----

----

----

**For      the quarterly period ended March 31, 2005**

**Commission      File Number 0-27574**

**PowerCerv      Corporation**

|                                           |                               |
|------------------------------------------------|------------------------------------|
| **Florida**                                    | **59-3350778**                     |
| (State                or other jurisdiction of | (I.R.S.                Employer    |
| incorporation                or organization)  | Identification                No.) |
|                                           |                               |

**3000      Bayport Drive, Tampa, Florida 33607**

**(813)      979-9222**

----

----

----

**PowerCerv      Corporation**

**Form      10-QSB**

**Index**

| **Part                I. Financial Information**                                                                                                            | **Page** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                                                                        |     |
| Item                1. Financial Statements                                                                                                                 |     |
|                                                                                                                                                        |     |
| Condensed                Consolidated Balance Sheets as of March 31, 2005 (unaudited) and                December                31, 2004 (audited)         | 2        |
|                                                                                                                                                        |     |
| Condensed                Consolidated Statements of Operations for the three months ended                March 31,                2005 and 2004 (unaudited) | 3        |
|                                                                                                                                                        |     |
| Condensed                Consolidated Statements of Cash Flows for the three months ended                March 31,                2005 and 2004 (unaudited) | 4        |
|                                                                                                                                                        |     |
| Condensed                Consolidated Statement of Stockholders’ Deficit for the three months ended                March 31, 2005 (unaudited)         | 5        |
|                                                                                                                                                        |     |
| Notes                to Condensed Consolidated Financial Statements (unaudited)                                                                             | 6-8      |
|                                                                                                                                                        |     |
| Item                2. Management's Discussion and Analysis or Plan of                Operations                                                            | 9-11     |
|                                                                                                                                                        |     |
| Item                3. Controls and Procedures                                                                                                              | 12       |
|                                                                                                                                                        |     |
| **Part                II. Other Information**                                                                                                               |     |
|                                                                                                                                                        |     |
| Item                1. Legal Proceedings                                                                                                                    | 13       |
|                                                                                                                                                        |     |
| Item                6. Exhibits and Reports on Form 8-K                                                                                                     | 13       |
|                                                                                                                                                        |     |
| Signatures                                                                                                                                                  | 14       |

----

**POWERCERV        CORPORATION AND SUBSIDIARY **

**CONSOLIDATED BALANCE SHEET**

|                                                                                                    |   | (Unaudited)March                    31, 2005 |        |  December                  31, 2004 |   |
|---------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|-------------|------------------------------------------|--------|
| **ASSETS**                                                                                              |   |                                         |        |
| **CURRENT                  ASSETS**                                                                     |   |                                         |        |                                     |   |
| Cash                                                                                               |   | $                                            | 69,484      |                                     | $      | 20,793 |   |
| Marketable                  equity securities                                                      |   |                                         | 145,569     |                                     |   | 154,835 |   |
|                                                                                                    |   |                                         |        |                                     |   |   |   |
|  **Total                  current assets**                                                         |   | $                                            | 215,053     |                                     | $      | 175,628 |   |
|                                                                                                    |   |                                         |        |                                     |   |   |   |
|                                                                                                    |   |                                         |        |                                     |   |   |   |
|                                                                                                    |   |                                         |        |                                     |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' DEFICIT**                                              |   |                                         |        |                                     |
| **CURRENT                  LIABILITIES**                                                                |   |                                         |        |                                     |   |   |   |
| Accounts                  payable                                                                  |   | $                                            | 30,244      |                                     | $      | 25,529 |   |
| Accrued                  expenses                                                                  |   |                                         | 341,852     |                                     |   | 344,851 |   |
| Due                  to related party                                                              |   |                                         | 79,486      |                                     |   | 78,709 |   |
|                                                                                                    |   |                                         |        |                                     |   |   |   |
|  **Total                  current liabilities**                                                    |   |                                         | 451,582     |                                     |   | 449,089 |   |
|                                                                                                    |   |                                         |        |                                     |   |   |   |
|                                                                                                    |   |                                         |        |                                     |   |   |   |
| **COMMITMENTS                  AND CONTINGENCY (Note 7)**                                               |   |                                         | -           |                                     |   | - |   |
|                                                                                                    |   |                                         |        |                                     |   |   |   |
| **STOCKHOLDERS'                  DEFICIT**                                                              |   |                                         |        |                                     |   |   |   |
| Common                  stock, $0.001 par value, 45,000,000 shares                  authorized,    |   |                                         |        |                                     |   |   |   |
|  2,310,000                  shares issued and outstanding                                          |   |                                         | 2,310       |                                     |   | 2,310 |   |
| Preferred                  stock, $0.001 par value, 5,000,000 shares                  authorized,  |   |                                         |        |                                     |   |   |   |
|  25,000                  shares issued and no shares outstanding                                   |   |                                         | 25          |                                     |   | 25 |   |
| Additional                  paid-in capital                                                        |   |                                         | 51,704,944  |                                     |   | 51,704,944 |   |
| Treasury                  stock, preferred, at cost                                                |   |                                         | (25,931     | )                                        |   | (25,931 | ) |
| Stock                  subscription receivable                                                     |   |                                         | -           |                                     |   | (44,925 | ) |
| Accumulated                  deficit                                                               |   |                                         | (51,993,479 | )                                        |   | (51,994,752 | ) |
| Accumulated                  other comprehensive income                                            |   |                                         | 75,602      |                                     |   | 84,868 |   |
|                                                                                                    |   |                                         |        |                                     |   |   |   |
|  **Total                  stockholders' deficit**                                                  |   |                                         | (236,529    | )                                        |   | (273,461 | ) |
|                                                                                                    |   |                                         |        |                                     |   |   |   |
|  **Total                  liabilities and stockholders' deficit**                                  |   | $                                            | 215,053     |                                     | $      | 175,628 |   |

----

**POWERCERV      CORPORATION AND SUBSIDIARY**

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

**(Unaudited)**

|                                                                                        |   | Three                Months   |      | Three                Months   |   |
|---------------------------------------------------------------------------------------------|--------|-------------------------------|-----------|-------------------------------|--------|
|                                                                                        |   | ended                         |      | ended                         |   |
|                                                                                        |   | March                31, 2005 |      | March                31, 2004 |   |
|                                                                                        |   |                          |      |                          |   |
| **REVENUE**                                                                                 |   | $                             | -         |                          | $      | - |   |
|                                                                                        |   |                          |      |                          |   |   |   |
| **GENERAL                AND ADMINISTRATIVE EXPENSES**                                      |   |                          | 3,584     |                          |   | 26,251 |   |
|                                                                                        |   |                          |      |                          |   |   |   |
| **OPERATING                LOSS**                                                           |   |                          | (3,584    | )                             |   | (26,251 | ) |
|                                                                                        |   |                          |      |                          |   |   |   |
| **OTHER                INCOME**                                                             |   |                          |      |                          |   |   |   |
| Investment                income                                                       |   |                          | 4,857     |                          |   |   |   |
| Litigation                settlement income                                            |   |                          | -         |                          |   | 125,000 |   |
|                                                                                        |   |                          |      |                          |   |   |   |
| **TOTAL                OTHER INCOME**                                                       |   |                          | 4,857     |                          |   | 125,000 |   |
|                                                                                        |   |                          |      |                          |   |   |   |
| **INCOME                BEFORE INCOME TAX**                                                 |   |                          | 1,273     |                          |   | 98,749 |   |
|                                                                                        |   |                          |      |                          |   |   |   |
| **PROVISION                FOR INCOME TAXES**                                               |   |                          | -         |                          |   | - |   |
|                                                                                        |   |                          |      |                          |   |   |   |
| **NET                INCOME**                                                               |   |                          | 1,273     |                          |   | 98,749 |   |
|                                                                                        |   |                          |      |                          |   |   |   |
| **PREFERRED                STOCK DIVIDEND**                                                 |   |                          | -         |                          |   | (270,000 | ) |
|                                                                                        |   |                          |      |                          |   |   |   |
| **NET                INCOME (LOSS) ATTRIBUTABLE**                                           |   |                          |      |                          |   |   |   |
| **TO                COMMON STOCKHOLDERS**                                              |   | $                             | 1,273     |                          | $      | (171,251 | ) |
|                                                                                        |   |                          |      |                          |   |   |   |
| **INCOME                (LOSS) PER COMMON SHARE**                                           |   |                          |      |                          |   |   |   |
| Basic                and diluted:                                                      |   |                          |      |                          |   |   |   |
|  Net                income                                                             |   | $                             | 0.00      |                          | $      | 0.06 |   |
|  Net                income (loss) attributable to                  common shareholders |   |                          |      |                          |   |   |   |
|                                                                                        |   | $                             | 0.00      |                          |   | ($0.10 | ) |
|                                                                                        |   |                          |      |                          |   |   |   |
| **WEIGHTED                AVERAGE NUMBER OF**                                               |   |                          |      |                          |   |   |   |
| **COMMON                SHARES OUTSTANDING**                                           |   |                          |      |                          |   |   |   |
| Basic                and diluted                                                       |   |                          | 2,310,000 |                          |   | 1,652,713 |   |

----

**POWERCERV        CORPORATION AND SUBSIDIARY **

**CONSOLIDATED          STATEMENTS OF CASH FLOWS**

|                                                                    |   | Three                  Months   |   | Three                  Months   |   |
|-------------------------------------------------------------------------|--------|---------------------------------|--------|---------------------------------|--------|
|                                                                    |   | ended                           |   | ended                           |   |
|                                                                    |   | March                  31, 2005 |   | March                  31, 2004 |   |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES**               |   |                            |   |                            |   |
| Net                  Income                                             |   | $                               | 1,273  |                            | $      | 98,749 |   |
| Adjustments                  to reconcile net income to cash            |   |                            |   |                            |   |   |   |
| flows                  from operating activities:                       |   |                            |   |                            |   |   |   |
| Net                  (increase) decrease in assets:                     |   |                            |   |                            |   |   |   |
| Other                  current assets                              |   |                            | -      |                            |   | 3,000 |   |
| Net                  increase (decrease) in liabilities:                |   |                            |   |                            |   |   |   |
| Accounts                  payable and accrued expenses             |   |                            | 1,716  |                            |   | (25,224 | ) |
| Total                  adjustments                                      |   |                            | 1,716  |                            |   | (22,224 | ) |
| **Net                  cash flows from operating activities**           |   |                            | 2,989  |                            |   | 76,525 |   |
|                                                                    |   |                            |   |                            |   |   |   |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES**               |   |                            |   |                            |   |   |   |
| Collection                  of notes receivable                         |   |                            | -      |                            |   | 110,000 |   |
| **Net                  cash flows from investing activities**           |   |                            | -      |                            |   | 110,000 |   |
|                                                                    |   |                            |   |                            |   |   |   |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES**               |   |                            |   |                            |   |   |   |
| Related                  party loan proceeds                            |   |                            | 777    |                            |   | 53,314 |   |
| Collection                  of stock subscription receivable            |   |                            | 44,925 |                            |   | - |   |
| Cash                  distributions to stockholders                     |   |                            | -      |                            |   | (272,925 | ) |
| **Net                  cash flows from financing activities**           |   |                            | 45,702 |                            |   | (219,611 | ) |
|                                                                    |   |                            |   |                            |   |   |   |
|                                                                    |   |                            |   |                            |   |   |   |
| Net                  change in cash                                |   |                            | 48,691 |                            |   | (33,086 | ) |
| Cash                  balance, beginning of period                      |   |                            | 20,793 |                            |   | 33,086 |   |
| **Cash                  balance, end of period**                        |   | $                               | 69,484 |                            | $      | - |   |
|                                                                    |   |                            |   |                            |   |   |   |
|                                                                    |   |                            |        |                            |   |   |   |
| **Supplemental                  disclosures of cash flow information:** |   |                            |   |                            |   |   |   |
| Cash                  paid for interest expense                         |   | $                               | -      |                            | $      | - |   |
|                                                                    |   |                            |   |                            |   |   |   |
| **Supplemental                  schedule of non-cash investing**        |   |                            |   |                            |   |   |   |
| **and                  financing activities:**                          |   |                            |   |                            |   |   |   |
| Reduction                  in stock subscription receivable in lieu of  |   |                            |   |                            |   |   |   |
| cash                  distribution to shareholder                  |   | $                               | -      |                            | $      | 27,075 |   |

----

**POWERCERV            CORPORATION AND SUBSIDIARY **

**CONSOLIDATED              STATEMENT OF STOCKHOLDERS' DEFICIT **

**FOR                THE THREE MONTHS ENDED MARCH 31, 2005 **

**(Unaudited)**

|                                                                                        |   |                      |          |                         |   |        |   |         |       |             |   |            |   |              |           |              |   |        |   |            |        |      |   |
|---------------------------------------------------------------------------------------------|--------|---------------------------|---------------|------------------------------|--------|-------------|--------|--------------|------------|------------------|--------|-----------------|--------|-------------------|----------------|-------------------|--------|-------------|--------|-----------------|-------------|-----------|--------|
|                                                                                        |   |                      |          |                         |   |        |   |         |       |             |   |            |   |              |           |              |   |        |   | **Accumulated** |        |      |   |
|                                                                                        |   |                      |          |                         |   |        |   |         |       | **Additional**   |   |            |   | **Stock**         |           |              |   | **Other**   |   | **Other**       |        |      |   |
|                                                                                        |   | **Common** **Stock** |          | **Preferred** **Stock** |   | **Paid-in** |   | **Treasury** |       | **Subscription** |   | **Accumulated** |   | **Comprehensive** |           | **Comprehensive** |   |        |   |
|                                                                                        |   | **Shares**                |          | **Value**                    |   | **Shares**  |   | **Value**    |       | **Capital**      |   | **Stock**       |   | **Receivable**    |           | **Deficit**       |   | **Income**  |   | **Income**      |        | **Total** |   |
|                                                                                        |   |                      |          |                         |   |        |   |         |       |             |   |            |   |              |           |              |   |        |   |            |        |      |   |
| **Balance,                      Dec 31, 2004**                                              |   |                      | **2,310,000** |                         | **$**  | **2,310**   |   |         | **25,000** |             | **$**  | **25**          |   | **$**             | **51,704,944** |              | **$**  | **(25,931** | **)**  | **$**           | **(44,925** | **)**     | **$**  | **(51,994,752** | **)** |   |   |   | **$** | **84,868** |   | **$** | **(273,461** | **)** |
|                                                                                        |   |                      |          |                         |   |        |   |         |       |             |   |            |   |              |           |              |   |        |   |            |        |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Collection                      of subscription receivable                                  |   |                      | -             |                         |   | -           |   |         | -          |             |   | -               |   |              | -              |              |   | -           |   |            | 44,925      |      |   | - |   |   |   |   |   | - |   |   | 44,925 |   |
|                                                                                        |   |                      |          |                         |   |        |   |         |       |             |   |            |   |              |           |              |   |        |   |            |        |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                      loss:                                                    |   |                      |          |                         |   |        |   |         |       |             |   |            |   |              |           |              |   |        |   |            |        |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                      income                                                             |   |                      | -             |                         |   | -           |   |         | -          |             |   | -               |   |              | -              |              |   | -           |   |            | -           |      |   | 1,273 |   | $ | 1,273 |   |   |   |   |   | 1,273 |   |
| Recognition                      of unrealized investment gain upon disposal of investments |   |                      | -             |                         |   | -           |   |         | -          |             |   | -               |   |              | -              |              |   | -           |   |            | -           |      |   | - |   |   | (9,266 | ) |   | (9,266 | ) |   | (9,266 | ) |
|                                                                                        |   |                      |          |                         |   |        |   |         |       |             |   |            |   |              |           |              |   |        |   |            |        |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                      loss                                                     |   |                      |          |                         |   |        |   |         |       |             |   |            |   |              |           |              |   |        |   |            |        |      |   |   |   | $ | (7,993 | ) |   |   |   |   |   |   |
|                                                                                        |   |                      |          |                         |   |        |   |         |       |             |   |            |   |              |           |              |   |        |   |            |        |      |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance,                      Mar 31, 2005**                                              |   |                      | **2,310,000** |                         | **$**  | **2,310**   |   |         | **25,000** |             | **$**  | **25**          |   | **$**             | **51,704,944** |              | **$**  | **(25,931** | **)**  | **$**           | **-**       |      | **$**  | **(51,993,479** | **)** |   |   |   | **$** | **75,602** |   | **$** | **(236,529** | **)** |

----

**1.        **
**Organization      and Operations**

----

**2.        **
**Summary      of Significant Accounting Policies**

***Use      of estimates -***

***Marketable      equity securities***

***Income      (loss) per common share -***

***Accumulated      other comprehensive income***

----

**3.        **
**Accrued      Expenses**

| State                tax assessments  |   | $      | 247,296      |   |
|---------------------------------------|--------|--------|--------------|--------|
| Other                                 |   |   | 94,556       |   |
|                                  |   |   |    |   |
| Total                accrued expenses |   | $      | 341,852      |   |

**5.        **
**Income      taxes**

| Estimated                future tax benefit |   | $      | 14,000,000         |   |
|---------------------------------------------|--------|--------|--------------------|--------|
| Valuation                allowance          |   |   | (14,000,000        | )      |
|                                        |   |   |     |   |
| Estimated                future tax benefit |   | $      | --                 |   |

**6.        **
**Related      party transactions:**

**7.        **
**Subsequent      Events**

----

**Item      2.   Management’ Discussion and Analysis or Plan of      Operations**

**Overview**

----

**Item        2.   Management’ Discussion and Analysis or Plan of Operations        (continued)**

**Results      of Operations**

|                                      |   | **Three                Months ended March 31,** |   |
|-------------------------------------------|--------|-------------------------------------------------|--------|
|                                      |   | **2005**                                        |   | **2004** |   | **%                Change** |   |
| Revenue                                   |   | $                                               | 0      |   | $ | 0 |   |   | 0 | % |
| General                and administrative |   |                                            | 3,584  |   |   | 26,251 |   |   | -86 | % |
|                                      |   |                                            |   |   |   |   |   |   |   |   |
|  Operating                loss       |   |                                            | (3,584 | ) |   | (26,251 | ) |   | -86 | % |
|                                      |   |                                            |   |   |   |   |   |   |   |   |
| Other                income, net          |   |                                            | 4,857  |   |   | 125,000 |   |   | -96 | % |
| Provision                for income taxes |   |                                            | 0      |   |   | 0 |   |   |   |   |
|                                      |   |                                            |   |   |   |   |   |   |   |   |
|  Net                income           |   | $                                               | 1,273  |   | $ | 98,749 |   |   | -99 | % |
|                                      |   |                                            |   |   |   |   |   |   |   |   |

***General      and Administrative (“G&A”) -***

***Other      Income -***

----

**Item      2.   Management’ Discussion and Analysis or Plan of Operations      (continued)**

**Liquidity      and Capital Resources**

----

**Item      3.   Controls and Procedures**

----

**Part      II.  Other Information**

**Item      1:  Legal Proceedings**

**Item      6:  Exhibits and Reports on Form 8-K**

| Exhibit                  31.1       | Certification                to Section 302 of the Sarbanes-Oxley Act of 2002 - Chief Executive                Officer                                                                         |   |
|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                |                                                                                                                                                                                                |   |
| Exhibit                  31.2       | Certification                to Section 302 of the Sarbanes-Oxley Act of 2002 - Chief Financial                Officer                                                                         |   |
|                                |                                                                                                                                                                                                |   |
| Exhibit                  32.1       | Certification                pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002 - Chief Executive Officer  |   |
|                                |                                                                                                                                                                                                |   |
| Exhibit                  32.2  | Certification                pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002 - Chief Financial Officer  |   |

----

**Signatures**

|                                      |                                                                                                                                                                   |                          |
|-------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|
|                                      | POWERCERV              CORPORATION                                                                                                                                     |
|                                 |                                                                                                                                                              |                     |
| Date: February              16, 2006 | By:                                                                                                                                                          | /s/              John Stanton |
|                                      | John                Stanton,Chairman,                Principal Executive Officer and PrincipalFinancial                Officer(Duly                Authorized Officer) |
|                                      |                                                                                                                                                                   |

----

**PowerCerv      Corporation**

**EXHIBIT      INDEX**

|                EXHIBITNUMBER |  DESCRIPTION                                                                                                                                                                             |   |
|-----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                              |                                                                                                                                                                                          |   |
| 31.1                              | Certification              to Section 302 of the Sarbanes-Oxley Act of 2002 - Chief Executive              Officer                                                                       |   |
|                              |                                                                                                                                                                                          |   |
| 31.2                              | Certification              to Section 302 of the Sarbanes-Oxley Act of 2002 - Chief Financial              Officer                                                                       |   |
|                              |                                                                                                                                                                                          |   |
| 32.1                              | Certification              pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section              906 of              the Sarbanes-Oxley Act of 2002 - Chief Executive Officer  |   |
|                              |                                                                                                                                                                                          |   |
| 32.2                         | Certification              pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section              906 of              the Sarbanes-Oxley Act of 2002 - Chief Financial Officer  |   |

----