| 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      |   | (I.R.S.                Employer    |
| of                incorporation or organization) |   | Identification                No.) |

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

|                                         |   | Name                of Each Exchange   |
|----------------------------------------------|--------|----------------------------------------|
| Title                of Each Class           |   | 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 this Form                10-K. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Explanatory        Note**

**Note        15 **
**Cash        Technologies, Inc**

Item        1.        Description of Business 

|   | · | Sold                our Tomco line of business, which we purchased in November 2004 for                $2.5                million in cash, for up to $10.4 million in the form of a $9.1 million                secured promissory note and $1.3 million in cash *   |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Raised                approx. $2.2M in equity for operations |
|--------|--------|--------------------------------------------------------------|

|   | · | Established                strategic relationships with major distribution partners in the healthcare                industry, including the largest supplier of medical supplies in the                U.S.,                Physician                Sales and Service (NASDAQ:PSSI) andAccuro                Healthcare Solutions (formerly Imacs, Inc.), a leading healthcare                software                company. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Rolled                out the first electronic pharmacy claims processing platform to the                U.S.                Air Force |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Completed                exclusive agreements with debit card distributors including TV advertising                company TV                Media LLC,                online Latino community Connectados.com                ,                Birthright Israel sponsor Mayanot Institute.   |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Claim-Remedi's      products include more specifically: 

|   | · | 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 insurance claims. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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. For                providers, Pro837 dramatically improves the rate of payment of medical                insurance claims by identifying defects in the claims that would                prevent                payment. The result is decreased accounts receivables, receivables                days                outstanding and overhead. When employed by insurers, Pro837 automatically                filters defective claims that would otherwise be handled manually                at                significantly greater expense, reducing overhead while improving                service                to the provider community. We believe that Pro837 represents a                breakthrough in medical data processing technology that can, over                time,                achieve an improvement in the healthcare industry in the United States.                When Pro837 is combined with our ProIdentify and ProClaimSubmit products,                the result is a robust claims processing suite that can substantially                reduce the cost of healthcare administration. Pro837 includes software                developed by ClaimRemedi, Inc., from whom Claim-Remedi obtained an                eight                year exclusive license in February, 2005 and in which we own a 19.9%                equity stake. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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. ProClaimSubmit utilizes the services of various                network providers, including those of Affiliated Computer Services,                Inc.,                a major U.S. healthcare data processor, with whom Claim-Remedi established                a strategic marketing relationship in June, 2005. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

Claim-Remedi      and CashTechCard Products 

----

----

**We      have limited revenues and a history of incurring losses, which has resulted      in      our independent accountants issuing opinions containing doubts about our ability      to continue as a going concern. **

**We      are unable to pay our current liabilities, and must rely on the continued      forbearance of specific creditors to avoid bankruptcy. **

**We      have an immediate need for capital and if we are unable to obtain the financing      we need, our business may fail. **

----

**Our      assets serve as collateral for various loan obligations and therefore may not      be      available for distribution to stockholders in the event of liquidation.**

The      G.E.      loan is secured by certain of our CoinBank machines. As of May 31, 2007, we      were      indebted to G.E. in the amount of approximately $3,683,045 including interest.      As a result of the aforementioned security interests, creditors would be      entitled to collect upon the assets prior to any distribution being available      to      holders of our Common Stock or Preferred Stock. 

**Any      additional financing that we may obtain may substantially dilute the interests      of our stockholders **

**Risks      Related to TAP Holdings, LLC **

**TAP’s      revenues are entirely dependent on payments from one company**

**Risks      Related to Our Healthcare and Prepaid Debit Card Products **

**Competition      in healthcare software and prepaid debit card products is intense.**

----

**Claim-Remedi      and CashTechCard are liable for the loss or misuse of personal information.      **

**Claim-Remedi      and CashTechCard are substantially dependent on third parties for data      processing and customer support. **

**Data      processing margins generally decline as products become more mature.**

**CashTechCard      has liability for debit card losses. **

**Risks      Related to Our CoinBank Machines **

**Impairment      Charge **

----

**We      are subject to risks relating to our international installations and sales      **

**Risks      Related to Government Regulation and Patent and Licensing matters**

**Uncertainty      of patent and trademark protection. **

**Risks      Related to Our Management **

**Our      directors and officers have limited personal liability. **

----

**If      our common stock is delisted from the American Stock Exchange, we also are      likely to be subject to the risks relating to penny stocks.**

**The      price of our common stock has been, and may continue to be, volatile.**

|   | · | 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. |
|--------|--------|-----------------------------------------------------------|

**We      have the discretion to issue additional shares of preferred stock with rights      and preferences superior to those granted to holders of our common stock.**

----

ITEM      2.      DESCRIPTION OF PROPERTY 

ITEM      3.      LEGAL PROCEEDINGS 

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

None

----

ITEM      5.      MARKET OF COMMON EQUITY AND RELATED STOCKHOLDER MATTERS 

| Year                ended May 31, 2007 |                                     | High   |   | Low    |
|----------------------------------------|------------------------------------------|--------|--------|--------|
|                                   |                                     |   |   |   |   |
| Q1                                     | June                1 - August 31        |   | 1.29   |   | .67 |
|                                   |                                     |   |   |   |   |
| Q2                                     | September                1 - November 30 |   | 1.25   |   | .80 |
|                                   |                                     |   |   |   |   |
| Q3                                     | December                1 - February 28  |   | 1.17   |   | .80 |
|                                   |                                     |   |   |   |   |
| Q4                                     | March                1 - May 31          |   | 1.12   |   | 0.85 |

       

| Year                ended May 31, 2006 |                                     | High   |   | Low    |
|----------------------------------------|------------------------------------------|--------|--------|--------|
|                                   |                                     |   |   |   |   |
| Q1                                     | June                1 - August 31        |   | 1.09   |   | 0.75 |
|                                   |                                     |   |   |   |   |
| Q2                                     | September                1 - November 30 |   | 1.19   |   | 0.65 |
|                                   |                                     |   |   |   |   |
| Q3                                     | December                1 - February 28  |   | 0.93   |   | 0.55 |
|                                   |                                     |   |   |   |   |
| Q4                                     | March                1 - May 31          |   | 1.20   |   | 0.59 |

----

|  | · | 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 |
|--|--------|------------------------------------------------------------------------------------------------------------------------|

----

       

----

----

       

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

----

----

**Results      of Operations **

**       **

**Fiscal      Year Ended May 31, 2007, Compared to Fiscal Year Ended May 31,      2006**

~~** **~~

----

**Fiscal      Year Ended May 31, 2006, Compared to Fiscal Year Ended May 31, 2005**

** **

** **

** **

**,**
** **

**(loss)      **
** **
** **

----

** **

** **
**$**
** **

**$**
** **
**$**
** **

**$**
** **
**$**
** **
**$**
** **
**$**
** **

----

----

|                                                                                                                 |   | **MAY                  31,** |           | **MAY                  31,** |   |
|----------------------------------------------------------------------------------------------------------------------|--------|------------------------------|----------------|------------------------------|--------|
|                                                                                                                 |   | **2007**                     |           | **2006**                     |   |
| **ASSETS**                                                                                                           |   |                         | **(Restated)** |                         |   |  |   |
| CURRENT                  ASSETS:                                                                                     |   |                         |                |                         |   |  |   |
| Cash                  and cash equivalents                                                                           |   | $                            | 1,107,649      |                         | $      | 81,355 |   |
| Accounts                  receivable                                                                                 |   |                         | 29,853         |                         |   | 14,226 |   |
| Prepaid                  expenses and other current assets                                                           |   |                         | 194,627        |                         |   | 185,986 |   |
| Other                  receivable (net of allowance $50,000)                                                         |   |                         | 163,551        |                         |   | 104,684 |   |
| Assets                  of discontinued operations                                                                   |   |                         |                |                         |   |  |   |
| Cash                                                                                                                 |   |                         | 41             |                         |   | 61,636 |   |
| Accounts                  receivable                                                                                 |   |                         | 192,360        |                         |   | 2,095,107 |   |
| Prepaid                  expenses and other current assets                                                           |   |                         | 263,076        |                         |   | 231,422 |   |
| Inventory                  (net of allowance $121,000) (Note 2)                                                      |   |                         | 121,690        |                         |   | 8,436,161 |   |
| Property                  and equipment, net                                                                         |   |                         |                |                         |   | 15,261 |   |
| Note                  receivable                                                                                     |   |                         | 1,387,500      |                         |   | - |   |
| Other                  assets                                                                                        |   |                         | 18,230         |                         |   | 144,038 |   |
| Total                  assets of discontinued operations                                                             |   |                         | **1,982,897**  |                         |   | **10,983,625** |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| Total                  Current Assets                                                                                |   |                         | **3,478,577**  |                         |   | **11,369,876** |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| CoinBank                  machines held for sale (Note 1(n))                                                         |   |                         | 609,890        |                         |   | 609,890 |   |
|                                                                                                                 |   |                         |           |                         |   |   |   |
| Note                  receivable                                                                                |   |                         | 6,879,045      |                         |   |   |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| PROPERTY                  AND EQUIPMENT (net) (Note 3)                                                               |   |                         | 26,823         |                         |   | 30,260 |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| CAPITALIZED                  SOFTWARE COSTS (Note 1(n))                                                              |   |                         | -              |                         |   | 326,531 |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| CDHC                  PREFERRED STOCK                                                                                |   |                         | 900,901        |                         |   | 900,901 |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| CLAIMREMEDI                  PREFERRED STOCK                                                                         |   |                         | 3,500,000      |                         |   | 3,500,000 |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| BIPS                  PREFERRED STOCK                                                                                |   |                         | 2,000,000      |                         |   | 2,000,000 |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| OTHER                  ASSETS                                                                                        |   |                         | 535,295        |                         |   | 535,295 |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| **TOTAL                  ASSETS**                                                                                    |   | **$**                        | **17,930,531** |                         | **$**  | **19,272,753** |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY (DEFICIENCY)**                                               |   |                         |                |                         |   |  |   |
| CURRENT                  LIABILITIES:                                                                                |   |                         |                |                         |   |  |   |
| Current                  maturities of Notes Payable (Note 4)                                                        |   | $                            | 3,482,286      |                         |   | 3,482,287 |   |
| Due                  to Officers and Directors                                                                       |   |                         | 8,915          |                         |   | 8,915 |   |
| Convertible                  debt (Note 5)                                                                           |   |                         | 170,519        |                         |   | 514,176 |   |
| Due                  to Shareholders (Note 5)                                                                        |   |                         | 602,610        |                         |   | 120,750 |   |
| Accounts                  payable                                                                                    |   |                         | 1,131,497      |                         |   | 607,945 |   |
| Accrued                  liabilities                                                                                 |   |                         | 2,094,333      |                         |   | 927,228 |   |
| Dividend                  payable                                                                                    |   |                         | 261,246        |                         |   | 50,416 |   |
| Liabilities                  of discontinued operations                                                              |   |                         |                |                         |   |  |   |
| Accounts                  payable                                                                                    |   |                         | 725,443        |                         |   | 1,126,690 |   |
| Notes                  payable (Note 4)                                                                              |   |                         | 1,172,207      |                         |   | 2,321,207 |   |
| Accrued                  expenses and other current liabilities                                                      |   |                         | 492,026        |                         |   | 1,658,943 |   |
| Total                  liabilities of discontinued operations                                                        |   |                         | **2,389,676**  |                         |   | **5,106,840** |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| Total                  Current Liabilities                                                                           |   |                         | **10,141,082** |                         |   | **10,818,557** |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| Long-Term                  Notes Payable (Note 5)                                                                    |   |                         | **1,134,560**  |                         |   | - |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| **TOTAL                  LIABILITIES**                                                                               |   |                         | **11,275,543** |                         |   | **10,818,557** |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| COMMITMENTS                  & CONTINGENCIES (Note 15)                                                           |   |                         | -              |                         |   | - |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| MINORITY                  INTEREST                                                                                   |   |                         | (98,639        | )                            |   | (74,517 | ) |
| MINORITY                  INTEREST OF DISCONTINUED OPERATIONS                                                        |   |                         | -              |                         |   | 684,662 |   |
| TOTAL                  MINORITY INTEREST                                                                             |   |                         | -              |                         |   | **610,145** |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| **STOCKHOLDERS'                  EQUITY (Note 8)**                                                              |   |                         |                |                         |   |  |   |
| Stockholder's                  equity of discontinued operations                                                     |   |                         |                |                         |   |  |   |
| Additional                  paid in capital                                                                          |   |                         | 910,000        |                         |   | 910,000 |   |
| Accumulated                  equity                                                                                  |   |                         | 5,249,766      |                         |   | 4,966,785 |   |
| Total                  stockholder's equity of discontinued operations                                               |   |                         | **6,159,766**  |                         |   | **5,876,785** |   |
|                                                                                                                 |   |                         |                |                         |   |   |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| Cumulative                  Redeemable Preferred Stock, 1,500,000 shares authorized,                                 |   |                         | 10,875,812     |                         |   | 10,625,812 |   |
| 647,468                  and 647,443 shares issued and outstanding at May 31, 2007 and May                  31, 2006 |   |                         |                |                         |   |  |   |
| Common                  Stock, $0.01 par value, 60,000,000 shares authorized,                                        |   |                         | 366,876        |                         |   | 346,445 |   |
| 23,746,364                  and 20,635,964                  issued and outstanding at May 31, 2007 and May 31, 2006  |   |                         |                |                         |   |  |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| Additional                  Paid-In-Capital                                                                          |   |                         | 40,177,546     |                         |   | 38,262,424 |   |
| Accumulated                  Deficit                                                                                 |   |                         | (50,826,471    | )                            |   | (47,267,415 | ) |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| **Total                  stockholders' Equity**                                                                      |   |                         | **6,753,529**  |                         |   | **7,844,051** |   |
|                                                                                                                 |   |                         |                |                         |   |  |   |
| **TOTAL                  LIABILITIES AND STOCKHOLDERS' EQUITY**                                                      |   | **$**                        | **17,930,531** |                         | **$**  | **19,272,753** |   |

       

----

CASH      TECHNOLOGIES, INC. AND SUBSIDIARIES 

|                                                            |   | **FISCAL                  YEAR ENDED** |               |
|-----------------------------------------------------------------|--------|----------------------------------------|--------------------|
|                                                            |   | **MAY                  31,**           |               |
|                                                            |   | **2007**                               |               | **2006** |   |
|                                                            |   | **(Restated)**                         |               |   |   |
| NET                  REVENUES                                   |   | $                                      | 313,946            |   | $ | 55,007 |   |
| COST                  OF REVENUES                               |   |                                   | 424,281            |   |   | 32,064 |   |
|                                                            |   |                                   |                    |   |   |  |   |
| GROSS                  PROFIT (LOSS)                            |   |                                   | (110,335           | ) |   | 22,943 |   |
|                                                            |   |                                   |                    |   |   |  |   |
| SELLING,                  GENERAL, & ADMINISTRATIVE EXPENSE |   |                                   | 3,012,078          |   |   | 3,271,606 |   |
| RESEARCH                  AND DEVELOPMENT                       |   |                                   | 93,750             |   |   | 150,000 |   |
| DEPRECIATION                  & AMORTIZATION EXPENSE        |   |                                   | 329,968            |   |   | 564,263 |   |
|                                                            |   |                                   |                    |   |   |  |   |
| **OPERATING                  LOSS**                             |   |                                   | (3,546,131         | ) |   | (3,962,926 | ) |
|                                                            |   |                                   |                    |   |   |  |   |
| OTHER                  INCOME (Note 13)                         |   |                                   | (271,250           | ) |   | (121,650 | ) |
|                                                            |   |                                   |                    |   |   |  |   |
| INTEREST                  EXPENSE                               |   |                                   | 407,567            |   |   | 390,562 |   |
|                                                            |   |                                   |                    |   |   |  |   |
| LOSS                  BEFORE INCOME TAXES                       |   |                                   | (3,682,448         | ) |   | (4,231,838 | ) |
|                                                            |   |                                   |                    |   |   |  |   |
| INCOME                  TAXES                                   |   |                                   | 2,400              |   |   | 7,000 |   |
|                                                            |   |                                   |                    |   |   |  |   |
| MINORITY                  INTEREST (Note 12)                    |   |                                   | (24,122            | ) |   | 24,521 |   |
|                                                            |   |                                   |                    |   |   |  |   |
| NET                  INCOME (LOSS) FROM CONTINUING OPERATIONS   |   | **$**                                  | **(3,660,726**     | **)** | **$** | **(4,214,317** | **)** |
|                                                            |   |                                   |                    |   |   |  |   |
| DISCONTINUED                  OPERATIONS                        |   |                                   |                    |   |   |  |   |
| NET                  REVENUES                                   |   | $                                      | 2,780,586          |   | $ | 8,153,219 |   |
| FORGIVENESS                  OF DEBT                            |   |                                   | -                  |   |   |  |   |
| COST                  OF REVENUES                               |   |                                   | (2,250,226         | ) |   | (6,313,030 | ) |
| SELLING,                  GENERAL & ADMINISTRATIVE EXPENSE  |   |                                   | (1,087,318         | ) |   | (2,209,953 | ) |
| INTEREST                  EXPENSE                               |   |                                   | (329,031           | ) |   | (454,311 | ) |
| GAIN                  FROM DISPOSITION OF SUBSIDIARY'S ASSETS   |   |                                   | 1,481,468          |   |   | - |   |
| INCOME                  (LOSS) FROM DISCONTINUED OPERATIONS     |   |                                   | 595,479            |   |   | (824,075 | ) |
|                                                            |   |                                   |     |   |   |     |   |
| NET                  INCOME (LOSS)                              |   | $                                      | (3,065,247         | ) | $ | (5,038,392 | ) |
|                                                            |   |                                   |                    |   |   |  |   |
| Dividends                  & deemed dividends               |   | $                                      | 210,830            |   |   | 367,943 |   |
|                                                            |   |                                   |                    |   |   |  |   |
| Net                  income (loss) allocable to common          |   |                                   |                    |   |   |  |   |
| shareholders                                                    |   | $                                      | (3,276,077         | ) | $ | (5,406,335 | ) |
|                                                            |   |                                   |                    |   |   |  |   |
| Basic                  and diluted net income (loss) per share  |   |                                   |                    |   |   |  |   |
| before                  extraordinary income                    |   | $                                      | (0.13              | ) | $ | (0.26 | ) |
|                                                            |   |                                   |                    |   |   |  |   |
| Basic                  and diluted weighted average             |   |                                   |                    |   |   |  |   |
| shares                  of common stock outstanding             |   |                                   | 23,189,489         |   |   | 19,183,870 |   |

----

| Balance                  for May 31, 2005                      |   |   | 18,321,490                           |   | **$**  | **183,300**                                |   |   | 647,093                                    |   | **$**  | **4,195,812**                                    |   | **$**  | **36,652,496**                                   |   | **$**  | **(36,885,779**                            | **)**  | **$**  | **4,145,828**                                          |   |
|----------------------------------------------------------------|--------|--------|--------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------------------------------------------|--------|--------|--------------------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------------------------------------------------|--------|
|                                                           |   |   |                                      |   |   |                                            |   |   |                                            |   |   |                                                  |   |   |                                                  |   |   |                                            |   |   |                                                        |   |
| Common                  stock warrant payments to consultants  |   |   | 1,400,000                            |   |   | 140,000                                    |   |   | —                                    |   |   | —                                          |   |   | —                                          |   |   | —                                    |   |   | 140,000                                                |   |
|                                                           |   |   |                                      |   |   |                                            |   |   |                                            |   |   |                                                  |   |   |                                                  |   |   |                                            |   |   |                                                        |   |
| Unit                  purchase - common stock                  |   |   | 1,975,667                            |   |   | 19,757                                     |   |   | —                                    |   |   | —                                          |   |   | 2,077,200                                        |   |   | —                                    |   |   | 2,096,957                                              |   |
|                                                           |   |   |                                      |   |   |                                            |   |   |                                            |   |   |                                                  |   |   |                                                  |   |   |                                            |   |   |                                                        |   |
| Unit                  purchase - preferred stock               |   |   | —                              |   |   | —                                    |   |   | 350                                        |   |   | 6,430,000                                        |   |   | —                                          |   |   | —                                    |   |   | 6,430,000                                              |   |
|                                                           |   |   |                                      |   |   |                                            |   |   |                                            |   |   |                                                  |   |   |                                                  |   |   |                                            |   |   |                                                        |   |
| Conversion                  of warrants to common stock        |   |   | —                              |   |   | —                                    |   |   | —                                    |   |   | —                                          |   |   | —                                          |   |   | (8,515                                     | )      |   | (8,515                                                 | )      |
|                                                           |   |   |                                      |   |   |                                            |   |   |                                            |   |   |                                                  |   |   |                                                  |   |   |                                            |   |   |                                                        |   |
| Dividends                  paid with common stock              |   |   | 338,807                              |   |   | 3,388                                      |   |   | —                                    |   |   | —                                          |   |   | 442,728                                          |   |   | —                                    |   |   | 446,116                                                |   |
|                                                           |   |   |                                      |   |   |                                            |   |   |                                            |   |   |                                                  |   |   |                                                  |   |   |                                            |   |   |                                                        |   |
| Dividends                  accrued on preferred stock          |   |   | —                              |   |   | —                                    |   |   | —                                    |   |   | —                                          |   |   | —                                          |   |   | (367,943                                   | )      |   | (367,943                                               | )      |
|                                                           |   |   |                                      |   |   |                                            |   |   |                                            |   |   |                                                  |   |   |                                                  |   |   |                                            |   |   |                                                        |   |
| Net                  income (loss)                             |   |   | —                              |   |   | —                                    |   |   | —                                    |   |   | —                                          |   |   | —                                          |   |   | (5,038,393                                 | )      |   | (5,038,393                                             | )      |
|                                                           |   |   |                            |   |   |                        |   |   |                        |   |   |                                   |   |   |                         |   |   |                        |   |   |                          |   |
| Balance                  for May 31, 2006                      |   |   | **22,035,964**                       |   | **$**  | **346,445**                                |   |   | 647,443                                    |   | **$**  | **10,625,812**                                   |   | **$**  | **39,172,424**                                   |   | **$**  | **(42,300,630**                            | **)**  | **$**  | **7,844,050**                                          |   |
|                                                           |   |   |                                      |   |   |                                            |   |   |                                            |   |   |                                                  |   |   |                                                  |   |   |                                            |   |   |                                                        |   |
| Common                  stock payments to consultants          |   |   | 1,050,000                            |   |   | 105,000                                    |   |   | —                                    |   |   | —                                          |   |   | —                                          |   |   | —                                    |   |   | 105,000                                                |   |
|                                                           |   |   |                                      |   |   |                                            |   |   |                                            |   |   |                                                  |   |   |                                                  |   |   |                                            |   |   |                                                        |   |
| Unit                  purchase - common stock                  |   |   | 660,400                              |   |   | 6,612                                      |   |   | —                                    |   |   | —                                          |   |   | 798,349                                          |   |   | —                                    |   |   | 804,961                                                |   |
|                                                           |   |   |                                      |   |   |                                            |   |   |                                            |   |   |                                                  |   |   |                                                  |   |   |                                            |   |   |                                                        |   |
| Unit                  purchase - preferred stock               |   |   | —                              |   |   | —                                    |   |   | 25                                         |   |   | 250,000                                          |   |   | —                                          |   |   | —                                    |   |   | 250,000                                                |   |
|                                                           |   |   |                                      |   |   |                                            |   |   |                                            |   |   |                                                  |   |   |                                                  |   |   |                                            |   |   |                                                        |   |
| Conversion                  of warrants to common stock        |   |   | —                              |   |   | —                                    |   |   | —                                    |   |   | —                                          |   |   | —                                          |   |   | —                                    |   |   | —                                                |   |
|                                                           |   |   |                                      |   |   |                                            |   |   |                                            |   |   |                                                  |   |   |                                                  |   |   |                                            |   |   |                                                        |   |
| Conversion                  of preferred stock to common stock |   |   | —                              |   |   | —                                    |   |   | —                                    |   |   | —                                          |   |   | —                                          |   |   | —                                    |   |   | —                                                |   |
|                                                           |   |   |                                      |   |   |                                            |   |   |                                            |   |   |                                                  |   |   |                                                  |   |   |                                            |   |   |                                                        |   |
| Conversion                  of notes payable to common stock   |   |   | —                              |   |   | —                                    |   |   | —                                    |   |   | —                                          |   |   | —                                          |   |   | —                                    |   |   | —                                                |   |
|                                                           |   |   |                                      |   |   |                                            |   |   |                                            |   |   |                                                  |   |   |                                                  |   |   |                                            |   |   |                                                        |   |
| Investment                  in subsidiary                      |   |   | —                              |   |   | —                                    |   |   | —                                    |   |   | —                                          |   |   | —                                          |   |   | —                                    |   |   | —                                                |   |
|                                                           |   |   |                                      |   |   |                                            |   |   |                                            |   |   |                                                  |   |   |                                                  |   |   |                                            |   |   |                                                        |   |
| Misc                                                           |   |   | —                              |   |   | —                                    |   |   | —                                    |   |   | —                                          |   |   | (17,124                                          | )      |   | —                                    |   |   | (17,124                                                | )      |
|                                                           |   |   |                                      |   |   |                                            |   |   |                                            |   |   |                                                  |   |   |                                                  |   |   |                                            |   |   |                                                        |   |
| Dividends                  paid with common stock              |   |   | —                              |   |   | —                                    |   |   | —                                    |   |   | —                                          |   |   | —                                          |   |   | —                                    |   |   | —                                                |   |
|                                                           |   |   |                                      |   |   |                                            |   |   |                                            |   |   |                                                  |   |   |                                                  |   |   |                                            |   |   |                                                        |   |
| Dividends                  accrued on preferred stock          |   |   | —                              |   |   | —                                    |   |   | —                                    |   |   | —                                          |   |   | —                                          |   |   | (210,830                                   | )      |   | (210,830                                               | )      |
|                                                           |   |   |                                      |   |   |                                            |   |   |                                            |   |   |                                                  |   |   |                                                  |   |   |                                            |   |   |                                                        |   |
| Net                  income (loss)                             |   |   | —                              |   |   | —                                    |   |   | —                                    |   |   | —                                          |   |   | —                                          |   |   | (3,065,247                                 | )      |   | (3,065,247                                             | )      |
|                                                           |   |   |                       |   |   |                             |   |   |                        |   |   |                         |   |   |                              |   |   |                             |   |   |                                              |   |
| Balance                  for May 31, 2006                      |   |   | **22,035,964**                       |   | **$**  | **366,876**                                |   |   | 647,468                                    |   | **$**  | **10,875,812**                                   |   | **$**  | **41,087,546**                                   |   | **$**  | **(45,576,707**                            | **)**  | **$**  | **6,753,529 **                                    |   |

----

|                                                                   |   | **FISCAL                  YEAR ENDED MAY 31** |       |
|------------------------------------------------------------------------|--------|-----------------------------------------------|------------|
|                                                                   |   | **2007**                                      |       | **2006** |   |
| **OPERATING                  ACTIVITIES:**                             |   | **(Restated)**                                |       |                      |   |
| Net                  loss                                              |   | $                                             | (3,065,247 | ) | $ | (5,038,393 | ) |
| Adjustments                  to reconcile net loss to net cash used by |   |                                          |            |   |   |  |   |
| operating                  activities:                                 |   |                                          |            |   |   |  |   |
| Minority                  interest                                     |   |                                          | (24,122    | ) |   | (24,521 | ) |
| Amortization                  of capitalized software                  |   |                                          | 326,531    |   |   | 559,769 |   |
| Income                  on forgiveness of debt                         |   |                                          | (271,250   | ) |   |  |   |
| Noncash                  compensation expense                          |   |                                          |            |   |   | 3,308 |   |
| Non-Cash                  payment for services                         |   |                                          | (72,407    | ) |   | 140,000 |   |
| Depreciation                  expense                                  |   |                                          | 3,437      |   |   | 4,494 |   |
|                                                                   |   |                                          |            |   |   |  |   |
| Changes                  in operating assets and liabilities:          |   |                                          |            |   |   |  |   |
| Accounts                  receivable                                   |   |                                          | (15,627    | ) |   | (14,226 | ) |
| Prepaid                  expenses and other current assets             |   |                                          | (8,641     | ) |   | 302,058 |   |
| Other                  receivable                                      |   |                                          | (58,867    | ) |   | (76,649 | ) |
|                                                                   |   |                                          |            |   |   |  |   |
| CoinBank                  machines held for sale                       |   |                                          |            |   |   | 28,393 |   |
| Other                  assets                                          |   |                                          |            |   |   | (324,223 | ) |
| Accrued                  interest                                      |   |                                          |            |   |   | 285,023 |   |
| Accounts                  payable                                      |   |                                          | 523,552    |   |   | (154,974 | ) |
| Change                  in net assets of business held for sale        |   |                                          | (1,280,143 | ) |   | 1,330,392 |   |
| Accrued                  expenses and other current liabilities        |   |                                          | 1,167,105  |   |   | 144,280 |   |
| Net                  cash used in operating activities                 |   |                                          | (2,775,679 | ) |   | (2,835,269 | ) |
|                                                                   |   |                                          |            |   |   |  |   |
| **INVESTING                  ACTIVITIES:**                             |   |                                          |       |   |   |   |   |
|                                                                   |   |                                          |            |   |   |  |   |
|                                                                   |   |                                          |            |   |   |  |   |
| Purchase                  of property and equipment                    |   |                                          | -          |   |   | (1,120 | ) |
|                                                                   |   |                                          |            |   |   |  |   |
| Net                  cash provided by (used in) investing activities   |   |                                          | -          |   |   | (1,120 | ) |
|                                                                   |   |                                          |            |   |   |  |   |
| **FINANCING                  ACTIVITIES:**                             |   |                                          |            |   |   |  |   |
|                                                                   |   |                                          |            |   |   |  |   |
| Proceeds                  from conversion of warrants                  |   |                                          |            |   |   | 340 |   |
| Proceeds                  from the issuance of warrants                |   |                                          |            |   |   | 830,000 |   |
| Net                  proceeds from issuance of preferred stock         |   |                                          | 250,000    |   |   |  |   |
| Proceeds                  from Long-term debt                          |   |                                          | 1,134,560  |   |   |  |   |
| Proceeds                  from short term debt from equity holder      |   |                                          | 481,860    |   |   |  |   |
| Repayments                  on short-term debt                         |   |                                          |            |   |   | (100,000 | ) |
|                                                                   |   |                                          |       |   |   |   |   |
| Proceeds                  from sale of common stock                    |   |                                          | 1,935,553  |   |   | 2,084,794 |   |
|                                                                   |   |                                          |            |   |   |  |   |
| Net                  cash provided by financing activities             |   |                                          | 3,801,973  |   |   | 2,815,134 |   |
|                                                                   |   |                                          |            |   |   |  |   |
| **CHANGE                  IN CASH AND CASH EQUIVALENTS**               |   |                                          | 1,026,294  |   |   | (21,255 | ) |
|                                                                   |   |                                          |            |   |   |  |   |
| Cash                  and Cash Equivalents, Beginning of Period        |   |                                          | 81,355     |   |   | 102,610 |   |
|                                                                   |   |                                          |            |   |   |  |   |
| Cash                  and Cash Equivalents, End of Period              |   | $                                             | 1,107,649  |   | $ | 81,355 |   |
|                                                                   |   |                                          |            |   |   |  |   |
|                                                                   |   |                                          |            |   |   |  |   |
| **SUPPLEMENTAL                  DISCLOSURE OF CASH FLOW INFORMATION**  |   |                                          |            |   |   |  |   |
| Income                  taxes                                          |   | $                                             | 2,400      |   | $ | 7,000 |   |
|                                                                   |   |                                          |            |   |   |  |   |
| **SUPPLEMENTAL                  DISCLOSURE OF NONCASH TRANSACTIONS**   |   |                                          |            |   |   |  |   |
|                                                                   |   |                                          |            |   |   |  |   |
| Conversion                  from convertible debt to common stock      |   | $                                             | 120,876    |   | $ | 50,000 |   |
| Conversion                  of notes payable to common stock           |   |                                          |            |   | $ | 50,000 |   |
| Issuance                  of common stock for services performed       |   | $                                             | 210,000    |   | $ | 143,308 |   |
|                                                                   |   |                                          |       |   |   |   |   |
| Dividends                  declared on preferred stock                 |   | $                                             | 210,830    |   | $ | 367,943 |   |
| Dividends                  payd via common stock                       |   |                                          |            |   | $ | 446,116 |   |
| Deemed                  dividend on warrants issued                    |   |                                          |            |   | $ | 8,515 |   |
| Issuance                  of preferred stock                           |   |                                          |       |   | $ | $5,500,000 |   |

----

TECHNOLOGIES,      INC. AND SUBSIDIARIES 

| 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, 2007, 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 be                successful. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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,                2007 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, 2007 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 net sales. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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,                2007 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, 2007 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,                2007,                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. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |  | SFAS                  123(R) permits public companies to adopt its requirements using                  one of two                  methods:  A.                  "Modified prospective" method in which compensation cost is recognized                  beginning with the effective date (a) based on the requirements                  of SFAS                  123(R) for all share-based payments granted after the effective                  date and                  (b) based on the requirements of SFAS 123 for all awards granted                  to                  employees prior to the effective date of SFAS 123(R) that remain                  unvested                  on the effective date.  B.                  "Modified retrospective" method which includes the requirements                  of the                  modified prospective method described above, but also permits entities                  to                  restate, based on the amounts previously recognized under SFAS                  123(R) for                  purposes of pro forma disclosures, either (a) all prior periods                  presented                  or (b) prior interim periods during the year of adoption.  The                  Company has adopted SFAS 123(R) on July 1, 2006 using the modified                  prospective method and have provided footnote disclosure with respect                  to                  stock-based employee compensation.. |
|--------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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, 2007.  |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Much      of      our SG&A costs are fixed in nature, therefore, as volume of transactions and      revenues increase, the SG&A does 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                    |   | $      | 56,418   |   |
|--------------------------------------------------|--------|--------|----------|--------|
| Work                in Process                   |   |   | 3,000    |   |
| Cores                                            |   |   | 159,540  |   |
| Component                Parts                   |   |   | 23,732   |   |
| Inventories                at Standard Cost      |   |   | 242,690  |   |
| Provision                for Obsolescence        |   |   | (121,000 | )      |
| Net                Carrying Value of Inventories |   | $      | 121,690  |   |

NOTE      3 -      PROPERTY AND EQUIPMENT 

|                                         |   | 2007   |    | 2006   |   |
|----------------------------------------------|--------|--------|---------|--------|--------|
|                                         |   | $      |    |   | $      |   |   |
| Computer                equipment            |   |   | 145,483 |   |   | 145,483 |   |
| Office                Equipment              |   |   | 2,061   |   |   | 2,061 |   |
| Other                equipment               |   |   | 32,134  |   |   | 32,134 |   |
| Total                Property and Equipment  |   | $      | 179,678 |   | $      | 179,678 |   |
| Less                Accumulated Depreciation |   |   | 152,855 |   |   | 149,418 |   |
|                                         |   | $      | 26,823  |   | $      | 30,260 |   |

----

NOTE      4 -      NOTES PAYABLE 

| Loan                                        |   | Balance                6/1/06 |          | Additions                6/1/06                to 5/31/07 |   | Adjustments                6/1/06                to 5/31/07 |   |  Balance                5/31/07 |           |
|---------------------------------------------|--------|-------------------------------|---------------|-----------------------------------------------------------|--------|-------------------------------------------------------------|--------|--------------------------------------|----------------|
| GE                Capital Principal         |   | $                             | 3,288,465     |                                                      | $      | —                                                     |   | $                                    | 193,822        |   | $ | 3,482,287 |   |
| GE                Capital Interest          |   |                          | 394,580       |                                                      |   | 365,631                                                     |   |                                 | (559,453       | ) |   | 200,758 |   |
| BFI                Business Finance         |   |                          | 2,097,292     |                                                      |   | 633,386                                                     |   |                                 | (1,558,471     | ) |   | 1,172,207 |   |
| Notes                Payable - TAP (Note 6) |   |                          | 23,157        |                                                      |   |                                    |   |                                 | **(23,157**    | **)** |   | -0- |   |
| 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                interest-only payments at a rate of 9.5% and the entire unpaid balance                is                due at maturity in February, 2008. We do not have sufficient capital                to                repay this debt. We have no current plan or   capability to repay                G.E. its principal. As of May 31, 2007, 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, 2007, 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.                @ 6/01/06 |    | Additions                6-1-06                to 5/31/07 |   | Adjustments                6-1-06                to 5/31/07 |   | Bal.                @ 5/31/07 |     |
|-------------------------------------------------------------------|--------|-------------------------------|---------|-----------------------------------------------------------|--------|-------------------------------------------------------------|--------|-------------------------------|----------|
| Convertible                Debt—Principal                LT |   | $                             | 335,012 |                                                      |   | 1,134,560                                                   |   | $                             | (225,000 | ) | $ | 1,244,572 |   |
| Convertible                Debt—Interest                    |   |                          | 179,164 |                                                      |   | -                                                           |   |                          | (118,657 | ) |   | 60,507 |   |
| Convertible                Debt—Stockholders                |   |                          | 120,750 |                                                      |   | 481,860                                                     |   |                          | -        |   |   | 602,610 |   |
| Totals                                                            |   | $                             | 634,926 |                                                      | $      | 1,616,420                                                   |   | $                             | (343,657 | ) | $ | 1,907,689 |   |

| ·   | 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 |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

       

| ·   | 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, 2005 |   |   | 8,721,445                                     |   | $      | 1.93                                              |   |
| Employee                    Stock Options                      |   |   |                                               |   |   |                                                   |   |
| Granted                                                        |   |   | 1,020,500                                     |   | $      | 1.01                                              |   |
| Expired                                                        |   |   | —                                       |   |   | —                                           |   |
| Exercised                                                      |   |   | —                                       |   |   | —                                           |   |
| Stockholder                    Warrants                        |   |   |                                               |   |   |                                                   |   |
| Granted                                                        |   |   | 676,964                                       |   |   | 2.26                                              |   |
| Expired                                                        |   |   | 375,000                                       |   |   | 7.84                                              |   |
| Exercised                                                      |   |   | —                                       |   |   | —                                           |   |
| Options                                                        |   |   |                                               |   |   |                                                   |   |
| Options/Warrants                    outstanding - May 31, 2006 |   |   | 10,418,909                                    |   | $      | 2.01                                              |   |
| Employee                    Stock Options                      |   |   |                                               |   |   |                                                   |   |
| Granted                                                        |   |   | 100,000                                       |   | $      | 0.95                                              |   |
| Expired                                                        |   |   | —                                       |   |   | —                                           |   |
| Exercised                                                      |   |   | —                                       |   |   | —                                           |   |
| Stockholder                    Warrants                        |   |   |                                               |   |   |                                                   |   |
| Granted                                                        |   |   | 1,809,864                                     |   | $      | 1.23                                              |   |
| Expired                                                        |   |   | 2,044,886                                     |   | $      | 2.15                                              |   |
| Exercised                                                      |   |   | —                                       |   |   | —                                           |   |
| Options                                                        |   |   |                                               |   |   |                                                   |   |
| Options/Warrants                    outstanding - May 31, 2007 |   |   | 10,283,887                                    |   | $      | 1.54                                              |        |

----

|                                                              |   | 2007   |                    | 2006   |   |
|-------------------------------------------------------------------|--------|--------|-------------------------|--------|--------|
| Net                  Income (Loss)                                |   |   |                    |   |   |
| As                  Reported                                      |   | $      | (3,065,247              | )      | $      | (5,038,393 | ) |
| Pro                  Forma                                        |   | $      | (3,101,956              | )      | $      | (4,809,693 | ) |
| Basic                  and Diluted Income (Loss) Per Common Share |   |   |                         |   |   |  |   |
| As                  Reported                                      |   | $      | (0.09                   | )      | $      | (0.26 | ) |
| Pro                  Forma                                        |   | $      | (0.                  09 | )      | $      | (0.25 | ) |

----

| Outstanding                Weighted Average |   | Exercisable                Weighted Average |   |
|---------------------------------------------|--------|---------------------------------------------|--------|
| Total                Shares 05/31/07        |   | Life                                        |   | Exercise                Price |   | Total                Shares 05/31/07 |   | Exercise                Price |   |
|                                        |   |                                        |   |   |   |   |   |   |   |
| 300,000                                     |   |                                        | 3.50   |   | $ | 1.20 |   |   | 300,000 |   | $ | 1.20 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 480,000                                     |   |                                        | 3.50   |   | $ | 0.81 |   |   | 480,000 |   | $ | 0.81 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 30,000                                      |   |                                        | 3.25   |   | $ | 1.75 |   |   | 30,000 |   | $ | 1.75 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 205,000                                     |   |                                        | 3.50   |   | $ | 2.00 |   |   | 205,000 |   | $ | 2.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 253,809                                     |   |                                        | 3.50   |   | $ | 2.50 |   |   | 253,809 |   | $ | 2.50 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 428,574                                     |   |                                        | 3.00   |   | $ | 2.50 |   |   | 428,574 |   | $ | 2.50 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 117,118                                     |   |                                        | 1.75   |   | $ | 0.01 |   |   | 117,118 |   | $ | 0.01 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 331,000                                     |   |                                        | 3.00   |   | $ | 0.01 |   |   | 331,000 |   | $ | 0.01 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 1,350,000                                   |   |                                        | 2.75   |   | $ | 0.65 |   |   | 1,350,000 |   | $ | 0.65 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 74,250                                      |   |                                        | .75    |   | $ | 0.65 |   |   | 74,250 |   | $ | 0.65 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 175,000                                     |   |                                        | .75    |   | $ | 0.65 |   |   | 175,000 |   | $ | 0.65 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 5,250                                       |   |                                        | .75    |   | $ | 0.65 |   |   | 5,250 |   | $ | 0.65 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 22,500                                      |   |                                        | .75    |   | $ | 0.65 |   |   | 22,500 |   | $ | 0.65 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 4,000                                       |   |                                        | .75    |   | $ | 0.65 |   |   | 4,000 |   | $ | 0.65 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 1,054,560                                   |   |                                        | .75    |   | $ | 0.65 |   |   | 1,054,560 |   | $ | 0.65 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 30,000                                      |   |                                        | .75    |   | $ | 0.65 |   |   | 30,000 |   | $ | 0.65 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 50,000                                      |   |                                        | .75    |   | $ | 0.80 |   |   | 50,000 |   | $ | 0.80 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 97,369                                      |   |                                        | .75    |   | $ | 0.95 |   |   | 97,369 |   | $ | 0.95 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 487,931                                     |   |                                        | .75    |   | $ | 1.00 |   |   | 487,931 |   | $ | 1.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 357,856                                     |   |                                        | 1.50   |   | $ | 1.00 |   |   | 357,856 |   | $ | 1.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 100,000                                     |   |                                        | .75    |   | $ | 1.00 |   |   | 100,000 |   | $ | 1.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 25,000                                      |   |                                        | 2.25   |   | $ | 1.00 |   |   | 25,000 |   | $ | 1.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 25,000                                      |   |                                        | 2.50   |   | $ | 1.00 |   |   | 25,000 |   | $ | 1.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 350,000                                     |   |                                        | .75    |   | $ | 1.01 |   |   | 350,000 |   | $ | 1.01 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 200,180                                     |   |                                        | .75    |   | $ | 1.01 |   |   | 200,180 |   | $ | 1.01 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 10,000                                      |   |                                        | .75    |   | $ | 1.20 |   |   | 10,000 |   | $ | 1.20 |   |

----

| Outstanding                Weighted Average |   | Exercisable                Weighted Average |   |
|---------------------------------------------|--------|---------------------------------------------|--------|
| Total                Shares                 |   |                                        |   | Exercise |   | Total                Shares |   | Exercise |   |
| 05/31/07                                    |   | Life                                        |   | Price |   | 05/31/07 |   | Price |   |
|                                        |   |                                        |   |   |   |   |   |   |   |
| 5,000                                       |   |                                        | .75    |   | $ | 1.20 |   |   | 5,000 |   | $ | 1.20 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 7,813                                       |   |                                        | 1.50   |   | $ | 1.30 |   |   | 7,813 |   | $ | 1.30 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 50,000                                      |   |                                        | .75    |   | $ | 1.36 |   |   | 50,000 |   | $ | 1.36 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 100,000                                     |   |                                        | .75    |   | $ | 1.25 |   |   | 100,000 |   | $ | 1.46 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 90,000                                      |   |                                        | .75    |   | $ | 1.50 |   |   | 90,000 |   | $ | 1.50 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 150,000                                     |   |                                        | .75    |   | $ | 1.00 |   |   | 150,000 |   | $ | 1.50 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 36,000                                      |   |                                        | .75    |   | $ | 1.50 |   |   | 36,000 |   | $ | 1.50 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 7,500                                       |   |                                        | .75    |   | $ | 1.70 |   |   | 7,500 |   | $ | 1.70 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 240,000                                     |   |                                        | .75    |   | $ | 1.75 |   |   | 240,000 |   | $ | 1.75 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 180,000                                     |   |                                        | .75    |   | $ | 1.75 |   |   | 180,000 |   | $ | 1.75 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 50,000                                      |   |                                        | .75    |   | $ | 1.88 |   |   | 50,000 |   | $ | 1.88 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 34,500                                      |   |                                        | .50    |   | $ | 2.00 |   |   | 34,500 |   | $ | 2.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 50,000                                      |   |                                        | .50    |   | $ | 2.00 |   |   | 50,000 |   | $ | 2.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 10,000                                      |   |                                        | .50    |   | $ | 2.00 |   |   | 10,000 |   | $ | 2.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 50,400                                      |   |                                        | .50    |   | $ | 2.00 |   |   | 50,400 |   | $ | 2.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 20,000                                      |   |                                        | 2.25   |   | $ | 2.00 |   |   | 20,000 |   | $ | 2.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 215,000                                     |   |                                        | 2.50   |   | $ | 2.00 |   |   | 215,000 |   | $ | 2.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 787,675                                     |   |                                        | 2.75   |   | $ | 2.00 |   |   | 787,675 |   | $ | 2.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 185,000                                     |   |                                        | 3.00   |   | $ | 2.00 |   |   | 185,000 |   | $ | 2.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 10,417                                      |   |                                        | .75    |   | $ | 2.50 |   |   | 10,417 |   | $ | 2.50 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 64,000                                      |   |                                        | .50    |   | $ | 2.50 |   |   | 64,000 |   | $ | 2.50 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 45,000                                      |   |                                        | .50    |   | $ | 2.50 |   |   | 45,000 |   | $ | 2.50 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 5,000                                       |   |                                        | .50    |   | $ | 2.50 |   |   | 5,000 |   | $ | 2.50 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 22,763                                      |   |                                        | 2.00   |   | $ | 2.50 |   |   | 22,763 |   | $ | 2.50 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 10,000                                      |   |                                        | 2.25   |   | $ | 2.50 |   |   | 10,000 |   | $ | 2.50 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 191,830                                     |   |                                        | 2.00   |   | $ | 3.00 |   |   | 191,830 |   | $ | 3.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 13,100                                      |   |                                        | 2.25   |   | $ | 3.00 |   |   | 13,100 |   | $ | 3.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 30,000                                      |   |                                        | 2.50   |   | $ | 3.00 |   |   | 30,000 |   | $ | 3.00 |   |

       

----

| Outstanding                Weighted Average |   | Exercisable                Weighted Average |   |
|---------------------------------------------|--------|---------------------------------------------|--------|
| Total                Shares                 |   |                                        |   | Exercise |   | Total                Shares |   | Exercise |   |
| 05/31/07                                    |   | Life                                        |   | Price |   | 05/31/07 |   | Price |   |
|                                        |   |                                        |   |   |   |   |   |   |   |
| 64,500                                      |   |                                        | 2.75   |   | $ | 3.00 |   |   | 64,500 |   | $ | 3.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 15,000                                      |   |                                        | 2.25   |   | $ | 3.50 |   |   | 15,000 |   | $ | 3.50 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 66,500                                      |   |                                        | 2.75   |   | $ | 4.00 |   |   | 66,500 |   | $ | 4.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 268,570                                     |   |                                        | 2.00   |   | $ | 5.00 |   |   | 268,570 |   | $ | 5.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 18,300                                      |   |                                        | 2.25   |   | $ | 5.00 |   |   | 18,300 |   | $ | 5.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 71,500                                      |   |                                        | 2.75   |   | $ | 5.00 |   |   | 71,500 |   | $ | 5.00 |   |
|                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| 40,000                                      |   |                                        | .50    |   | $ | 5.88 |   |   | 40,000 |   | $ | 5.88 |   |

| 125,000 |   |   | 4.25   |   | $      | 2.00   |   |   | 125,000 |   | $      | 2.00   |   |
|---------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 10,000  |   |   | 4.25   |   | $      | 0.90   |   |   | 10,000  |   | $      | 0.90   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 5,000   |   |   | 4.25   |   | $      | 2.00   |   |   | 5,000   |   | $      | 2.00   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 5,000   |   |   | 4.25   |   | $      | 2.50   |   |   | 5,000   |   | $      | 2.50   |   |

----

| 25,000  |   |   | 4.25   |   | $      | 1.50   |   |   | 25,000  |   | $      | 1.50   |   |
|---------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 25,000  |   |   | 4.25   |   | $      | 2.00   |   |   | 25,000  |   | $      | 2.00   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 5,000   |   |   | 4.25   |   | $      | 2.00   |   |   | 5,000   |   | $      | 2.00   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 5,000   |   |   | 4.25   |   | $      | 2.50   |   |   | 5,000   |   | $      | 2.50   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 87,000  |   |   | 4.25   |   | $      | 1.50   |   |   | 87,000  |   | $      | 1.50   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 87,000  |   |   | 4.25   |   | $      | 2.00   |   |   | 87,000  |   | $      | 2.00   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 15,000  |   |   | 4.25   |   | $      | 1.50   |   |   | 15,000  |   | $      | 1.50   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 15,000  |   |   | 4.25   |   | $      | 2.00   |   |   | 15,000  |   | $      | 2.00   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 25,000  |   |   | 4.50   |   | $      | 2.00   |   |   | 25,000  |   | $      | 2.00   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 25,000  |   |   | 4.50   |   | $      | 2.50   |   |   | 25,000  |   | $      | 2.50   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 9,500   |   |   | 4.50   |   | $      | 1.50   |   |   | 9,500   |   | $      | 1.50   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 9,500   |   |   | 4.50   |   | $      | 2.00   |   |   | 9,500   |   | $      | 2.00   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 62,500  |   |   | 4.50   |   | $      | 2.00   |   |   | 62,500  |   | $      | 2.00   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 37,500  |   |   | 4.50   |   | $      | 1.90   |   |   | 37,500  |   | $      | 1.90   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 48,750  |   |   | 4.50   |   | $      | 1.90   |   |   | 48,750  |   | $      | 1.90   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 18,182  |   |   | 4.50   |   | $      | 1.75   |   |   | 18,182  |   | $      | 1.75   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 18,182  |   |   | 4.50   |   | $      | 2.25   |   |   | 18,182  |   | $      | 2.25   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 100,000 |   |   | 4.75   |   | $      | 1.65   |   |   | 100,000 |   | $      | 1.65   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 10,000  |   |   | 4.75   |   | $      | 1.65   |   |   | 10,000  |   | $      | 1.65   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 32,500  |   |   | 4.75   |   | $      | 2.00   |   |   | 32,500  |   | $      | 2.00   |   |
|    |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 35,000  |   |   | 4.75   |   | $      | 0.80   |   |   | 35,000  |   | $      | 0.80   |   |

----

| 12,500     |   |   | 4.75   |   | $      | 2.00   |   |   | 12,500     |   | $      | 2.00   |   |
|------------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|
|       |   |   |   |   |   |   |   |   |       |   |   |   |   |
| 20,000     |   |   | 5.00   |   | $      | 2.00   |   |   | 20,000     |   | $      | 2.00   |   |
|       |   |   |   |   |   |   |   |   |       |   |   |   |   |
| 12,000     |   |   | 5.00   |   | $      | 0.01   |   |   | 12,000     |   | $      | 0.01   |   |
|       |   |   |   |   |   |   |   |   |       |   |   |   |   |
| 26,500     |   |   | 5.00   |   | $      | 1.50   |   |   | 26,500     |   | $      | 1.50   |   |
|       |   |   |   |   |   |   |   |   |       |   |   |   |   |
| 17,750     |   |   | 5.00   |   | $      | 1.50   |   |   | 17,750     |   | $      | 1.50   |   |
|       |   |   |   |   |   |   |   |   |       |   |   |   |   |
| 20,000     |   |   | 5.00   |   | $      | 0.01   |   |   | 20,000     |   | $      | 0.01   |   |
|       |   |   |   |   |   |   |   |   |       |   |   |   |   |
| 7,500      |   |   | 5.00   |   | $      | 1.50   |   |   | 7,500      |   | $      | 1.50   |   |
|       |   |   |   |   |   |   |   |   |       |   |   |   |   |
| 30,000     |   |   | 5.00   |   | $      | 0.01   |   |   | 30,000     |   | $      | 0.01   |   |
|       |   |   |   |   |   |   |   |   |       |   |   |   |   |
| 21,500     |   |   | 5.00   |   | $      | 1.50   |   |   | 21,500     |   | $      | 1.50   |   |
|       |   |   |   |   |   |   |   |   |       |   |   |   |   |
| 10,000     |   |   | 5.00   |   | $      | 1.50   |   |   | 10,000     |   | $      | 1.50   |   |
|       |   |   |   |   |   |   |   |   |       |   |   |   |   |
| 8,500      |   |   | 5.00   |   | $      | 1.50   |   |   | 8,500      |   | $      | 1.50   |   |
|       |   |   |   |   |   |   |   |   |       |   |   |   |   |
| 759,000    |   |   | 5.00   |   | $      | 1.75   |   |   | 759,000    |   | $      | 1.75   |   |
|       |   |   |   |   |   |   |   |   |       |   |   |   |   |
| 24,000     |   |   | 5.00   |   | $      | 1.50   |   |   | 24,000     |   | $      | 1.50   |   |
| 11,579,629 |   |   |   |   |   |   |   |   | 11,579,629 |   |   |   |   |

NOTE      10 -      SEGMENT REPORTING 

----

|                                   |   |                  2007 |        | 2006   |   |
|----------------------------------------|--------|----------------------------|-------------|--------|--------|
|                                   |   |                       |        |   |   |
| Net                Revenues and Sales: |   |                       |        |   |   |
| CoinBank                machines       |   | $                          | 126         |   |   | 35,635 |   |
| EMMA                                   |   |                       | —     |   |   | — |   |
| Claim-Remedi                           |   |                       | 31,348      |   |   | 5,257 |   |
| Unallocated                            |   |                       | 182,472     |   |   | 14,115 |   |
|                                   |   |                       |             |   |   |  |   |
|                                   |   | **$**                      | **313,946** |   | **$**  | **55,007** |   |

|                                             |   | 2007   |       | 2006   |   |
|--------------------------------------------------|--------|--------|------------|--------|--------|
|                                             |   |   |       |   |   |
| Interest                  expense                |   |   |       |   |   |
| CoinBank                  machines               |   |   | —    |   |   | — |   |
| EMMA                                             |   |   | —    |   |   | — |   |
| Claim-Remedi                                     |   |   | —    |   |   | — |   |
| Unallocated                                      |   |   | 407,567    |   |   | 390,562 |   |
|                                             |   |   | 407,567    |   |   | **390,562** |   |
| Depreciation                  & Amortization |   |   |            |   |   |  |   |
| CoinBank                  machines               |   |   | —    |   |   | — |   |
| EMMA                                             |   |   | 326,531    |   |   | 559,769 |   |
| Claim-Remedi                                     |   |   | —    |   |   | — |   |
| Unallocated                                      |   |   | 3,4374     |   |   | 4,496 |   |
|                                             |   |   | 329,968    |   |   | **564,263** |   |
|                                             |   |   |            |   |   |  |   |
| Segment                  profit (loss)           |   |   |            |   |   |  |   |
| CoinBank                  machines               |   |   | (297,486   | )      |   | (255,757 | ) |
| EMMA                                             |   |   | —    |   |   | — |   |
| Claim-Remedi                                     |   |   | (1,405,715 | )      |   | (1,257,791 | ) |
| Unallocated                                      |   |   | (1,362,046 | )      |   | **(2,700,770** | **)** |
|                                             |   |   | (3,065,247 | )      |   | **(5,038,393** | **)** |
|                                             |   |   |            |   |   |  |   |
| Net                  identifiable assets:        |   |   |            |   |   |  |   |
| CoinBank                  machines               |   |   | 609,890    |   |   | 615,260 |   |
| EMMA                                             |   |   | 0          |   |   | 326,531 |   |
| Claim-Remedi                                     |   |   | —    |   |   | — |   |
| Unallocated                                      |   |   | 17,320,641 |   |   | **7,347,537** |   |
|                                             |   |   | 17,930,531 |   |   | **19,272,753** |   |

----

NOTE      13 -      OTHER INCOME 

NOTE      15 -      SUBSEQUENT EVENTS 

|  Overaccrual                  of directors’ fee |   | $      | 312,500 |   |
|------------------------------------------------------------|--------|--------|---------|--------|
|                                                       |   |   |         |   |

|                                                                                                                     |   | **As                  Previously** |       | **Increase**   |   |         |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|------------|----------------|--------|--------------|--------|
|                                                                                                                     |   | **Reported**                       |       | **(Decrease)** |   | **Restated** |   |
| **Balance                  Sheet Data:**                                                                                 |   |                               |            |           |   |              |   |   |  |   |
| Assets                  of discontinued operations - currentNotes                  receivable                            |   | $                                  | 8,266,545  |           | $      | (6,879,045   | )      | $ | 1,387,500 |   |
| Total                  assets of discontinued operations - current                                                       |   |                               | 8,861,942  |           |   | (6,879,045   | )      |   | 1,356,397 |   |
| Total                  current assets                                                                                    |   |                               | 10,357,622 |           |   | (6,879,045   | )      |   | 3,478,577 |   |
| Assets                  of discontinued operations - noncurrentNotes                  receivable                         |   |                               | —    |           |   | 6,879,045    |   |   | 6,879,045 |   |
| Total                  assets                                                                                            |   |                               | 17,930,531 |           |   | —      |   |   | 17,930,531 |   |
| Liabilities                  of discontinued operations -Accrued                  expenses and other current liabilities |   |                               | 804,526    |           |   | (312,500     | )      |   | 492,026 |   |
| Total                  liabilities of discontinued operations                                                            |   |                               | 2,702,176  |           |   | (312,500     | )      |   | 2,389,676 |   |
| Total                  current liabilities                                                                               |   |                               | 10,453,483 |           |   | (312,500     | )      |   | 10,141,083 |   |
| Total                  liabilities                                                                                       |   |                               | 11,588,143 |           |   | (312,500     | )      |   | 11,275,643 |   |
| Total                  stockholders’ equity                                                                        |   |                               | 6,441,027  |           |   | 312,500      |   |   | 6,753,527 |   |
|                                                                                                                     |   |                               |            |           |   |              |   |   |  |   |
| **Statement                  of Operations Data:**                                                                       |   |                               |            |           |   |              |   |   |  |   |
| Discontinued                  operations - selling, general &administrative                  expenses                |   |                               | 1,399,818  |           |   | (312,500     | )      |   | 1,087,318 |   |
| Income                  (loss) from discontinued operations                                                              |   |                               | 282,979    |           |   | 312,500      |   |   | 595,479 |   |
| Net                  loss                                                                                                |   | $                                  | (3,377,747 | )              | $      | 312,500      |   | $ | (3,065,247 | ) |

ITEM      8.      CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL      DISCLOSURE 

ITEM      8A      CONTROLS AND PROCEDURES 

----

ITEM      8B      OTHER INFORMATION 

----

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

| Name                              |   | Age    |   | Position                                                                    |
|-----------------------------------|--------|--------|--------|-----------------------------------------------------------------------------|
|                              |   |   |   |                                                                        |
| Bruce                R. Korman    |   | 48     |   | President,                Chief Executive Officer and Chairman of the Board |
|                              |   |   |   |                                                                        |
| Edmund                King        |   | 43     |   | Chief                Financial Officer and Secretary                        |
|                              |   |   |   |                                                                        |
| Richard                Miller     |   | 55     |   | Director(1)(2)                                                              |
|                              |   |   |   |                                                                        |
| Robert                B. Fagenson |   | 58     |   | Director(1)                                                                 |
|                              |   |   |   |                                                                        |
| Kevin                Walls        |   | 45     |   | Director(2)                                                                 |
|                              |   |   |   |                                                                        |
| Robin                Richards     |   | 48     |   | Director(1)                                                                 |

----

----

Robin      Richards has been a director since October, 2005. He is currently Chairman      and      CEO of Notification Technologies, Inc., a privately held company that provides      school-to-parent communication services throughout the U.S. Previously, he      was      CEO of Vivendi Universal Net USA ("VUNet USA"), a subsidiary of Vivendi      Universal. VUNet USA operated MP3.com, Inc., Flipside Network, Moviso, a leading      wireless service provider and VUNet USA Technologies, a leading internet      distribution infrastructure provider. Prior to his position at VUNet USA, Mr.      Richards was the founding president, chief operating officer and a director      of      MP3.com, Inc., involved in all aspects of that company's operations, its IPO      and      ultimate sale to Vivendi Universal. Additionally, Mr. Richards served as      managing director of Tickets.com, Inc. and was founder and CEO of Lexi      International, a tele-services and database management company. Mr. Richards      served on the Board of Cash Technologies previously from 1999 through 2001.      

|   | · | 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. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

Raymond      Pedden, 54, has been Chief Technology Officer of our Claim-Remedi Services,      Inc.      subsidiary (formerly Heuristic Technologies, Inc.) since August, 2004. Mr.      Pedden is a recognized expert in healthcare operations management, information      systems and product development. From 2001 to 2003 Mr. Pedden was CEO of      Heuristic Technologies, LLC. From 1999 to 2001 Mr. Pedden was Executive Vice      President of Health eConnex, Inc. From 1997 - 1999 he was the Chief Technology      Officer for Imperial Technology Solutions, a division of Imperial Bank. From      1994 - 1995, he was the Executive Director for the Camino Medical Group in      Sunnyvale, California. From 1989 - 1994, Mr. Pedden was the Director of Business      Operations at the Stanford University Clinic. From 1986 - 1988, Mr. Pedden      was      the Chief Operating Officer for Health Care Alternatives, Inc. From 1983 -      1984,      he was the Assistant Dean for Fiscal Affairs at the University of California,      San Diego School of Medicine and Executive Director, UCSD Medical Group. Mr.      Pedden has served on the faculties of The University of North Dakota and the      University of California, San Diego. 

       Summary Compensation Table 

| Name                          and All                          Other Principal                          Position Compensation(1) |   |                      Annual                    Compensation |   | Long                    Term Compensation |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                                                                                             |   | Year                                                             |   | Salary                                    |   | Bonus |   | Underlying |   | Options                      (#) |   |
| Bruce                    Korman                                                                                                  |   |                                                             | 2007   |                                      | $      | 250,000 |  * |   |  |   |   |  |   | $ | 18,000 | (1) |
| President                    and Chief                                                                                           |   |                                                             | 2006   |                                      | $      | 250,000 |  * |   |   |   |   | 1,000,000 |   | $ | 18,000 | (1) |
| Executive                    Officer                                                                                             |   |                                                             | 2005   |                                      | $      | 250,000 |  * |   |  |   |   |  |   | $ | 18,000 | (1) |
|                                                                                                                             |   |                                                             |        |                                      |   |  |   |   |  |   |   |  |   |   |  |   |
| Edmund                    King                                                                                                   |   |                                                             | 2007   |                                      | $      | 180,000 |   |   |  |   |   |  |   | $ | 9,000 | (1) |
| Chief                    Financial                                                                                               |   |                                                             | 2006   |                                      | $      | 180,000 |   |   |  |   |   |  |   | $ | 9,000 | (1) |
| Officer                                                                                                                          |   |                                                             | 2005   |                                      | $      | 150,000 |   |   |  |   |   |  |   | $ | 9,000 |   |

----

----

       

Option      Grants in Fiscal Year Ended May 31, 2007 

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

Aggregated      Option Exercises And Fiscal Year-End Option Values 

|                        |   | Number                of Securities Underlying Unexercised |      | Value                of Unexercised In-the-Money                |   |
|-----------------------------|--------|------------------------------------------------------------|-----------|-----------------------------------------------------------------|--------|
|                        |   | Options                at May 31, 2007                     |      |                  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. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Name                and Address of Beneficial                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 | % |
|                                                                                                                            |   |                                                                         |            |                                                                         |   |  |   |
| Robin                Richards                                                                                                   |   |                                                                         | 180,000    |                                                                         |   | .58 | % |
|                                                                                                                            |   |                                                                         |            |                                                                         |   |  |   |
| All                directors and executive officers as a group (persons)(1)(2)(3)(4)(5)(6)                (7)(8)(9)(10)(11)(12) |   |                                                                         | 12,249,967 |                                                                         |   | 39.51 | % |

----

| * | 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 warrant share. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 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 RELATED TRANSACTIONS 

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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                                                                                                                                     |

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| *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                                                                                                                                                                                                                                                                                                        |

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(b)      Reports on 8-K 

ITEM      14.      PRINCIPAL ACCOUNTING FEES & SERVICES 

Independent      Accountant Fees 

|                                |   | Fiscal                  Year Ended May 31, |    |
|-------------------------------------|--------|--------------------------------------------|---------|
|                                |   | 2007                                       |    |                    2006 |   |
|                                |   |                                       |    |   |   |
| Audit                  Fees         |   | $                                          | 104,000 |   | $ | 55,000 |   |
|                                |   |                                       |         |   |   |  |   |
| Audit-Related                  Fees |   |                                       | 18,000  |   |   | 27,000 |   |
|                                |   |                                       |         |   |   |  |   |
| Tax                  Fees           |   |                                       | 7,000   |   |   | 7,000 |   |
|                                |   |                                       |         |   |   |  |   |
| All                  other fees     |   |                                       | 3,240   |   |   | 3,000 |   |
|                                |   |                                       |         |   |   |  |   |
| Total                  Fees Paid    |   | $                                          | 132,240 |   | $ | 92,000 |   |

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

| Signature                            |   | Title                                                       |   | Date                              |
|--------------------------------------|--------|-------------------------------------------------------------|--------|-----------------------------------|
|                                 |   |                                                        |   |                              |
| /s/                  BRUCE KORMAN    |   | President,                  Chief Executive Officer         |   | October                  22, 2007 |
| Bruce                  Korman        |   | And                  Director (Principal Executive Officer) |   |                              |
|                            |   |                                                        |   |                              |
| /s/                  EDMUND KING     |   | Chief                  Financial Officer                    |   |                              |
| Edmund                  King         |   | (Principal                  Financial Officer)              |   | October                  22, 2007 |
|                            |   |                                                        |   |                              |
| /s/                  RICHARD MILLER  |   | Director                                                    |   | October                  22, 2007 |
| Richard                  Miller      |   |                                                        |   |                              |
|                            |   |                                                        |   |                              |
| /s/                  ROBERT FAGENSON |   | Director                                                    |   | October                  22, 2007 |
| Robert                  Fagenson     |   |                                                        |   |                              |
|                            |   |                                                        |   |                              |
| /s/                  KEVIN WALLS     |   | Director                                                    |   | October                  22, 2007 |
| Kevin                  Walls         |   |                                                        |   |                              |

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