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**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 March 31, 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) |

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**UNITED      ESYSTEMS, INC.**

**FORM      10-QSB**

**March 31,      2007**

**INDEX**

| **Part                I - Financial Information** | **Page**                                                                       |
|---------------------------------------------------|--------------------------------------------------------------------------------|
|                          |                                                                           |   |
| Item                1.                            | Financial                Statements                                            |   |
|                          |                                                                           |   |
|                                              | Consolidated                Balance Sheets                                     | 3 |
|                          |                                                                           |   |
|                                              | Consolidated                Statements of Operations                           | 4 |
|                          |                                                                           |   |
|                                              | Consolidated                Statements of Cash Flows                           | 5 |
|                          |                                                                           |   |
|                                              | Notes                to Consolidated Financial Statements                      | 6                - 9 |
|                          |                                                                           |   |
| Item                2.                            | Management’s                Discussion and Analysis or Plan of Operation | 10 |
|                          |                                                                           |   |
| Item                3.                            | Controls                and Procedures                                         | 16 |
|                          |                                                                           |   |
| **Part                II - Other Information**    |                                                                           |
|                          |                                                                           |   |
| Item                1.                            | Legal                Proceedings                                               | 17 |
|                          |                                                                           |   |
| Item                2.                            | Unregistered                Sales of Equity Securities and Use of Proceeds     | 17 |
|                          |                                                                           |   |
| Item                3.                            | Defaults                Upon Senior Securities                                 | 17 |
|                          |                                                                           |   |
| Item                4.                            | Submission                of Matters to a Vote of Security Holders             | 17 |
|                          |                                                                           |   |
| Item                5.                            | Other                Information                                               | 17 |
|                          |                                                                           |   |
| Item                6.                            | Exhibits                                                                       | 18 |
|                          |                                                                           |   |
|                                              | Signatures                                                                     | 19 |

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**PART      I.**
**FINANCIAL      INFORMATION**

**ITEM      1. FINANCIAL STATEMENTS**

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

|                                                                                                                                                                                                                                                                                                                                                                                             |   | March 31,2007                                                                                                 |      |  December 31,2006                                                                                              |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|-----------|--------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                             |   | (Unaudited)                                                                                                        |      |  (Audited)                                                                                                          |   |
| **CURRENT ASSETS:                                                            ** |   |                     |      |                      |   |
| Cash                  and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                       |   | $                                                                                                                  | 300,522   |                                                                                                                     | $      | 384,830 |   |
| Restricted                  Cash                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                               | 801,416   |                                                                                                                     |   | 826,647 |   |
| Trade                  Receivables (net)                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                               | 81,956    |                                                                                                                     |   | 89,015 |   |
| Prepaid                  Expenses and Other Assets                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                               | 11,076    |                                                                                                                     |   | 2,195 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                               |      |                                                                                                                     |   |   |   |
| Total                  Current Assets                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                               | 1,194,970 |                                                                                                                     |   | 1,302,687 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                               |      |                                                                                                                     |   |   |   |
| **PROPERTY,                  PLANT AND EQUIPMENT,                  Net        **                                                                                                                                                                                                                                                                         |   |                                                                                                               | 64,919    |                                                                                                                     |   | 66,015 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                               |      |                                                                                                                     |   |   |   |
| **OTHER                  ASSETS**                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                               |      |                                                                                                                     |   |   |   |
| Deposits                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                               | 62,620    |                                                                                                                     |   | 12,620 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                               |      |                                                                                                                     |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                                                                                                  | 1,322,509 |                                                                                                                     | $      | 1,381,322 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                               |      |                                                                                                                     |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                               |      |                                                                                                                     |   |   |   |
| **CURRENT                  LIABILITIES**                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                               |      |                                                                                                                     |   |   |   |
| ACH                  Settlements Payable                                                                                                                                                                                                                                                                                                                                                         |   | $                                                                                                                  | 796,916   |                                                                                                                     | $      | 823,147 |   |
| Notes                  Payable                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               | 100,000   |                                                                                                                     |   | 116,000 |   |
| Accounts                  Payable and Accrued Liabilities                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                               | 16,850    |                                                                                                                     |   | 37,402 |   |
| Customer                  Deposits                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                               | 4,500     |                                                                                                                     |   | 3,500 |   |
| Total                  Current Liabilities                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                               | 918,266   |                                                                                                                     |   | 980,049 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                               |      |                                                                                                                     |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                               |      |                                                                                                                     |   |   |   |
| Total                  Liabilities                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                               | 918,266   |                                                                                                                     |   | 980,049 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                               |      |                                                                                                                     |   |   |   |
| **STOCKHOLDERS'                  EQUITY**                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                               |      |                                                                                                                     |   |   |   |
| Common                  Stock - $.001 Par Value; 75,000,000 Shares Authorized, 18,291,667                  Shares                  Issued and Outstanding at                   March 31, 2007, and December 31, 2006                                                                                                                                                                        |   |                                                                                                               | 18,292    |                                                                                                                     |   | 18,292 |   |
| Additional                  Paid-In Capital                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                               | 49,440    |                                                                                                                     |   | 49,440 |   |
| Retained                  Earnings                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                               | 336,511   |                                                                                                                     |   | 333,541 |   |
| Total                  Stockholders’ Equity                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                               | 404,243   |                                                                                                                     |   | 401,273 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                                                                                                  | 1,322,509 |                                                                                                                     | $      | 1,381,322 |   |

----

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

|                                                              |   | Three                Months Ended March31,                                                                         |       |
|-------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|------------|
|                                                              |   | 2007                                                                                                               |       |  2006 |   |
|                                                              |   |                     |       |                      |   |
| **REVENUES**                                                      |   | $                                                                                                                  | 304,107    |   | $ | 113,889 |   |
|                                                              |   |                                                                                                               |       |   |   |   |   |
| **COST                OF REVENUES**                               |   |                                                                                                               | 181,935    |   |   | 50,472 |   |
| Gross                Profit                                       |   |                                                                                                               | 122,172    |   |   | 63,417 |   |
|                                                              |   |                                                                                                               |       |   |   |   |   |
| **EXPENSES**                                                      |   |                                                                                                               |       |   |   |   |   |
| Operating                Expenses                                 |   |                                                                                                               |       |   |   |   |   |
| Personnel                Costs                                    |   |                                                                                                               | 25,055     |   |   | 22,555 |   |
| Travel                                                            |   |                                                                                                               | 6,812      |   |   | 4,848 |   |
| Other                                                             |   |                                                                                                               | 28,746     |   |   | 28,159 |   |
| Total                Operating Expenses                           |   |                                                                                                               | 60,613     |   |   | 55,562 |   |
|                                                              |   |                                                                                                               |       |   |   |   |   |
| Selling,                General and Administrative Expenses       |   |                                                                                                               |       |   |   |   |   |
| Personnel                Costs                                    |   |                                                                                                               | 28,789     |   |   | 16,731 |   |
| Legal                and Accounting                               |   |                                                                                                               | 11,820     |   |   | 9,972 |   |
| Other                                                             |   |                                                                                                               | 14,332     |   |   | 11,967 |   |
| Total                Selling, General and Administrative Expenses |   |                                                                                                               | 54,941     |   |   | 38,670 |   |
| Total                Expenses                                     |   | $                                                                                                                  | 115,554    |   | $ | 94,232 |   |
|                                                              |   |                                                                                                               |       |   |   |   |   |
| **INCOME                (LOSS) FROM OPERATIONS**                  |   | $                                                                                                                  | 6,618      |   | $ | (30,815 | ) |
|                                                              |   |                                                                                                               |       |   |   |   |   |
| **OTHER                INCOME (EXPENSE):**                        |   |                                                                                                               |       |   |   |   |   |
| Interest                Expense                              |   |                                                                                                               | (2,633     | ) |   | (3,029 | ) |
|                                                              |   |                                                                                                               |       |   |   |   |   |
| **NET                INCOME (LOSS) BEFORE INCOME TAXES**          |   |                                                                                                               | 3,985      |   |   | (33,844 | ) |
|                                                              |   |                                                                                                               |       |   |   |   |   |
| **INCOME                TAX (EXPENSE) BENEFIT**                   |   |                                                                                                               | (1,015     | ) |   | 10,477 |   |
|                                                              |   |                                                                                                               |       |   |   |   |   |
| **NET                INCOME (LOSS)**                              |   | $                                                                                                                  | 2,970      |   | $ | (23,367 | ) |
|                                                              |   |                                                                                                               |       |   |   |   |   |
| **NET                INCOME (LOSS) PER SHARE**                    |   | $                                                                                                                  | .00        |   | $ | (.01 | ) |
|                                                              |   |                                                                                                               |       |   |   |   |   |
| **WEIGHTED                AVERAGE COMMON SHARES OUTSTANDING**     |   |                                                                                                               | 18,291,667 |   |   | 18,291,667 |   |

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

| **                                                                                                        ** |   | Three                Months Ended March 31, |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2007                                        |    | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                        |    |   |   |
| **CASH                FLOWS FROM OPERATING ACTIVITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                        |    |    |   |
| Net                Income (Loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                           | 2,970   |   | $ | (23,367 | ) |
| Adjustments                to Reconcile Net (Loss) Income to Net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                        |    |   |   |   |   |
| Cash                (Used in) Provided by Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                        |    |   |   |   |   |
| Depreciation                and Amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                        | 6,496   |   |   | 6,938 |   |
| Decrease                (Increase) in Trade Receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                        | 7,059   |   |   | (1,125 | ) |
| (Increase)                in Prepaid Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                        | (8,881  | ) |   | (11,227 | ) |
| Decrease                in Commissions Receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                        | --      |   |   | 207,505 |   |
| Decrease                in Restricted Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                        | 25,231  |   |   | 1,015,852 |   |
| (Decrease)                Increase in ACH Settlements Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                        | (26,231 | ) |   | (1,015,852 | ) |
| (Decrease)                in Accounts Payable and Accrued Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                        | (20,552 | ) |   | (15,025 | ) |
| (Decrease)                in Commissions Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                        | --      |   |   | (238,150 | ) |
| Increase                in Customer Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                        | 1,000   |   |   | -- |   |
| Net                Cash (Used in) Provided by Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                        | (12,908 | ) |   | (74,451 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                        |    |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                        |    |   |   |   |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                        |    |   |   |   |   |
| Increase                in Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                        | (50,000 | ) |   | -- |   |
| Acquisition                of property, plant, and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                        | (5,400  | ) |   | -- |   |
| Net                Cash Used in Investing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                        | (55,400 | ) |   | -- |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                        |    |   |   |   |   |
| **CASH                FLOWS FROM FINANCING ACTIVITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                        |    |   |   |   |   |
| Principal                paid on notes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                        | (16,000 | ) |   | (20,000 | ) |
| Net                Cash Used in Financing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                        | (16,000 | ) |   | (20,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                        |    |   |   |   |   |
| **NET                (DECREASE) IN CASH AND CASH EQUIVALENTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                        | (84,308 | ) |   | (94,451 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                        |    |   |   |   |   |
| **CASH                AND CASH EQUIVALENTS - BEGINNING OF PERIOD**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                        | 384,830 |   |   | 146,296 |   |
| **CASH                AND CASH EQUIVALENTS - END OF PERIOD**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                                           | 300,522 |   | $ | 51,845 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                        |    |   |   |   |   |
| **SUPPLEMENTAL                DISCLOSURES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                        |    |   |   |   |   |
| Cash                paid During the Period for Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                                           | 2,633   |   | $ | 3,029 |   |
| Cash                paid During the Period for Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                                           | 19,000  |   | $ | 13,770 |   |

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

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**UNITED****ESYSTEMS,      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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

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|                       |     | **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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

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|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **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                March 31, 2007, and December 31, 2006, the outstanding principal                balance of these notes was $100,000 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.                                                                                                                                                                                                                                                                                                          |

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| **NOTE F**                                                                                        |     | **SIGNIFICANT                CONCENTRATIONS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------------------------------------------------------------------------------------------------------|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                   |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                   |               | **RESTRICTED                CASH** At                March 31, 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 March 31, 2007, United had transactions with                three                customers that amounted to approximately 65% of the United’s ACH                processing revenue. None of these customers were affiliated with                the                Company through common ownership.                                                                                                                                                                                                                  |
|                                                                                                   |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **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 $100,000                at                March 31, 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 three months ended                March 31, 2007 and 2006. Options to purchase 402,000 shares at $.03                per share were outstanding during the three months ended March 31,                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. |

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**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 Ended March 31, 2007 compared to the Three Months Ended      March 31, 2006.**

----

**Liquidity      and Capital Resources**

----

----

**Inflation**

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**ITEM      3.     CONTROLS AND PROCEDURES**

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