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| UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549                                                                                                                                                                                                                                                                                                                                               |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| FORM 10-Q/AAmendment No. 1                                                                                                                                                                                                                                                                                                                                                                                               |
|  (Mark One)                                                                                                                                                                                                                                                                                                                                                                                                         |
| x           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES                      EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2010                                                                             |
| OR                                                                                                                                                                                                                                                                                                                                                                                                                       |
| o             TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934                        FOR THE TRANSITION PERIOD FROM ____________ TO ____________                                                       |
|  COMMISSION FILE NUMBER 0-27757                                                                                                                                                                                                                                                                                                                                                                                |
| CASE FINANCIAL INC.(Exact Name of registrant as specified in its charter)                                                                                                                                                                                                                                                                                                                                           |
| DELAWARE(State of other jurisdiction ofincorporation or organization)                                                                                                                                                                                                                                                                                                                                                    | 33-0529299(I.R.S. EmployerIdentification Number) |
|                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| 7668 El Camino Real, Ste.104-106, Carlsbad, CA(Address of principal executive offices)                                                                                                                                                                                                                                                                                                                                   | 92009(Zip code) |
| (760) 804-1449(Issuer's telephone number, including area code)                                                                                                                                                                                                                                                                                                                                                           |
|  (Former name, former address and former fiscal year, if changed since last report)                                                                                                                                                                                                                                                                                                                            |
| Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o                                                |
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o   No o  |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of "large accelerated filer", "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):                                                                                                         |
| Large accelerated filer oNon-accelerated filer o(Do not check if a smaller reporting company)                                                                                                                                                                                                                                                                                                                       | Accelerated filer oSmaller reporting company x |
|  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o   No x                                                                                                                                                                                                                                                                            |
|  Number of shares of issuer's common stock outstanding as of May 17, 2010: 41,185,145                                                                                                                                                                                                                                                                                                                               |

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| PART I – FINANCIAL INFORMATION                                                              | 3  |
|---------------------------------------------------------------------------------------------------|----|
| ITEM 1. INTERIM CONSOLIDATED FINANCIAL STATEMENTS                                                 | 3  |
| ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULT OF OPERATION | 12 |
| ITEM 3. QUANTATATIVE AND QUALITATIVE DISCLOSURES AND RISKS                                        | 15 |
| ITEM 4. CONTROLS AND PROCEDURES                                                                   | 16 |
| PART II - OTHER INFORMATION                                                                       | 18 |
| ITEM 1. LEGAL PROCEEDINGS                                                                         | 18 |
| ITEM 1A. RISK FACTORS                                                                             | 19 |
| ITEM 2.  UNREGISTERED SALE OF EQUITY SECURITIES                                         | 19 |
| ITEM 3. DEFAULTS IN SENIOR SECURITIES                                                             | 20 |
| ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                            | 20 |
| ITEM 5.  OTHER INFORMATION                                                              | 20 |
| ITEM 6.  EXHIBITS                                                                       | 20 |
| SIGNATURES                                                                                        | 21 |

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| CASE FINANCIAL, INC. AND SUBSIDIARIES                                                                                                            |
|--------------------------------------------------------------------------------------------------------------------------------------------------|
| Condensed Consolidated Balance Sheets                                                                                                            |
|                                                                                                                                             |   |   |   |   |   |   |
|                                                                                                                                             |   |   |   |   |   |   |
| ASSETS                                                                                                                                           |
|                                                                                                                                             |   |   |   |   |   |   |
|                                                                                                                                             |   | Unaudited |   |   |   |   |
|                                                                                                                                             |   | As of |   |   | As of |   |
|                                                                                                                                             |   | March 31, |   |   | September 30, |   |
|                                                                                                                                             |   | 2010 |   |   | 2009 |   |
|                                                                                                                                             |   |   |   |   |   |   |
|                                                                                                                                             |   |   |   |   |   |   |
| Current Assets                                                                                                                                   |   |   |   |   |   |   |
| Cash & cash equivalents                                                                                                                      |   | $ | 6,713 |   |   | $ | 1,900 |   |
| Prepaid expense                                                                                                                                  |   |   | 1,479 |   |   |   | - |   |
| Other receivable                                                                                                                                 |   |   | 5,000 |   |   |   | - |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| Total Current Assets                                                                                                                             |   |   | 13,192 |   |   |   | 1,900 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| Other Assets                                                                                                                                     |   |   |   |   |   |   |   |   |
| Deposits                                                                                                                                         |   |   | - |   |   |   | - |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| Total Other Assets                                                                                                                               |   |   | - |   |   |   | - |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
|       TOTAL ASSETS                                                                                                 |   | $ | 13,192 |   |   | $ | 1,900 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| Condensed LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)                                                                                       |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| Current Liabilities                                                                                                                              |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                                                                                            |   | $ | 1,256,026 |   |   | $ | 1,156,805 |   |
| Loans payable - related parties                                                                                                                  |   |   | 110,308 |   |   |   | 93,041 |   |
| Loans payable                                                                                                                                    |   |   | 200,000 |   |   |   | 215,000 |   |
| Note payable - short-term                                                                                                                        |   |   | 250,000 |   |   |   | 190,000 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| Total Current Liabilities                                                                                                                        |   |   | 1,816,334 |   |   |   | 1,654,846 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
|       TOTAL LIABILITIES                                                                                            |   |   | 1,816,334 |   |   |   | 1,654,846 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| Stockholders' Equity (Deficit)                                                                                                                   |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
|      Preferred stock, ($.0001 par value, 20,000,000                                                                     |   |   |   |   |   |   |   |   |
|        shares authorized; none issued and outstanding.)                                                       |   |   | - |   |   |   | - |   |
| Common stock, (par value $.001 per share, 100,000,000                                                                                            |   |   |   |   |   |   |   |   |
|    shares authorized: 41,185,145 and 29,185,145 shares issued                                                                     |   |   |   |   |   |   |   |   |
|    and outstanding as of March 31, 2010 and December 31, 2009,                                                                    |   |   |   |   |   |   |   |   |
|    respectively)                                                                                                                  |   |   | 41,185 |   |   |   | 29,185 |   |
| Paid-in capital                                                                                                                                  |   |   | 10,742,693 |   |   |   | 10,614,693 |   |
| Accumulated deficit                                                                                                                              |   |   | (12,587,020 | ) |   |   | (12,296,824 | ) |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| Total Stockholders' Equity (Deficit)                                                                                                             |   |   | (1,803,142 | ) |   |   | (1,652,946 | ) |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
|         TOTAL LIABILITIES &                                                                          |   |   |   |   |   |   |   |   |
|                    STOCKHOLDERS' EQUITY (DEFICIT) |   | $ | 13,192 |   |   | $ | 1,900 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |

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| CASE FINANCIAL, INC. AND SUBSIDIARIES                       |   |
|-------------------------------------------------------------|--------|
| Condensed Consolidated Statements of Operations (Unaudited) |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   | Six Months |   |   | Six Months |   |   | Three Months |   |   | Three Months |   |
|                                                        |   | Ended |   |   | Ended |   |   | Ended |   |   | Ended |   |
|                                                        |   | March 31, |   |   | March 31, |   |   | March 31, |   |   | March 31, |   |
|                                                        |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Service                                                     |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Revenue                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative                                  |   |   | 47,045 |   |   |   | 79,375 |   |   |   | (2,717 | ) |   |   | 20,154 |   |
| Salaries                                                    |   |   | 84,000 |   |   |   | 84,000 |   |   |   | 42,000 |   |   |   | 42,000 |   |
| Professional fees                                           |   |   | 140,029 |   |   |   | 252,763 |   |   |   | 42,633 |   |   |   | 50,395 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Operating Expenses                                    |   |   | 271,074 |   |   |   | 416,138 |   |   |   | 81,916 |   |   |   | 112,549 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) from operations                               |   |   | (271,074 | ) |   |   | (416,138 | ) |   |   | (81,916 | ) |   |   | (112,549 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Income (Expenses)                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Interest expense                                            |   |   | (19,122 | ) |   |   | (12,000 | ) |   |   | (3,007 | ) |   |   | (6,000 | ) |
| Gain on forgiveness of debt                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Other income                                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Other expense                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Other income                                          |   |   | (19,122 | ) |   |   | (12,000 | ) |   |   | (3,007 | ) |   |   | (6,000 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) before discontinued operations            |   |   | (290,196 | ) |   |   | (428,138 | ) |   |   | (84,923 | ) |   |   | (118,549 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain (Loss) from discontinued operations                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 97,703 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (loss)                                           |   | $ | (290,196 | ) |   | $ | (428,138 | ) |   | $ | (84,923 | ) |   | $ | (20,846 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) per common share - basic and diluted:     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| From continuing operations                                  |   | $ | (0.01 | ) |   | $ | (0.01 | ) |   | $ | (0.00 | ) |   | $ | (0.00 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| From discontinued operations                                |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 0.00 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   common shares - basic and diluted               |   |   | 38,866,464 |   |   |   | 28,935,145 |   |   |   | 41,185,145 |   |   |   | 28,023,050 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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| CASE FINANCIAL, INC. AND SUBSIDIARIES           |
|-------------------------------------------------|
| Condensed Consolidated Statements of Cash Flows |
|                                            |   |   |   |   |   |   |   |   |

|                                                                                                   |   |       |     |        |       |   |
|--------------------------------------------------------------------------------------------------------|--------|------------|----------|-------------|------------|--------|
|                                                                                                   |   | Six Months |     |        | Six Months |   |
|                                                                                                   | Ended  |       |     |  Ended |       |
|                                                                                                   |   | March 31,  |     |        | March 31,  |   |
|                                                                                                   |   | 2010       |     |        | 2009       |   |
|                                                                                                   |   |       |     |        |       |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                                   |   |       |     |        |       |   |
|                                                                                                   |   |       |     |        |       |   |
|                                                                                                   |   |       |     |        |       |   |
| Gain (Loss) from continuing operations                                                                 |   |       | (290,196 | )           |       |   | (428,138 | ) |
| Net income (loss)                                                                                      |   |       | (290,196 | )           |       |   | (428,138 | ) |
|                                                                                                   |   |       |     |        |       |   |   |   |
| Adjustments to reconcile net loss to net cash                                                          |   |       |     |        |       |   |   |   |
| provided by (used in) operating activities:                                                            |   |       |     |        |       |   |   |   |
| Common stock for services                                                                              |   |       | 45,000   |        |       |   | - |   |
| Common stock for debt conversion                                                                       |   |       | 75,000   |        |       |   | - |   |
| Changes in operating assets and liabilities:                                                           |   |       |     |        |       |   |   |   |
| (Increase) decrease in prepaid expenses                                                                |   |       | (1,479   | )           |       |   | 32,465 |   |
| (Increase) decrease in other receivable                                                                |   |       | (5,000   | )           |       |   | - |   |
| Increase (decrease) in accounts payable and other liabilities                                          |   |       | 99,221   |        |       |   | 315,777 |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
|      Net cash (used by) continuing operations                                 |   |       | (57,454  | )           |       |   | (79,896 | ) |
|      Net cash provided by continuing operations                               |   |       | -        |        |       |   | - |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
|      Net cash (used by) provided by operating activities                      |   |       | (57,454  | )           |       |   | (79,896 | ) |
|                                                                                                   |   |       |     |        |       |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                                   |   |       |     |        |       |   |   |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
| Increase (decrease) in loans payable                                                                   |   |       | (15,000  | )           |       |   | - |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
|      Net cash provided by (used in) investing activities                      |   |       | (15,000  | )           |       |   | - |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                                   |   |       |     |        |       |   |   |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
| Proceeds from common stock                                                                             |   |       | -        |        |       |   | - |   |
| Proceeds from borrowings - related party                                                               |   |       | 17,267   |        |       |   | 61,999 |   |
| Proceeds from borrowings                                                                               |   |       | 45,000   |        |       |   | 15,000 |   |
|                Common stock |   |       | 20,000   |        |       |   |   |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
|      Net cash provided by (used in) financing activities                      |   |       | 97,267   |        |       |   | 76,999 |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
|     Net increase (decrease) in cash & cash equivalents                         |   |       | 4,813    |        |       |   | (2,897 | ) |
|                                                                                                   |   |       |     |        |       |   |   |   |
|     Cash & cash equivalents at beginning of period                             |   |       | 1,900    |        |       |   | 2,963 |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
|     Cash & cash equivalents at end of period                                   |   | $          | 6,713    |        |       | $      | 66 |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW                                                                  |   |       |     |        |       |   |   |   |
| INFORMATION:                                                                                           |   |       |     |        |       |   |   |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
| Interest expense                                                                                       |   | $          | 19,122   |        |       | $      | 12,000 |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
| Income taxes paid                                                                                      |   | $          | -        |        |       | $      | - |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
|                                                                                                   |   |       |     |        |       |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF NON CASH                                                                   |   |       |     |        |       |   |   |   |
| ACTIVITIES:                                                                                            |   |       |     |        |       |   |   |   |
| Common stock issued for service                                                                        |   | $          | 45,000   |        |       | $      | - |   |
| Common Stock issued in debt conversation                                                     |   | $          | 75,000   |        |       | $      | - |   |

----

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|   | ·     Mr. Gregory returned to the Company 750,000 shares of common stock owned or controlled by him and cancelled two promissory notes of the Company totaling $100,000. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·     Mr. Pollock returned to the Company 100,000 shares of common stock owned or controlled by him and repaid in cash to the Company $15,160. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·     Mr. Pollock and Mr. Gregory were released from further action by the majority stockholder and the Company with respect to the claims made in the derivative lawsuit. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·     Mr. Pollock and Mr. Gregory agreed to waive any and all further claims against the Company and the major stockholder. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·     The cancellation of promissory notes and accrued interest together totaling approximately $875,000 held by this individual. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·     The dismissal of this individual from the derivative lawsuit filed in the Delaware Court of Chancery on March 16, 2005. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·     The release of each party from any and all claims that could have been asserted by the other party in any of the actions dismissed as a result of this settlement agreement. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| - | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (1) | The lack of a functioning audit committee due to a lack of a majority of independent members and a lack of a majority of outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Inadequate segregation of duties consistent with control objectives; and |
|-----|--------------------------------------------------------------------------|

| (3) | Ineffective controls over period end financial disclosure and reporting processes. |
|-----|------------------------------------------------------------------------------------|

| (1) | We will create a position to segregate duties consistent with control objectives and will increase our personnel resources and technical accounting expertise within the accounting function when funds are available to us. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | We plan to appoint one or more outside directors to our board of directors who shall be appointed to an audit committee resulting in a fully functioning audit committee who will undertake the oversight in the establishment and monitoring of required internal controls and procedures such as reviewing and approving estimates and assumptions made by management when funds are available to us. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Mr. Gregory returned to the Company 750,000 shares of common stock owned or controlled by him and cancelled two promissory notes of the Company totaling $100,000. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Mr. Pollock returned to the Company 100,000 shares of common stock owned or controlled by him and repaid in cash to the Company $15,160. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Mr. Pollock and Mr. Gregory were released from further action by the majority stockholder and the Company with respect to the claims made in the derivative lawsuit. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Mr. Pollock and Mr. Gregory agreed to waive any and all further claims against the Company and the major stockholder. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | The cancellation of promissory notes and accrued interest together totaling approximately $875,000 held by this individual. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | The dismissal of Mr. Bibicoff from the derivative lawsuit filed in the Delaware Court of Chancery on March 16, 2005. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | The release of each party from any and all claims that could have been asserted by the other party in any of the actions dismissed as a result of this settlement agreement. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 1. | Notes payable, uncollateralized, interest payable $150,000 monthly at 12.0% per annum, due January 1, 2007. The Company is in default on this note. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Note payable, uncollateralized, interest payable $50,000 monthly at 12.0% per annum, due January 1, 2007. The Company is in default on this note. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------|

| Exhibit No. |                                                                                                |
|-------------|-----------------------------------------------------------------------------------------------------|
| 31.1        | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes Oxley Act of 2002. |
| 31.2        | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes Oxley Act of 2002  |
| 32          | Certification Pursuant to Section 906 of the Sarbanes Oxley Act of 2002                             |

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| Dated: December 27, 2010 |   | Case Financial, Inc                                                             |
|--------------------------|--------|---------------------------------------------------------------------------------|
|                     |   |                                                                            |
|                     |   | /s/ Michael Schaffer                                                            |
|                     |   | By: Michael SchafferIts: Chief Executive Officer(Principal Executive Officer)   |
|                     |   |                                                                            |
|                     |   | /s/ Lawrence Schaffer                                                           |
|                     |   | By: Lawrence SchafferIts: Chief Financial Officer(Principal Accounting Officer) |

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