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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-KSB/A**

**x**
**       ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT      OF      1934 **

**December 31, 2006**

**□**
**       TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE      ACT      OF 1934 **

**000-30061**

**ELEPHANT      TALK COMMUNICATIONS, INC.**

| **CALIFORNIA**                                                                |   | **95-4557538**                                      |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) |   | (I.R.S.                Employer Identification No.) |

**438      E. Katella Avenue, Suite 217, Orange, California 92867**

**(714)      288-1570**

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**None      **

**No      Par Value **

**x**

**x**

**x**
** **
**□**

**x**

| Large                accelerated filer  **o** | ** **Accelerated                filer ** o** | Non-accelerated                filer  **x** |
|----------------------------------------------------|-------------------------------------------------------------|--------------------------------------------------|

**x**

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**EXPLANATORY      NOTES**

**Explanatory      Note 1**

***Special      Note Regarding Forward Looking Statements***

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**SIGNATURES**

**ELEPHANT      TALK COMMUNICATIONS, INC.**

| Date:                May 14, 2007 | By:                /s/ Steven van der Velden                                                 |
|-----------------------------------|----------------------------------------------------------------------------------------------|
|                              | Steven                van der Velden                                                         |
|                              | Chairman                of the Board, President & Chief Executive Officer                |
|                              | (Principal                Executive Officer)                                                 |
|                              |                                                                                         |
| Date:                May 14, 2007 | By:                /s/ Willem Ackermans                                                      |
|                              | Willem                Ackermans                                                              |
|                              | Chief                Financial Officer                                                       |
|                              | (Principal                Financial Officer and Principal Accounting                Officer) |

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**ELEPHANT      TALK COMMUNICATIONS, INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS (AMENDED)**

|                                                                                                                                               | **For                  the year ended December 31,** |       |
|----------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------|------------|
|                                                                                                                                               | **2006**                                             |       |  **2005** |   |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES:**                                                                                         |                                                 |       |    |   |
|                     Net loss                                                                                                             | $                                                    | (4,829,665 | ) | $ | (1,214,193 | ) |
|                         Adjustments to reconcile net loss to net cash used in operating                  activities: |                                                 |       |   |   |   |   |
|                     Depreciation and amortization                                                                                        |                                                 | 42,326     |   |   | 56,230 |   |
|                     Provision for uncollectible stock subscriptions                                                                      |                                                 |       |   |   | (8,991 | ) |
|                     Issuance of stock for compensation and services                                                                      |                                                 | 371,347    |   |   | 402,250 |   |
|                     Provision for uncollectible amounts                                                                                  |                                                 | 65,968     |   |   | 17,293 |   |
|                     Gain on disposal of subsidiary                                                                                       |                                                 | (232,247   | ) |   | (7,229 | ) |
|                     Loss from discontinued operations                                                                                    |                                                 | 2,152,247  |   |   | 7,229 |   |
|                     Minority interest                                                                                                    |                                                 | 117,824    |   |   | 41,638 |   |
|                         Changes in operating assets and liabilities:                                                 |                                                 |       |   |   |   |   |
|                     (Increase) Decrease in accounts receivable                                                                           |                                                 | (81,692    | ) |   | 1,613 |   |
|                     (Increase) Decrease in prepaid expenses, deposits and other                  assets                                  |                                                 | 158,203    |   |   | 54,777 |   |
|                     Increase (Decrease) in accounts payable and customer                  deposits                                       |                                                 | 15,420     |   |   | (156,796 | ) |
|                     Decrease in deferred revenue                                                                                         |                                                 | (2,327     | ) |   | (12,466 | ) |
|                     Increase in accrued expenses and other payable                                                                       |                                                 | 198,291    |   |   | 80,627 |   |
|                     Increase in minority interest                                                                                        |                                                 | 10,698     |   |   | -- |   |
|                     Increase in accrued interest                                                                                         |                                                 | 683,548    |   |   | -- |   |
|                         Net cash used in operating activities                                                        |                                                 | (1,330,061 | ) |   | (738,018 | ) |
|                                                                                                                                               |                                                 |       |   |   |   |   |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES:**                                                                                         |                                                 |       |   |   |   |   |
|                     Purchase of property and equipment                                                                                   |                                                 | (113,731   | ) |   | (15,020 | ) |
|                     Cash paid for deposits                                                                                               |                                                 | (171,804   | ) |   | -- |   |
|                     Cash paid for investment in subsidiary                                                                               |                                                 | (1,420,000 | )  |   | (792,821 | ) |
|                     Earnest deposit on acquisitions, net                                                                                 |                                                 | --         |   |   | (8,070,977 | ) |
|                          Net                  cash used in investing activities                                 |                                                 | (1,705,535 | ) |   | (8,878,818 | ) |
|                                                                                                                                               |                                                 |       |   |   |   |   |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES:**                                                                                         |                                                 |       |   |   |   |   |
|                     Payment on notes/loans                                                                                               |                                                 | (941,504)  |   |   | (250,000 | ) |
|                     Cash overdraft                                                                                                       |                                                 | 72,486     |   |   | 16,515 |   |
|                     Proceeds (payments) from bank loans                                                                                  |                                                 | (82,577    | ) |   | 55,099 |   |
|                     Proceeds from note payable                                                                                           |                                                 | 2,954,921  |   |   | 2,570,300 |   |
|                     Proceeds from sale of shares                                                                                         |                                                 | 944,500    |   |   | 7,837,896 |   |
|                     Cash from formation of subsidiary                                                                                    |                                                 | 176,332    |   |   | -- |   |
|                     Proceeds from related parties                                                                                        |                                                 | --         |   |   | 25,314 |   |
|                     Proceeds (Payments) to related parties                                                                               |                                                 | --         |   |   | (507,747 | ) |
|                          Net                  cash provided by financing activities                             |                                                 | 3,124,159  |   |   | 9,747,377 |   |
|                                                                                                                                               |                                                 |       |   |   |   |   |
| **EFFECT                  OF EXCHANGE RATES ON CASH**                                                                                              |                                                 | 44,622     |   |   | 644 |   |
|                                                                                                                                               |                                                 |       |   |   |   |   |
| **NET                  INCREASE IN CASH**                                                                                                          |                                                 | 133,185    |   |   | 131,185 |   |
|                                                                                                                                               |                                                 |       |   |   |   |   |
| **CASH,                  BEGINNING OF THE YEAR**                                                                                                   |                                                 | 198,816    |   |   | 67,631 |   |
|                                                                                                                                               |                                                 |       |   |   |   |   |
| **CASH,                  END OF THE YEAR**                                                                                                         | $                                                    | 332,001    |   | $ | 198,816 |   |
|                                                                                                                                               |                                                 |       |   |   |   |   |
| **SUPPLEMENTAL                  DISCLOSURES OF CASH FLOW INFORMATION:**                                                                            |                                                 |       |   |   |   |   |
|                        Cash paid during the period for interest                                                           | $                                                    | --         |   | $ | 48,308 |   |
|                        Cash paid during the period for income taxes                                                       | $                                                    | 800        |   | $ | 800 |   |

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