----

----

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

| o | TRANSITION      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|----------------------------------------------------------------------------------------------|

CASH TECHNOLOGIES, INC.

| Delaware                                                            |   | 95-4558331                                |
|---------------------------------------------------------------------|--------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) |   | (I.R.S.      Employer Identification No.) |

| Title of Each      Class |   | Name      of Each Exchange on Which      Registered |
|--------------------------|--------|-----------------------------------------------------|
| None                     |   | None                                                |

| Title of Each      Class           |   | Name      of Each Exchange on Which      Registered |
|------------------------------------|--------|-----------------------------------------------------|
| Common      Stock, $ .01 Par Value |   | American      Stock Exchange                        |

| x | Check      whether the issuer (1) filed all reports required to be filed by Section      13 or 15(d) of the Exchange Act during the past 12 months (or for such      shorter period that the registrant was required to file such Reports), and      (2) has been subject to such filing requirements for the Past 90 days. Yes      x No o |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| o | Check      if there is no disclosure of delinquent filers in response to Item 405 of      Regulation S-B is not contained in this form, and no disclosure will be      contained, to the best of registrant's knowledge, in definitive proxy or      information statements incorporated by reference in Part III of this Form      10-K or any amendment to thisForm      10-K. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | · | Acquired      certain assets of nationally-known auto parts company Champion Parts, Inc.      on May 5, 2008, through newly formed subsidiary CPI Holdings, LLC,      restoring more than $10 million in stockholders’ equity (see financials      below) and meeting an essential step in our plan to regain compliance with      the listing standards of the American Stock Exchange (see Risks –      Amex) |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Raised      approx. $3.4M in debt and convertible debt to acquire the Champion      assets |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | Recovered      three of the largest six automotive retail customers in the U.S.,      representing sufficient business, once implemented, to make CPI Holdings      profitable. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Restored $7,761,655 in      stockholders equity (see financial  statements) |
|--------|--------|---------------------------------------------------------------------------------------|

----

|   | · | ProIdentify,      which allows determination of a patient's insurance eligibility status in      real time, allowing healthcare providers to avoid eligibility losses that      affect approximately 6% of insuranceclaims. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Pro837,      a claim editor that can be implemented by both health care providers and      insurers, permitting healthcare organizations to identify and correct      insurance claims that contain errors or invalid    information. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | ProClaimSubmit, an "all-payer"      claims clearinghouse that permits health care providers to submit their      claims to virtually any insurer in the U.S. through a single internet      connection. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

Our assets serve as collateral for various loanobligations and therefore may not be available for distribution to stockholdersin the event of liquidation.

----

----

----

----

|   | · | announcements      of technological innovations or new commercial products by us or our      competitors. |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | changes      in government regulation and policies which may be undertaken with respect      to security issues related to terrorism, privacy and other      matters. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | developments      in the patents or other proprietary rights owned or licensed by us or our      competitors. |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | · | matters      related to our financial condition, including our ability to obtain      necessary capital. |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | litigation      affecting us or our products. |
|--------|--------|-----------------------------------------------|

|   | · | general market conditions in our      industry. |
|--------|--------|-------------------------------------------------|

----

ITEM 2. DESCRIPTION OF PROPERTY 

ITEM 3. LEGAL PROCEEDINGS 

----

|   | 1. | Multiple      acts of fraud, including material misrepresentations and/or omissions in      connection with TAP’s sale of assets to Champion in October 1996 and the      fraudulent inducement of an assignment of an employment contract from Mr.      Schoenfeld to Del Rey Ventures; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Breach      of fiduciary duty, including the defendants’ concealment of unanticipated      returns before the 1996 TAP sale of assets to Champion resulting in a      shortfall at closing; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Corporate      waste, including Mr. Schoenfeld’s misreporting of TAP’s inventory between      June 2006 and October 2006; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Conversion      and the taking of corporate opportunity in the secret and unauthorized      sale of approximately 11,000 finished goods from TAP’s inventory for Mr.      Schoenfeld’s personal gain to the detriment of TAP and its shareholders;      and |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | Breach      of contract for the defendants’ failure to provide the services required      under the assigned employmentcontract. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------|

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS 

None

ITEM 5. MARKET OF COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

| Year ended May 31, 2008 |                           | High   |   | Low    |
|-------------------------|--------------------------------|--------|--------|--------|
|                    |                           |   |   |   |   |
| Q1                      | June      1 - August 31        |   | .97    |   | .72 |
|                    |                           |   |   |   |   |
| Q2                      | September      1 - November 30 |   | .75    |   | .23 |
|                    |                           |   |   |   |   |
| Q3                      | December      1 - February 28  |   | .23    |   | .12 |
|                    |                           |   |   |   |   |
| Q4                      | March      1 - May 31          |   | .50    |   | 0.11 |

----

| Year ended May 31, 2007 |                           | High   |   | Low    |
|-------------------------|--------------------------------|--------|--------|--------|
|                    |                           |   |   |   |   |
| Q1                      | June      1 - August 31        |   | 1.29   |   | 0.67 |
|                    |                           |   |   |   |   |
| Q2                      | September      1 - November 30 |   | 1.25   |   | 0.80 |
|                    |                           |   |   |   |   |
| Q3                      | December      1 - February 28  |   | 1.17   |   | 0.80 |
|                    |                           |   |   |   |   |
| Q4                      | March      1 - May 31          |   | 1.12   |   | 0.85 |

  

----

 

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OFFINANCIAL CONDITION AND RESULTS OF OPERATIONS

----

----

----

----

----

CASH TECHNOLOGIES, INC. ANDSUBSIDIARIES

|                                                                                                                                                                                           |   | MAY      31, |        |   | MAY      31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-------------|--------|--------------|--------|
|                                                                                                                                                                                           |   | 2008         |        |   | 2007         |   |
| ASSETS                                                                                                                                                                                         |   |         |        |   |         |   |
| CURRENT      ASSETS:                                                                                                                                                                           |   |         |        |   |         |   |
| Cash      and cash equivalents                                                                                                                                                                 |   | $            | 410,305     |   |         | $      | 1,107,649 |   |
| Accounts      receivable                                                                                                                                                                       |   |         | 128,622     |   |         |   | 29,853 |   |
| Prepaid      expenses and other current assets                                                                                                                                                 |   |         | 529,896     |   |         |   | 194,627 |   |
| Other      receivable (net of allowance $50,000)                                                                                                                                               |   |         | 118,456     |   |         |   | 163,551 |   |
| Inventory                                                                                                                                                                                      |   |         | 11,967,341  |   |         |   | - |   |
| Assets      of discontinued operations                                                                                                                                                         |   |         |        |   |         |   |   |   |
| Cash                                                                                                                                                                                           |   |         | 41          |   |         |   | 41 |   |
| Accounts      receivable                                                                                                                                                                       |   |         | -           |   |         |   | 192,360 |   |
| Prepaid      expenses and other current assets                                                                                                                                                 |   |         | 117,000     |   |         |   | 263,076 |   |
| Inventory      (net of allowance $121,000)                                                                                                                                                     |   |         | 93,553      |   |         |   | 121,690 |   |
| Property      and equipment, net                                                                                                                                                               |   |         |        |   |         |   |   |   |
| Note      receivable                                                                                                                                                                           |   |         | -           |   |         |   | 1,387,500 |   |
| Other      assets                                                                                                                                                                              |   |         | 18,230      |   |         |   | 18,230 |   |
| Total      assets of discontinued operations                                                                                                                                                   |   |         | 228,824     |   |         |   | 1,982,897 |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| Total      Current Assets                                                                                                                                                                      |   |         | 13,383,444  |   |         |   | 3,478,577 |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| CoinBank      machines held for sale  (Note 1(n))                                                                                                                                    |   |         | 609,890     |   |         |   | 609,890 |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| PROPERTY      AND EQUIPMENT (net)                                                                                                                                                              |   |         | 3,027       |   |         |   | 26,823 |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| NOTES      RECEIVABLE                                                                                                                                                                          |   |         |        |   |         |   | 6,879,045 |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| CAPITALIZED      SOFTWARE COSTS  (Note 1(n))                                                                                                                                         |   |         | -           |   |         |   |   |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| CDHC      PREFERRED STOCK                                                                                                                                                                      |   |         | 218,401     |   |         |   | 900,901 |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| CLAIMREMEDI      PREFERRED STOCK                                                                                                                                                               |   |         | 3,500,000   |   |         |   | 3,500,000 |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| BIPS      PREFERRED STOCK                                                                                                                                                                      |   |         | -           |   |         |   | 2,000,000 |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| OTHER      ASSETS                                                                                                                                                                              |   |         | -           |   |         |   | 535,295 |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| TOTAL      ASSETS                                                                                                                                                                              |   | $            | 17,714,762  |   |         | $      | 17,930,531 |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY (DEFICIENCY)                                                                                                                                         |   |         |        |   |         |   |   |   |
| CURRENT      LIABILITIES:                                                                                                                                                                      |   |         |        |   |         |   |   |   |
| Current      maturities of Notes Payable  (Note 5)                                                                                                                                   |   | $            | 3,938,524   |   |         | $      | 3,482,286 |   |
| Due      to Officers and Directors                                                                                                                                                             |   |         | 8,915       |   |         |   | 8,915 |   |
| Convertible      debt (Note 5)                                                                                                                                                                 |   |         | 147,337     |   |         |   | 170,519 |   |
| Due      to Shareholders (Note 4)                                                                                                                                                              |   |         | 398,805     |   |         |   | 602,610 |   |
| Accounts      payable                                                                                                                                                                          |   |         | 894,202     |   |         |   | 1,131,497 |   |
| Accrued      liabilities                                                                                                                                                                       |   |         | 1,956,702   |   |         |   | 2,094,333 |   |
| Dividend      payable                                                                                                                                                                          |   |         | 461,246     |   |         |   | 261,246 |   |
| Liabilities      of discontinued operations                                                                                                                                                    |   |         |        |   |         |   |   |   |
| Accounts      payable                                                                                                                                                                          |   |         | -           |   |         |   | 725,443 |   |
| Notes      payable                                                                                                                                                                             |   |         | 336,344     |   |         |   | 1,172,207 |   |
| Accrued      expenses and other current liabilities                                                                                                                                            |   |         | -           |   |         |   | 492,026 |   |
| Total      liabilities of discontinued operations                                                                                                                                              |   |         | 336,344     |   |         |   | 2,389,676 |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| Total      Current Liabilities                                                                                                                                                                 |   |         | 8,142,075   |   |         |   | 10,141,082 |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| Long-Term      Notes Payable  (Note 6)                                                                                                                                               |   |         | 1,933,673   |   |         |   | 1,134,560 |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| TOTAL      LIABILITIES                                                                                                                                                                         |   |         | 10,075,748  |   |         |   | 11,275,642 |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| COMMITMENTS      & CONTINGENCIES (Note 7)                                                                                                                                                  |   |         | -           |   |         |   | - |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| MINORITY      INTEREST                                                                                                                                                                         |   |         | (122,640    | )      |         |   | (98,639 | ) |
| MINORITY      INTEREST OF DISCONTINUED OPERATIONS                                                                                                                                              |   |         |        |   |         |   | - |   |
| TOTAL      MINORITY INTEREST                                                                                                                                                                   |   |         | (122,640    | )      |         |   | (98,639 | ) |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| STOCKHOLDERS'      EQUITY (DEFICIENCY):  (Note 6)                                                                                                                                    |   |         |        |   |         |   |   |   |
| Stockholder's      equity of discontinued operations                                                                                                                                           |   |         |        |   |         |   |   |   |
| Additional      paid in capital                                                                                                                                                                |   |         | 979,367     |   |         |   | 910,000 |   |
| Accumulated      equity                                                                                                                                                                        |   |         | (1,086,887  | )      |         |   | 5,249,766 |   |
| Total      stockholder's equity of discontinued operations                                                                                                                                     |   |         | (107,520    | )      |         |   | 6,159,766 |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| Cumulative      Redeemable Preferred Stock, 1,500,000 shares authorized, ________ and      _________  shares issued and outstanding at May 31, 2008      and  May 31, 2007 |   |         | 10,906,811  |   |         |   | 10,875,812 |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| Common      Stock, $0.01 par value, 65,000,000 shares authorized, ________ and      _________  shares issued and outstanding at May 31, 2008      and  May 31, 2007        |   |         | 368,132     |   |         |   | 366,876 |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| Additional      Paid-In-Capital                                                                                                                                                                |   |         | 52,084,009  |   |         |   | 40,177,545 |   |
| Accumulated      Deficit                                                                                                                                                                       |   |         | (55,489,777 | )      |         |   | (50,826,471 | ) |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| Total      stockholders' Equity                                                                                                                                                                |   |         | 7,761,655   |   |         |   | 6,753,528 |   |
|                                                                                                                                                                                           |   |         |        |   |         |   |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)                                                                                                                                   |   | $            | 17,714,762  |   |         | $      | 17,930,531 |   |

----

|                                                                                |   | FISCAL      YEAR ENDED |       |
|-------------------------------------------------------------------------------------|--------|------------------------|------------|
|                                                                                |   | MAY      31,           |       |
|                                                                                |   | 2008                   |       |   | 2007 |   |
|                                                                                |   |                   |       |   |   |   |
|                                                                                |   |                   |       |   |   |   |
|                                                                                |   |                   |       |   |   |   |
|                                                                                |   |                   |       |   |   |   |
| NET      REVENUES                                                                   |   | $                      | 336,615    |   |   | $ | 313,946 |   |
| COST      OF REVENUES                                                               |   |                   | 249,738    |   |   |   | 424,281 |   |
|                                                                                |   |                   |       |   |   |   |   |   |
| GROSS      PROFIT (LOSS)                                                            |   |                   | 86,877     |   |   |   | (110,335 | ) |
|                                                                                |   |                   |       |   |   |   |   |   |
| SELLING,      GENERAL, & ADMINISTRATIVE EXPENSE                                 |   |                   | 2,374,618  |   |   |   | 3,012,078 |   |
|                                                                                |   |                   |       |   |   |   |   |   |
|                                                                                |   |                   |       |   |   |   |   |   |
| RESEARCH      AND DEVELOPMENT                                                       |   |                   | 25,000     |   |   |   | 93,750 |   |
| DEPRECIATION      & AMORTIZATION EXPENSE                                        |   |                   | 2,178      |   |   |   | 329,968 |   |
|                                                                                |   |                   |       |   |   |   |   |   |
| OPERATING      LOSS                                                                 |   |                   | (2,314,919 | ) |   |   | (3,546,131 | ) |
|                                                                                |   |                   |       |   |   |   |   |   |
| OTHER      INCOME (Note 14)                                                         |   |                   | (777,714   | ) |   |   | (271,250 | ) |
|                                                                                |   |                   |       |   |   |   |   |   |
| INTEREST      EXPENSE                                                               |   |                   | 766,516    |   |   |   | 407,567 |   |
|                                                                                |   |                   |       |   |   |   |   |   |
| PROFIT/(LOSS)      BEFORE INCOME TAXES                                              |   |                   | (2,303,721 | ) |   |   | (3,682,448 | ) |
|                                                                                |   |                   |       |   |   |   |   |   |
| INCOME      TAXES                                                                   |   |                   | 2,400      |   |   |   | 2,400 |   |
|                                                                                |   |                   |       |   |   |   |   |   |
| MINORITY      INTEREST (Note 13)                                                    |   |                   | (24,629    | ) |   |   | (24,122 | ) |
|                                                                                |   |                   |       |   |   |   |   |   |
| NET      INCOME (LOSS) FROM CONTINUING OPERATIONS                                   |   | $                      | (2,281,492 | ) |   | $ | (3,660,726 | ) |
|                                                                                |   |                   |       |   |   |   |   |   |
| DISCONTINUED      OPERATIONS                                                        |   |                   |       |   |   |   |   |   |
| NET      REVENUES                                                                   |   |                   |       |   |   | $ | 2,780,586 |   |
| FORGIVENESS      OF DEBT                                                            |   |                   |       |   |   |   | - |   |
| COST      OF REVENUES                                                               |   |                   |       |   |   |   | (2,250,226 | ) |
| SELLING,      GENERAL & ADMINISTRATIVE EXPENSE                                  |   |                   | 1,237,586  |   |   |   | (1,087,318 | ) |
| INTEREST      EXPENSE                                                               |   |                   | (56,211    | ) |   |   | (329,031 | ) |
| GAIN      (LOSS) FROM DISPOSITION OF SUBSIDIARY'S ASSETS                            |   |                   | (7,518,118 | ) |   |   | 1,481,468 |   |
| INCOME      (LOSS) FROM DISCONTINUED OPERATIONS                                     |   |                   | (6,336,743 | ) |   |   | 595,479 |   |
|                                                                                |   |                   |       |   |   |   |   |   |
| Impairment      of Investment in BIPS                                               |   |                   | 2,000,000  |   |   |   |   |   |
| Extraordinary      Gain on purchase of CPI assets                                   |   |                   | 9,818,183  |   |   |   |   |   |
|                                                                                |   |                   |       |   |   |   |   |   |
| NET      INCOME (LOSS)                                                              |   | $                      | (800,052   | ) |   | $ | (3,065,247 | ) |
|                                                                                |   |                   |       |   |   |   |   |   |
| Dividends      & deemed dividends                                               |   | $                      | 245,000    |   |   | $ | 210,830 |   |
|                                                                                |   |                   |       |   |   |   |   |   |
|                                                                                |   |                   |       |   |   |   |   |   |
| Net      income (loss) allocable to common shareholders                             |   | $                      | (1,045,052 | ) |   | $ | (3,276,077 | ) |
|                                                                                |   |                   |       |   |   |   |   |   |
| Basic      and diluted net income (loss) per share before extraordinary      income |   |                   |       |   |   | $ | (0.15 | ) |
|                                                                                |   |                   |       |   |   |   |   |   |
| Basic      and diluted net income (loss) per share for extraordinary      income    |   |                   |       |   |   |   |   |   |
|                                                                                |   |                   |       |   |   |   |   |   |
| Basic      and diluted weighted average shares of common stock      outstanding     |   |                   |       |   |   |   | 23,189,489 |   |

----

----

CASH TECHNOLOGIES, INC. AND SUBSIDIARIES

|                                                                                  |   | FISCAL      YEAR ENDED MAY 31 |        |
|---------------------------------------------------------------------------------------|--------|-------------------------------|-------------|
|                                                                                  |   | 2008                          |        |   | 2007 |   |
| OPERATING      ACTIVITIES:                                                            |   |                          |        |   |   |   |
| Net      loss                                                                         |   | $                             | (800,052    | ) |   | $ | (3,065,247 | ) |
| Adjustments to      reconcile net loss to net cash used by operating      activities: |   |                          |        |   |   |   |   |   |
| Bad      Debt Expense-discontinued operations                                         |   |                          | 7,518,118   |   |   |   |   |   |
| Impairment      of investment in BIPS                                                 |   |                          | 2,000,000   |   |   |   |   |   |
| Extraordinary      Gain                                                               |   |                          | (10,131,666 | ) |   |   |   |   |
| Minority      interest                                                                |   |                          | (24,001     | ) |   |   | (24,122 | ) |
| Amortization      deemed interest expense                                             |   |                          | 501,813     |   |   |   |   |   |
| Amortization      of capitalized software                                             |   |                          |        |   |   |   | 326,531 |   |
| Income      on forgiveness of debt                                                    |   |                          |        |   |   |   | (271,250 | ) |
| Noncash      compensation expense                                                     |   |                          |        |   |   |   |   |   |
| Non-Cash      payment for services                                                    |   |                          |        |   |   |   | (72,407 | ) |
| Depreciation      expense                                                             |   |                          | 23,796      |   |   |   | 3,437 |   |
| Other      Assets                                                                     |   |                          | 535,295     |   |   |   |   |   |
| Gain      on sale of asset                                                            |   |                          | (79,580     | ) |   |   |   |   |
| Impairment      of CoinBank machines held for sale                                    |   |                          |        |   |   |   |   |   |
|                                                                                  |   |                          |        |   |   |   |   |   |
| Changes      in operating assets and liabilities:                                     |   |                          |        |   |   |   |   |   |
| Accounts      receivable                                                              |   |                          | (98,768     | ) |   |   | (15,627 | ) |
| Inventory                                                                             |   |                          |        |   |   |   |   |   |
| Prepaid      expenses and other current assets                                        |   |                          | (335,269    | ) |   |   | (8,641 | ) |
| Other      receivable                                                                 |   |                          | 45,095      |   |   |   | (58,867 | ) |
| Accrued      interest                                                                 |   |                          | 472,124     |   |   |   |   |   |
| Accounts      payable                                                                 |   |                          | (237,295    | ) |   |   | 523,552 |   |
| Change      in net assets of business held for sale                                   |   |                          | (536,005    | ) |   |   | (967,643 | ) |
| Accrued      expenses and other current liabilities                                   |   |                          | (137,631    | ) |   |   | 854,605 |   |
| Net      cash used in operating activities                                            |   |                          | (1,284,026  | ) |   |   | (2,775,679 | ) |
|                                                                                  |   |                          |        |   |   |   |   |   |
| INVESTING      ACTIVITIES:                                                            |   |                          |        |   |   |   |   |   |
|                                                                                  |   |                          |        |   |   |   |   |   |
| Proceeds      from sale of investment                                                 |   |                          | 500,000     |   |   |   |   |   |
| Purchase      of inventory                                                            |   |                          |        |   |   |   |   |   |
|                                                                                  |   |                          |        |   |   |   |   |   |
| Net      cash provided by (used in) investing activities                              |   |                          | 500,000     |   |   |   | - |   |
|                                                                                  |   |                          |        |   |   |   |   |   |
| FINANCING      ACTIVITIES:                                                            |   |                          |        |   |   |   |   |   |
|                                                                                  |   |                          |        |   |   |   |   |   |
| Proceeds      from conversion of warrants                                             |   |                          | -           |   |   |   |   |   |
| Proceeds      from the issuance of warrants                                           |   |                          | -           |   |   |   |   |   |
| Net      proceeds from issuance of preferred stock                                    |   |                          | 31,000      |   |   |   | 250,000 |   |
| Proceeds      from Long-term debt                                                     |   |                          | 260,000     |   |   |   | 1,134,560 |   |
| Proceeds      from short term debt from equity holder                                 |   |                          |        |   |   |   | 481,860 |   |
| Repayments      on short-term debt                                                    |   |                          | (205,573    | ) |   |   |   |   |
| Repayments      on long-term debt                                                     |   |                          |        |   |   |   |   |   |
| Proceeds      from sale of common stock                                               |   |                          | 1,255       |   |   |   | 1,935,553 |   |
|                                                                                  |   |                          |        |   |   |   |   |   |
| Net      cash provided by financing activities                                        |   |                          | 86,682      |   |   |   | 3,801,973 |   |
|                                                                                  |   |                          |        |   |   |   |   |   |
| CHANGE      IN CASH AND CASH EQUIVALENTS                                              |   |                          | (697,344    | ) |   |   | 1,026,294 |   |
|                                                                                  |   |                          |        |   |   |   |   |   |
| Cash      and Cash Equivalents, Beginning of Period                                   |   |                          | 1,107,649   |   |   |   | 81,355 |   |
|                                                                                  |   |                          |        |   |   |   |   |   |
| Cash      and Cash Equivalents, End of Period                                         |   | $                             | 410,305     |   |   | $ | 1,107,649 |   |
|                                                                                  |   |                          |        |   |   |   |   |   |
|                                                                                  |   |                          |        |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURE OF CASH FLOW INFORMATION                                 |   |                          |        |   |   |   |   |   |
| Income      taxes                                                                     |   |                          | 2,400       |   |   |   | 2,400 |   |
|                                                                                  |   |                          |        |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURE OF NONCASH TRANSACTIONS                                  |   |                          |        |   |   |   |   |   |
|                                                                                  |   |                          |        |   |   |   |   |   |
| Conversion      from convertible debt to common stock                                 |   |                          |        |   |   | $ | 120,876 |   |
| Conversion      of notes payable to common stock                                      |   |                          |        |   |   |   |   |   |
| Issuance      of common stock for services performed                                  |   |                          |        |   |   | $ | 210,000 |   |
| Gain      (Loss) on operations of discontinued operations                             |   |                          |        |   |   |   |   |   |
| Dividends      declared on preferred stock                                            |   |                          |        |   |   | $ | 210,830 |   |
| Dividends      payd via common stock                                                  |   |                          |        |   |   |   |   |   |
| Deemed      dividend on warrants issued                                               |   |                          |        |   |   |   |   |   |
| Issuance      of preferred stock                                                      |   |                          |        |   |   |   |   |   |

----

TECHNOLOGIES, INC. ANDSUBSIDIARIES

| 1. | SUMMARY OF SIGNIFICANT ACCOUNTING      POLICIES, ORGANIZATION AND BASIS OF  PRESENTATION |
|----|------------------------------------------------------------------------------------------|

|  | (a) | "Going Concern" — The      accompanying consolidated financial statements have been prepared assuming      that we will continue as a going concern. We have significant losses from      operations and have used significant amounts of cash for operations during      the last five years. As of May 31, 2008, we do not have positive working      capital and net equity operating losses have continued throughout 2007. We      have generated limited revenues since our inception, and, while we expect      to generate significant revenues within the next fiscal year, there is no      assurance that we will besuccessful. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (b) | Basis      of Consolidation — The accompanying consolidated financial statements      include the accounts of Cash Technologies, Inc. ( "CTI "), a Delaware      corporation, and our wholly-owned subsidiaries, National Cash Processors,      Inc. ( "NCP "), CashTechCard Systems, Inc. (formerly Cintelia, Inc.), CT      Holdings, LLC, Claim-Remedi Services, Inc. (formerly Heuristic      Technologies, Inc., TAP Holdings, LLC. and CoinBank Automated Systems (      "CAS ") together the "Company." CoinBank Automation Handels GmbH,      Salzburg, Austria ("CoinBank Europe" or "CBE") was treated as a division      of CoinBank Automated Systems during this period and was consolidated into      CoinBank Automated Systems. All significant inter-company transactions and      accounts have been eliminated in consolidation. CTI was incorporated in      August 1995. In January 1996, a few of our affiliates exchanged their      stock in NCP as part of a combination of entities under common control.      CAS was incorporated in November 1995 Cintelia in December 2001, CT      Holdings, LLC in June 2002, Claim-Remedi in May 2004 and Tap Holdings in      November 2004. As of May 31, 2008 we own 86.35% of CT Holdings, LLC and      89% of TAP Holdings, LLC. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | Business — The principal business      activity of each entity is as follows: CTI is currently managing its      subsidiary operations and providing EMMA and other software development      resources to subsidiaries; Claim-Remedi Services, Inc. provides healthcare      software and data processing; NCP is a full-service cash-processing entity      providing sorting, counting and wrapping functions to cash-intensive      businesses but is not currently operating; CAS offers self-service      coin-counting machines. CBE functions as a European sales office for us      and CashTechCard markets prepaid debit  cards. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | Fiscal      Year—CTI's fiscal year ended May 31, 2008 but TAP Holdings, LLC's fiscal      year ends on the last Sunday in May, 2007 which normally results in a 52      or 53 week year |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | Revenue      Recognition—The Company recognizes sales when products are shipped. Net      sales reflect reductions for cores returned for credit and other returns      and allowances. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (f) | Use of Estimates—The preparation      of financial statements in conformity with generally accepted accounting      principles requires management to make estimates and assumptions that      affect the reported amounts of assets and liabilities and disclosures of      contingent assets and liabilities at the date of the financial statements      and reported amounts of revenue and expense during the reporting period.      Actual results could differ from those  estimates. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (g) | Advertising      Costs—The Company expenses advertising costs when the advertising takes      place. |
|--|-----|------------------------------------------------------------------------------------------------------------|

|  | (h) | Warranty      Policy—The Company offers a limited ninety-day warranty on products sold.      Warranty costs relating to this limited warranty policy are estimated and      recorded as warranty obligations at the time of sale based on historical      return rates. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Shipping      and Handling Fees and Costs—In September 2000, the Emerging Issues Task      Force issued EITF 00-10, Accounting for Shipping and Handling Fees and      Costs ("EITF 00-10"). EITF 00-10 requires shipping and handling fees      billed to customers to be classified as revenue and shipping and handling      costs to be either classified as cost of sales or disclosed in the notes      to the financial statements. The Company includes shipping and handling      fees billed to customers in netsales. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | Cash      Equivalents—We consider all investments purchased with an original      maturity of three months or less to be cash  equivalents. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (k) | Cash—The      Company maintains its cash in bank accounts which, at times, may exceed      federally insured limits. The Company has not experienced any losses in      such accounts and believes it is not exposed to any significant risk on      cash. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | Trade      & Other Receivables—Receivables are recorded when billed or accrued      and represent claims against third parties that will be settled in cash.      The carrying value of receivables, net of the allowance for doubtful      accounts, represents their estimated net realizable value. The allowance      for doubtful accounts is estimated based on historical collection trends,      type of customer, the age of outstanding receivables and existing economic      conditions. If events or changes in circumstances indicate that specific      receivable balances may be impaired, further consideration is given to the      collectibility of those balances and the allowance is adjusted      accordingly. Past due receivable balances are written-off when collection      efforts have been unsuccessful in collecting the amount due. As of May 31,      2008 the Company had an Allowance for Bad Debts of  $50,000. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (m) | Inventories—The Company's      inventory consists of used cores, replacement component parts, and      carburetors and diesel pumps in process or completed. The inventory values      are based on historical standards less obsolescence and acquisition      reserves. Standards are reviewed and adjusted, if necessary, at fiscal      year end. The standards are valued on a lower of cost or market basis. As      of May 31, 2008 an obsolescence reserve of $121,000 has been      established. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (n) | CoinBank      Machines Held for Sale—CTI has designated CoinBank machines and parts as      being held for sale. CoinBank machines held for sale are recorded at the      lower of cost or estimated fair value, which includes an estimate of the      costs to sell these assets. The estimated fair value is based on      information including recent sales of CoinBank machines and estimated      present value techniques. During the fourth quarter of fiscal year 2006,      management evaluated the estimated fair market value of these machines and      subsequently recorded an impairment loss of $5,170. As of May 31, 2008,      the carrying value of the CoinBank machines is  $609,890. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (o) | Property      and Equipment—Property and equipment are stated at cost less accumulated      depreciation. The provision for depreciation is computed using the      straight-line method over the estimated useful lives of the related asset,      ranging from three to seven years. Amortization of leasehold improvements      is computed using the straight-line method over the shorter of the      estimated life of the asset or the remaining term of the      lease. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (p) | Impairment of Long-Lived      Assets—We have evaluated long-lived assets for impairment whenever events      or changes in circumstances indicate that the carrying value of an asset      may not be recoverable. If the estimated future cash flows (un-discounted      and without interest charges) from the use of an asset is less than the      carrying value, a write-down would be recorded to reduce the related asset      to its estimated fair value. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (q) | Other      Assets—Other Assets are carried at cost and are amortized using a      straight-line method. The organization costs are being amortized over five      years and the deferred loan fees are being amortized over the life of the      loan. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (r) | Income      Taxes—We have filed a consolidated federal income tax return and a      combined California franchise tax return. Deferred income taxes have been      recognized for temporary differences between the financial reporting and      income tax bases of assets and liabilities, which are based on the enacted      tax rates expected to be in effect when such amounts are expected to be      realized or settled. A valuation allowance is established when necessary      to reduce deferred income tax assets to the amount expected to be      realized. Income tax expense is the tax payable or refundable for the year      plus or minus the change during the year in deferred income      taxes. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (s)   | Employee      Stock Option—We have adopted statement of financial accounting standard      No. 123(R) , "Share Based Payment"(SFAS No. 123(R)), as of June 1, 2006,      which is a revision of SFAS No. 123, "Accounting for Stock-Based      Compensation" ("SFAS 123(R)). SFAS 123(R) supersedes Accounting Principles      Board Opinion ("APB") No. 25, "Accounting for Stock Issued to Employees,"      and amends SFAS No. 95, "Statement of Cash Flows." Generally, the approach      in SFAS 123(R) is similar to the approach described in SFAS 123. However,      SFAS 123(R) requires all share-based payments to employees, including      grants of employee stock options, to be recognized in the income statement      based on their fair values. Pro forma disclosure is no longer an      alternative. SFAS 123(R) was effective for fiscal years beginning after      June 15, 2005. |
|--|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (t) | Basic and Diluted Net Income      (Loss) per Common Share—Basic and diluted net income (loss) per common      share is based on the weighted average number of common shares outstanding      during the respective periods. Statement of Financial Accounting Standards      No. 128, "Earnings per Share" issued by the FASB is effective for      financial statements with fiscal years and interim periods ending after      December 15, 1997. SFAS 128 provides for the calculation of Basic and      Diluted earnings per share. Basic earnings per share includes no dilution      and is computed by dividing income available to common stockholders by the      weighted average number of common shares outstanding during the periods      presented. Diluted earnings per share reflect the potential dilution of      securities that could share in the earnings, such as stock options,      warrants or convertible debentures. Stock options and warrants outstanding      during the periods presented were not included in diluted earnings per      share since their effect would be  anti-dilutive. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (u) | Fair      Value of Financial Instruments—Financial instruments consist of accounts      receivable and payable, which have a fair value approximating the book      value due to their short-term nature; notes payable for which fair value      approximates book value due to interest rates on long-term debt      approximate current interest rates, and amounts due to stockholders have a      fair value that cannot be determined due to the related-party nature of      the transactions. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (v) | Concentration      of Suppliers—We are dependent on third-party manufacturers for the      production of the components incorporated into CoinBank machines and      currently purchase substantially all of our requirements of specially      designed or modified components from single source suppliers. We purchased      certain of these components pursuant to open purchase orders placed from      time to time in the ordinary course of business. Although we currently      believe that alternative sources for these components are readily      available, failure or delay by any manufacturer in providing components to      us on commercially reasonable terms, or at all, in the absence of readily      available alternative sources, could result in interruptions in our      ability to continue the assembly and installation of CoinBank machines and      have a material adverse effect on our  operations. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (w) | Capitalized Software—The research      and development of new software products and enhancements to existing      software products were expensed as incurred (and recorded in the      consolidated statement of operation) until technological feasibility has      been established. Technological feasibility is established upon completion      of a detailed program design or working model. Technological feasibility      was achieved in September of 1999 and commencing October 1, 1999 all      expenses related to EMMA software development had been capitalized. As of      December 31, 2001, we had capitalized $2,771,536 in development and      related costs. The EMMA product was available for release to the public in      January 2002 thus all development costs since have been expensed including      $93,750 for the fiscal year ended May 31,  2008. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Much of our SG&A costs are fixed innature, therefore, as volume of transactions and revenues increase, the SG&Adoes not increase proportionately. 

|  | (x) | Concentration of Credit      Risk—Financial instruments that potentially subject us to a concentration      of credit risk consists primarily of accounts receivable. The receivables      are unsecured, and we perform ongoing credit evaluations of our      customers. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

NOTE 2 - INVENTORIES

| Finished      Goods                    |   | $      | 2,881,783  |   |
|----------------------------------------|--------|--------|------------|--------|
| Work      in Process                   |   |   | 3,000      |   |
| Cores                                  |   |   | 5,881,938  |   |
| Component      Parts                   |   |   | 4,316,822  |   |
| Inventories      at Standard Cost      |   |   | 11,967,341 |   |
| Provision      for Obsolescence        |   |   | 1,113,202  | )      |
| Net      Carrying Value of Inventories |   | $      | 11,967,341 |   |

NOTE 3 - PROPERTY AND EQUIPMENT

|                               |   | 2008   |    |   | 2007   |   |
|------------------------------------|--------|--------|---------|--------|--------|--------|
|                               |   |   |    |   |   |   |
| Computer      equipment            |   | $      | 145,483 |   |   | $      | 145,483 |   |
| Office      Equipment              |   |   | 2,061   |   |   |   | 2,061 |   |
| Other      equipment               |   |   | 35,620  |   |   |   | 32,134 |   |
| Total      Property and Equipment  |   | $      | 183,164 |   |   | $      | 179,678 |   |
| Less      Accumulated Depreciation |   |   | 155,033 |   |   |   | 152,855 |   |
|                               |   | $      | 28,131  |   |   | $      | 26,823 |   |

NOTE 4 - NOTES PAYABLE

| Loan                      |   | Balance      6/1/07 |      |   | Additions6/1/07      to 5/31/08 |   |    | Adjustments6/1/07      to 5/31/08 |   |   | Balance      5/31/08 |   |
|---------------------------|--------|---------------------|-----------|--------|---------------------------------|--------|---------|-----------------------------------|--------|--------|----------------------|--------|
| GE      Capital Principal |   | $                   | 3,482,287 |   |                            | $      | — |                              |   | $      |                 |   |   | $ | 3,482,287 |   |
| GE      Capital Interest  |   |                | 200,758   |   |                            |   | 347,388 |                              |   |   | (354,324             | )      |   |   | 193,822 |   |
| BFI      Business Finance |   |                | 1,172,207 |   |                            |   | 290,953 |                              |   |   | (1,248,207           | )      |   |   | 214,953 |   |
|                      |   |                |      |   |                            |   |    |                              |   |   |                 |   |   |   |   |   |
| Totals                    |   | $                   | 5,803,494 |   |                            | $      | 999,017 |                              |   | $      | (1,947,259           | )      |   | $ | 4,855,252 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2007   |      |   | 2006   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| In      1997, we entered into a credit agreement with G.E. Capital Corporation, or      G.E. Capital, pursuant to which we borrowed $ 5,500,000 for the purchase      of CoinBank component equipment, working capital and general corporate      purposes. Due to our inability to repay G.E. Capital on the original      terms, on September 29, 2000 we entered into the first of several loan      modifications with G.E. The most recent modification requires a payment of      certain fees and interest following which GE has agreed to extend the loan      on interest-only terms at a rate of 9.5% for 12 additional months at which      time the entire unpaid balance shall be due and payable. We have no      current plan or   capability to repay G.E. its principal. As of May      31, 2008, we owed G.E. Capital $3,683,045, which includes the principal,      financing fees and unpaid interest.                                                                                                                                                                                   |   | $      | 3,683,045 |   |   | $      | 3,683,045 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |      |   |   |   |   |   |
| For      a period of approximately two years, the Company’s subsidiary, TAP      Holdings, LLC, operated Tomco Auto   Products, until the sale of most      of the Tomco assets on October 31, 2006. During such period, TAP        maintained an asset-based line of credit for the   benefit or Tomco      on which a partial repayment of   $1,300,000 was made as part of the      Tomco sale   transaction. As of May 31, 2008, the line of        credit had an outstanding balance of approximately   $1,172,207      including interest. The line of credit is   secured by all of the      business assets of TAP Holdings, LLC as well as a limited personal      guaranty from TAP's chairman (who is not an employee of Cash      Technologies). The outstanding balance of the line of credit is        expected to be fully paid by approximately August,   2007 from      remaining Tomco receivables (which were not sold by TAP in the Tomco sale      transaction) and monthly note payments from the acquirer of the Tomco      assets. |   |   | 1,172,207 |   |   |   | 2,097,292 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |      |   |   |   |   |   |
| At      May 31, 2006 TAP Holdings, LLC. had a loan payable outstanding from the      purchase of a delivery truck. The loan has since been      satisfied.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | -0-       |   |   |   | 23,157 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 4,855,252 |   |   |   | 5,803,494 |   |

----

NOTE 5 - CONVERTIBLE DEBT

| Description                                |   | Bal.      @ 6/01/07 |      |   | Additions      6-1-07 to 5/31/2008 |   |    | Adjustments      6-1-07 to 5/31/2008 |   |   | Bal.      @ 5/31/08 |   |
|--------------------------------------------|--------|---------------------|-----------|--------|------------------------------------|--------|---------|--------------------------------------|--------|--------|---------------------|--------|
| Convertible      Debt — Principal LT |   | $                   | 1,244,572 |   |                               | $      | 689,101 |                                 |   | $      |                |   |   | $ | 1,933,673 |   |
| Convertible      Debt—Interest       |   |                | 60,507    |   |                               |   | 83,330  |                                 |   |   |                |   |   |   | 143,837 |   |
| Convertible      Debt—Stockholders   |   |                | 602,610   |   |                               |   |    |                                 |   |   | (415,563            | )      |   |   | 187,047 |   |
| Totals                                     |   | $                   | 1,907,689 |   |                               | $      | 772,431 |                                 |   | $      | -415,563            |   |   | $ | 2,264,557 |   |

|   | · | a 6% interest 3 year convertible      note for $1,200,000 with a conversion price of $1.05 per      share, |
|--------|--------|------------------------------------------------------------------------------------------------------------|

----

|   | · | $300,000 of common stock at $0.80      per share, or 375,000 shares of common  stock, |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | common stock purchase warrants to      purchase 759,000 shares of common stock at $1.75 per      share |
|--------|--------|--------------------------------------------------------------------------------------------------------|

  

----

|                                             |   | Number      of Options/Warrants |    |   | Weighted      Average Price $/Share |   |
|--------------------------------------------------|--------|---------------------------------|---------|--------|-------------------------------------|--------|
| Options/Warrants      outstanding - May 31, 2006 |   |                            |    |   |                                | $      | 1.93 |   |
| Employee Stock Options                           |   |                            |    |   |                                |   |   |   |
| Granted                                          |   |                            |    |   |                                | $      | 1.01 |   |
| Expired                                          |   |                            | — |   |                                |   | — |   |
| Exercised                                        |   |                            | — |   |                                |   | — |   |
| Stockholder      Warrants                        |   |                            |    |   |                                |   |   |   |
| Granted                                          |   |                            |    |   |                                |   | 2.26 |   |
| Expired                                          |   |                            |    |   |                                |   | 7.84 |   |
| Exercised                                        |   |                            | — |   |                                |   | — |   |
| Options                                          |   |                            |    |   |                                |   |   |   |
| Options/Warrants      outstanding - May 31, 2007 |   |                            |    |   |                                | $      | 2.01 |   |
| Employee Stock Options                           |   |                            |    |   |                                |   |   |   |
| Granted                                          |   |                            |    |   |                                | $      | 0.95 |   |
| Expired                                          |   |                            | — |   |                                |   | — |   |
| Exercised                                        |   |                            | — |   |                                |   | — |   |
| Stockholder Warrants                             |   |                            |    |   |                                |   |   |   |
| Granted                                          |   |                            |    |   |                                |   |   |   |
| Expired                                          |   |                            |    |   |                                |   |   |   |
| Exercised                                        |   |                            | — |   |                                |   | — |   |
| Options                                          |   |                            |    |   |                                |   |   |   |
| Options/Warrants      outstanding - May 31, 2008 |   |                            |    |   |                                | $      |   |   |

----

Stock Based Compensation

|                                                  |   | 2008   |       |   | 2007   |   |
|-------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Net      Income (Loss)                                |   |   |       |   |   |   |
| As      Reported                                      |   | $      | (2,281,492 | ))     |   | $      | (3,064,974 | ) |
| Pro      Forma                                        |   | $      | (2,281,492 | ))     |   | $      | (3,101,956 | ) |
| Basic      and Diluted Income (Loss) Per Common Share |   |   |       |   |   |   |   |   |
| As      Reported                                      |   | $      | (0.04      | )      |   | $      | (0.09 | ) |
| Pro      Forma                                        |   | $      | (0.04      | )      |   | $      | (0.09 | ) |

----

| Outstanding Weighted      Average |      | Exercisable      Weighted Average |   |
|-----------------------------------|-----------|-----------------------------------|--------|
| Total      Shares05/31/07         |      | Life                              |   | ExercisePrice |   | Total      Shares05/31/07 |   | ExercisePrice |   |
|                              |      |                              |   |   |   |   |   |   |   |
|                              | 300,000   |                              | 2.50   |   | $ | 1.20 |   | 300,000 |   | $ | 1.20 |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 480,000   |                              | 2.50   |   | $ | 0.81 |   | 480,000 |   | $ | 0.81 |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 30,000    |                              | 2.25   |   | $ | 1.75 |   | 30,000 |   | $ | 1.75 |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 205,000   |                              | 2.50   |   | $ | 2.00 |   | 205,000 |   | $ | 2.00 |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 253,809   |                              | 2.50   |   | $ | 2.50 |   | 253,809 |   | $ | 2.50 |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 428,574   |                              | 2.00   |   | $ | 2.50 |   | 428,574 |   | $ | 2.50 |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 117,118   |                              | .75    |   | $ | 0.01 |   | 117,118 |   | $ | 0.01 |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 331,000   |                              | 2.00   |   | $ | 0.01 |   | 331,000 |   | $ | 0.01 |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 1,350,000 |                              | 1.75   |   | $ | 0.65 |   | 1,350,000 |   | $ | 0.65 |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 357,856   |                              | .50    |   | $ | 1.00 |   | 357,856 |   | $ | 1.00 |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 25,000    |                              | 1.25   |   | $ | 1.00 |   | 25,000 |   | $ | 1.00 |   |
|                              |      |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 25,000    |                              | 1.50   |   | $ | 1.00 |   | 25,000 |   | $ | 1.00 |   |

----

| Outstanding Weighted      Average |    | Exercisable      Weighted Average |   |
|-----------------------------------|---------|-----------------------------------|--------|
| Total      Shares                 |    |                              |   | Exercise |   | Total      Shares |   | Exercise |   |
| 05/31/07                          |    | Life                              |   | Price |   | 05/31/07 |   | Price |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |
|                              | 7,813   |                              | .50    |   | $ | 1.30 |   | 7,813 |   | $ | 1.30 |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 20,000  |                              | 1.25   |   | $ | 2.00 |   | 20,000 |   | $ | 2.00 |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 215,000 |                              | 1.50   |   | $ | 2.00 |   | 215,000 |   | $ | 2.00 |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 787,675 |                              | 1.75   |   | $ | 2.00 |   | 787,675 |   | $ | 2.00 |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 185,000 |                              | 2.00   |   | $ | 2.00 |   | 185,000 |   | $ | 2.00 |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 22,763  |                              | 1.00   |   | $ | 2.50 |   | 22,763 |   | $ | 2.50 |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 10,000  |                              | 1.25   |   | $ | 2.50 |   | 10,000 |   | $ | 2.50 |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 191,830 |                              | 1.00   |   | $ | 3.00 |   | 191,830 |   | $ | 3.00 |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 13,100  |                              | 1.25   |   | $ | 3.00 |   | 13,100 |   | $ | 3.00 |   |
|                              |    |                              |   |   |   |   |   |   |   |   |   |   |
|                              | 30,000  |                              | 1.50   |   | $ | 3.00 |   | 30,000 |   | $ | 3.00 |   |

----

NOTE 10 -SEGMENT REPORTING 

|                                  |   | Twelve      Months Ended |       |
|---------------------------------------|--------|--------------------------|------------|
|                                  |   | May      31,             |       |
| Net      revenues:                    |   | 2008                     |       |   | 2007 |   |
|                                  |   |                     |       |   |   |   |
| ClaimRemedi/CashTechCard              |   |                     | 158,628    |   |   |   | 313,946 |   |
| CPI                                   |   |                     | 98,281     |   |   |   | - |   |
| Unallocated                           |   |                     | 79,706     |   |   |   |   |   |
|                                  |   |                     | 336,615    |   |   |   | 313,946 |   |
|                                  |   |                     |       |   |   |   |   |   |
| Interest      expense:                |   |                     |       |   |   |   |   |   |
| ClaimRemedi/CashTechCard              |   |                     | -          |   |   |   | - |   |
| CPI                                   |   |                     | 42,353     |   |   |   | - |   |
| Unallocated                           |   |                     | 724,163    |   |   |   | 407,567 |   |
|                                  |   |                     | 766,516    |   |   |   | 407,567 |   |
|                                  |   |                     |       |   |   |   |   |   |
| Depreciation      & Amortization: |   |                     |       |   |   |   |   |   |
| ClaimRemedi/CashTechCard              |   |                     |       |   |   |   |   |   |
| CPI                                   |   |                     |       |   |   |   | - |   |
| Unallocated                           |   |                     | 2,178      |   |   |   | 329,968 |   |
|                                  |   |                     | 2,178      |   |   |   | 329,968 |   |
|                                  |   |                     |       |   |   |   |   |   |
| Segment      Income (loss):           |   |                     |       |   |   |   |   |   |
| ClaimRemedi/CashTechCard              |   |                     | (2,986,209 | ) |   |   | (1,405,705 | ) |
| CPI                                   |   |                     | (105,562   | ) |   |   | - |   |
| Unallocated                           |   |                     |       |   |   |   |   |   |
|                                  |   | (1,189,721               | )          |   |   | (2,255,021 | ) |
|                                  |   |                     | (4,281,492 | ) |   |   | (3,660,726 | ) |

NOTE 13 - OTHER INCOME 

NOTE 15 - SUBSEQUENT EVENTS 

           --NONE--

ITEM 8A CONTROLS AND PROCEDURES

----

ITEM 8B OTHER INFORMATION 

PART III

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERSAND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

| Name                    |   | Age    |   | Position                                                          |
|-------------------------|--------|--------|--------|-------------------------------------------------------------------|
|                    |   |   |   |                                                              |
| Bruce      R. Korman    |   | 49     |   | President,      Chief Executive Officer and Chairman of the Board |
|                    |   |   |   |                                                              |
| Edmund      King        |   | 44     |   | Chief      Financial Officer and Secretary                        |
|                    |   |   |   |                                                              |
| Richard      Miller     |   | 56     |   | Director(1)(2)                                                    |
|                    |   |   |   |                                                              |
| Robert      B. Fagenson |   | 59     |   | Director(1)                                                       |
|                    |   |   |   |                                                              |
| Kevin      Walls        |   | 46     |   | Director(2)                                                       |

----

|   | · | reviewing with our independent      auditors, the scope and results of any audits;  and |
|--------|--------|-----------------------------------------------------------------------------------------|

----

|   | · | reviewing with the independent      auditors and management, our accounting, financial and operating controls      and staff. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

Summary Compensation Table  

| Name      and All      Other Principal      Position Compensation(1) | Annual      Compensation |   | Long      Term Compensation |    |
|----------------------------------------------------------------------|--------------------------|--------|-----------------------------|---------|
|                                                                 | Year                     |   | Salary                      |    | Bonus |   | Underlying |   | Options      (#) |   |
| Bruce      Korman                                                    | 2008                     |   | $                           | 250,000 | * |   |   |   |   | $ | 18,000 | (1) |
| President      and Chief                                             | 2007                     |   | $                           | 250,000 | * |   |   | 1,000,000 |   | $ | 18,000 | (1) |
| Executive      Officer                                               | 2006                     |   | $                           | 250,000 | * |   |   |   |   | $ | 18,000 | (1) |
|                                                                 |                     |   |                        |    |   |   |   |   |   |   |   |   |
| Edmund      King                                                     | 2008                     |   | $                           | 180,000 |   |   |   |   |   | $ | 9,000 | (1) |
| Chief      Financial                                                 | 2007                     |   | $                           | 180,000 |   |   |   |   |   | $ | 9,000 | (1) |
| Officer                                                              | 2006                     |   | $                           | 150,000 |   |   |   |   |   | $ | 9,000 |   |

----

Option Grants in Fiscal Year Ended May 31,2008

| Name              |   | Number      of Securities Underlying Options/Warrants |   | Percent      of Total Options/ Warrants to Employees in Fiscal Year (%) |    | Exercise      Price ($/Sh) |   | Expiration      Date |
|-------------------|--------|-------------------------------------------------------|--------|-------------------------------------------------------------------------|---------|----------------------------|--------|----------------------|
|              |   |                                                  |   |                                                                    |    |                       |   |                 |
| Bruce      Korman |   |                                                  | 0      |                                                                    | — |                       |   | —              |   | — |
|              |   |                                                  |   |                                                                    |    |                       |   |                 |   |   |
| Edmund      King  |   |                                                  | 0      |                                                                    | — |                       |   | —              |   | — |

Aggregated Option Exercises And Fiscal Year-EndOption Values 

|              |   | Number      of Securities Underlying Unexercised Options at May 31,    2007 |      | Value      of Unexercised In-the-Money  Options at May 31,2007    (1) |   |
|-------------------|--------|-----------------------------------------------------------------------------|-----------|----------------------------------------------------------------------------|--------|
| Name              |   | Exercisable                                                                 |      | Un-exercisable                                                             |   | Exercisable |   | Un-exercisable |   |
|              |   |                                                                        |      |                                                                       |   |   |   |   |   |
| Bruce      Korman |   |  $                                                                     | 3,350,000 |                                                                       |   | 0 |   | $ | 3,350,000 |   | $ | 0 |   |
|              |   |                                                                        |      |                                                                       |   |   |   |   |   |   |   |   |   |
| Edmund      King  |   |                                                                        | 750,000   |                                                                       |   | 0 |   | $ | 750,000 |   | $ | 0 |   |

| (1) | Year-end values for unexercised      in-the-money options represent the positive spread between the exercise      price of such options and the fiscal year-end market value of the common      stock. An option is "in-the-money" if the fiscal year end fair market      value of the common stock exceeds the option exercise      price. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIALOWNERS AND MANAGEMENT

----

| Name and Address ofBeneficial      Owners(1)(2)                                                             |   | Amount      and Nature of Beneficial Ownership (2a) |       | Percentage      of Shares Beneficially Owned |   |
|-------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|------------|----------------------------------------------|--------|
|                                                                                                        |   |                                                |       |                                         |   |
| Bruce      Korman (3)                                                                                       |   |                                                | 3,866,267  |                                         | 12.47  | % |
|                                                                                                        |   |                                                |       |                                         |   |   |
| Richard      Miller (4)                                                                                     |   |                                                | 856,657    |                                         | 2.76   | % |
|                                                                                                        |   |                                                |       |                                         |   |   |
| Robert      B. Fagenson (5)(6)                                                                              |   |                                                | 271,126    |                                         | .87    | % |
|                                                                                                        |   |                                                |       |                                         |   |   |
| Kevin      Walls (7)                                                                                        |   |                                                | 336,927    |                                         | 1.09   | % |
|                                                                                                        |   |                                                |       |                                         |   |   |
| Eric      Butlein (8)                                                                                       |   |                                                | 3,533,130  |                                         | 11.40  | % |
|                                                                                                        |   |                                                |       |                                         |   |   |
| Edmund      King (9)                                                                                        |   |                                                | 750,000    |                                         | 2.42   | % |
|                                                                                                        |   |                                                |       |                                         |   |   |
| Darryl      Bergman (10)                                                                                    |   |                                                | 500,000    |                                         | 1.61   | % |
|                                                                                                        |   |                                                |       |                                         |   |   |
| Willi      Muhr (11)                                                                                        |   |                                                | 200,000    |                                         | .65    | % |
|                                                                                                        |   |                                                |       |                                         |   |   |
| Peter      & Irene Gauld (12)                                                                           |   |                                                | 1,755,860  |                                         | 5.66   | % |
|                                                                                                        |   |                                                |       |                                         |   |   |
|                                                                                                        |   |                                                |       |                                         |   |   |
|                                                                                                        |   |                                                |       |                                         |   |   |
| All      directors and executive officers as a group (persons)(1)(2)(3)(4)(5)(6)      (7)(8)(9)(10)(11)(12) |   |                                                | 12,249,967 |                                         | 39.1   | % |

| * | Denotes      less than 1%. |
|---|----------------------------|

| (1) | Unless      otherwise indicated, the address for each named individual or group is in      care of Cash Technologies, Inc., 1434 West 11th Street, Los Angeles,      California 90015. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Unless otherwise indicated, we      believe that all persons named in the table have sole voting and      investment power with respect to all shares of common stock beneficially      owned by them. A person is deemed to be the beneficial owner of securities      that can be acquired by such person within 60 days from May 31, 2004, upon      the exercise of options, warrants or convertible securities. Each      beneficial owner's percentage ownership is determined by assuming that      options, warrants or convertible securities that are held by such person      (but not those held by any other person) and which are exercisable within      60 days of the date of May 31,2004. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (3) | Includes      516,267 shares owned by First Bancorp L.P. Mr. Korman is a limited partner      of First Bancorp L.P. and the President of the general partner of First      Bancorp L.P. Also includes 3,350,000 shares subject to outstanding      exercisable employee options. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Includes      516,477 shares owned by Lakeview Enterprises, Ltd. Mr. Miller is a limited      partner of Lakeview Enterprises, Ltd. and the President of the general      partner of Lakeview Enterprises, Ltd. Also includes 200,180 shares subject      to outstanding exercisable warrants and an additional 340,800 executive      options. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Includes      2,625 shares issuable upon the conversion of 2,625 Series A Preferred      Stock, and 141,313 shares subject to outstanding warrants and      options. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Includes      117,188 shares issuable upon the conversion of warrants exercisable at      $0.01 per share with a term of 7 years, approved by the Board of Directors      in lieu of repayment of a $75,000 loan from Mr. Fagenson to the Company.      Any of such warrants can be redeemed at any time for a cash payment from      the Company of $0.65 per warrantshare. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Includes      12,000 shares issuable upon the conversion of 12,000 options, 120,000      shares issuable upon conversion of Series B preferred stock, 64,927 shares      issuable upon the conversion of dividends on Series B preferred stock and      an additional 140,000 upon the conversion of executive      options. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Includes      260,000 shares issued upon conversion of convertible notes, 80,000 shares      issued upon conversion of Series B preferred stock, 480,769 shares issued      upon conversion of Series C preferred stock, 833,723 shares of common      stock, and an aggregate of 352,231 shares issuable upon the conversion of      352,231 Series D and other warrants. Includes shares beneficially owned      through Ejada Limited Partnership, his spouse Jada Butlein, ADA Partners,      Tikkum Olam Foundation, ADA Greater Trust and Ejada Butlein      Trust. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Includes      750,000 shares subject to options. |
|-----|--------------------------------------------------|

| (10) | Includes      500,000 shares subject to options. |
|------|--------------------------------------------------|

| (11) | Includes      200,000 shares subject to options. |
|------|--------------------------------------------------|

| (12) | Includes 325,860 shares issued      upon conversion of Series D preferred stock and 500,000 shares issued upon      conversion of Series F preferred stock, 576,923 shares of common stock,      53,077 shares of common stock issued in-lieu of interest and an aggregate      of 300,000 shares issuable upon exercise of 300,000 Series E, G and H      warrants. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Number of securities to be issued upon      exercise of options, warrants and rights |   |  Weighted      average of exercise price of outstanding options, warrants and      rights |      |  Weighted      average exercise price of outstanding options, warrants and      rights |   | Number      of remaining available for future issuance under equity compensation plans      (excluding) securities reflected in column (a)) |   |
|--------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|-----------|---------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                 |   |                                                                                           |      |                                                                                        |   |                                                                                                                                        |   |
| Equity      Compensation plans approved by                                           |   |                                                                                           | 4,624,000 |                                                                                        | $      | 1.00                                                                                                                                        |   |   | 1,876,000 |   |
| Security      holders                                                                |   |                                                                                           |      |                                                                                        |   |                                                                                                                                        |   |   |   |   |
|                                                                                 |   |                                                                                           |      |                                                                                        |   |                                                                                                                                        |   |   |   |   |
| Equity      Compensation plans not approved by                                       |   |                                                                                           |      |                                                                                        |   |                                                                                                                                        |   |   |   |   |
| Security      holders                                                                |   |                                                                                           | —   |                                                                                        |   | —                                                                                                                                     |   |   | — |   |
|                                                                                 |   |                                                                                           |      |                                                                                        |   |                                                                                                                                        |   |   |   |   |
| Total                                                                                |   |                                                                                           | 4,624,000 |                                                                                        | $      | 1.00                                                                                                                                        |   |   | 1,876,000 |   |

ITEM 12. CERTAIN RELATIONSHIPS AND RELATEDTRANSACTIONS 

----

  

ITEM 13. EXHIBITS, LISTS AND REPORTS ON FORM 8-K

| *3.1   | Our      Restated Certificate of Incorporation {Exhibit 3.1 to our Registration      Statement on Form SB-2 (File No. 333-6436)}                                                                                                                                                                |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                            |
| *3.2   | Our      Bylaws {Exhibit 3.2 to our Registration Statement on Form SB-2 (File No.      333-6436)}                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                            |
| *3.3   | Certificate      of Designation of Series A 8% Cumulative Convertible Preferred Stock      {filed as Exhibit 3.1 (a) to our Form 10 QSB for the quarter ended August      31, 1999.                                                                                                             |
|   |                                                                                                                                                                                                                                                                                            |
| *3.4   | Certificate      of Designation of Series E Cumulative Convertible Preferred Stock {Exhibit      3.4 to our Registration Statement on Form SB-2 (File No.      333-6436)}                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                            |
| *3.5   | Certificate      of Designation of Series F Cumulative Convertible Preferred Stock {Exhibit      3.5 to our Registration Statement on Form SB-2 (File No.      333-6436)}                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                            |
| *3.6   | Certificate      of Designation of Series H Cumulative Convertible Preferred      Stock                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                            |
| *3.7   | Certificate      of Designation of Series I Cumulative Convertible Preferred      Stock                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                            |
| *3.8   | Certificate      of Designation of Series J Cumulative Convertible Preferred      Stock                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                            |
| *4.1   | Our      Common Stock Certificate form {Exhibit 4.1 to our Registration Statement      on Form SB-2 (File No. 333-6436)}                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                            |
| *4.2   | Form      of the Underwriter's Warrant Agreement, including Form of Warrant      Certificate dated as of July 9, 1998 between us, Starr Securities, Inc.      and GunnAllen Financial Inc. (the "Underwriters"){Exhibit 4.1 to our      Registration Statement on Form SB-2 (File No.333-6436)} |
|   |                                                                                                                                                                                                                                                                                            |
| *10.1  | Lease      for our Facilities at 1422 -34 West 11th Street, Los Angeles Ca {Exhibit      10.1 to our Registration Statement on Form SB-2 (File No.      333-6436)}                                                                                                                              |

----

| *10.2  | Agreement      dated November 22, 1996 between National Cash Processors Inc. and First      Bancorp LP {Exhibit 10.2 to our Registration Statement on Form SB-2 (File      No. 333-6436)}                  |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                       |
| *10.3  | Manufacturing      and License Agreement dated January 17, 1997 between us and Geld      Bearbeitungs Systeme GES.M.B.H.{Exhibit 10.3 to our Registration Statement      on Form SB-2 (File No. 333-6436)} |
|   |                                                                                                                                                                                                       |
| *10.4  | Form      of Employment Agreement between us and Bruce Korman {Exhibit 10.4 to our      Registration Statement on Form SB-2 (File No.333-6436)}                                                            |
|   |                                                                                                                                                                                                       |
| *10.5  | Employee      Stock Option Plan {Exhibit 10.5 to our Registration Statement on Form SB-2      (File No. 333-6436)}                                                                                         |
|   |                                                                                                                                                                                                       |
| *10.6  | Form      of Consulting Agreement between us and the Underwriters dated as of July      9, 1998 {Exhibit 10.6 to our Registration Statement on Form SB-2 (File No.      333-6436)}                         |
|   |                                                                                                                                                                                                       |
| *10.7  | Our      Stock Purchase Agreement and Plan of Reorganization {Exhibit 10.7 to our      Registration Statement on Form SB-2 (File No.333-6436)}                                                             |
|   |                                                                                                                                                                                                       |
| *10.9  | Promissory      Note issued to G.E. Capital Corp, Security Agreement and related      Guarantees {Exhibit 10.9 to our Registration Statement on Form SB-2 (File      No. 333-6436)}                        |
|   |                                                                                                                                                                                                       |
| *10.10 | Form      of Bridge Notes and Bridge Warrant {Exhibit 10.10 to our Registration      Statement on Form SB-2 (File No. 333-6436)}                                                                           |
|   |                                                                                                                                                                                                       |
| *10.11 | Non-Executive      Director Stock Option Plan {filed as Exhibit A to our Proxy Statement for      its Annual Meeting held on June 21, 1999}.                                                               |
|   |                                                                                                                                                                                                       |
| 23.    | Consent      of Vasquez & Company LLP, independent auditors                                                                                                                                            |
|   |                                                                                                                                                                                                       |
| 31.1   | Certification                                                                                                                                                                                              |
|   |                                                                                                                                                                                                       |
| 31.2   | Certification                                                                                                                                                                                              |
|   |                                                                                                                                                                                                       |
| 32.1   | Certification      pursuant to 18 U.S.C. Section 1350                                                                                                                                                      |

(b) Reports on 8-K

ITEM 14. PRINCIPAL ACCOUNTING FEES & SERVICES

Independent Accountant Fees 

|                    |   | Fiscal      Year Ended May 31, |   |
|-------------------------|--------|--------------------------------|--------|
|                    |   | 2008                           |   |   | 2007 |   |
|                    |   |                           |   |   |   |   |
| Audit      Fees         |   | $                              |   |   |   | $ | 104,000 |   |
|                    |   |                           |   |   |   |   |   |   |
| Audit-Related      Fees |   |                           |   |   |   |   | 18,000 |   |
|                    |   |                           |   |   |   |   |   |   |
| Tax      Fees           |   |                           |   |   |   |   | 7,000 |   |
|                    |   |                           |   |   |   |   |   |   |
| All      other fees     |   |                           |   |   |   |   | 3,240 |   |
|                    |   |                           |   |   |   |   |   |   |
| Total      Fees Paid    |   | $                              |   |   |   | $ | 132,240 |   |

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SIGNATURES

|   |                                                        |                  |
|--------|-------------------------------------------------------------|-----------------------|
|   | CASH      TECHNOLOGIES, INC.                                |
|   |                                                        |                  |
|   | By:                                               | /s/      BRUCE KORMAN |
|   | Bruce      KormanPresident      and Chief Executive Officer |

| Signature                |   | Title                                           |   | Date                    |
|--------------------------|--------|-------------------------------------------------|--------|-------------------------|
|                     |   |                                            |   |                    |
| /s/ BRUCE KORMAN         |   | President,      Chief Executive Officer         |   | September      15, 2008 |
| Bruce      Korman        |   | And      Director (Principal Executive Officer) |   |                    |
|                     |   |                                            |   |                    |
| /s/ EDMUND KING          |   | Chief      Financial Officer                    |   |                    |
| Edmund      King         |   | (Principal      Financial Officer)              |   | September      15, 2008 |
|                     |   |                                            |   |                    |
| /s/      RICHARD MILLER  |   | Director                                        |   | September      15, 2008 |
| Richard      Miller      |   |                                            |   |                    |
|                     |   |                                            |   |                    |
| /s/      ROBERT FAGENSON |   | Director                                        |   | September      15, 2008 |
| Robert      Fagenson     |   |                                            |   |                    |
|                     |   |                                            |   |                    |
| /s/      KEVIN WALLS     |   | Director                                        |   | September      15, 2008 |
| Kevin      Walls         |   |                                            |   |                    |

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