----

----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C.  20549**

**FORM      10-QSB**

| (Mark                one)                                                                                                                                             |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| [X]  Quarterly                report under Section 13 or 15(d) of the Securities Exchange Act of                1934                                        |
|                                                                                                                                    |
| For                the quarterly period ended June 30, 2007                                                                                                      |
|                                                                                                                                    |
| [   ]  Transition                report pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934 |
|                                                                                                                                    |
| For                the transition period from ___________ to ____________                                                                                             |
|                                                                                                                                    |
| Commission                File Number:  000-49745                                                                                                           |
|                                                                                                                                    |
| **UNITED                ESYSTEMS, INC.**(Exact                Name of Small Business Issuer as Specified in its                Charter)                               |
|                                                                                                                                    |
| **Nevada**(State                or Other Jurisdiction ofIncorporation                or Organization)                                                                 | **91-2150635**(IRS                EmployerIdentification                No.) |
|                                                                                                                                    |
| **15431                O’Neal Road****Gulfport,                MS  39503**(Address                of Principal Executive Offices)                     | **(228)                832-1597**(Issuer’s                Telephone Number) |
|                                                                                                                                    |
| (Former                Name, Former Address and Former Fiscal Year, if Changed Since Last                Report)                                                      |

**APPLICABLE      ONLY TO CORPORATE ISSUERS**

----

----

----

**UNITED      ESYSTEMS, INC.**

**FORM      10-QSB**

**June 30,      2007**

**INDEX**

| **Part                I – Financial Information** | **Page**                                                                                      |
|---------------------------------------------------------|-----------------------------------------------------------------------------------------------|
|                                |                                                                                          |   |
| Item                1.                                  | Financial                Statements                                                           |   |
|                                |                                                                                          |   |
|                                                    | Consolidated                Balance Sheets                                                    | 3 |
|                                |                                                                                          |   |
|                                                    | Consolidated                Statements of Income                                              | 4 |
|                                |                                                                                          |   |
|                                                    | Consolidated                Statements of Cash                Flows                           | 5 |
|                                |                                                                                          |   |
|                                                    | Notes                to Consolidated Financial                Statements                      | 6 |
|                                |                                                                                          |   |
| Item                2.                                  | Management’s                Discussion and Analysis or Plan of                Operation | 10 |
|                                |                                                                                          |   |
| Item                3.                                  | Controls                and Procedures                                                        | 17 |
|                                |                                                                                          |   |
| **Part                II – Other Information**    |                                                                                          |
|                                |                                                                                          |   |
| Item                1.                                  | Legal                Proceedings                                                              | 18 |
|                                |                                                                                          |   |
| Item                2.                                  | Unregistered                Sales of Equity Securities and Use of                Proceeds     | 18 |
|                                |                                                                                          |   |
| Item                3.                                  | Defaults                Upon Senior                Securities                                 | 18 |
|                                |                                                                                          |   |
| Item                4.                                  | Submission                of Matters to a Vote of Security                Holders             | 18 |
|                                |                                                                                          |   |
| Item                5.                                  | Other                Information                                                              | 18 |
|                                |                                                                                          |   |
| Item                6.                                  | Exhibits                                                                                      | 19 |
|                                |                                                                                          |   |
|                                                    | Signatures                                                                                    | 20 |

----

**PART      I.  FINANCIAL INFORMATION**

**ITEM      1.  FINANCIAL STATEMENTS**

| **UNITED                ESYSTEMS, INC.****CONSOLIDATED                BALANCE SHEETS** |
|----------------------------------------------------------------------------------------|
|                                                                                   |   |   |   |
| **ASSETS**                                                                             |

|                                                                                                                                                                                                                                                                                                                                                                                             |   | June 30,2007 |      |   | December 31,2006 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------|--------|-----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                             |   | (Unaudited)       |      |   | (Audited)             |   |
| **CURRENT ASSETS:                                                            ** |   |              |      |   |                  |   |
| Cash                and Cash                Equivalents                                                                                                                                                                                                                                                                                                                                          |   | $                 | 281,308   |   |                  | $      | 384,830 |   |
| Restricted                Cash                                                                                                                                                                                                                                                                                                                                                                   |   |              | 805,952   |   |                  |   | 826,647 |   |
| Trade                Receivables                (net)                                                                                                                                                                                                                                                                                                                                            |   |              | 60,102    |   |                  |   | 89,015 |   |
| Prepaid                Expenses and Other                Assets                                                                                                                                                                                                                                                                                                                                  |   |              | 7,876     |   |                  |   | 2,195 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |              |      |   |                  |   |   |   |
| Total                Current                Assets                                                                                                                                                                                                                                                                                                                                               |   |              | 1,155,238 |   |                  |   | 1,302,687 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |              |      |   |                  |   |   |   |
| **PROPERTY,                PLANT AND EQUIPMENT,                Net        **                                                                                                                                                                                                                                                                             |   |              | 77,871    |   |                  |   | 66,015 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |              |      |   |                  |   |   |   |
| **OTHER                ASSETS**                                                                                                                                                                                                                                                                                                                                                                  |   |              |      |   |                  |   |   |   |
| Deposits                                                                                                                                                                                                                                                                                                                                                                                         |   |              | 62,620    |   |                  |   | 12,620 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |              |      |   |                  |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   | $                 | 1,295,729 |   |                  | $      | 1,381,322 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |              |      |   |                  |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |              |      |   |                  |   |   |   |
| **CURRENT                LIABILITIES**                                                                                                                                                                                                                                                                                                                                                           |   |              |      |   |                  |   |   |   |
| ACH                Settlements                Payable                                                                                                                                                                                                                                                                                                                                            |   | $                 | 801,452   |   |                  | $      | 823,147 |   |
| Notes                Payable                                                                                                                                                                                                                                                                                                                                                                     |   |              | 70,000    |   |                  |   | 116,000 |   |
| Accounts                Payable and Accrued                Liabilities                                                                                                                                                                                                                                                                                                                           |   |              | 10,456    |   |                  |   | 37,402 |   |
| Customer                Deposits                                                                                                                                                                                                                                                                                                                                                                 |   |              | 4,500     |   |                  |   | 3,500 |   |
| Total                Current                Liabilities                                                                                                                                                                                                                                                                                                                                          |   |              | 886,408   |   |                  |   | 980,049 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |              |      |   |                  |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |              |      |   |                  |   |   |   |
| Total                Liabilities                                                                                                                                                                                                                                                                                                                                                                 |   |              | 886,408   |   |                  |   | 980,049 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |              |      |   |                  |   |   |   |
| **STOCKHOLDERS'                EQUITY**                                                                                                                                                                                                                                                                                                                                                          |   |              |      |   |                  |   |   |   |
| Common                Stock - $.001 Par Value; 75,000,000 Shares Authorized, 18,291,667                Shares                Issued and                 Outstanding at June 30, 2007, and December 31, 2006                                                                                                                                                                                 |   |              | 18,292    |   |                  |   | 18,292 |   |
| Additional                Paid-In Capital                                                                                                                                                                                                                                                                                                                                                        |   |              | 49,440    |   |                  |   | 49,440 |   |
| Retained                Earnings                                                                                                                                                                                                                                                                                                                                                                 |   |              | 341,589   |   |                  |   | 333,541 |   |
| Total                Stockholders’                Equity                                                                                                                                                                                                                                                                                                                                   |   |              | 409,321   |   |                  |   | 401,273 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   | $                 | 1,295,729 |   |                  | $      | 1,381,322 |   |

----

| **UNITED                ESYSTEMS, INC.****CONSOLIDATED                STATEMENTS OF INCOME****(Unaudited)** |
|-------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | **Three                Months Ended****June 30,** |       |   | **Six                Months Ended****June 30,** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|------------|--------|------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | **2007**                                               |       |   | **2006**                                             |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |
|                                                                            |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                                      | 332,657    |   |                                                 | $      | 273,454 |   |   | $ | 636,764 |   |   | $ | 387,342 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of Revenues                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                   | 195,929    |   |                                                 |   | 135,675 |   |   |   | 377,890 |   |   |   | 186,146 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|      Gross                Profit                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                   | 136,728    |   |                                                 |   | 137,779 |   |   |   | 258,873 |   |   |   | 201,196 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|    Operating                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|       Personnel                costs                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                   | 33,273     |   |                                                 |   | 29,165 |   |   |   | 58,328 |   |   |   | 51,720 |   |
|       Travel                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                   | 2,666      |   |                                                 |   | 2,461 |   |   |   | 9,478 |   |   |   | 7,309 |   |
|       Other                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                   | 25,711     |   |                                                 |   | 28,909 |   |   |   | 53,862 |   |   |   | 56,940 |   |
|         Total                Operating Expenses                                                                                                                                                                                                                                                                                                                                                                      |   |                                                   | 61,650     |   |                                                 |   | 60,535 |   |   |   | 121,668 |   |   |   | 115,969 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|    Selling,                General & Administrative                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|       Personnel                costs                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                   | 18,762     |   |                                                 |   | 18,750 |   |   |   | 47,551 |   |   |   | 35,481 |   |
|       Legal                and accounting                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                   | 19,085     |   |                                                 |   | 40,374 |   |   |   | 30,905 |   |   |   | 50,346 |   |
|       Other                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                   | 14,390     |   |                                                 |   | 7,455 |   |   |   | 29,290 |   |   |   | 19,550 |   |
|         Total                Selling, General & Administrative                                                                                                                                                                                                                                                                                                                                                   |   |                                                   | 52,237     |   |                                                 |   | 66,579 |   |   |   | 107,746 |   |   |   | 105,377 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|      Total                Expenses                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                   | 113,887    |   |                                                 |   | 127,114 |   |   |   | 229,414 |   |   |   | 221,346 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Income                (Loss) from operations                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                                                      | 22,841     |   |                                                 | $      | 10,665 |   |   | $ | 29,459 |   |   | $ | (20,150 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Other                Income (expense):                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|       Interest                Income                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                   | --         |   |                                                 |   | 3,505 |   |   |   | -- |   |   |   | 3,505 |   |
|       Interest                Expense                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                   | (1,931     | )      |                                                 |   | (2,900 | ) |   |   | (4,564 | ) |   |   | (5,929 | ) |
|       Other                Expense                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                   | (14,500    | )      |                                                 |   | -- |   |   |   | (14,500 | ) |   |   | -- |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                   | 6,410      |   |                                                 |   | 11,270 |   |   |   | 10,395 |   |   |   | (22,574 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Income                tax expense (benefit)                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                   | 1,331      |   |                                                 |   | 3,832 |   |   |   | 2,346 |   |   |   | (6,645 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income (Loss)                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                                      | 5,079      |   |                                                 | $      | 7,438 |   |   | $ | 8,049 |   |   | $ | (15,929 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income (Loss) per Share                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $                                                      | .01        |   |                                                 | $      | .01 |   |   | $ | .01 |   |   | $ | (.01 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                Average Common Shares  Outstanding                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 18,291,667 |   |                                                 |   | 18,291,667 |   |   |   | 18,291,667 |   |   |   | 18,291,667 |   |

|  The                accompanying notes are an integral part of these financial                statements. |
|----------------------------------------------------------------------------------------------------------------|

----

| **UNITED                ESYSTEMS, INC.****CONSOLIDATED                STATEMENTS OF CASH FLOWS****(Unaudited)** |
|-----------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | **Six                Months Ended June 30,** |     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | **2007**                                          |     |   | **2006** |   |
| **                                                                                                         ** |   |                                              |     |   |   |   |
| **CASH                FLOWS FROM OPERATING ACTIVITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                              |     |   |   |   |
| Net                Income                (Loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                                                 | 8,049    |   |   | $ | (15,929 | ) |
| Adjustments                to Reconcile Net                Income (Loss) to Net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              |     |   |   |   |   |   |
| Cash                Provided by (Used In)                Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                              |     |   |   |   |   |   |
| Depreciation                and                Amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                              | 13,386   |   |   |   | 16,203 |   |
| Decrease                (Increase) in Trade                Receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                              | 28,913   |   |   |   | (30,268 | ) |
| Increase                in Prepaid Expenses                and Other Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                              | (5,681   | ) |   |   | (4,392 | ) |
| Decrease                in Commissions                Receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                              | --       |   |   |   | 207,505 |   |
| Decrease                in Other                Receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                              | --       |   |   |   | 414 |   |
| Decrease                in Restricted                Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                              | 20,695   |   |   |   | 495,291 |   |
| Decrease                in ACH Settlements                Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                              | (21,695  | ) |   |   | (495,291 | ) |
| Decrease                in Accounts Payable                and Accrued Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                              | (26,946  | ) |   |   | (2,671 | ) |
| Decrease                in Commissions                Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                              | --       |   |   |   | (238,150 | ) |
| Increase                in Customer                Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                              | 1,000    |   |   |   | -- |   |
| Net                Cash Provided by (Used in)                Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                              | 17,721   |   |   |   | (67,288 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                              |     |   |   |   |   |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                              |     |   |   |   |   |   |
| Acquisition                of Property and                Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                              | (25,243  | ) |   |   | (8,505 | ) |
| Redemption                of Certificate of                Deposit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                              | --       |   |   |   | 202,400 |   |
| (Increase)                Decrease in                Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                              | (50,000  | ) |   |   | 8,077 |   |
| Net                Cash (Used in) Provided by                Investing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                              | (75,243  | ) |   |   | 201,972 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                              |     |   |   |   |   |   |
| **CASH                FLOWS FROM FINANCING ACTIVITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                              |     |   |   |   |   |   |
| Principal                paid on notes                payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                              | (46,000  | ) |   |   | (20,000 | ) |
| Net                Cash Used in Financing                Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                              | (46,000  | ) |   |   | (20,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                              |     |   |   |   |   |   |
| **NET                (DECREASE) INCREASE IN CASH AND****CASH                EQUIVALENTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                              | (103,522 | ) |   |   | 114,684 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                              |     |   |   |   |   |   |
| **CASH                AND CASH EQUIVALENTS -****BEGINNING                OF                PERIOD**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                              | 384,830  |   |   |   | 146,296 |   |
| **CASH                AND CASH EQUIVALENTS – END OF PERIOD**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                                                 | 281,308  |   |   | $ | 260,980 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                              |     |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                              |     |   |   |   |   |   |
| **SUPPLEMENTAL                DISCLOSURES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                              |     |   |   |   |   |   |
| Cash                Paid During the Period for                Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                                 | 4,564    |   |   | $ | 5,929 |   |
|     Cash                Paid During the Period for Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                                 | 25,822   |   |   | $ | -- |   |

| The                accompanying notes are an integral part of these financial                statements. |
|----------------------------------------------------------------------------------------------------------|

----

| **UNITED                ESYTEMS, INC.****NOTES                TO CONSOLIDATED FINANCIAL                STATEMENTS** |
|---------------------------------------------------------------------------------------------------------------------|

| **NOTE A**                                                                                  | **   ** | **PLAN                OF REORGANIZATION AND CONTRIBUTION AGREEMENT**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------------------------------------------------------------------------------------------------|------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                             |                   | On                March 30, 2005, Riverbend                Telecom, Inc. (Riverbend) entered into an Agreement and Plan of                Reorganization (the “Spin-Off Agreement”) between Riverbend and Riverbend                Holdings, Inc. (Holdings), its wholly owned subsidiary, pursuant                to which                Riverbend transferred all of its assets, liabilities and other obligations                to Holdings in consideration for Holdings common stock.  In                addition, Riverbend distributed all of Holdings common stock to the                then-existing four Riverbend stockholders (the “Spin-Off”), on a pro rata                basis, one share of Holdings common stock for each Riverbend share                held by                the stockholders.  Holdings was formed for the purpose of                effecting the reorganization of Riverbend and the subsequent distribution                of all of the Holdings common stock to Riverbend’s current                stockholders.  Holdings had previously filed a Form 10-SB with                the Securities and Exchange Commission regarding its common stock                under                Section 12(g) of the Securities Exchange Act of 1934.                                                                                                                       |
|                                                                                             |                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                  |                   | Upon                consummation of the                Spin-Off, Riverbend completed the contribution transaction with United                Check Services, L.L.C. (United), a Louisiana limited liability company,                according to the terms of a Contribution Agreement entered into on                July 14, 2004, as amended by a Letter Agreement dated August 5,                2004 (collectively, the “Contribution Agreement”).  Pursuant to                the Contribution Agreement, the equity owners of United contributed                all of                their limited liability membership interests in United to Riverbend                in                exchange for 15,315,000 shares of Riverbend’s common stock.  As                a result of this transaction, United became a wholly-owned subsidiary                of                Riverbend, and the members of United became the majority stockholders                of                Riverbend, and the transaction was accounted for as a reverse                acquisition.  As a result of the Spin-Off, the current                telecommunications business of Riverbend is now carried on by Holdings,                and the automated clearing house services business of United is now                carried on by Riverbend, through its 100% ownership interest of                United. |
|                                                                                             |                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                             |                   | On                June 13, 2005, Riverbend                effected a name change from Riverbend Telecom, Inc. to United eSystems,                Inc. to better reflect the change in business operations as a result                of                the consummation of the Plan of Reorganization and the                Contribution.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                             |                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| **NOTE B**                                                                                  |                   | **SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                       |                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                       |                   | **NATURE                OF OPERATIONS**As                described in Note A,                **UNITED ESYSTEMS, INC.** (Company) serves as the holding                company for United Check Services, L.L.C. (United).  United                provides automated clearing house (ACH) services to businesses throughout                the United States.  The Company’s operations center is located                in Gulfport, Mississippi.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                             |                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                             |                   | **BASIS                OF PRESENTATION AND CONSOLIDATION**The                consolidated financial                statements include the accounts of the Company and its wholly-owned                subsidiary, United Check Services, L.L.C.  All significant                intercompany balances and transactions have been eliminated in                consolidation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

----

| **UNITED                  ESYTEMS, INC.****NOTES                  TO CONSOLIDATED FINANCIAL                  STATEMENTS** |
|---------------------------------------------------------------------------------------------------------------------------|

|                       |     | **USE                  OF ESTIMATES**The                  preparation of financial statements in conformity with accounting                  principles generally accepted in the United States of America requires                  management to make estimates and assumptions that affect the reported                  amounts of assets and liabilities at the date of the financial                  statements                  and the reported amounts of revenues and expenses during the reporting                  period.  Actual results could differ from those                  estimates. The                  consolidated financial statements reflect all adjustments which                  are, in                  the opinion of management, necessary for a fair presentation of                  financial                  information for the interim periods presented.  These                  adjustments are of a normal recurring nature and include appropriate                  estimated provisions. |
|--------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                             |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                             |               | **REVENUE                  RECOGNITION**United                  charges customers a fee                  for its ACH services.  For these transactions, United recognizes                  only the fees generated as revenue.  United recognizes these                  fees as revenue when United has provided the service to its                  customers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                             |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                             |               | Fees                  for ACH services are based                  on contractually determined rates with each individual                  customer.  Settlements paid to customers for ACH transactions                  are submitted to the customer net of fees due to                  United.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                             |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                             |               | **BASIS                  OF ACCOUNTING**The                  books and records of the                  Company are kept on the accrual basis of accounting, whereby revenues                  are                  recognized when earned and expenses are recognized when                  incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                             |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                             |               | **PROPERTY                  AND EQUIPMENT**Property                  and equipment are stated                  at cost less accumulated depreciation.  Depreciation is computed                  using primarily straight-line methods over the estimated useful                  lives of                  the related assets, which ranges from three to seven                  years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                             |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                  |               | **INCOME                  TAXES**Since                  United is a single-member                  L.L.C., it is treated as a disregarded entity for federal income                  tax                  reporting purposes.  As such, the Company includes the revenues                  and expenses of United in its Federal income tax                  return.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                             |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                             |               | Deferred                  income tax assets and                  liabilities are determined using the liability (or balance sheet)                  method.  Under this method, the net deferred tax asset or                  liability is determined based on the tax effects of the temporary                  differences between the book and tax bases of the various balance                  sheet                  assets and liabilities and gives current recognition to change                  in tax                  rates and laws.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                             |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                             |               | **ADVERTISING**Advertising                  costs are charged to operations when incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                             |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                             |               | **STATEMENT                  OF CASH FLOW INFORMATION**For                  purposes of the Consolidated                  Statements of Cash Flows, the Company considers all highly liquid                  investments purchased with an original maturity of three months                  or less to                  be cash equivalents.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

----

| **UNITED                  ESYTEMS, INC.****NOTES                  TO CONSOLIDATED FINANCIAL STATEMENTS** |
|----------------------------------------------------------------------------------------------------------|
|                                                                                                     |   |   |
| **NOTE                  C**                                                                              |   | **RESTRICTED                  CASH** |
|                                                                                                     |   |   |
|                                                                                                     |   | Restricted                  cash consists                  primarily of funds maintained in United’s primary bank account to                  facilitate ACH transactions.  The Company has restricted this                  cash from operations in order to ensure that sufficient funds are                  maintained to process and settle customer’s ACH                  transactions. |
|                                                                                                     |   |   |
| **NOTE                  D**                                                                              |   | **NOTES                  PAYABLE** |
|                                                                                                     |   |   |
|                                                                                                     |   | In                  September of 2004, the two                  existing members of United agreed to take a distribution for the                  amount of                  undistributed earnings accumulated by United through June 30, 2004,                  which amounted to $156,000.  In order to ease the cash flow                  requirements on United, the members agreed to accept a note for                  the amount                  of the distribution.  The amount of the distribution was                  combined with the amount of advances due to United’s members of $100,000,                  and notes payable due to United’s members for the total amount of $256,000                  were established.  The notes are unsecured, due on demand and                  require interest-only payments, at an annual percentage rate of                  10%.  As of June 30, 2007, and December 31, 2006, the                  outstanding principal balance of these notes was $70,000 and $116,000,                  respectively. |
|                                                                                                     |   |   |
| **NOTE                  E**                                                                              |   | **STOCK                  OPTIONS** |
|                                                                                                     |   |   |
|                                                                                                     |   | On                  March 30, 2005, the Company                  entered into a non-qualified stock option agreement, whereby the                  Company                  granted 312,000 options to its CFO.  On February 15, 2006,                  the Company entered into non-qualified stock option agreements                  with four                  key employees, granting a total of 90,000 options, which included                  32,500                  options to its CFO.  All of the options have an exercise price                  of $.03 per share, and were fully vested as of the date of the                  grant.  The option agreements terminate five years from the date                  they were granted.  No options were exercised in 2007 or in                  2006. |
|                                                                                                     |   |   |
| **NOTE F**                                                                                          |     | **SIGNIFICANT                  CONCENTRATIONS** |
|                                                                                                     |   |   |
|                     |   | **RESTRICTED                  CASH**At                  June 30, 2007 and December 31, 2006, the Company maintained a balance                  with                  a financial institution in excess of FDIC insured                  limits. |
|                                                                                                     |   |   |
|                                                                                                     |   | **MAJOR                  CUSTOMERS**During                  the three months ended June 30, 2007, United had transactions with                  three                  customers that generated revenue exceeding 10% of the Company’s gross                  revenues.  Revenue from these three customers was 22.1%, 21.3%,                  and 21.2% respectively.  For the six months ended June 30, the                  Company had transactions with three customers that generated revenue                  exceeding 10% of the Company’s gross revenues.  Revenue from                  these three customers was 21.3%, 22.1%, and 21.2%                  respectively.  None of these customers were affiliated with the                  Company through common                  ownership. |

----

| **UNITED                  ESYTEMS, INC.****NOTES                  TO CONSOLIDATED FINANCIAL STATEMENTS** |
|----------------------------------------------------------------------------------------------------------|
|                                                                                                     |   |   |
| **NOTE G**                                                                                          |   | **COMMITMENTS** |
|                                                                                                     |   |   |
|                                                                                                     |   | **OPERATING                  LEASES**On                  May 1, 2005, United                  entered into an agreement to lease office facilities at its present                  location.  The lease term is for 36 months. |
|                                                                                                     |   |   |
| **NOTE                  H**                                                                              |   | **RELATED                  PARTY TRANSACTIONS** |
|                                                                                                     |   |   |
|                                                                                                     |   | As                  disclosed in Note D, the                  Company has notes payable totaling $70,000 at June 30, 2007, and                  $116,000 at December 31, 2006, due to majority stockholders of the                  Company for funds advanced to United in prior years and for the                  amount of                  the distributions due to the former members of United. |
|                                                                                                     |   |   |
| **NOTE                  I**                                                                              |   | **EARNINGS                  PER SHARE** |
|                                                                                                     |   |   |
|                                                                                                     |   | For                  earnings per share                  calculations, the weighted average common shares outstanding amounted                  to                  18,291,667 for the six months ended June 30, 2007 and                  2006.  Options to purchase 402,000 shares at $.03 per share were                  outstanding during the six months ended June 30, 2007, and 2006, but                  were not included in the computation of diluted earnings per share                  because                  the options’ exercise price was greater than the estimated market price of                  the common shares. |

----

**Item        2.**

**UNITED      ESYSTEMS, INC.**

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OR**

**PLAN      OF OPERATION**

*In      this quarterly report on Form      10-QSB, we use the terms “Company,” “we,” “us” and “our” to refer to United      eSystems, Inc. and its wholly owned subsidiary, United Check Services, LLC      (“United”).  We refer to our $.001 par value common stock as our      common stock.*

**Cautionary      Statement About Forward-Looking Statements**

|        | • | general                economic and industry conditions;                                                                        |
|--------------------------------------|---------|---------------------------------------------------------------------------------------------------------------------------------|
|        |    |                                                                                                                            |
|        | • | our                capital requirements and dependence on the sale of our equity                securities;                     |
|        |    |                                                                                                                            |
|        | • | our                limited operating history;                                                                                   |
|        |    |                                                                                                                            |
|        | • | intense                industry competition;                                                                                    |
|        |    |                                                                                                                            |
|        | • | fluctuations                in the prevailing industry prices of check processing                services;                      |
|        |    |                                                                                                                            |
|        | • | shortages                in availability of qualified personnel;                                                                |
|        |    |                                                                                                                            |
|        | • | legal                and financial implications of unexpected catastrophic                events;                               |
|        |    |                                                                                                                            |
|        | • | regulatory                or legislative changes effecting check processing                operations;                          |
|        |    |                                                                                                                            |
|        | • | reliance                on, and the ability to attract, key personnel; and                                                      |
|        |    |                                                                                                                            |
|        | • | other                factors including those discussed under *Risk Factors* in our                annual report on Form 10-KSB. |

----

**Executive      Summary**

----

**Results      of Operations**

**Three      Months and Six Months Ended June 30, 2007 compared to the Three Months and      Six Months Ended June 30, 2006**

----

----

----

**Liquidity      and Capital Resources**

----

**Inflation**

----

**ITEM      3.     CONTROLS AND      PROCEDURES**

----

**PART      II – OTHER INFORMATION**

| **ITEM 1.**                   | **LEGAL                PROCEEDINGS.**                                                          |
|------------------------------------|------------------------------------------------------------------------------------------------|
| **     ** |                                                                       |
|           | Not                Applicable                                                                  |
|                               |                                                                                           |
| **ITEM 2.   ** | **UNREGISTERED                SALES OF EQUITY SECURITIES AND USE OF                PROCEEDS.** |
| **     ** |                                                                       |
|           | Not                Applicable                                                                  |
| **     ** |                                                                       |
| **ITEM 3.   ** | **DEFAULT                UPON SENIOR SECURITIES.**                                             |
| **     ** |                                                                       |
| **     ** | Not                Applicable                                                                  |
| **     ** |                                                                       |
| **ITEM 4.   ** | **SUBMISSION                OF MATTERS TO A VOTE OF SECURITY HOLDERS.**                        |
|                               |                                                                                           |
|                               | Not                Applicable                                                                  |
|                               |                                                                                           |
| **ITEM 5.   ** | **OTHER                INFORMATION.**                                                          |
|                               |                                                                                           |
|                               | Not                Applicable                                                                  |

----

| **ITEM 6.   ** | **EXHIBITS** |
|------------------------------------|--------------|

| (a)       | Exhibits                                                                                                                    |
|-----------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|
|                                    |                                                                                                    |
| 31.1                                    | Principal                Executive Officer Certification under Section 302 of the Sarbanes-Oxley                Act of 2002 |
| 31.2                                    | Principal                Financial Officer Certification under Section 302 of the Sarbanes-Oxley                Act of 2002 |
| 32.1                                    | Principal                Executive Officer Certification under Section 906 of the Sarbanes-Oxley                Act of 2002 |
| 32.2                                    | Principal                Financial Officer Certification under Section 906 of the Sarbanes-Oxley                Act of 2002 |

----

| **SIGNATURES** |
|----------------|

|                                                                                                                                                                                                                                                                                                                                                                                                         | **UNITED                ESYSTEMS, INC.**                                                 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
|                                                                    |                                                            |
| Date:   August 14,                2007                                                                                                                                                                                                                                                                                                                     | By:                /s/ Jeffery C. Swank                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                         |       Jeffery                C. Swank                      |
|                                                                                                                                                                                                                                                                                                                                                                                                         |       Chief                Executive Officer and President |
|                                                                                                                                                                                                                                                                                                                                                                                                         |       (Principal                Executive Officer)         |
|                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                     |
| Date:   August 14,                2007                                                                                                                                                                                                                                                                                                                     | By:                /s/ Walter Reid Green, Jr.                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                         |       Walter                Reid Green, Jr.                |
|                                                                                                                                                                                                                                                                                                                                                                                                         |       Chief                Financial Officer               |
|                                                                                                                                                                                                                                                                                                                                                                                                         |       (Principal                Financial Officer)         |