<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                   FORM 10-QSB

                |X| QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2007
                                       or
        |_| TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

                         COMMISSION FILE NUMBER 0-27757

                              CASE FINANCIAL, INC.
             (Exact Name of registrant as specified in its charter)

                    DELAWARE                                 33-0529299
         (State or other jurisdiction of                  (I.R.S. Employer
         incorporation or organization)                Identification Number)

  5950 La Place Court, Suite 155, Carlsbad, CA                 92008
    (Address of principal executive offices)                 (Zip code)

                                  760-804-1449
                           (Issuer's telephone number)

Check whether the Issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the issuer was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [_]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).
Yes [_] No [X]

           Number of shares of issuer's common stock outstanding as of
                           April 30, 2007: 28,295,145

Transitional Small Business Disclosure Format (check one). Yes [_] No [X]

Documents incorporated by reference: None.

<PAGE>
<TABLE>

PART I - FINANCIAL INFORMATION

ITEM 1.  INTERIM CONSOLIDATED FINANCIAL STATEMENTS

                                    CASE FINANCIAL, INC. AND SUBSIDIARIES
                                         CONSOLIDATED BALANCE SHEETS
                                               MARCH 31, 2007

-------------------------------------------------------------------------------------------------------

                                                    ASSETS
                                                                        (UNAUDITED)
                                                                           AS OF              AS OF
                                                                         MARCH 31,        SEPTEMBER 30,
                                                                           2007               2006
                                                                       ------------       ------------
<S>                                                                    <C>                <C>
CURRENT ASSETS
     Cash & cash equivalents                                           $     55,588       $    101,299
     Prepayments and deposits                                                23,444              6,711
     Investment - Bahamas                                                    40,000             40,000
     Assets from discontinued operations                                  1,677,127          1,880,258
                                                                       ------------       ------------

TOTAL CURRENT ASSETS                                                      1,796,159          2,028,268

NET PROPERTY & EQUIPMENT                                                      1,071              2,142
                                                                       ------------       ------------

      TOTAL ASSETS                                                     $  1,797,230       $  2,030,411
                                                                       ============       ============

                 LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES
     Accounts payable and accrued expenses                             $  1,035,859       $    794,172
     Loans payable - related parties                                        154,000            198,800
     Loans payable                                                          170,000            270,000
     Liabilities from discontinued operations                             1,677,677          2,008,448
                                                                       ------------       ------------

TOTAL CURRENT LIABILITIES                                                 3,037,536          3,271,419

      TOTAL LIABILITIES                                                   3,037,536          3,271,419

STOCKHOLDERS' EQUITY (DEFICIT)
     Common stock, (par value $.001 per share, 100,000,000 shares
        authorized: 28,070,145 and 25,406,812 shares issued and
         outstanding as of March 31, 2007 and September 30, 2006)            28,070             25,407
     Common stock to be issued                                                   --            294,500
     Paid-in capital                                                      9,868,481          9,552,394
     Treasury Stock                                                        (240,000)          (240,000)
     Accumulated deficit                                                (10,896,857)       (10,873,309)
                                                                       ------------       ------------
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)                                     (1,240,306)        (1,241,008)
                                                                       ------------       ------------
        TOTAL LIABILITIES &
                   STOCKHOLDERS' EQUITY (DEFICIT)                      $  1,797,230       $  2,030,411
                                                                       ============       ============

                                                 2
<PAGE>

                                      CASE FINANCIAL, INC. AND SUBSIDIARIES
                                 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

 ------------------------------------------------------------------------------------------------------------------


                                                 THREE MONTHS      THREE MONTHS     SIX MONTHS      SIX MONTHS
                                                    ENDED             ENDED            ENDED           ENDED
                                                  MARCH 31,         MARCH 31,        MARCH 31,       MARCH 31,
                                                     2007              2006            2007            2006

                                               ----------------- ----------------- --------------------------------
 REVENUES
   Contract Fees                                        --                 --                 --                 --
   Service fees, related parties              $         --       $         --       $         --       $         --
                                              ------------       ------------       ------------       -------------

NET REVENUE                                             --                 --                 --                 --

OPERATING EXPENSES
     Provision for losses on investments
       in contracts                                     --                 --                 --                 --
     Depreciation                                      536                 --              1,071                 --
     General and administrative                     94,991            204,157            193,313            425,308
                                              ------------       ------------       ------------       -------------

TOTAL OPERATING EXPENSES                            95,527            204,157            194,384            425,308
                                              ------------       ------------       ------------       -------------

OTHER INCOME & (EXPENSES)
     Other Income                                       --                 --                 --                 --

TOTAL OTHER INCOME & (EXPENSES)                         --                 --                 --                 --

INCOME (LOSS) FROM OPERATIONS                      (95,527)          (204,157)          (194,384)          (425,308)

OTHER INCOME
     Interest income                                    --                 18                 --                172
     Interest expense                              (10,018)          (115,528)           (19,793)          (219,563)
     Non-cash finance expenses                          --            (16,074)                --            (66,658)
     Miscellaneous income                            1,000                 --              2,538                 --
                                              ------------       ------------       ------------       -------------

TOTAL OTHER INCOME                                  (9,018)          (131,584)           (17,255)          (286,049)
                                              ------------       ------------       ------------       -------------

NET INCOME (LOSS) BEFORE DISCONTINUED
OPERATIONS AND EXTRAORDINARY ITEMS                (104,545)          (335,741)          (211,639)          (711,357)
                                              ============       ============       =============      =============

GAIN (LOSS) FROM DISCONTINUED OPERATIONS            98,426              8,743            188,091            (10,107)
                                              ------------       ------------       ------------       -------------

NET LOSS BEFORE EXTRAORDINARY ITEM                  (6,119)          (326,998)           (23,548)       (721,464.00)
                                              ============       ============       =============      =============
EXTRAORDINARY ITEM:
Gain on forgiveness of debt                             --          3,192,943                 --          3,192,943
                                              ------------       ------------       ------------       -------------
NET INCOME (LOSS)                             $     (6,119)     $2,865,945.00      $    (23,548)      $2,471,479.00
                                              ============       ============       =============      =============

NET INCOME (LOSS) PER COMMON SHARE -
BASIC AND DILUTED:
From continuing operations                    $      (0.00)      $      (0.01)      $         (0)      $       (0.03)
                                              ============       ============       =============      =============

From discontinued operations                  $       0.00       $       0.00       $          0       $        0.00
                                              ============       ============       =============      =============
From extraordinary item                       $         --       $       0.13       $         --       $        0.13
                                              ============       ============       =============      =============

Net Income (Loss)                              $     (0.00)      $       0.12       $         (0)      $        0.10
                                              ============       ============       =============      =============

WEIGHTED AVERAGE NUMBER OF
  COMMON SHARES - BASIC AND DILUTED             24,758,064         24,758,064         24,817,862         24,817,862
                                              ============       ============       =============      =============

                                                           3
<PAGE>

                                         CASE FINANCIAL, INC. AND SUBSIDIARIES
                                           UNAUDITED STATEMENTS OF CASH FLOWS

-----------------------------------------------------------------------------------------------------------------------


                                                                                            SIX MONTHS     SIX MONTHS
                                                                                              ENDED          ENDED
                                                                                            MARCH 31,      MARCH 31,
                                                                                               2007           2006
                                                                                           ------------- ---------------
 CASH FLOWS FROM OPERATING ACTIVITIES
 ------------------------------------
      Net income (loss)                                                                 $  (211,639)      $ 2,471,479
      Gain (Loss) from discontinued operations                                              188,091                --
                                                                                        ------------      -----------
      Loss from continuing operations                                                       (23,548)        2,471,479
      Adjustments to reconcile net loss to net cash
      provided by (used in) operating activities:
           Gain on forgiveness of debt                                                           --         3,192,943
           Depreciation                                                                       1,071             2,213
           Amortization of debt premium                                                          --            67,972
           Provision for losses on investments in contracts                                      --                --
           Beneficial conversion feature                                                         --                --
           Amortization of warrants issued with debt                                             --            27,637
           Amortization of beneficial conversion feature of convertible debentures               --             4,782
           Common stock and options for compensation/ Directors                                (750)           45,000
           Changes in operating assets and liabilities:
                (Increase) decrease in prepayments and other assets                         (16,733)             (250)
                 Increase (decrease) in accounts payable and accrued expenses               241,687           336,738
                                                                                        ------------      -----------

      NET CASH USED IN CONTINUING OPERATIONS                                                201,727          (237,642)
      NET CASH PROVIDED BY DISCONTINUED OPERATIONS                                          203,132           108,721
                                                                                        ------------      -----------

      NET CASH USED BY OPERATING ACTIVITIES                                                 404,859          (128,921)

 CASH FLOWS FROM INVESTING ACTIVITIES
 ------------------------------------
      Investment in contracts - collections                                                      --                --
      Decrease in loans receivable - collections                                                 --                --
      Purchase of equipment                                                                      --                --
      Increase in restricted cash                                                                --              (427)
                                                                                        ------------      -----------
      NET CASH USED IN CONTINUING OPERATIONS                                                     --              (427)
      NET CASH PROVIDED BY DISCONTINUED OPERATIONS                                               --                --
                                                                                        ------------      -----------

      NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES                                        --              (427)


 CASH FLOWS FROM FINANCING ACTIVITIES
 ------------------------------------
      Proceeds from loans payable                                                          (100,000)           51,540
      Proceeds from loans payable (related party)                                           (44,800)           89,423
      Common stock                                                                           25,000                --
                                                                                        ------------      -----------

      NET CASH USED IN CONTINUING OPERATIONS                                               (119,800)          140,963
      NET CASH PROVIDED BY DISCONTINUED OPERATIONS                                         (330,771)               --
                                                                                        ------------      -----------

      NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                                  (450,571)          140,963
                                                                                        ------------      -----------

     NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS                                     (45,711)           11,615

     CASH & CASH EQUIVALENTS AT BEGINNING OF PERIOD                                         101,299            14,367
                                                                                        ------------      -----------

     CASH & CASH EQUIVALENTS AT END OF PERIOD                                           $    55,588       $    25,982
                                                                                        ===========       ===========


 SUPPLEMENTAL DISCLOSURES OF CASH FLOW
 INFORMATION:

 Interest expense                                                                       $    19,793      $219,563.00
                                                                                        ===========       ===========
 Income taxes paid                                                                      $        --       $        --
                                                                                        ===========       ===========

SUPPLEMENTAL DISCLOSURES OF NON CASH FLOW
 INFORMATION:

 Common stock issued for services                                                                --                --
                                                                                        ===========       ===========
 Common stock issued in payment of accrued interest                                     $        --       $    45,000
                                                                                        ===========       ===========
 Common stock returned to treasury in settlement with debt holders                      $        --      $(325,000.00)
                                                                                        ===========       ===========
 Warrants issued in settlement with debt holders                                        $        --       $405,000.00
                                                                                        ===========       ===========
</TABLE>

                                                           4
<PAGE>

                      CASE FINANCIAL, INC AND SUBSIDIARIES
                           NOTES TO INTERIM CONDENSED
                        CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2007
                                   (UNAUDITED)

NOTE 1 - CONDENSED FINANCIAL STATEMENTS
The accompanying March 31, 2007 condensed consolidated financial statements have
been prepared by the Company without audit. In the opinion of management, all
adjustments (which include only normal recurring adjustments) necessary to
present fairly the financial position, results of operations and cash flows at
March 31, 2007 and for all periods presented have been made. Certain information
and footnote disclosures normally included in financial statements prepared in
accordance with accounting principles generally accepted in the United States of
America have been condensed or omitted. It is suggested that these condensed
consolidated financial statements be read in conjunction with the consolidated
financial statements and notes thereto included in the Company's September 30,
2006 audited consolidated financial statements. The results of operations for
periods ended March 31, 2007 are not necessarily indicative of the operating
results for the full years.

NOTE 2 - GOING CONCERN
The Company's condensed consolidated financial statements are prepared using
generally accepted accounting principles applicable to a going concern, which
contemplates the realization of assets and liquidation of liabilities in the
normal course of business. The accompanying condensed consolidated financial
statements do not include any adjustments relating to the recoverability and
classification of liabilities that might result from the outcome of this
uncertainty. It is management intention to seek additional operating funds
through operations, and debt or equity offerings. Management has yet to decide
what type of offering the Company will use or how much capital the Company will
raise. There is no guarantee that the Company will be able to raise any capital
through any type of offerings.

NOTE 3 - SIGNIFICANT EVENTS

DISCONTINUED OPERATIONS
The Company has discontinued further investment in its Litigation Finance
Business other than the collection or other disposition of its existing loan and
investment portfolio and accordingly has reclassified on its Consolidated
Balance Sheet all assets and liabilities associated with the Litigation Finance
Business as Assets and Liabilities from Discontinued Operations. All revenues
and expenses associated with the Litigation Finance Business have been
reclassified and the net amount reported on its Condensed Consolidated Statement
of Operations as Loss from Discontinued Operations. All revenues and expenses
associated with the Litigation Finance Business have been reclassified and the
net amount reported on its Condensed Consolidated Statement of Operations as
Loss from Discontinued Operations.

LEGAL PROCEEDINGS
On March 25, 2005 a derivative lawsuit was filed by a major stockholder and
secured lender of the Company. The lawsuit was filed in the Court of Chancery of
the State of Delaware against former officers and directors of the Company,
specifically Eric Alden, a former CEO and CFO and Chairman of the Board, Harvey
Bibicoff, a former interim CEO and CFO and director, Lorne Pollock, former Vice
President of Underwriting, Secretary and director and Gordon Gregory, a former
director alleging that these officers and directors had damaged the Company by
(a) engaging in self dealing transactions in breach of their fiduciary duty of
loyalty; (b) mismanaging the Company in violation of their oversight duties and
duty of care; (c) wasting corporate assets; and (d) making fraudulent
misrepresentations which induced the corporate entity to issue shares to these
individuals. The Company's Board of Directors has elected to consent to the
filing of this complaint. The Company was named as a nominal defendant in this
complaint. Management believes that the outcome of this case will not have a
material impact on the financial condition of the Company. Mr. Gregory, Mr.
Pollock and Mr. Bibicoff were released from this action based on settlements
discussed in previous filings. Mr. Alden remains a defendant in this action.

                                       5
<PAGE>

On April 25, 2005, Mr. Alden filed a breach of contract lawsuit against the
Company in the Superior Court of the State of California, Case Number BC 332373.
This lawsuit had been stayed by the court pending the outcome of the derivative
action and was dismissed on January 29, 2007.

On April 19, 2006 Mr. Alden filed a wrongful termination lawsuit against the
Company in the Superior Court of the State of California, Case Number BC 350929.
This lawsuit had been stayed by the court pending the outcome of the derivative
action and was dismissed on January 29, 2007. Mr. Alden has been directed by the
court not to file any additional lawsuits against the Company until the
derivative action has been resolved.

On June 2, 2006, a lawsuit was filed against the Company by a relative of Eric
Alden, in the Superior Court of the State of California, Case Number BC 347120.
The plaintiff is demanding payment on a promissory note in the amount of
$100,000 as well as repayment of three advances made to attorneys by the Company
on the plaintiff's behalf. On February 1, 2007, a settlement agreement was
reached between the Company and the plaintiff where the plaintiff received
$80,000 from moneys collected from one of these three advances. Additionally,
the Company assigned to the plaintiff the right to collect the remaining two
advances directly from the attorney who received the advance.

On June 23, 2006, a lawsuit was filed against the Company by a relative of Eric
Alden, in the Superior Court of the State of California, Case Number BC 347120.
The plaintiff is demanding repayment of two advances made to attorneys by the
Company on the plaintiff's behalf. On February 1, 2007, a settlement agreement
was reached between the Company and the plaintiff where the plaintiff received
$100,000 from moneys collected from one of these two advances. Additionally, the
Company assigned to the plaintiff the right to collect the remaining advance
directly from the attorney who received the advance.

On July 12, 2006, a lawsuit was filed against the Company by Woodland Finance
Inc., a California Corporation, in the Superior Court of the State of
California, Case Number BC 355323. The plaintiff Woodland Finance Inc., as
assignee of Eric Alden and Frederick Barak, is demanding payment on two
promissory notes in the amount of $45,000.00 and $75,000.00. The Company
continues to defend this suit and believes the ultimate outcome of it will not
have a material impact on the Company's financial condition.

On February 27, 2007, the Company filed suit in the United States District
Court, Southern District of California, case number 07CV 0342 W JMA, against the
Canadian Commercial Workers Industry Pension Plan ("CCWIP"), South Ocean
Development Company Ltd. ("South Ocean"), Allen & Company and certain
individuals for fraud arising out of their conduct with respect to prior
litigation over certain agreements to purchase a waterfront hotel property,
overlooking a golf course and marina, including a gaming license, located on the
island of New Providence, Bahamas. The suit alleged that the defendants made
fraudulent misrepresentations intended to induce Case Financial to rely and act
on these misrepresentations and enter into a settlement agreement resolving the
prior litigation. The suit also alleged that the defendants knowingly concealed
facts that would have had a material impact on that settlement agreement. On
April 24, 2007, the Company dismissed this lawsuit, because an employee of
("CCWIPP") refused to release funds owed to Case Financial & therefore the
company could not afford to continue the lawsuit.

On March 6, 2007 a lawsuit was filed in the Circuit Court of the 11th Judicial
Circuit for Miami-Dade County Florida, case number 07-06488CA 02 against the
Company by a law firm, for unpaid legal bills in the amount of $94,036. The
Company believes these fees are exorbitant and will defend this matter.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATION

The discussion contained herein is for the three and six months ended March 31,
2007. The following discussion should be read in conjunction with the Company's
condensed consolidated financial statements and the notes to the condensed
consolidated financial statements included elsewhere in this Quarterly Report on
Form 10-QSB for the quarterly period ended March 31, 2007.

                                       6
<PAGE>

FORWARD LOOKING STATEMENTS
The following discussion contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including statements that include
words such as "anticipates", "expects", "intends", "plans", "believes", "may",
"will" or similar expressions that are intended to identify forward-looking
statements. In addition, any statements that refer to expectations, projections
or other characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking statements. Such statements include,
but are not limited to, statements regarding our intent, belief or current
expectations regarding our strategies, plans and objectives, our product release
schedules, our ability to design, develop, manufacture and market products, our
intentions with respect to strategic acquisitions, the ability of our products
to achieve or maintain commercial acceptance and our ability to obtain financing
for our obligations. Such statements are not guarantees of future performance
and are subject to risks, uncertainties and assumptions that are difficult to
predict. Therefore, the Company's actual results could differ materially and
adversely from those expressed in any forward-looking statements as a result of
various factors. Factors that could cause or contribute to the differences are
discussed in "Factors That May Affect Future Results" in the Company's Form
10KSB filed on January 11, 2007 with the Securities and Exchange Commission.
Except as required by applicable law or regulation, the Company undertakes no
obligation to revise or update any forward-looking statements contained in this
Quarterly Report on Form 10-QSB for the quarterly period ended March 31, 2007.
The information contained in this Quarterly Report on Form 10-QSB for the
quarterly period ended March 31, 2007is not a complete description of the
Company's business or the risks associated with an investment in the Company's
common stock. Each reader should carefully review and consider the various
disclosures made by the Company in this Quarterly Report on Form 10-QSB for the
quarterly period ended March 31, 2007and in the Company's other filings with the
Securities and Exchange Commission.

OVERVIEW
Case Financial, Inc. was incorporated in 1998 and completed a reverse
acquisition with Asia Web Holdings, Inc. ("Asia Web"), a publicly traded company
incorporated in the State of Delaware, on May 24, 2002. As part of the
transaction, Asia Web changed its name to Case Financial, Inc. and continued the
business of the Company. Case Financial, Inc. and its subsidiaries, Case
Financial, LLC, and Case Capital Corporation, (collectively "Case" or the
"Company") provide pre-settlement and post-settlement litigation funding
services to attorneys (and, previously, plaintiffs) involved in personal injury
and other contingency litigation, conducted primarily within the California
courts (the "Litigation Finance Business").

We have experienced substantial operating losses in our Litigation Finance
Business since completing the reverse acquisition with Asia Web and, as a
result, have depleted our working capital available for new advances under our
loan programs. By unanimous consent of the Board of Directors dated September
30, 2005, our Board of Directors approved a resolution declaring that we would
discontinue further investment in our Litigation Finance Business other than the
collection or other disposition of our existing loan and investment portfolio.
We have reclassified on our Consolidated Balance Sheet all assets and
liabilities associated with the Litigation Finance Business as Assets and
Liabilities from Discontinued Operations. All revenues and expenses associated
with the Litigation Finance Business have been reclassified and the net amount
reported on its Consolidated Statement of Operations as Loss from Discontinued
Operations.

We intend to continue our efforts to collect our existing portfolio of loans
receivable and investments in contracts, settle our outstanding obligations
resolve current litigation and minimize operating costs. We believe that our
available current cash resources and anticipated collections will be adequate to
fund our current limited level of operations through its fiscal year ended
September 30, 2007. However, to the extent our estimates and assumptions are
inaccurate and/or we are unable to successfully collect the amounts due on its
portfolio and settle outstanding obligations at reduced amounts, we may not have
sufficient cash resources to fund our ongoing obligations. In such event, we may
be required to seek other funding and/or consider a formal or informal
restructuring or reorganization. In the event we are successful in recovering
cash from these resources in excess of our operating needs, we may utilize this
cash to acquire new business opportunities.

                                       7
<PAGE>

OUR CRITICAL ACCOUNTING POLICIES
The discussion and analysis of the Company's financial condition and results of
operations is based upon the Company's consolidated financial statements, which
have been prepared in accordance with accounting principles generally accepted
in the United States of America. The preparation of these financial statements
requires the Company to make estimates and judgments that affect the reported
amounts of assets, liabilities, revenues and expenses, and related disclosure of
contingent assets and liabilities. On an ongoing basis, the Company evaluates
its estimates, including those related to bad debts, intangible assets, income
taxes, and contingencies and litigation, among others. The Company bases its
estimates on historical experience and on various other assumptions that it
believes to be reasonable under the circumstances, the results of which form the
basis for making judgments about the carrying values of assets and liabilities
that are not readily apparent from other sources. Actual results may differ from
these estimates under different assumptions or conditions. The Company believes
that the following critical accounting policies affect its more significant
judgments and estimates used in the preparation of its consolidated financial
statements: discontinued operations, use of estimates and impairment of
long-lived assets. These accounting policies are discussed in "ITEM 6
-MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION" contained in the
Company's Annual Report on Form 10-KSB for the fiscal year ended September 30,
2006, as well as in the notes to the September 30, 2006 consolidated financial
statements. There have not been any significant changes to these accounting
policies since they were previously reported at September 30, 2006.

GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative expenses consist of costs not directly associated
with our Litigation Finance Business. For the three and six months ended March
31, 2007, administrative expenses decrease $109,166 and $231,995, or 53%,
respectively, to $94,991 and $204,157 for the three and six months ended March
31, 2007.

INTEREST EXPENSES
Interest expense was $10,018 for the three months ended March 31, 2007 compared
with $115,528 for the three months ended March 31, 2006, a decrease of $105,510,
or 91%. For the six months ended March 31, 2007, interest expense was $19,793 as
compared to $219,563 for the six months ended March 31, 2006, an increase of
$199,770 or 91%.

OPERATING ACTIVITIES
Our balance sheet at March 31, 2007 reflects cash of $55,588 compared to cash of
$101,300 at September 30, 2006, a decrease of $45,712. Net cash used in
operating activities was $404,859 for the six months ended March 2007 compared
to ($128,921) for the six months ended March 31, 2006, an increase in cash used
in operating activities of $533,780. Net cash used in operating activities from
continuing operations was $201,727 for the six months ended March 31, 2007 as
compared to $237,642 for the six months ended March 31, 2006, an increase of
$439,369. The increase in cash used in continuing operations is the result of
our decreases in accounts payable and accrued expenses primarily as a result of
forgiveness of debt. Net cash provided by operating activities from discontinued
operations was $203,132 for the six months ended March 31, 2007 as compared to
$108,721 for the six months ended March 31, 2006.

INVESTMENT ACTIVITIES
Net cash provided by investing activities for the six months ended March 31,
2007 was zero compared to net cash provided by investing activities of ($427)
for the six months ended March 31, 2006 a decrease of $427.

FINANCING ACTIVITIES
Net cash provided by financing activities was ($450,571) for the six months
ended March 31, 2007 as compared to net cash used by finance activities of
$140,963 for the six months ended March 31, 2006. This decrease is the result of
repayments of borrowings consisted of officer loans that are classified as
current operations. Net cash used in financing activities from discontinued
operations was $330,771 for the six months ended March 31, 2007.

                                       8
<PAGE>

PRINCIPAL COMMITMENTS
We conduct our operations utilizing leased facilities under a non-cancelable
operating lease agreement expiring on June 1, 2009. Future minimum lease
commitments, excluding property taxes and insurance, are $32,218.24 through the
end of the lease term.

OFF-BALANCE SHEET ARRANGEMENTS
At March 31, 2007, we did not have any transactions, obligations or
relationships that could be considered off-balance sheet arrangements.

ITEM 3.  CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
Disclosure controls and procedures are designed to ensure that information
required to be disclosed in the reports filed or submitted by the Company under
the Securities Exchange Act of 1934 is recorded, processed, summarized and
reported, within the time periods specified in the rules and forms of the
Securities and Exchange Commission. Disclosure controls and procedures include,
without limitation, controls and procedures designed to ensure that information
required to be disclosed in the reports filed under the Securities Exchange Act
of 1934 is accumulated and communicated to the Company's management, including
its principal executive and financial officers, as appropriate, to allow timely
decisions regarding required disclosure. The Company carried out an evaluation,
under the supervision and with the participation of its management, including
its principal executive officer and principal financial officer, of the
effectiveness of the design and operation of the Company's disclosure controls
and procedures as of the end of the period covered by this report. Based upon
and as of the date of that evaluation, the Company's principal executive officer
and financial officers concluded that the Company's disclosure controls and
procedures are effective to ensure that information required to be disclosed in
the reports the Company files and submits under the Exchange Act of 1934 is
recorded, processed, summarized and reported within the time periods specified
in the Securities and Exchange Commission's rules and forms.

CHANGES IN INTERNAL CONTROLS
There were no changes in the Company's internal controls or in other factors
that could have significantly affected those controls subsequent to the date of
the Company's most recent evaluation.

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

On March 25, 2005 a derivative lawsuit was filed by a major stockholder and
secured lender of the Company. The lawsuit was filed in the Court of Chancery of
the State of Delaware against former officers and directors of the Company,
specifically Eric Alden, a former CEO and CFO and Chairman of the Board, Harvey
Bibicoff, a former interim CEO and CFO and director, Lorne Pollock, former Vice
President of Underwriting, Secretary and director and Gordon Gregory, a former
director alleging that these officers and directors had damaged the Company by
(a) engaging in self dealing transactions in breach of their fiduciary duty of
loyalty; (b) mismanaging the Company in violation of their oversight duties and
duty of care; (c) wasting corporate assets; and (d) making fraudulent
misrepresentations which induced the corporate entity to issue shares to these
individuals. The Company's Board of Directors has elected to consent to the
filing of this complaint. The Company was named as a nominal defendant in this
complaint. Management believes that the outcome of this case will not have a
material impact on the financial condition of the Company. Mr. Gregory, Mr.
Pollock and Mr. Bibicoff were released from this action based on settlements
discussed in previous filings. Mr. Alden remains a defendant in this action.

On April 25, 2005, Mr. Alden filed a breach of contract lawsuit against the
Company in the Superior Court of the State of California, Case Number BC 332373.
This lawsuit had been stayed by the court pending the outcome of the derivative
action and was dismissed on January 29, 2007.

                                       9
<PAGE>

On April 19, 2006 Mr. Alden filed a wrongful termination lawsuit against the
Company in the Superior Court of the State of California, Case Number BC 350929.
This lawsuit had been stayed by the court pending the outcome of the derivative
action and was dismissed on January 29, 2007. Mr. Alden has been directed by the
court not to file any additional lawsuits against the Company until the
derivative action has been resolved.

On June 2, 2006, a lawsuit was filed against the Company by a relative of Eric
Alden, in the Superior Court of the State of California, Case Number BC 347120.
The plaintiff is demanding payment on a promissory note in the amount of
$100,000 as well as repayment of three advances made to attorneys by the Company
on the plaintiff's behalf. On February 1, 2007, a settlement agreement was
reached between the Company and the plaintiff where the plaintiff received
$80,000 from moneys collected from one of these three advances. Additionally,
the Company assigned to the plaintiff the right to collect the remaining two
advances directly from the attorney who received the advance.

On June 23, 2006, a lawsuit was filed against the Company by a relative of Eric
Alden, in the Superior Court of the State of California, Case Number BC 347120.
The plaintiff is demanding repayment of two advances made to attorneys by the
Company on the plaintiff's behalf. On February 1, 2007, a settlement agreement
was reached between the Company and the plaintiff where the plaintiff received
$100,000 from moneys collected from one of these two advances. Additionally, the
Company assigned to the plaintiff the right to collect the remaining advance
directly from the attorney who received the advance.

On July 12, 2006, a lawsuit was filed against the Company by Woodland Finance
Inc., a California Corporation, in the Superior Court of the State of
California, Case Number BC 355323. The plaintiff Woodland Finance Inc., as
assignee of Eric Alden and Frederick Barak, is demanding payment on two
promissory notes in the amount of $45,000.00 and $75,000.00. The Company
continues to defend this suit and believes the ultimate outcome of it will not
have a material impact on the Company's financial condition.

On February 27, 2007, the Company filed suit in the United States District
Court, Southern District of California, case number 07CV 0342 W JMA, against the
Canadian Commercial Workers Industry Pension Plan ("CCWIP"), South Ocean
Development Company Ltd. ("South Ocean"), Allen & Company and certain
individuals for fraud arising out of their conduct with respect to prior
litigation over certain agreements to purchase a waterfront hotel property,
overlooking a golf course and marina, including a gaming license, located on the
island of New Providence, Bahamas. The suit alleged that the defendants made
fraudulent misrepresentations intended to induce Case Financial to rely and act
on these misrepresentations and enter into a settlement agreement resolving the
prior litigation. The suit also alleged that the defendants knowingly concealed
facts that would have had a material impact on that settlement agreement. On
April 24, 2007, the Company dismissed this lawsuit, because an employee of
("CCWIPP") refused to release funds owed to Case Financial & therefore the
company could not afford to continue the lawsuit.

On March 6, 2007 a lawsuit was filed in the Circuit Court of the 11th Judicial
Circuit for Miami-Dade County Florida, case number 07-06488CA 02 against the
Company by a law firm, for unpaid legal bills in the amount of $94,036. The
Company believes these fees are exorbitant and will defend this matter.


ITEM 2.  UNREGISTERED SALE OF EQUITY SECURITIES

In February 2007 warrants to purchase 250,000 shares of the Company's common
stock at a price of $.10 per share were exercised. Additionally In March 2007,
certain officers and directors of the Company exercised their remaining warrants
to purchase a total of 1,450,000 shares of the Company's common stock at a price
of $.10 per share.

                                       10
<PAGE>

ITEM 3. DEFAULTS IN SENIOR SECURITIES

As of March 31, 2007, the Company is in default on the following notes:
<TABLE>
<S>     <C>

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

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

     3.   Promissory demand notes, unsecured, interest payable monthly at 12.0%
          per annum. The Company is in default on these notes due to nonpayment
          of interest.                                                               $120,000

</TABLE>

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

None.

ITEM 5.  OTHER INFORMATION

None.

ITEM 6.  EXHIBITS

The following documents are filed as part of this report:

            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

                                   SIGNATURES

In accordance with the requirements of the Exchange Act the Registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                     CASE FINANCIAL, INC.

Dated: May 17, 2007                  /s/ Michael Schaffer
                                     ------------------------------------------
                                     By: Michael Schaffer
                                     Its: Chief Executive Officer (Principal
                                     Executive Officer)

Dated: May 17, 2007                  /s/ Lawrence Schaffer
                                     ------------------------------------------
                                     By: Lawrence Schaffer
                                     Its: Chief Financial Officer (Principal
                                     Financial Officer and Principal Accounting
                                     Officer)





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