financing Costs      – Costs incurred to obtain financing are capitalized and amortized      over the term of the debt using the straight-line method, which      approximates the effective interestmethod. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As      of March 31, 2009 and December 31, 2008, the total amount capitalized and      accumulated amortization is asfollows: |
|--------|-------------------------------------------------------------------------------------------------------------------------------|

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

|                          |   | March      31, 2009 |    |   | December      31, 2008 |   |
|-------------------------------|--------|---------------------|---------|--------|------------------------|--------|
|                          |   |                |    |   |                   |   |
| Cash      paid or payable     |   | $                   | 246,634 |   |                   | $      | 246,634 |   |
| Stock      options granted    |   |                | 96,000  |   |                   |   | - |   |
| Accumulated      amortization |   |                | (29,688 | )      |                   |   | (5,431 | ) |
|                          |   |                |    |   |                   |   |   |   |
|                          |   | $                   | 312,946 |   |                   | $      | 241,203 |   |

|   | The      net amount is classified in the balance sheets based on future expected      amortization as follows: |
|--------|----------------------------------------------------------------------------------------------------------------|

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

|        |   | March      31, 2009 |    |   | December      31, 2008 |   |
|-------------|--------|---------------------|---------|--------|------------------------|--------|
|        |   |                |    |   |                   |   |
| Current     |   | $                   | 121,212 |   |                   | $      | 85,131 |   |
| Non-current |   |                | 191,734 |   |                   |   | 156,073 |   |
|        |   |                |    |   |                   |   |   |   |
|        |   | $                   | 312,946 |   |                   | $      | 241,204 |   |

|   | The      loan agreement requires $100,000 of these costs to be paid as      follows: |
|--------|--------------------------------------------------------------------------------------|

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

| 2009   |   | $      | 50,000  |   |
|--------|--------|--------|---------|--------|
| 2010   |   |   | 50,000  |   |
|   |   |   |    |   |
|   |   | $      | 100,000 |   |

|   | Advertising Costs – The      Company charges advertising costs to expense as incurred.  Total      advertising costs were approximately $87,000 and $151,400 for the quarters      ending March 31, 2009 and 2008,respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Earnings per Share –      Basic net income per share is computed by dividing the net income      for the period by the weighted average number of common shares outstanding      during the period.  Dilutive earnings per share includes the      potential impact of dilutive securities, such as convertible preferred      stock, stock options and stock warrants.  The dilutive effect of      stock options and warrants is computed using the treasury stock method,      which assumes the repurchase of common shares at the average market      price. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Under      the treasury stock method, options and warrants will have dilutive effect      when the average price of common stock during the period exceeds the      exercise price of the options andwarrants. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Also      when there is a year-to-date loss from continuing operations, potential      common shares should not be included in the computation of diluted      earnings per share.  For the quarters ending March 31, 2009 and      2008, there was a year-to-date loss from continuing      operations. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Stock Based Compensation      – The      fair value of transactions in which the Company exchanges its equity      instruments for employee services (share-based payment transactions) must      be recognized as an expense in the financial statements as services are      performed. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | See      Note 7 for the impact on the operating results for the quarters ended      March 31, 2009 and 2008. |
|--------|--------------------------------------------------------------------------------------------------------------|

|   | Fair Value of Financial      Instruments – The carrying value of cash equivalents, retained      interest in purchased accounts receivable, due from/to financial      institution, accounts payable and accrued liabilities approximates their      fair value. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Cash and cash equivalents      – Cash and cash equivalents consist primarily of highly liquid cash      investment funds with original maturities of three months or less when      acquired. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Income Taxes – Income      taxes are provided for the tax effects of transactions reported in the      financial statements plus deferred income taxes related to the differences      between financial statement and taxableincome. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      primary differences between financial statement and taxable income for the      Company are as follows: |
|--------|------------------------------------------------------------------------------------------------------------------|

| ·   | Compensation      costs related to the issuance of stockoptions |
|--------------------|-----------------------------------------------------------------|

| ·   | Use      of the reserve method of accounting for bad  debts |
|--------------------|-------------------------------------------------------------|

| ·   | Differences      in bases of property and equipment between financial and income tax      reporting |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | Net      operating loss carryforwards. |
|--------------------|----------------------------------------|

----

|   | Retained      interest in purchased accounts receivable consists of the      following: |
|--------|-----------------------------------------------------------------------------------------|

|                                           |   | March      31, 2009 |      |   | December      31, 2008 |   |
|------------------------------------------------|--------|---------------------|-----------|--------|------------------------|--------|
| Purchased      accounts receivable outstanding |   | $                   | 5,375,462 |   |                   | $      | 5,340,975 |   |
| Reserve      account                           |   |                | (880,831  | )      |                   |   | (954,104 | ) |
| Allowance      for uncollectible accounts      |   |                | (100,568  | )      |                   |   | (94,505 | ) |
|                                           |   |                |      |   |                   |   |   |   |
|                                           |   | $                   | 4,394,063 |   |                   | $      | 4,292,366 |   |

|   | Total      accounts receivable purchased were approximately $11,397,000 and      $6,038,000 for the quarters ended March 31, 2009 and March 31, 2008,      respectively. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Retained      interest in purchased accounts receivable consists of United States      companies in the followingindustries: |
|--------|------------------------------------------------------------------------------------------------------------------------------|

| Industry       |   | March      31, 2009 |      |   | December      31, 2008 |   |
|----------------|--------|---------------------|-----------|--------|------------------------|--------|
| Staffing       |   | $                   | 670,184   |   |                   | $      | 1,049,623 |   |
| Transportation |   |                | 1,561,906 |   |                   |   | 1,666,895 |   |
| Publishing     |   |                | 2,664     |   |                   |   | 2,664 |   |
| Construction   |   |                | 5,218     |   |                   |   | 5,218 |   |
| Service        |   |                | 2,149,376 |   |                   |   | 1,417,615 |   |
| Other          |   |                | 105,283   |   |                   |   | 244,856 |   |
|           |   |                |      |   |                   |   |   |   |
|           |   | $                   | 4,494,631 |   |                   | $      | 4,386,871 |   |

|   | Property      and equipment consist of thefollowing: |
|--------|------------------------------------------------------|

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

|                               | Estimated         |   |                |    |   |                   |   |
|------------------------------------|-------------------|--------|---------------------|---------|--------|------------------------|--------|
|                               | Useful      Lives |   | March      31, 2009 |    |   | December      31, 2008 |   |
| Furniture      and fixtures        | 2-5      years    |   | $                   | 33,960  |   |                   | $      | 33,960 |   |
| Computers      and software        | 3-7      years    |   |                | 130,888 |   |                   |   | 121,012 |   |
|                               |              |   |                | 164,848 |   |                   |   | 154,972 |   |
| Less      accumulated depreciation |              |   |                | (97,839 | )      |                   |   | (84,791 | ) |
|                               |              |   |                |    |   |                   |   |   |   |
|                               |              |   | $                   | 67,009  |   |                   | $      | 70,181 |   |

----

|   | In      November 2008, the Company entered into an agreement with a financial      institution to finance the factoring of receivables and to provide ongoing      working capital.  The agreement is a revolving credit facility      that allows the Company to borrow up to $15,000,000.  This      agreement expires in November 2011. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Borrowings      are made at the request of the Company.  The amount eligible to      be borrowed is based on a borrowing base formula as defined in the      agreement.  The interest on borrowings is paid monthly at LIBOR      rate plus 4%.  In addition to interest, the Company pays the      financial institution various monthly fees as defined in the      agreement. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      agreement is collateralized by a first lien on all Company      assets.  Borrowings on this agreement are partially guaranteed      by the Company’s President and Chief Executive Officer.  The      partial guarantee is $250,000 each. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      agreement, among other covenants, requires the Company to maintain certain      financial ratios.  As of March 31, 2009 and December 31, 2008,      the Company was in compliance with, or obtained waivers for, all      provisions of this agreement. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company’s capital structure consists of preferred and common stock as      described below: |
|--------|------------------------------------------------------------------------------------------------------------|

|   | Preferred Stock – The      Company is authorized to issue 10,000,000 shares of $.001 par value      preferred stock.  The Company’s Board of Directors determines      the rights and preferences of its preferred  stock. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On      January 31, 2007, the Company filed a Certificate of Designation with the      Secretary of State of Delaware.  Effective with this filing,      2,000,000 preferred shares became Series 1 Convertible Preferred      Stock.  Series 1 Convertible Preferred Stock will rank senior to      Common Stock. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Series      1 Convertible Preferred Stock is convertible into 5 shares of the      Company’s Common Stock.  The holder of the Series 1 Convertible      Preferred Stock has the option to convert the shares to Common Stock at      any time.  Upon conversion all accumulated and unpaid dividends      will be paid as additional shares of Common  Stock. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      dividend rate on Series 1 Convertible Preferred Stock is      8%.  Dividends are paid annually on December 31st in the form of      additional Series 1 Convertible Preferred Stock unless the Board of      Directors approves a cash dividend.  Dividends on Series 1      Convertible Preferred Stock shall cease to accrue on the earlier of      December 31, 2009, or on the date they are converted to Common      Shares.  Thereafter, the holders of Series 1 Convertible      Preferred Stock have the same dividend rights as holders of Common Stock,      as if the Series 1 Convertible Preferred Stock had been converted to      Common Stock.  Accrued dividends at March 31, 2009 and December      31, 2008 were $129,635 and $0respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Common Stock – The      Company is authorized to issue 40,000,000 shares of $.001 par value Common      Stock.  Each share of Common Stock entitles the holder to one      vote at all stockholder meetings.  Dividends on Common Stock      will be determined annually by the Company’s Board of      Directors. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      shares issued in Series 1 Convertible Preferred Stock and Common Stock as      of March 31, 2009 and December 31, 2008 is summarized as      follows: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|                            |   | Series      1 Convertible |      |   | Common |   |
|---------------------------------|--------|---------------------------|-----------|--------|--------|--------|
|                            |   | Preferred      Stock      |      |   | Stock  |   |
|                            |   |                      |      |   |   |   |
| Balance,      December 31, 2008 |   |                      | 1,314,359 |   |   |   | 12,940,378 |   |
|                            |   |                      |      |   |   |   |   |   |
| Balance,      March 31, 2009    |   |                      | 1,314,359 |   |   |   | 12,940,378 |   |

----

|   | Employee/Directors |
|--------|--------------------|

|   | The      Company has employment and stock option agreements with its Chief      Executive Officer, Morry Rubin (“M. Rubin”) and its President, Brad      Bernstein (“B. Bernstein”) |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      following summarizes M. Rubin’s employment agreement and stock      options: |
|--------|---------------------------------------------------------------------------------------------|

| ·   | The      employment agreement (dated January 31, 2007) with M. Rubin retains his      services as Co-chairman and Chief Executive Officer for a three-year      period. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An      annual salary of $1 until, the first day of the first month following such      time as the Company shall have, within any period beginning on January 1      and ending not more than 12 months thereafter, earned pre-tax net income      exceeding $1,000,000, M. Rubin’s base salary shall be adjusted to an      amount, to be mutually agreed upon between M. Rubin and the Company,      reflecting the fair value of the services provided, and to be provided, by      M. Rubin taking into account (i) his position, responsibilities and      performance, (ii) the Company’s industry, size and performance, and (iii)      other relevant factors. M. Rubin is eligible to receive annual bonuses as      determined by the Company’s compensation committee.  M. Rubin      shall be entitled to a monthly automobile allowance of    $1,500. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 10-year      options to purchase 650,000 shares exercisable at $1.25 per share,      pursuant to the Company’s 2007 Omnibus Equity Compensation Plan. Vesting      of the options was one-third immediately, one-third on February 29, 2008      and one-third on February 28, 2009. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 10-year      options to purchase 250,000 shares exercisable at $.62 per share, pursuant      to agreements entered into in March 2009.  These options were      issued in March 2009 in connection with a personal guarantee provided to a      financial institution (see Note 5).  These options were recorded      as deferred financing costs and will be amortized to operations over the      remaining life of the line of creditagreement. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      following summarizes B. Bernstein’s employment agreement and stock      options: |
|--------|-------------------------------------------------------------------------------------------------|

| ·   | The      employment agreement (dated January 31, 2007) with B. Bernstein retains      his services as President for a three-year  period. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An      annual salary of $205,000 during the first year, $220,000 during the      second year and      $240,000 during the third year and any additional year of      employment.  The Board may periodically review B. Bernstein’s      base salary and may determine to increase (but not decrease) the base      salary in accordance with such policies as the Company may hereafter adopt      from time to time.  B. Bernstein is eligible to receive annual      bonuses as determined by the Company’s compensation      committee.  B. Bernstein shall be entitled to a monthly      automobile allowance of $1,000. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 10-year      options to purchase 950,000 shares exercisable at $1.25 per share,      pursuant to the Company’s 2007 Omnibus Equity Compensation Plan. Vesting      of the options is one-third immediately, one-third on February 29, 2008      and one-third on February 28, 2009. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |  10-year      options to purchase 250,000 shares exercisable at $.62 per share, pursuant      to agreements entered into in March 2009.  These options were      issued in March 2009 in connection with a personal guarantee provided to a      financial institution (see Note 5).  These options were recorded      as deferred financing costs and will be amortized to operations over the      remaining life of the line of creditagreement. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Outside      Directors |
|--------|------------------------|

|   | The      Company entered into stock option agreements with outside      directors.  The following summarizes stock option agreements      entered into with these directors: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | As      of March 31, 2008, there were 460,000 shares exercisable at $1.25 per      share, pursuant to the Company’s 2007 Omnibus Equity Compensation      Plan.  The exercise period for these options is 10      years.  Vesting of the options was one-third immediately,      one-third from the grant date and the remainder two years from grant      date.  If any director ceases serving the Company for any      reason, all unvested options shall terminate immediately and all vested      options must be exercised within 90 days after the director ceases serving      as a director.  In December 2008, one of these directors      resigned.  As of March 31, 2009, all options granted to this      director expired. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Managerial      Employees |
|--------|---------------------------|

|   | The      following summarizes stock option agreements entered into with five      managerial employees: |
|--------|---------------------------------------------------------------------------------------------------------|

| ·   | 10-year      options to purchase 69,000 shares exercisable at $1.00 to $1.25 per share,      pursuant to the Company’s 2007 Omnibus Equity Compensation Plan. The grant      dates vary from September 2007 to March 2009.  Vesting periods      range from one to four years.  If any employee ceases being      employed by the Company for any reason, all vested and unvested options      shall terminate immediately. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | The      following table summarizes information about stock options as of March 31,      2009: |
|--------|------------------------------------------------------------------------------------------------|

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

|     |              |   |        |   | Weighted      Average |   |          |   |
|----------|-------------------|--------|-------------|--------|-----------------------|--------|---------------|--------|
| Exercise |              |   | Number      |   | Remaining             |   | Number        |   |
| Price    |              |   | Outstanding |   | Contractual      Life |   | Exercisable   |   |
|     |              |   |        |   |                  |   |          |   |
| $        | .62      to $1.25 |   |        |   | 2,445,000             |   | 10      years |   |   | 2,318,833 |   |

|   | The      Company records the issuance of these options in accordance with SFAS No.      123(R).  The following information was input into a Black      Scholes option pricing model to compute a per option price range of $.0468      to $.19: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Exercise      price |   | $                   | .62      to $1.25 |   |
|---------------------|--------|---------------------|-------------------|--------|
| Term                |   | 10      years       |              |
| Volatility          |   | 83%      to 250%    |              |
| Dividends           |   |                | 0                 | %      |
| Discount      rate  |   | 2.82%      to 4.75% |              |

|   | The      approximate financial effect of these options to record over their life is      as follows: |
|--------|------------------------------------------------------------------------------------------------------|

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

| Options      to value |   |   | 1,945,000 |   |   |   | 500,000 |   |   |   | 2,445,000 |   |
|-----------------------|--------|--------|-----------|--------|--------|--------|---------|--------|--------|--------|-----------|--------|
| Option      value     |   | $      | 0.0468    |   |   | $      | 0.1920  |   |   |   |      |   |
|                  |   |   |      |   |   |   |    |   |   |   |      |   |
|                  |   | $      | 91,026    |   |   | $      | 96,000  |   |   | $      | 187,026   |   |

----

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

|   | The      pre-tax fair value recorded for these options in the statement of      operations for the quarters ending March 31, 2009 and 2008 was as      follows: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|                                   |   | March      31, 2009 |   |   | March      31, 2008 |   |
|----------------------------------------|--------|---------------------|--------|--------|---------------------|--------|
|                                   |   |                |   |   |                |   |
| Fully      vested stock options        |   | $                   | 1,982  |   |                | $      | 2,080 |   |
| Unvest      portions of stock options  |   |                | 625    |   |                |   | 4,318 |   |
|                                   |   |                |   |   |                |   |   |   |
|                                   |   |                | 2,607  |   |                |   | 6,398 |   |
| Benefit      for expired stock options |   |                | (8,424 | )      |                |   | - |   |
|                                   |   |                |   |   |                |   |   |   |
| (Benefit)      provision, net          |   | $                   | (5,817 | )      |                | $      | 6,398 |   |

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

| Exercise      price |   | $            | 1.10   |   |
|---------------------|--------|--------------|--------|--------|
| Term                |   | 5      years |   |
| Volatility          |   |         | 2.5    |   |
| Dividends           |   |         | 0      | %      |
| Discount      rate  |   |         | 4.70   | %      |

|     |   |   |        |   | Weighted      Average |   |         |   |
|----------|--------|--------|-------------|--------|-----------------------|--------|--------------|--------|
| Exercise |   |   | Number      |   | Remaining             |   | Number       |   |
| Price    |   |   | Outstanding |   | Contractual      Life |   | Exercisable  |   |
|     |   |   |        |   |                  |   |         |   |
| $        | 1.10   |   |        |   | 1,342,500             |   | 5      years |   |   | 1,342,500 |   |

|   | Revenues – During the      quarters ending March 31, 2009 and March 31, 2008, the Company recorded      revenues from United States companies in the following      industries: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Industry       |   | March      31, 2009 |    |   | March      31, 2008 |   |
|----------------|--------|---------------------|---------|--------|---------------------|--------|
| Staffing       |   | $                   | 76,006  |   |                | $      | 83,101 |   |
| Transportation |   |                | 159,735 |   |                |   | 50,815 |   |
| Construction   |   |                | -       |   |                |   | 1,367 |   |
| Service        |   |                | 154,404 |   |                |   | 61,780 |   |
| Other          |   |                | 14,133  |   |                |   | 14,598 |   |
|           |   |                |    |   |                |   |   |   |
|           |   | $                   | 404,278 |   |                | $      | 211,661 |   |

|   | Major Customers – The      Company had the following transactions and balances with unrelated      customers (1 in quarter ending March 31, 2009 and 2 in quarter ending      March 31, 2008) which represent 10 percent or more of its revenues for the      quarters ending March 31, 2009 and 2008 as  follows: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|                        |   | For      the quarter      |
|-----------------------------|--------|---------------------------|
|                        |   | ended      March 31, 2009 |
|                        |   |                      |   |   |
| Revenues                    |   | $                         | 50,567 |   |   |
|                        |   |                      |   |   |   |
|                        |   |                      |  As      of March 31,2009 |
| Purchased      accounts     |   |                      |   |   |   |
| receivable      outstanding |   | $                         | 719,288 |   |   |
|                        |   |                      |   |   |   |

|                        |   |   |                           |   |   |   |    |
|-----------------------------|--------|--------|--------------------------------|--------|--------|--------|---------|
|                        |   |   | For      the quarter           |   |
|                        |   |   | ended      March 31, 2008      |   |
|                        |   |   |                           |   |   |   |    |
| Revenues                    |   | $      | 30,534                         |   |   | $      | 26,360  |   |
|                        |   |   |                           |   |   |   |    |   |
|                        |   |   |  As      of March 31,2008 |   |
| Purchased      accounts     |   |   |                           |   |   |   |    |   |
| receivable      outstanding |   | $      | 170,527                        |   |   | $      | 395,317 |   |

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

|   | Cash – The Company      places its cash and cash equivalents on deposit with a North Carolina      financial institution. In October and November, 2008 the Federal Deposit      Insurance Corporation (FDIC) temporarily increased coverage to $250,000      for substantially all depository accounts and temporarily provides      unlimited coverage for certain qualifying and participating non-interest      bearing transaction accounts.  The increased coverage is scheduled to      expire on December 31, 2009, at which time it is anticipated amounts      insured by the FDIC will return to $100,000.  During the year, the      Company from time to time may have had amounts on deposit in excess of the      insured limits. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | The      income tax benefit for the quarters ending March 31, 2009 and 2008      consists of the following: |
|--------|-------------------------------------------------------------------------------------------------------------|

|                   |   | March      31, 2009 |     |   | March      31, 2008 |   |
|------------------------|--------|---------------------|----------|--------|---------------------|--------|
|                   |   |                |     |   |                |   |
| Current      provision |   | $                   | 0        |   |                | $      | 0 |   |
| Deferred      benefit  |   |                | 121,000  |   |                |   | 166,000 |   |
|                   |   |                |     |   |                |   |   |   |
|                   |   |                | 121,000  |   |                |   | 166,000 |   |
|                   |   |                |     |   |                |   |   |   |
| Valuation      reserve |   |                | (121,000 | )      |                |   | (166,000 | ) |
|                   |   |                |     |   |                |   |   |   |
|                   |   | $                   | 0        |   |                | $      | 0 |   |

|   | The net operating loss      carryforward generated in the quarters ending March 31, 2009 and 2008 was      approximately $323,000 and $421,000, respectively.  The deferred      tax assets related to these net operating loss carryforwards was      approximately $121,000 and $166,000 as March 31, 2009 and 2008,      respectively.  These deferred tax assets have been reduced by      valuation allowances.  Management is uncertain if this net      operating loss will ever be utilized, therefore it has been fully      reserved. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In      May 2007, the Company executed lease agreements for office space in      Charlotte, NC and Boca Raton, FL.  Both lease agreements are      with unrelated parties. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Charlotte lease is effective on August 15, 2007, is for a twenty-four      month term and includes an option to renew for an additional three year      term at substantially the same terms.  On November 1, 2007, the      Company entered into a lease for additional space adjoining its Charlotte      office.  The lease is for 19 months and includes a two year      renewal option at substantially the same terms.  The monthly      rental for the combined space is approximately  $2,250. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Boca Raton lease was effective on August 20, 2007 and is for a sixty-one      month term.  The monthly rental is approximately      $8,300. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      rental expense for the quarters ending March 31, 2009 and 2008, was      approximately $34,800 and $34,300,respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | Cash      paid for interest for the quarters ended March 31, 2009 and 2008 was      $12,900 and $0, respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------|

|   | Non-cash      financing and investing activities consisted of the    following: |
|--------|---------------------------------------------------------------------------------|

|   | For the quarter ending      March 31, 2009- |
|--------|---------------------------------------------|

|   | None |
|--------|------|

|   | For the quarter ending      March 31, 2008- |
|--------|---------------------------------------------|

|   | 94,685      preferred shares issued in satisfaction of the accrued dividend obligation      as of December 31, 2007. |
|--------|----------------------------------------------------------------------------------------------------------------------|

|   | Exchange      of 120,000 preferred shares for 606,690 of common  shares. |
|--------|--------------------------------------------------------------------------|

----

| ITEM      2. | MANAGEMENT'S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS |
|--------------|-------------------------------------------------------------------------------------------------|

|   | Estimates –The preparation of financial      statements in conformity with accounting principles generally accepted in      the United States of      America requires      management to make estimates that affect the reported amounts of assets      and liabilities and disclosure of contingent assets and liabilities at the      date of the financial statements and the reported amounts of revenues and      expenses during the reporting period.  Actual results could      differ from those estimates. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Revenue Recognition – The      Company charges fees to its customers in one of two ways as      follows: |
|--------|----------------------------------------------------------------------------------------------------------------|

| 1)   | Fixed      Transaction Fee      -  Fixed transaction fees are      derived from a fixed percentage of the purchased invoice.  This      percentage does not change from the date the purchased invoice is funded      until the date the purchased invoice is  collected. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2)   | Variable      Transaction Fee      -  Variable transaction fees vary      based on the length of time the purchased invoice is      outstanding.   As specified in its contract with the      client, the Company charges variable increasing percentages of the      purchased invoice as time elapses from the purchase date to the collection      date. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | For      both fixed and variable transaction fees, the Company recognizes revenue      by using one of two methods depending on the type of      customer.  For new customers the Company recognizes revenue      using the cost recovery method.  For established customers the      Company recognizes revenue using the accrual  method. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Under      the cost recovery method, all revenue is recognized upon collection of the      entire amount of purchased accountsreceivable. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company considers new customers to be accounts whose initial funding has      been within the last three months or less.  Management believes      it needs three months of history to reasonably estimate a customer’s      collection period and accrued revenues.  If three months of      history has a limited number of transactions, the cost recovery method      will continue to be used until a reasonable revenue estimate can be made      based on additional history.  Once the Company obtains      sufficient historical experience, it will begin using the accrual method      to recognize revenue. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For      established customers the Company uses the accrual method of      accounting.  The Company applies this method by multiplying the      historical yield, for each customer, times the amount advanced on each      purchased invoice outstanding for that customer, times the portion of a      year that the advance is outstanding.  The customers’ historical      yield is based on the Company’s last six months of experience with the      customer along with the Company’s experience in the customer’s industry,      if applicable. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      amounts recorded as revenue under the accrual method described above are      estimates.  As purchased invoices are collected, the Company      records the appropriate adjustments to record the actual revenue earned on      each purchased invoice. These adjustments from the estimated revenue to      the actual revenue have not beenmaterial. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Retained Interest in Purchased      Accounts Receivable –      Retained interest in purchased accounts receivable represents the      gross amount of invoices purchased from factoring customers less amounts      maintained in a reserve account.  The Company purchases a      customer’s accounts receivable and advances them a percentage of the      invoice total.  The difference between the purchase price and      amount advanced is maintained in a reserve account.  The reserve      account is used to offset any potential losses the Company may have      related to the purchased accounts receivable.  Upon collection,      the retained interest is refunded back to the  client. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Management      believes the fair value of the retained interest in purchased accounts      receivable approximates its recorded value because of the relatively short      term nature of the purchased receivable and the fact that the majority of      these invoices have been subsequentlycollected. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Property and      Equipment – Property and      equipment, consisting of furniture and fixtures and computers and      software, are stated at cost.  Depreciation is provided over the      estimated useful lives of the depreciable assets using the straight-line      method.  Estimated useful lives range from 2 to 7      years. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Property and      Equipment – Property and      equipment, consisting of furniture and fixtures and computers and      software, are stated at cost.  Depreciation is provided over the      estimated useful lives of the depreciable assets using the straight-line      method.  Estimated useful lives range from 2 to 7      years. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Deferred Financing      Costs – Costs incurred to      obtain financing are capitalized and amortized over the term of the debt      using the straight-line method, which approximates the effective interest      method. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As      of March 31, 2009 and December 31, 2008, the total amount capitalized and      accumulated amortization is asfollows: |
|--------|-------------------------------------------------------------------------------------------------------------------------------|

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

|                          |   | March      31, 2009 |    |   | December      31, 2008 |   |
|-------------------------------|--------|---------------------|---------|--------|------------------------|--------|
|                          |   |                |    |   |                   |   |
| Cash      paid or payable     |   | $                   | 246,634 |   |                   | $      | 246,634 |   |
| Stock      options granted    |   |                | 96,000  |   |                   |   | - |   |
| Accumulated      amortization |   |                | (29,688 | )      |                   |   | (5,431 | ) |
|                          |   |                |    |   |                   |   |   |   |
|                          |   | $                   | 312,946 |   |                   | $      | 241,203 |   |
|                          |   |                |    |   |                   |   |   |   |

|        |   |                |    |   |                   |   |
|-------------|--------|---------------------|---------|--------|------------------------|--------|
|        |   | March      31, 2009 |    |   | December      31, 2008 |   |
|        |   |                |    |   |                   |   |
| Current     |   | $                   | 121,212 |   |                   | $      | 85,131 |   |
| Non-current |   |                | 191,734 |   |                   |   | 156,073 |   |
|        |   |                |    |   |                   |   |   |   |
|        |   | $                   | 312,946 |   |                   | $      | 241,204 |   |

|   |   |   |    |
|--------|--------|--------|---------|
|   |   |   |    |
| 2009   |   | $      | 50,000  |   |
| 2010   |   |   | 50,000  |   |
|   |   |   |    |   |
|   |   | $      | 100,000 |   |

|   | Advertising      Costs –The Company charges      advertising costs to expense as incurred.  Total advertising      costs were approximately $87,000 and $151,400 for the quarters ending      March 31, 2009 and 2008,respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Earnings per Share –      Basic net income per share is computed by dividing the net income      for the period by the weighted average number of common shares outstanding      during the period.  Dilutive earnings per share includes the      potential impact of dilutive securities, such as convertible preferred      stock, stock options and stock warrants.  The dilutive effect of      stock options and warrants is computed using the treasury stock method,      which assumes the repurchase of common shares at the average market      price. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Under      the treasury stock method, options and warrants will have dilutive effect      when the average price of common stock during the period exceeds the      exercise price of the options andwarrants. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Also      when there is a year-to-date loss from continuing operations, potential      common shares should not be included in the computation of diluted      earnings per share.  For the quarters ending March 31, 2009 and      2008, there was a year-to-date loss from continuing      operations. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Stock Based      Compensation      – The fair value of transactions in      which the Company exchanges its equity instruments for employee services      (share-based payment transactions) must be recognized as an expense in the      financial statements as services are  performed. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | See Note 7 for the impact on the      operating results for the quarters ended March 31, 2009 and      2008. |
|--------|--------------------------------------------------------------------------------------------------------------|

|   | Fair Value of      Financial Instruments –The carrying value of cash      equivalents, retained interest in purchased accounts receivable, due      from/to financial institution, accounts payable and accrued liabilities      approximates their fairvalue. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Cash and cash      equivalents      –Cash and cash      equivalents consist primarily of highly liquid cash investment funds with      original maturities of three months or less when      acquired. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Income Taxes – Income taxes are      provided for the tax effects of transactions reported in the financial      statements plus deferred income taxes related to the differences between      financial statement and taxableincome. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      primary differences between financial statement and taxable income for the      Company are as follows: |
|--------|------------------------------------------------------------------------------------------------------------------|

| ·   | Compensation      costs related to the issuance of stockoptions |
|--------------------|-----------------------------------------------------------------|

| ·   | Use      of the reserve method of accounting for bad  debts |
|--------------------|-------------------------------------------------------------|

| ·   | Differences      in bases of property and equipment between financial and income tax      reporting |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | Net      operating loss carryforwards. |
|--------------------|----------------------------------------|

----

|                                                             |   | Three      Months Ended March 31, |     |   |   |   |
|------------------------------------------------------------------|--------|-----------------------------------|----------|--------|--------|--------|
|                                                             |   | 2009                              |     |   | 2008   |   |   | $      Change |   |   | %      Change |   |
| Finance      revenues                                            |   | $                                 | 404,278  |   |   | $      | 211,661 |   |   | $ | 192,617 |   |   |   | 91.1 |   |
| Interest      income (expense), net                              |   |                              | (12,899  | )      |   |   | 23,617 |   |   |   | (36,516 | ) |   |   |   |   |
| Net      finance revenues                                        |   |                              | 391,379  |   |   |   | 235,278 |   |   |   | 156,101 |   |   |   | 66.4 |   |
| Benefit      for recoveries (Provision for credit losses)        |   |                              | (6,063   | )      |   |   | 6,096 |   |   |   |   |   |   |   |   |   |
| Finance      revenues, net of interest expense and credit losses |   |                              | 385,316  |   |   |   | 241,374 |   |   |   | 143,942 |   |   |   | 59.6 |   |
| Operating      expenses                                          |   |                              | 711,197  |   |   |   | 664,255 |   |   |   | 46,942 |   |   |   | 7.1 |   |
| Net      loss before income taxes                                |   |                              | (325,881 | )      |   |   | (422,881 | ) |   |   | 97,000 |   |   |   |   |   |
| Income      tax (provision) benefit:                             |   |                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                    |   | $                                 | (325,881 | )      |   | $      | (422,881 | ) |   | $ | 97,000 |   |   |   |   |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                       |   |   | Percentage      of Revenues for |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|--------|---------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Percentage      of Accounts ReceivablePortfolio      as of |   |   | The      Three Months Ended     |   |
| Entity                                                                         |   | March 31, 2009                                             |   |   | March 31, 2009                  |   |
| Transportation      Company in Virginia                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                       | 13.4   |   |                            |   | 13.2 |   |
| Medical      Staffing Company in New York                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                       | 5.5    |   |                            |   | 7.2 |   |
| Pharmaceutical      manufacturer in Arizona                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                       | 13.4   |   |                            |   | 10.5 |   |

----

| ITEM      3. | QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKETRISK |
|--------------|----------------------------------------------------------------|

| ITEM      4. | CONTROLS      AND PROCEDURES |
|--------------|------------------------------|

----

| ITEM      1. | LEGAL      PROCEEDINGS: |
|--------------|-------------------------|

| Item      1A. | Risk      Factors |
|---------------|-------------------|

| ITEM      2. | CHANGES      IN SECURITIES. |
|--------------|-----------------------------|

| Date      of Sale  |    | Title      of Security  |    | NumberSold                      |    | ConsiderationReceived,Commissions                                                               |    | Purchasers                          |    | Exemption      fromRegistrationClaimed                                                   |    |
|-------------------------|--------------|------------------------------|--------------|---------------------------------|--------------|------------------------------------------------------------------------------------------------------|--------------|------------------------------------------|--------------|-----------------------------------------------------------------------------------------------|--------------|
|                    |         |                         |         |                            |         |                                                                                                 |         |                                     |         |                                                                                          |         |
| March      2009    |         | Common      StockOptions     |         |     51,500  |         | Securities      granted under Equity Compensation Plan; no cash received; no commissions      paid   |         | Employees,      directors and/orofficers |         | Section      4(2) of the Securities Act of 1933 and/or Rule 506promulgatedthereunder      (6) |         |
|                    |         |                         |         |                            |         |                                                                                                 |         |                                     |         |                                                                                          |         |
| March      2009    |         | Common      StockOptions     |         |     500,000 |         | Securities      granted outside Equity Compensation Plan; no cash received; no commissions      paid |         | Employees,      directors and/orofficers |         | Section      4(2) of the Securities Act of 1933 and/or Rule 506promulgatedthereunder      (6) |         |

| ITEM      3. | DEFAULTS      UPON SENIOR SECURITIES: |
|--------------|---------------------------------------|

| ITEM      4. | SUBMISSIONS      OF MATTERS TO A VOTE OF SECURITYHOLDERS: |
|--------------|-----------------------------------------------------------|

| ITEM      5. | OTHER      INFORMATION: |
|--------------|-------------------------|

----

|  2.1 | Exchange      Agreement |
|-----------|-------------------------|

| 3.1 | Certificate of      Incorporation-BTHC,INC. |
|-----|--------------------------------------------------|

| 3.2 | Certificate      of Merger of BTHC XI, LLC into BTHC XI,Inc. |
|-----|--------------------------------------------------------------|

| 3.3 | Certificate      of Amendment |
|-----|-------------------------------|

| 3.4 | Designation      of Rights and Preferences-Series 1 Convertible Preferred    Stock |
|-----|------------------------------------------------------------------------------------|

| 3.5 | Amended      and Restated By-laws |
|-----|-----------------------------------|

| 4.1 | Form      of Placement Agent Warrant issued to Fordham Financial      Management |
|-----|----------------------------------------------------------------------------------|

| 10.1 | Directors’      Compensation Agreement-GeorgeRubin |
|------|----------------------------------------------------------|

| 10.2 | Employment      Contract-Morry F. Rubin |
|------|-----------------------------------------|

| 10.3 | Employment      Contract-Brad Bernstein |
|------|-----------------------------------------|

| 10.4 | Agreement-Line      of Credit |
|------|-------------------------------|

| 10.5 | Fordham      Financial Management-ConsultingAgreement |
|------|-------------------------------------------------------|

| 10.6       | Facilities      Lease – Florida                               |
|------------|---------------------------------------------------------------------|
|       |                                                                |
| 10.7       | Facilities      Lease – North Carolina                        |
|       |                                                                |
| 10.8  | Loan      and Security Agreement (1)                                |
|       |                                                                |
| 10.9       | Revolving      Note (1)                                             |
|       |                                                                |
| 10.10      | Debt      Subordination Agreement (1)                               |
|       |                                                                |
| 10.11      | Guaranty      Agreement (Morry Rubin) (1)                           |
|       |                                                                |
| 10.12      | Guaranty      Agreement (Brad Bernstein) (1)                        |
|       |                                                                |
| 10.13      | Continuing      Guaranty Agreement (1)                              |
|       |                                                                |
| 10.14      | Pledge      Agreement (1)                                           |
|       |                                                                |
|       |                                                                |
| 31(a)      | Rule      13a-14(a) Certification – Chief Executive Officer * |
|       |                                                                |
| 31(b)      | Rule      13a-14(a) Certification – Chief Financial Officer * |
|       |                                                                |
| 32(a)      | Section      1350 Certification – Chief Executive Officer *   |
|       |                                                                |
| 32(b)      | Section      1350 Certification – Chief Financial Officer *   |
|       |                                                                |
| 99.1       | 2007      Omnibus Equity CompensationPlan                           |

| 99.2   | Form      of Non-Qualified Option under 2007 Omnibus Equity Compensation      Plan |
|--------|------------------------------------------------------------------------------------|
|   |                                                                               |
| 99.3   | Press      Release – Results of Operations – First Quarter  2009*      |

|  (1) | Incorporated      by reference to the Registrant’s Form 8-K filed November 24, 2008 (date of      earliest event November 21, 2008). |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                     | ANCHOR      FUNDING SERVICES, INC. |                                           |
|------------------------------------------|------------------------------------|------------------------------------------------|
|                                     |                               |                                           |   |
| Date:  May      14, 2009  | By:                                | /s/ Morry      F. Rubin    |   |
|                                     |                               | Morry      F. Rubin                            |   |
|                                     |                               | Chief      Executive Officer                   |   |
|                                     |                               |                                           |   |

|                    |   |                                       |   |
|-------------------------|--------|--------------------------------------------|--------|
| Date:      May 14, 2009 | By:    | /s/ Brad      Bernstein          |   |
|                    |   | Brad      Bernstein                        |   |
|                    |   | President      and Chief Financial Officer |   |
|                    |   |                                       |   |