----

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

**APPLICABLE      ONLY TO CORPORATE ISSUERS**

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**UNITED      ESYSTEMS, INC.**

**FORM      10-QSB**

**September 30,      2007**

**INDEX**

| **Part                I – Financial Information** | **Page**                                                                                      |
|---------------------------------------------------------|-----------------------------------------------------------------------------------------------|
|                                |                                                                                          |   |
| Item                1.                                  | Financial                Statements                                                           |   |
|                                |                                                                                          |   |
|                                                    | Consolidated                Balance Sheets                                                    | 3 |
|                                |                                                                                          |   |
|                                                    | Consolidated                Statements of Income                                              | 4 |
|                                |                                                                                          |   |
|                                                    | Consolidated                Statements of Cash Flows                                          | 5 |
|                                |                                                                                          |   |
|                                                    | Notes                to Consolidated Financial                Statements                      | 6                – 9 |
|                                |                                                                                          |   |
| Item                2.                                  | Management’s                Discussion and Analysis or Plan of                Operation | 10 |
|                                |                                                                                          |   |
| Item                3.                                  | Controls                and Procedures                                                        | 17 |
|                                |                                                                                          |   |
| **Part                II – Other Information**    |                                                                                          |
|                                |                                                                                          |   |
| Item                1.                                  | Legal                Proceedings                                                              | 18 |
|                                |                                                                                          |   |
| Item                2.                                  | Unregistered                Sales of Equity Securities and Use of                Proceeds     | 18 |
|                                |                                                                                          |   |
| Item                3.                                  | Defaults                Upon Senior Securities                                                | 18 |
|                                |                                                                                          |   |
| Item                4.                                  | Submission                of Matters to a Vote of Security                Holders             | 18 |
|                                |                                                                                          |   |
| Item                5.                                  | Other                Information                                                              | 18 |
|                                |                                                                                          |   |
| Item                6.                                  | Exhibits                                                                                      | 19 |
|                                |                                                                                          |   |
|                                                    | Signatures                                                                                    | 20 |

----

**PART      I.          FINANCIAL      INFORMATION**

**ITEM      1.  FINANCIAL STATEMENTS**

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

|                                                                                                                                                                                                                                                                                                                                                                                            |   | **September 30,****2007** | ** ** | ** ** | **December 31,****2006** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|------------|------------|-------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                            |   | (Unaudited)                    |       |       | (Audited)                     |   |
| **CURRENT ASSETS                                                            ** |   |                           |       |       |                          |   |
| Cash                and Cash                Equivalents                                                                                                                                                                                                                                                                                                                                         |   | $                              | 297,437    |       |                          | $      | 384,830 |   |
| Restricted                Cash                                                                                                                                                                                                                                                                                                                                                                  |   |                           | 684,275    |       |                          |   | 826,647 |   |
| Trade                Receivables                (net)                                                                                                                                                                                                                                                                                                                                           |   |                           | 65,585     |       |                          |   | 89,015 |   |
| Prepaid                Expenses and Other                Assets                                                                                                                                                                                                                                                                                                                                 |   |                           | 8,661      |       |                          |   | 2,195 |   |
|                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |       |       |                          |   |   |   |
| Total                Current                Assets                                                                                                                                                                                                                                                                                                                                              |   |                           | 1,055,958  |       |                          |   | 1,302,687 |   |
|                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |       |       |                          |   |   |   |
| **PROPERTY,                PLANT AND EQUIPMENT,                Net        **                                                                                                                                                                                                                                                                            |   |                           | 65,667     |       |                          |   | 66,015 |   |
|                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |       |       |                          |   |   |   |
| **OTHER                ASSETS**                                                                                                                                                                                                                                                                                                                                                                 |   |                           |       |       |                          |   |   |   |
| Deposits                                                                                                                                                                                                                                                                                                                                                                                        |   |                           | 62,620     |       |                          |   | 12,620 |   |
|                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |       |       |                          |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                            |   | $                              | 1,184,245  |       |                          | $      | 1,381,322 |   |
|                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |       |       |                          |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                                                                                                                                                                                                                                                                   |   |
|                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |       |       |                          |   |   |   |
| **CURRENT                LIABILITIES**                                                                                                                                                                                                                                                                                                                                                          |   |                           |       |       |                          |   |   |   |
| ACH                Settlements                Payable                                                                                                                                                                                                                                                                                                                                           |   | $                              | 679,775    |       |                          | $      | 823,147 |   |
| Notes                Payable                                                                                                                                                                                                                                                                                                                                                                    |   |                           | 70,000     |       |                          |   | 116,000 |   |
| Accounts                Payable and Accrued                Liabilities                                                                                                                                                                                                                                                                                                                          |   |                           | 8,561      |       |                          |   | 37,402 |   |
| Customer                Deposits                                                                                                                                                                                                                                                                                                                                                                |   |                           | 4,500      |       |                          |   | 3,500 |   |
| Total                Current                Liabilities                                                                                                                                                                                                                                                                                                                                         |   |                           | 762,836    |       |                          |   | 980,049 |   |
|                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |       |       |                          |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |       |       |                          |   |   |   |
| Total                Liabilities                                                                                                                                                                                                                                                                                                                                                                |   |                           | 762,836    |       |                          |   | 980,049 |   |
|                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |       |       |                          |   |   |   |
| **STOCKHOLDERS'                EQUITY**                                                                                                                                                                                                                                                                                                                                                         |   |                           |       |       |                          |   |   |   |
| Common                Stock - $.001 Par Value; 75,000,000 Shares Authorized, 18,291,667                Shares                Issued and Outstanding  at                September 30, 2007, and December 31, 2006                                                                                                                                                                      |   |                           | 18,292     |       |                          |   | 18,292 |   |
| Additional                Paid-In Capital                                                                                                                                                                                                                                                                                                                                                       |   |                           | 49,440     |       |                          |   | 49,440 |   |
| Retained                Earnings                                                                                                                                                                                                                                                                                                                                                                |   |                           | 353,677    |       |                          |   | 333,541 |   |
| Total                Stockholders’                Equity                                                                                                                                                                                                                                                                                                                                  |   |                           | 421,409    |       |                          |   | 401,273 |   |
|                                                                                                                                                                                                                                                                                                                                                                                            |   | $                              | 1,184,245  |       |                          | $      | 1,381,322 |   |

----

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | **Three                Months Ended****September                30,** |       |   | **Nine                Months Ended****September 30,** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|------------|--------|------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | **2007**                                                              |       |   | **2006**                                                   |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |
|                                                                            |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                                                     | 297,603    |   |                                                       | $      | 333,961 |   |   | $ | 934,366 |   |   | $ | 721,303 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of Revenues                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                  | 188,537    |   |                                                       |   | 178,314 |   |   |   | 566,427 |   |   |   | 364,460 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
|      Gross                Profit                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                  | 109,066    |   |                                                       |   | 155,647 |   |   |   | 367,939 |   |   |   | 356,843 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
|    Operating                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
|       Personnel                costs                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                  | 32,520     |   |                                                       |   | 27,595 |   |   |   | 90,848 |   |   |   | 79,315 |   |
|       Travel                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                  | 2,083      |   |                                                       |   | 2,993 |   |   |   | 11,561 |   |   |   | 10,302 |   |
|       Other                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                  | 28,052     |   |                                                       |   | 36,754 |   |   |   | 96,413 |   |   |   | 93,694 |   |
|         Total                Operating Expenses                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                  | 62,655     |   |                                                       |   | 67,342 |   |   |   | 198,822 |   |   |   | 183,311 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
|    Selling,                General & Administrative                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
|       Personnel                costs                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                  | 18,750     |   |                                                       |   | 18,750 |   |   |   | 66,301 |   |   |   | 54,231 |   |
|       Legal                and accounting                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                  | 3,660      |   |                                                       |   | 21,114 |   |   |   | 34,565 |   |   |   | 71,460 |   |
|       Other                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                  | 7,858      |   |                                                       |   | 10,297 |   |   |   | 37,148 |   |   |   | 29,847 |   |
|         Total                Selling, General & Administrative                                                                                                                                                                                                                                                                                                                                                   |   |                                                                  | 30,268     |   |                                                       |   | 50,161 |   |   |   | 138,014 |   |   |   | 155,538 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
|      Total                Expenses                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                  | 92,923     |   |                                                       |   | 117,503 |   |   |   | 336,836 |   |   |   | 338,849 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Income                from operations                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                  | 16,143     |   |                                                       |   | 38,144 |   |   |   | 31,103 |   |   | $ | 17,994 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Other                Income (expense):                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
|       Interest                Income                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                  | --         |   |                                                       |   | -- |   |   |   | -- |   |   |   | 3,505 |   |
|       Interest                Expense                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                  | (1,750     | )      |                                                       |   | (2,417 | ) |   |   | (6,315 | ) |   |   | (8,346 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                  | 14,393     |   |                                                       |   | 35,727 |   |   |   | 24,788 |   |   |   | 13,153 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Income                tax expense                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                  | 2,305      |   |                                                       |   | 6,510 |   |   |   | 4,651 |   |   |   | 2,529 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                                                                     | 12,088     |   |                                                       | $      | 29,217 |   |   | $ | 20,137 |   |   | $ | 10,624 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income per Share                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $                                                                     | .01        |   |                                                       | $      | .01 |   |   | $ | .01 |   |   | $ | .01 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                  |       |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                Average Common Shares Outstanding                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                  | 18,291,667 |   |                                                       |   | 18,291,667 |   |   |   | 18,291,667 |   |   |   | 18,291,667 |   |

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

----

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | **Nine                Months Ended September 30,** |     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | **2007**                                                |     |   | **2006** |   |
| **                                                                                                         ** |   |                                                    |     |   |   |   |
| **CASH                FLOWS FROM OPERATING ACTIVITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                    |     |   |   |   |
| Net                Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                                       | 20,137   |   |   | $ | 10,624 |   |
| Adjustments                to Reconcile Net                Income to Net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                    |     |   |   |   |   |   |
| Cash                Provided by (Used In)                Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                    |     |   |   |   |   |   |
| Depreciation                and                Amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                    | 20,836   |   |   |   | 26,158 |   |
| Decrease                (Increase) in Trade                Receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                    | 23,430   |   |   |   | (53,907 | ) |
| (Increase)                Decrease in Other                Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                    | (6,466   | ) |   |   | 4,753 |   |
| Decrease                in Commissions                Receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                    | --       |   |   |   | 207,505 |   |
| Decrease                in Other                Receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                    | --       |   |   |   | 414 |   |
| Decrease                in Restricted                Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                    | 142,372  |   |   |   | 784,492 |   |
| Decrease                in ACH Settlements                Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                    | (143,372 | ) |   |   | (784,492 | ) |
| Decrease                in Accounts Payable                and Accrued Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                    | (28,841  | ) |   |   | (30,398 | ) |
| Decrease                in Commissions                Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                    | --       |   |   |   | (238,150 | ) |
| Increase                in Customer                Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                    | 1,000    |   |   |   | -- |   |
| Net                Cash Provided by (Used in)                Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                    | 29,096   |   |   |   | (73,001 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                    |     |   |   |   |   |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                    |     |   |   |   |   |   |
| Acquisition                of Property and                Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                    | (20,489  | ) |   |   | (45,381 | ) |
| Redemption                of Certificate of                Deposit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                    | --       |   |   |   | 202,400 |   |
| (Increase)                Decrease in                Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                    | (50,000  | ) |   |   | 8,077 |   |
| Net                Cash (Used in) Provided by                Investing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                    | (70,489  | ) |   |   | 165,096 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                    |     |   |   |   |   |   |
| **CASH                FLOWS FROM FINANCING ACTIVITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                    |     |   |   |   |   |   |
| Proceeds                from sale of                restricted stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                    | --       |   |   |   | -- |   |
| Principal                paid on notes                payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                    | (46,000  | ) |   |   | (20,000 | ) |
| Net                Cash Used in Financing                Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                    | (46,000  | ) |   |   | (20,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                    |     |   |   |   |   |   |
| **NET                (DECREASE) INCREASE IN CASH AND****CASH                EQUIVALENTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                    | (87,393  | ) |   |   | 72,095 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                    |     |   |   |   |   |   |
| **CASH                AND CASH EQUIVALENTS –****BEGINNING                OF PERIOD**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                    | 384,830  |   |   |   | 146,296 |   |
| **CASH                AND CASH EQUIVALENTS – END OF PERIOD**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                                                       | 297,437  |   |   | $ | 218,391 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                    |     |   |   |   |   |   |
| **SUPPLEMENTAL                DISCLOSURES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                    |     |   |   |   |   |   |
| Cash                Paid During the Period for                Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                                       | 6,315    |   |   | $ | 8,346 |   |

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

----

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

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

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

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

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| **UNITED                ESYTEMS, INC.****NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS**   |
|--------------------------------------------------------------------------------------------------------|
|                                                                                                   |   |   |
| **NOTE                C**                                                                              |   | **RESTRICTED                CASH** |
|                                                                                                   |   |   |
|                                                                                                   |   | Restricted                cash consists                primarily of funds maintained in United’s primary bank account to                facilitate ACH transactions.  The Company has restricted this                cash from operations in order to ensure that sufficient funds are                maintained to process and settle customer’s ACH                transactions. |
|                                                                                                   |   |   |
| **NOTE                D**                                                                              |   | **NOTES                PAYABLE** |
|                                                                                                   |   |   |
|                                                                                                   |   | In                September of 2004, the two                existing members of United agreed to take a distribution for the                amount of                undistributed earnings accumulated by United through June 30, 2004,                which amounted to $156,000.  In order to ease the cash flow                requirements on United, the members agreed to accept a note for the                amount                of the distribution.  The amount of the distribution was                combined with the amount of advances due to United’s members of $100,000,                and notes payable due to United’s members for the total amount of $256,000                were established.  The notes are unsecured, due on demand and                require interest-only payments, at an annual percentage rate of                10%.  As of September 30, 2007, and December 31, 2006,                the outstanding principal balance of these notes was $70,000 and                $116,000,                respectively. |
|                                                                                                   |   |   |
| **NOTE                E**                                                                              |   | **STOCK                OPTIONS** |
|                                                                                                   |   |   |
|                                                                                                   |   | On                March 30, 2005, the Company                entered into a non-qualified stock option agreement, whereby the                Company                granted 312,000 options to its CFO.  On February 15, 2006,                the Company entered into non-qualified stock option agreements with                four                key employees, granting a total of 90,000 options, which included                32,500                options to its CFO.  All of the options have an exercise price                of $.03 per share, and were fully vested as of the date of the                grant.  The option agreements terminate five years from the date                they were granted.  No options were exercised in 2007 or in                2006. |
|                                                                                                   |   |   |
| **NOTE F**                                                                                        |     | **SIGNIFICANT                CONCENTRATIONS** |
|                                                                                                   |   |   |
|                   |   | **RESTRICTED                CASH**At                September 30, 2007 and December 31, 2006, the Company maintained                a balance                with a financial institution in excess of FDIC insured                limits. |
|                                                                                                   |   |   |
|                                                                                                   |   | **MAJOR                CUSTOMERS**During                the three months ended September 30, 2007, the Company had transactions                with three customers that generated revenue exceeding 10% of the                Company’s                gross revenues.  Revenue from these three customers was 25.1%,                29.4%, and 18.3% respectively.  For the nine months ended                September 30, 2007, the Company had transactions with three customers                that                generated revenue exceeding 10% of the Company’s gross                revenues.  Revenue from these three customers was 22.4%, 24.4%,                and 20.4% respectively.  None of these customers were affiliated                with the Company through common                ownership. |

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

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**Item      2.**

**UNITED      ESYSTEMS, INC.**

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OR**

**PLAN      OF OPERATION**

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

**Cautionary      Statement About Forward-Looking Statements**

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

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**Executive      Summary**

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**Results      of Operations**

**Three      Months and Nine Months Ended September 30, 2007 compared to the Three      Months and Nine Months Ended September 30, 2006**

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

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| **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,                2007                                                                                                                                                                                                                                                                                                                   | By:                /s/ Jeffery C. Swank                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                         |       Jeffery                C. Swank                      |
|                                                                                                                                                                                                                                                                                                                                                                                                         |       Chief                Executive Officer and President |
|                                                                                                                                                                                                                                                                                                                                                                                                         |       (Principal                Executive Officer)         |
|                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                     |
| Date:   November 13,                2007                                                                                                                                                                                                                                                                                                                   | By:                /s/ Walter Reid Green, Jr.                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                         |       Walter                Reid Green, Jr.                |
|                                                                                                                                                                                                                                                                                                                                                                                                         |       Chief                Financial Officer               |
|                                                                                                                                                                                                                                                                                                                                                                                                         |       (Principal                Financial Officer)         |