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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 September 30, 2006                                                                                                     |
|                                                                                                                                          |
| [   ]  Transition                  report pursuant to Section 13 or 15(d) of the Securities Exchange                  Act of                  1934 |
|                                                                                                                                          |
| For                  the transition period from ___________ to ____________                                                                                                 |
|                                                                                                                                          |
| Commission                  File Number: 000-49745                                                                                                                          |
|                                                                                                                                          |
| **UNITED                  ESYSTEMS, INC.**(Exact                  Name of Small Business Issuer as Specified in its                  Charter)                               |
|                                                                                                                                          |
| **Nevada**(State                  or Other Jurisdiction ofIncorporation                  or Organization)                                                                   | **91-2150635**(IRS                  EmployerIdentification                  No.) |
|                                                                                                                                          |
| **15431                  O’Neal Road****Gulfport,                  MS 39503**(Address                  of Principal Executive Offices)                                | **(228)                  832-1597**(Issuer’s                  Telephone Number) |
|                                                                                                                                          |
| (Former                  Name, Former Address and Former Fiscal Year, if Changed Since Last                  Report)                                                        |

**APPLICABLE        ONLY TO CORPORATE ISSUERS**

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**UNITED        ESYSTEMS, INC.**

**FORM        10-QSB**

**September 30,        2006**

**INDEX**

| **Part                  I - Financial Information** | **Page**                                                                         |
|-----------------------------------------------------|----------------------------------------------------------------------------------|
|                            |                                                                             |   |
| Item                  1.                            | Financial                  Statements                                            |   |
|                            |                                                                             |   |
|                                                | Consolidated                  Balance Sheets                                     | 3 |
|                            |                                                                             |   |
|                                                | Consolidated                  Statements of Income                               | 4 |
|                            |                                                                             |   |
|                                                | Consolidated                  Statements of Cash Flows                           | 5 |
|                            |                                                                             |   |
|                                                | Notes                  to Consolidated Financial Statements                      | 6                  - 9 |
|                            |                                                                             |   |
| Item                  2.                            | Management’s                  Discussion and Analysis or Plan of Operation | 10 |
|                            |                                                                             |   |
| Item                  3.                            | Controls                  and Procedures                                         | 15 |
|                            |                                                                             |   |
| **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             | 18 |
|                            |                                                                             |   |
| Item                  5.                            | Other                  Information                                               | 18 |
|                            |                                                                             |   |
| 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**                                                                                 |

|                                                                                                                                                                                                                                                                                                                                                                     |   | **September 30,****2006**                                                                                                             |      |  **December 31,****2005**                                                                                                              |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                     |   | **(Unaudited)**                                                                                                                            |      |  **(Audited)**                                                                                                                              |   |
| **CURRENT ASSETS:                                                        ** |   |                         |      |                          |   |
| Cash                  and Cash Equivalents                                                                                                                                                                                                                                                                                                                               |   | $                                                                                                                                          | 218,391   |                                                                                                                                             | $      | 146,296 |   |
| Restricted                  Cash                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                       | 734,743   |                                                                                                                                             |   | 1,519,235 |   |
| Certificate                  of Deposit                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                                       | --        |                                                                                                                                             |   | 202,400 |   |
| Trade                  Receivables (net)                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                       | 74,932    |                                                                                                                                             |   | 21,025 |   |
| Commissions                  Receivable                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                                       | --        |                                                                                                                                             |   | 207,505 |   |
| Other                  Receivables                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                       | 626       |                                                                                                                                             |   | 1,040 |   |
| Other                  Assets                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                       | 2,504     |                                                                                                                                             |   | 7,257 |   |
|                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                       |      |                                                                                                                                             |   |   |   |
| Total                  Current Assets                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                       | 1,031,196 |                                                                                                                                             |   | 2,104,758 |   |
|                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                       |      |                                                                                                                                             |   |   |   |
| **PROPERTY                  AND EQUIPMENT, Net**                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                       | 146,190   |                                                                                                                                             |   | 126,969 |   |
|                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                       |      |                                                                                                                                             |   |   |   |
| **OTHER                  ASSETS**                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                       |      |                                                                                                                                             |   |   |   |
| Deposits                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                       | 24,543    |                                                                                                                                             |   | 32,620 |   |
|                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                       |      |                                                                                                                                             |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                     |   | $                                                                                                                                          | 1,201,929 |                                                                                                                                             | $      | 2,264,347 |   |
|                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                       |      |                                                                                                                                             |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS’ EQUITY**                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                       |      |                                                                                                                                             |   |   |   |
| **CURRENT                  LIABILITIES**                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                       |      |                                                                                                                                             |   |   |   |
| ACH                  Settlements Payable                                                                                                                                                                                                                                                                                                                                 |   | $                                                                                                                                          | 730,243   |                                                                                                                                             | $      | 1,514,735 |   |
| Notes                  Payable                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                       | 116,000   |                                                                                                                                             |   | 136,000 |   |
| Accounts                  Payable and Accrued Liabilities                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                       | 10,492    |                                                                                                                                             |   | 40,890 |   |
| Commissions                  Payable                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                       | --        |                                                                                                                                             |   | 238,150 |   |
| Customer                  Deposits                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                       | 4,500     |                                                                                                                                             |   | 4,500 |   |
| Total                  Current Liabilities                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                       | 861,235   |                                                                                                                                             |   | 1,934,275 |   |
|                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                       |      |                                                                                                                                             |   |   |   |
| **LONG-TERM                  LIABILITIES**                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                       | --        |                                                                                                                                             |   | -- |   |
| Total                  Liabilities                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                       | 861,235   |                                                                                                                                             |   | 1,934,275 |   |
|                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                       |      |                                                                                                                                             |   |   |   |
| **STOCKHOLDERS'                  EQUITY**                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                       |      |                                                                                                                                             |   |   |   |
| Common                  Stock - $.001 Par Value; 75,000,000 Shares Authorized, 18,291,667                  Shares                  Issued and Outstanding at September 30, 2006, and December 31,                  2005                                                                                                                                                  |   |                                                                                                                                       | 18,292    |                                                                                                                                             |   | 18,292 |   |
| Additional                  Paid-In Capital                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                       | 49,440    |                                                                                                                                             |   | 49,440 |   |
| Retained                  Earnings                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                       | 272,962   |                                                                                                                                             |   | 262,340 |   |
| Total                  Stockholders’ Equity                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                       | 340,694   |                                                                                                                                             |   | 330,072 |   |
|                                                                                                                                                                                                                                                                                                                                                                     |   | $                                                                                                                                          | 1,201,929 |                                                                                                                                             | $      | 2,264,347 |   |

----

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | **Three                  Months Ended****September                  30,**                                                |       |  **Nine                  Months Ended****September 30,**                                                             |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|------------|--------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | **2006**                                                                                                                 |       |  **2005**                                                                                                                 |   |  **2006** |   |  **2005** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     |       |                                                                                                                      |   |    |   |    |   |
|                                                                            |   |                      |       |                       |   |                       |   |                       |   |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                                                                                                        | 333,961    |                                                                                                                           | $      | 241,641 |   | $ | 721,303 |   | $ | 525,737 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     |       |                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Cost                  of Revenues                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                     | 178,314    |                                                                                                                           |   | 59,212 |   |   | 364,460 |   |   | 109,263 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     |       |                                                                                                                           |   |   |   |   |   |   |   |   |   |
|      Gross                  Profit                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                     | 155,647    |                                                                                                                           |   | 182,429 |   |   | 356,843 |   |   | 416,474 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     |       |                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                     |       |                                                                                                                           |   |   |   |   |   |   |   |   |   |
|    Operating                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                     |       |                                                                                                                           |   |   |   |   |   |   |   |   |   |
|       Personnel                  costs                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     | 27,595     |                                                                                                                           |   | 29,000 |   |   | 79,315 |   |   | 82,266 |   |
|       Travel                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                     | 2,993      |                                                                                                                           |   | 6,038 |   |   | 10,302 |   |   | 14,941 |   |
|       Other                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                     | 36,754     |                                                                                                                           |   | 36,762 |   |   | 93,694 |   |   | 87,903 |   |
|         Total                  Operating Expenses                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                     | 67,342     |                                                                                                                           |   | 71,800 |   |   | 183,311 |   |   | 185,110 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     |       |                                                                                                                           |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     |       |                                                                                                                           |   |   |   |   |   |   |   |   |   |
|    Selling,                  General & Administrative                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |       |                                                                                                                           |   |   |   |   |   |   |   |   |   |
|       Personnel                  costs                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     | 18,750     |                                                                                                                           |   | 18,750 |   |   | 54,231 |   |   | 56,250 |   |
|       Legal                  and accounting                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                     | 21,114     |                                                                                                                           |   | 22,996 |   |   | 71,460 |   |   | 48,708 |   |
|       Other                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                     | 10,297     |                                                                                                                           |   | 20,943 |   |   | 29,847 |   |   | 39,325 |   |
|         Total                  Selling, General & Administrative                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                     | 50,161     |                                                                                                                           |   | 62,689 |   |   | 155,538 |   |   | 144,283 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     |       |                                                                                                                           |   |   |   |   |   |   |   |   |   |
|      Total                  Expenses                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                     | 117,503    |                                                                                                                           |   | 134,489 |   |   | 338,849 |   |   | 329,393 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     |       |                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Income                  from operations                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                     | 38,144     |                                                                                                                           |   | 47,940 |   |   | 17,994 |   | $ | 87,081 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     |       |                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Other                  Income (expense):                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |       |                                                                                                                           |   |   |   |   |   |   |   |   |   |
|       Interest                  Income                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     | --         |                                                                                                                           |   | -- |   |   | 3,505 |   |   | 1,600 |   |
|       Interest                  Expense                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                     | (2,417     | )                                                                                                                              |   | (5,400 | ) |   | (8,346 | ) |   | (17,033 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     |       |                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Net                  Income before income taxes                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                     | 35,727     |                                                                                                                           |   | 42,540 |   |   | 13,153 |   |   | 71,648 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     |       |                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Income                  tax expense                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                     | 6,510      |                                                                                                                           |   | 14,464 |   |   | 2,529 |   |   | 24,360 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     |       |                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Net                  Income                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                                                                                                        | 29,217     |                                                                                                                           | $      | 28,076 |   | $ | 10,624 |   | $ | 47,288 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     |       |                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Net                  Income per Share                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                                                                                                        | .01        |                                                                                                                           | $      | .01 |   | $ | .01 |   | $ | .01 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     |       |                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Weighted                  Average Common Shares  Outstanding                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                     | 18,291,667 |                                                                                                                           |   | 18,291,667 |   |   | 18,291,667 |   |   | 17,807,931 |   |

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

----

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | **Nine                  months Ended September 30,**                                                          |     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | **2006**                                                                                                           |     |  **2005** |   |
| **                                                                                                         ** |   |                     |     |                      |   |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                               |     |    |   |
| Net                  Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                                                                                                                  | 10,624   |   | $ | 47,288 |   |
| Adjustments                  to Reconcile Net Income to Net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                               |     |   |   |   |   |
| Cash                  (Used In) Provided by Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                               |     |   |   |   |   |
| Depreciation                  and Amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                               | 26,158   |   |   | 18,376 |   |
| (Increase)                  in Trade Receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                               | (53,907  | ) |   | (27,954 | ) |
| Decrease                  in Other Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                               | 4,753    |   |   | (2,952 | ) |
| Interest                  Accrued on Certificate of Deposit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                               | --       |   |   | (1,600 | ) |
| Decrease                  in Commissions Receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                               | 207,505  |   |   | -- |   |
| Decrease                  in Other Receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                               | 414      |   |   | (69,451 | ) |
| Increase                  in Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                               | --       |   |   | (13,900 | ) |
| Loss                  on Disposal of Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                               | --       |   |   | 3,203 |   |
| Decrease                  (Increase) in Restricted Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                               | 784,492  |   |   | (594,402 | ) |
| (Decrease)                  Increase in ACH Settlements Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                               | (784,492 | ) |   | 597,401 |   |
| Decrease                  in Accounts Payable and Accrued Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                               | (30,398  | ) |   | (20,561 | ) |
| (Decrease)                  Increase in Commissions Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                               | (238,150 | ) |   | 68,251 |   |
| Increase                  in Customer Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                               | --       |   |   | 1,000 |   |
| Net                  Cash (Used in) Provided by Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                               | (73,001  | ) |   | 4,699 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                               |     |   |   |   |   |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                               |     |   |   |   |   |
| Acquisition                  of Property and Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                               | (45,381  | ) |   | (54,702 | ) |
| Redemption                  of Certificate of Deposit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                               | 202,400  |   |   | -- |   |
| Decrease                  in Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                               | 8,077    |   |   | -- |   |
| Net                  Cash Provided by (Used in) Investing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                               | 165,096  |   |   | (54,702 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                               |     |   |   |   |   |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                               |     |   |   |   |   |
| Proceeds                  from sale of restricted stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                               | --       |   |   | 50,220 |   |
| Principal                  paid on notes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                               | (20,000  | ) |   | (40,000 | ) |
| Net                  Cash (Used in) Provided by Financing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                               | (20,000  | ) |   | 10,220 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                               |     |   |   |   |   |
| **NET                  INCREASE (DECREASE) IN CASH AND****CASH                  EQUIVALENTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                               | 72,095   |   |   | (39,783 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                               |     |   |   |   |   |
| **CASH                  AND CASH EQUIVALENTS -****BEGINNING                  OF PERIOD**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               | 146,296  |   |   | 181,702 |   |
| **CASH                  AND CASH EQUIVALENTS - END OF PERIOD**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                                                                                                  | 218,391  |   | $ | 141,919 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                               |     |   |   |   |   |
| **SUPPLEMENTAL                  DISCLOSURES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                               |     |   |   |   |   |
| Cash                  Paid During the Period for Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                                                                                                  | 8,346    |   | $ | 17,033 |   |

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

----

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

| **NOTE A**                                                                                  | **   ** | **PLAN                  OF REORGANIZATION AND CONTRIBUTION AGREEMENT**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------------------------------------------------------------------------------------------------|------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                             |                   | On                  March 30, 2005, Riverbend Telecom, Inc. (“Riverbend”) entered into an                  Agreement and Plan of Reorganization (the “Spin-Off Agreement”) between                  Riverbend and Riverbend Holdings, Inc. (“ Riverbend Holdings”), its wholly                  owned subsidiary, pursuant to which Riverbend transferred all of                  its                  assets, liabilities and other obligations to Riverbend Holdings                  in                  consideration for Riverbend Holdings’ common stock. In addition, Riverbend                  distributed all of Riverbend Holdings’ common stock to the then-existing                  four Riverbend stockholders (the “Spin-Off”), on a pro rata basis, one                  share of Riverbend Holdings common stock for each Riverbend share                  held by                  the stockholders. Riverbend Holdings was formed for the purpose                  of                  effecting the reorganization of Riverbend and the subsequent distribution                  of all of the Riverbend Holdings common stock to Riverbend’s current                  stockholders. Riverbend Holdings had previously filed a Form 10-SB                  with                  the Securities and Exchange Commission registering 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, LLC (the “LLC”), 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                  the LLC contributed all of their limited liability membership interests                  to                  Riverbend in exchange for 15,315,000 shares of Riverbend’s common stock.                  As a result of this transaction, the LLC became a wholly-owned                  subsidiary                  of Riverbend, and the members of the LLC 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 Riverbend Holdings,                  and the                  automated clearing house services business of the LLC is now carried                  on by                  Riverbend, through its 100% ownership interest of the LLC. The                  historical                  financial statements prior to March 30, 2005, are those of the                  LLC, which                  have been retroactively restated to give effect to the reverse                  acquisition. |
|                                                                                             |                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                             |                   | 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.** **(the                  “Company”) serves as the holding company for United Check Services, LLC.                  The LLC 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, LLC. All significant                  intercompany balances and transactions have been eliminated in                  consolidation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

|                       |     | The                  consolidated financial statements reflect all adjustments that                  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.                                                                                                                                           |
|--------------------------------------------------------------------------------------------------|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                             |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                             |               | **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. |
|                                                                                             |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                             |               | **REVENUE                  RECOGNITION**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                             |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                             |               | The                  LLC charges customers a fee for its ACH services. For these transactions,                  it recognizes only the fees generated as revenue. The LLC recognizes                  these                  fees as revenue when it 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 the                  LLC.                                                                                                                                                                                                                                                                    |
|                                                                                             |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                             |               | **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. 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                  Check Services, LLC                  is a single-member LLC, it is treated as a disregarded entity for                  federal                  income tax reporting purposes. As such, the Company includes the                  revenues                  and expenses of the LLC 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

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|                  |     | **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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                             |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| **NOTE C**                                                                                  |     | **COMMISSIONS                    RECEIVABLE/COMMISSIONS PAYABLE**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                       |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                  |               | During                    2005, the LLC entered into an arrangement whereby it was able                    to match the                    clients of an independent sales agent to an independent processor                    of paper                    bank drafts. As a result of this arrangement, the LLC received                    commissions                    from the independent processor based on the volume of activity                    for a                    processing period; however, under an agreement with the independent                    sales                    agent, the LLC was required to forward approximately 90% of the                    gross                    commissions received from the independent processor to the independent                    sales agent, and the LLC recognized as revenue only the portion                    of                    commissions it retained. At December 31, 2005, the Company was due                    $207,505 in gross commissions from the independent processor,                    and was                    obligated to forward to the independent sales agent $238,150.                    The amount                    of commissions payable exceeded the amount of commissions receivable                    at                    December 31, 2005 due to commissions received by the LLC in                    December 2005 that had not been forwarded to the independent sales                    agent as of December 31, 2005. During the nine months ended September                    30, 2006, there were no material amounts of commissions generated                    related                    to these types of referrals. |
|                                                                                             |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| **NOTE                    D**                                                                    |               | **RESTRICTED                    CASH**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                             |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                             |               | Restricted                    cash consists primarily of funds maintained in the LLC’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                    E**                                                                    |               | **NOTES                    PAYABLE**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                             |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                             |               | In                    September of 2004, the two existing members of the LLC agreed                    to take a                    distribution for the amount of undistributed earnings accumulated                    by the                    LLC through June 30, 2004, which amounted to $156,000. In order to                    ease cash flow requirements, 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 the LLC’s members of $100,000, and                    notes payable due to members for the total amount of $256,000                    were                    established. The notes require interest-only payments, at an                    annual                    percentage rate of 10%, for two years, with principal due upon                    maturity in                    June 2006. The members have extended the due date for repayment                    of these                    notes to December 31, 2006. The LLC plans to continue making                    monthly                    interest payments for the remainder of the year. As of September                    30, 2006,                    and December 31, 2005, the outstanding principal balance of these                    notes was $116,000 and $136,000, respectively.                                                                                                                                                                                                                                                                                    |
|                                                                                             |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| **NOTE                    F**                                                                    |               | **STOCK                    OPTIONS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                             |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                             |               | On                    March 30, 2005, the Company entered into a nonqualified stock                    option                    agreement with its chief financial officer, whereby the Company                    granted                    him 312,000 options. The options have an exercise price of $.03                    per share,                    and were fully vested as of the date of the grant. The options                    terminate                    on March 30, 2015. As of September 30, 2006, none of the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

|                                                                                                   |               | stock                    options had been exercised. The amount of compensation cost that                    is                    associated with the fair value of the stock options is deemed                    immaterial                    for reporting purposes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                   |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| **NOTE G**                                                                                        |     | **SIGNIFICANT                    CONCENTRATIONS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                   |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                   |               | At                    September 30, 2006 and December 31, 2005, the Company maintained                    a balance                    with a financial institution in excess of FDIC insured                    limits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                   |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| **NOTE H**                                                                                        |               | **COMMITMENTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                   |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                   |               | **EMPLOYMENT                    CONTRACTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                   |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                   |               | The                    chief financial officer of the Company serves under an employment                    contract                    that was approved March 30, 2005, and expired on March 30, 2006.                    The contract covered compensation and termination. The Company                    intends to                    renew the employment agreement at the next regular meeting of                    its Board of                    Directors, expected during the fourth calendar quarter of                    2006.                                                                                                                                                                                                                                                          |
|                                                                                                   |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                   |               | **OPERATING                    LEASES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                   |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                   |               | On                    May 1, 2005, the LLC entered into an agreement to lease office                    facilities at its present location. The lease term is for 36                    months.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                   |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| **NOTE                    I**                                                                          |               | **RELATED                    PARTY TRANSACTIONS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                   |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                   |               | As                    disclosed in Note E, the Company has notes payable totaling $116,000                    at                    September 30, 2006, and $136,000 at December 31, 2005, due to                    majority stockholders of the Company for funds advanced to the                    LLC in                    prior years and for the amount of the distributions due to the                    former                    members of the LLC.                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                   |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| **NOTE                    J**                                                                          |               | **EARNINGS                    PER SHARE**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                   |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                   |               | For                    earnings per share calculations, the weighted average common                    shares                    outstanding amounted to 18,291,667 and for the three months ended                    September 30, 2006, and 2005; and 18,291,667 and 17,807,931 for                    the nine                    months ended September 30, 2006, and 2005, respectively. Options                    to                    purchase 312,000 shares at $.03 per share were outstanding at                    September                    30, 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 “United,” “we,” “us” and“our” to refer to United eSystems, Inc. and its wholly owned subsidiary United        Check Services, LLC.*

**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. |

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**Executive        Summary**

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**Results        of Operations**

**Three        Months and Nine Months Ended September 30, 2006 compared to the Three        Months and Nine Months Ended September 30, 2005**

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**Liquidity        and Capital Resources**

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**Inflation**

**ITEM        3.     CONTROLS AND PROCEDURES**

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**PART        II - OTHER INFORMATION**

**ITEM 1.** **LEGAL        PROCEEDINGS.**

*United        Check Services, L.L.C. v. Community Loans of America, Inc., *

**ITEM 2.** **UNREGISTERED        SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.**

**ITEM 3.** **DEFAULT        UPON SENIOR SECURITIES.**

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

**ITEM 5.** **OTHER        INFORMATION.**

**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 |   |

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

|                                                                                                                                                                                                                                                                                                                                                                                                         | **UNITED                  ESYSTEMS, INC.**                                         |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|
|                                                                    |                                                      |
| Date:   November 13,                  2006                                                                                                                                                                                                                                                                                                                                          | By:                  /s/ Jeffery C. Swank                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                         |       Jeffery                  C. Swank              |
|                                                                                                                                                                                                                                                                                                                                                                                                         |       President                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                         |       (Principal                  Executive Officer) |
|                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                               |
| Date:   November 13,                  2006                                                                                                                                                                                                                                                                                                                                               | By:                  /s/ Walter Reid Green, Jr.                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                         |       Walter                  Reid Green, Jr.        |
|                                                                                                                                                                                                                                                                                                                                                                                                         |       Chief                  Financial Officer       |
|                                                                                                                                                                                                                                                                                                                                                                                                         |       (Principal                  Financial Officer) |