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 JUNE 30, 2006
                                       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 June 30, 2006: 21,856,812

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

Documents incorporated by reference: None.
<PAGE>

                              CASE FINANCIAL, INC.
                                TABLE OF CONTENTS
                               FORM 10-QSB REPORT
                                  June 30, 2006

PART I - FINANCIAL INFORMATION                                             Page
                                                                           ----
Item 1.  Interim Consolidated Financial Statements
Condensed Consolidated Balance Sheet as of June 30, 2006 (Unaudited)          1

Condensed Consolidated Statements of Income (Loss) for the Three and Nine
  Month Periods Ended June 30, 2006 and June 30, 2005 (Unaudited)             2

Condensed Consolidated Statements of Cash Flows for the Nine
  Month Periods Ended June 30, 2006 and June 30, 2005 (Unaudited)             3

Notes to Interim Condensed Consolidated Financial Statements for the Nine
  Month Period Ended June 30, 2006  (Unaudited)                               4

Item 2.  Management's Discussion and Analysis or Plan of Operation            8

Item 3.  Controls and Procedures                                             11

PART II - OTHER INFORMATION
Item 1.  Legal Proceedings                                                   11

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds         12

Item 3.  Defaults upon Senior Securities                                     13

Item 4.  Submission of Matters to Vote of Security Holders                   14

Item 5.  Other Information                                                   14

Item 6.  Exhibits                                                            14

Signatures                                                                   14
<PAGE>

PART I - FINANCIAL INFORMATION
Item 1.  Interim Condensed Consolidated Financial Statements (Unaudited)

                      CASE FINANCIAL INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEET
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                              June 30, 2006
                                                                              -------------
<S>                                                                           <C>
ASSETS
Cash & cash equivalents                                                       $       2,190
Cash - restricted                                                                    25,935
Prepayments and deposits                                                              6,336
Equipment, at cost, net of accumulated depreciation of $17,404                        2,142
Assets from discontinued operations                                               1,880,354
                                                                              -------------
                       TOTAL ASSETS                                           $   1,916,957
                                                                              =============

LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Accounts payable and accrued expenses                                         $     433,856
Accrued interest                                                                    265,936
Convertible debentures payable                                                      280,619
Loans payable - related parties                                                     923,800
Loans payable                                                                       320,000
Liabilities from discontinued operations                                          2,025,558
                                                                              -------------
                       TOTAL LIABILITIES                                          4,249,770
                                                                              -------------

STOCKHOLDERS' DEFICIENCY
Common stock, par value $0.001 per share,
  100,000,000 shares authorized, 34, 419,236 and 24,419,236 shares issued
  and outstanding                                                                    34,419
Treasury stock, 1,000,000 shares at cost                                           (240,000)
Paid-in-capital                                                                   9,560,224
Accumulated deficit                                                             (11,687,456)
                                                                              -------------
                       TOTAL STOCKHOLDERS' DEFICIENCY                            (2,332,813)
                                                                              -------------
                       TOTAL LIABILITIES AND
                            STOCKHOLDERS' DEFICIENCY                          $   1,916,957
                                                                              =============
</TABLE>

  See accompanying notes to theses unaudited consolidated financial statements


                                       1
<PAGE>

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

<TABLE>
<CAPTION>
                                                    Three month periods ended June 30,       Nine month periods ended June 30,
                                                    -----------------------------------     -----------------------------------
                                                          2006                 2005               2006                2005
                                                    ---------------     ---------------     ---------------     ---------------
<S>                                                 <C>                 <C>                 <C>                 <C>
NET REVENUE                                         $            --     $         7,125     $            --     $        82,543

OPERATING EXPENSES
      Provisions for losses on investments in
        contracts                                                                  (500)                                 33,524
      General and administrative                            113,932             141,251             539,240             602,681
                                                    ---------------     ---------------     ---------------     ---------------
      LOSS FROM OPERATIONS                                 (113,932)           (133,626)           (539,240)           (553,661)

OTHER INCOME (EXPENSE)
      Interest income                                            16                  36                 188                 417
      Interest expense                                      (32,384)           (107,502)           (251,947)           (314,836)
      Non-cash finance expenses                             (16,074)            (50,670)            (82,732)           (158,573)
      Other income (loss)                                     1,515                  --               1,515                  --
                                                    ---------------     ---------------     ---------------     ---------------

         TOTAL OTHER INCOME (EXPENSE)                       (46,927)           (158,136)           (332,976)           (472,993)
                                                    ---------------     ---------------     ---------------     ---------------
NET LOSS BEFORE DISCONTINUED OPERATIONS AND
EXTRAORDINARY ITEM                                         (160,858)           (291,762)           (872,215)         (1,026,654)

GAIN (LOSS) FROM DISCONTINUED OPERATIONS                     31,393                  --              21,286                  --
                                                    ---------------     ---------------     ---------------     ---------------
      NET LOSS BEFORE EXTRAORDINARY ITEM                   (129,465)           (291,762)           (850,929)         (1,026,654)

      EXTRAORDINARY ITEM:
            Gain on forgiveness of debt                           0                  --           3,192,943                  --
                                                    ---------------     ---------------     ---------------     ---------------

         NET INCOME (LOSS)                          $      (129,465)    $      (291,762)    $     2,342,014     $    (1,026,654)
                                                    ===============     ===============     ===============     ===============

Net income (loss) per common share --
  basic and diluted:
      From continuing operations                    $         (0.01)    $         (0.02)    $         (0.03)    $         (0.05)
                                                    ===============     ===============     ===============     ===============
      From discontinued operations                  $          0.00     $         (0.00)    $          0.00     $         (0.00)
                                                    ===============     ===============     ===============     ===============
      From extraordinary item                       $          0.13     $         (0.00)    $          0.13     $         (0.00)
                                                    ===============     ===============     ===============     ===============
      Net income (loss)                             $          0.12     $         (0.02)    $          0.10     $         (0.05)
                                                    ===============     ===============     ===============     ===============
      Weighted average number of common shares -
      basic and diluted                                  24,758,064          17,250,005          24,817,862          18,854,371
                                                    ===============     ===============     ===============     ===============
</TABLE>

  Weighted average shares of dilutive securities has not been taken since the
                 effect of dilutive securities is anti dilutive

  See accompanying notes to theses unaudited consolidated financial statements


                                       2
<PAGE>

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

<TABLE>
<CAPTION>
                                                                                      Nine months ended June 30,
                                                                                        2006               2005
                                                                                  --------------      --------------
<S>                                                                               <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss before extra ordinary item - forgiveness of debt, 2006 and
  Net loss, 2005                                                                  $     (850,929)     $   (1,026,654)

Adjustments to reconcile net loss to net cash used in operating activities:

      Gain on forgiveness of debt                                                      3,192,943                  --

      Depreciation                                                                         2,213              16,542

      Provisions for losses on investments in contract                                                        33,524

      Amortization of debt premium                                                             0              50,563

      Amortization of warrants issued with debt                                                0              82,300

      Amortization of beneficial conversion feature of convertible debentures              7,173               3,188
      Common stock and options for compensation                                                0                  --
      Changes in operating assets and liabilities

          (Increase) decrease in prepayments and other assets                             67,857              49,076
          Increase (decrease) in accrued interest                                       (443,097)
          Increase (decrease) in accounts payable and other liabilities                  175,504             108,817
                                                                                  --------------      --------------
             Net cash used in continuing operations                                    2,151,664            (682,641)

             Net cash used by discontinued operations                                    (30,260)                 --
                                                                                  --------------      --------------
             Net cash used by operating activities                                     2,121,404            (682,641)
                                                                                  --------------      --------------
CASH FLOWS FROM INVESTING ACTIVITIES:

        Purchase of equipment                                                                 --              (2,881)
        Increase in restricted cash                                                         (935)                 --
                                                                                  --------------      --------------
             Net cash used in continuing operations                                         (935)             (2,881)
             Investment in contracts  -- collections                                                         156,026
             Decrease in loans receivable - collections                                                      603,567

             Net cash provided by continued operations                                         0             756,712
                                                                                  --------------      --------------
             Net cash provided by discontinued operations                                125,492
                                                                                  --------------
             Net cash provided by (used in) investing activities                         124,557             756,712
                                                                                  --------------      --------------
</TABLE>


                                       3
<PAGE>

<TABLE>
<CAPTION>
<S>                                                                               <C>                 <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
     Proceeds from issuance of stock, net                                                435,899             490,000
     Treasury stock purchased                                                           (240,000)
                                                                                  --------------
     Reduction in related party borrowings                                            (2,505,577)             70,637
                                                                                  --------------
     Repayment of borrowings from related party borrowings                                                  (560,216)
     Proceeds from loans payable                                                          51,540                  --
                                                                                  --------------
     Repayments of borrowings                                                                 --              (2,216)
                                                                                  --------------      --------------
             Net cash provided by continuing operations                               (2,258,138)             (1,795)
                                                                                                      --------------
             Net cash (used in) discontinued operations                                       --                  --
                                                                                  --------------      --------------
             Net cash provided by (used in) financing activities                      (2,258,138)             (1,795)
                                                                                                      --------------
NET INCREASE IN CASH & CASH EQUIVALELNTS                                                 (12,177)             72,276

CASH & CASH EQUIVELNTS - BEGINNING OF PERIOD                                              14,367              33,383
                                                                                  --------------      --------------
CASH & CASH EQUIVELNTS - END OF PERIOD                                            $        2,190      $      105,659
                                                                                  ==============      ==============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
  Cash paid during the nine month period for:
     Interest                                                                     $       32,384      $        1,226
                                                                                  ==============      ==============
     Income taxes                                                                 $            0      $        4,980
                                                                                  ==============      ==============
SUPPLEMENTAL SCHEDULE OF NON-CASH FINANCING AND INVESTING ACTIVITIES:
Common stock issued in payment of accrued interest                                $       45,000      $           --
                                                                                  ==============      ==============
Common stock returned to treasury in settlement with debt holders                 $   (1,000,000)     $           --
                                                                                  ==============      ==============
Warrants issued in settlement with debt holders                                   $      505,000      $           --
                                                                                  ==============      ==============
</TABLE>

          See accompanying notes to consolidated financial statements.


                                       4
<PAGE>

                      CASE FINANCIAL, INC. AND SUBSIDIARIES
                           NOTES TO INTERIM CONDENSED
                        CONSOLIDATED FINANIAL STATEMENTS
                                  JUNE 30, 2006
                                   (UNAUDITED)

NOTE 1 -   CONDENSED FINANCIAL STATEMENTS

The accompanying June 30, 2006 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 June 30, 2006 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 financial
statements be read in conjunction with the financial statements and notes
thereto included in the Company's September 30, 2005 audited financial
statements. The results of operations for periods ended June 30, 2006 are not
necessarily indicative of the operating results for the full years.

NOTE 2 - GOING CONCERN

The Company's 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 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

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. Included in
this reclassification is a 65.63% interest in secured notes issued by Case
Financial Funding, Inc, a subsidiary of Old Case ("CFF"), acquired in February
2005 and valued at $287,000 as of the date acquired, that provide the holder
with a secured interest in the proceeds of the outstanding cases of CFF as more
fully described in Note 7 - Convertible Debentures. 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. Furthermore the Company has reclassified its
consolidated financial statements as of June 30, 2006 to reflect such accounting
treatment.

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


                                       5
<PAGE>

NOTE 3 - SIGNIFICANT EVENTS - CONTINUED

case will not have a material impact on the financial condition of the Company.
On October 5, 2005, Mr. Gregory, Mr. Pollock, and the Company executed a
Settlement and Release Agreement regarding this action pursuant to which; a) Mr.
Gregory would return to the Company for cancellation 750,000 shares of common
stock owned or controlled by him and return and cancel two promissory notes of
the Company totaling $100,000; b) Mr. Pollock would return to the Company for
cancellation 100,000 shares of common stock owned or controlled by him and repay
in cash to the Company $15,160; C) Mr. Pollock and Mr. Gregory would be released
from further action by the majority stockholder and the Company with respect to
the claims made in the derivative lawsuit, and; d) Mr. Pollock and Mr. Gregory
agree to waive any and all further claims against the Company and the major
stockholder. The foregoing agreement was approved by the Court of Chancery in
the State of Delaware and was consummated in February 2006. Mr. Alden and Mr.
Bibicoff remain as defendants in this action. Further, Mr. Alden filed a breach
of contract action, which has been stayed, by the court pending outcome of the
derivative action suit. Additionally, on April 19, 2006 Mr. Alden filed a
wrongful termination action, which the Company has filed a motion to stay
pending the outcome of the derivative action suit.

On August 8, 2005, a lawsuit was filed against the Company by a former CEO and
director in the Superior Court of the State of California, Case Number BC
337914, demanding payment of two promissory notes in the amounts of $600,000 and
$40,000 and purporting other amounts due and owning by the Company for past
wages and other fees due related to cases for which the former CEO and director
participated in the funding. It is the Company's position that the notes were
the result of improper, invalid and illegal transfers of debts from other
entities to Case Financial that were done without Board Approval in violation of
Delaware and California Corporate Law and in breach of the former CEO and
director fiduciary duties. The Company does not believe the outcome of this case
will have a material effect on the financial condition of the Company as stated
in that the promissory notes and the accrued interest thereon are recorded as
liabilities of the Company and other claims purported to be due and owning by
the Company for past wages and other fees due related to cases for which the
former CEO and director participated in the funding are without merit.

On June 2, 2006, a suit was filed against the Company by a relative of Eric
Alden a former CEO and director of the Company in the Superior Court of the
State of California, Case Number BC 347120, 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. The Company does not believe
that the outcome of this case will have a material effect on the financial
condition of the Company.

On June 12, 2006 the Company entered into a settlement agreement with certain
creditors of Old Case Inc. Under the terms of the settlement agreement, those
creditors returned to the Company an aggregate of 1,812,424 common shares of the
Company's common stock and assigned their interest in Old Case Inc. to the
Company. This settlement agreement specifically releases each of the named
creditors from any and all claims against them by the Company and indemnifies
those creditors against any and all cross claims by former Old Case creditors,
officers, and directors.

On June 23, 2006, a suit was filed against the Company by a relative of Eric
Alden a former CEO and director of the Company in the Superior Court of the
State of California, Case Number BC 347120, demanding repayment of two advances
made to attorneys by the Company on the plaintiff's behalf. The Company does not
believe that the outcome of this case will have a material effect on the
financial condition of the Company.

In addition to the foregoing, the Company has initiated several actions against
attorneys who where the beneficiary of the companies litigation financing
programs and who breached their agreements with the Company relative to such
financing. The Company has fully reserved the amounts outstanding for these
advances, which have since been classified as assets from discontinued
operations.


                                       6
<PAGE>

NOTE 3 - SIGNIFICANT EVENTS - CONTINUED

SETTLEMENT - FORGIVENESS OF DEBT

On March 31, 2006 the Company reached a settlement agreement with the Canadian
Commercial Workers Industry Pension Plan and several of its subsidiaries
("CCWIPP"). CCWIPP was the Company's largest secured creditor as well as a
shareholder.

This settlement agreement resolves the Company's outstanding loans to CCWIPP,
the common stock of the Company held by CCWIPP and dismisses the litigation
commenced by the Company with regard to business issues between the Company and
CCWIPP.

The key terms to this agreement are:

      o     The Company and CCWIPP shall form an Operating Committee to oversee
            the collection of receivables due from advances made through the
            Company by both parties. This Operating Committee would be given the
            sole right and power to pursue collection on behalf of and for the
            benefit of both parties.

      o     The net proceeds of moneys collected by the Operating Committee or
            moneys received from the derivative lawsuit filed against former
            officers and directors of the Company would be divided between the
            parties, 60% of the net proceeds due to CCWIPP and 40% of the net
            proceeds due to the Company. Once CCWIPP has recovered $4,000,000,
            this division would reverse with 60% of the net proceeds due to the
            Company and 40% of the net proceeds due to CCWIPP.

      o     The cancellation of $2,500,000 in notes plus all accrued interest
            owed to CCWIPP by the Company.

      o     The dismissal of the lawsuit filed by the Company against CCWIPP.

      o     The return of 1,000,000 shares of the Company's common stock to the
            Company treasury and the cancellation of 3,000,000 warrants to
            purchase the Company's common stock at an exercise price of $.50
            that had been issued to CCWIPP.

      o     The issuance of new warrants to CCWIPP to purchase up to 1,500,000
            shares of the Company's common stock at an exercise price of $.25.
            These warrants expire on December 31, 2008.

As a result of the foregoing, the Company recognized a gain on forgiveness of
debt of $2,979,601 consisting of $2,500,000 in principal of debt forgiven,
$644,601 of accrued interest on the foregoing principal through March 31, 2006,
$240,000 representing the market value of the 1,000,000 shares of the Company's
common stock returned at price per share of $0.24, the market value as of the
date of the settlement agreement. The foregoing is offset by $405,000
representing the value, as determined using the Black-Scholes option pricing
model, of the new warrants to CCWIPP to purchase up to 1,500,000 shares of the
Company's common stock at an exercise price of $.25. These warrants expire on
December 31, 2008.

On October 5, 2005, the Company and a former director and a former Vice
President of Underwriting, Secretary and director of the Company executed a
Settlement and Release Agreement regarding a derivative lawsuit filed by CCWIPP
pursuant to which; a) the former director would return to the Company for
cancellation 750,000 shares of common stock owned or controlled by him and
return and cancel two promissory notes of the Company totaling $100,000; b) the
former Vice President of Underwriting, Secretary and director would return to
the Company for cancellation 100,000 shares of common stock owned or controlled
by him and repay in cash to the Company $15,160; c) both parties would be
released from further action by the CCWIPP and the Company with respect to the
claims made in the derivative lawsuit, and; d) both parties agree to waive any
and all further claims against the Company and CCWIPP. The foregoing agreement
was approved by the court in February 2006.


                                       7
<PAGE>

Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations

The discussion contained herein is for the three and nine months ended June 30,
2006 and 2005. 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 June 30, 2006. 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/A filed on January 23, 2006 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 June 30, 2006.
The information contained in this Quarterly Report on Form 10-QSB for the
quarterly period ended June 30, 2006 is 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 June 30, 2006 and 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. Furthermore, we have reclassified our prior period consolidated
financial statements to reflect such accounting treatment.


                                       8
<PAGE>

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. In March 2006, we
reached a settlement with our largest creditor and stockholder, which resulted
in the cancellation of $2,500,000 in outstanding and delinquent debt and had
also reached a settlement regarding an additional $100,000 in outstanding debt
in February 2006. 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, 2006. 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.

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/A for the fiscal year ended September 30,
2005, as well as in the notes to the September 30, 2005 consolidated financial
statements. There have not been any significant changes to these accounting
policies since they were previously reported at September 30, 2005.

General and Administrative Expenses

General and administrative expenses consist of costs not directly associated
with our Litigation Finance Business. For the three and nine months ended June
30, 2006, administrative expenses decreased by $27,319 and $63,441, or 19 % and
11 %, respectively, to $113,932 and $539,240 for the three and nine months ended
June 30, 2006.

Interest Expense

Interest expense was $32,384 for the three months ended June 30, 2006 compared
with $107,502 for the three months ended June 30, 2005, a decrease of $75,118.
Interest expense was $ 251,947 for the nine months ended June 30, 2006 compared
with $314,836 for the nine months ended June 30, 2005, a decrease of $ 62,889.

Non-Cash Finance Expense

Non-cash finance expenses were $16,074 for the three months ended June 30, 2006,
as compared with $50,670 during the three months ended June 30, 2005, a decrease
of $34,596. Non-cash finance expenses were $82,732 for the nine months ended
June 30, 2006, as compared with $ 158,573 during the nine months ended June 30,
2005, a decrease of $ 75,841.


                                       9
<PAGE>

Non-cash finance expenses represent amortized costs of common stock, options and
warrants granted in conjunction with financing transactions. In as much as the
underlying notes associated with these deferred interest, specifically the $2.0
million and $150,000 notes payable to a related party (a major stockholder) and
the $50,000 note payable to an unrelated party are in default and therefore
deemed immediately due and payable, we have written off the balance of deferred
interest totaling $27,115.

Liquidity and Capital Resources

In their report dated December 19, 2005 on the financial statements for the
fiscal year ended September 30, 2005; our independent auditors expressed
substantial doubt about our ability to continue as a going concern. We have
discontinued our principal business, the Litigation Finance Business. We have
incurred net losses of $ $1,586,202 and $2,578,438 during the years ended
September 30, 2005 and 2004, respectively. There was an accumulated deficit of
$14,030,360 as of September 30, 2005 and total liabilities exceeded total assets
by $4,871,616 as of September 30, 2005. As of June 30, 2006, we had an
accumulated deficit of $11,687,456, a stockholders' deficiency of $2,332,813,
and a net loss and negative cash flows from operating activities for the three
and nine-months ended June 30, 2006 of $129,465 and $ 539,240, respectively. Our
current cash is not sufficient to sustain our operations unless we are
successful at collecting amounts due and owing on our existing investment in
contracts and loan receivable portfolios and/or raising additional capital.
These conditions raise substantial doubt about our ability to continue as a
going concern and our financial statements do not include any adjustments that
might result from the outcome of this uncertainty.

Operating Activities

Our balance sheet at June 30, 2006 reflects cash of $2,190 compared to cash of
$14,367 at September 30, 2005, a decrease of $12,177. Net cash used in operating
activities was $52,275 for the three months ended June 30, 2006 compared to
$544,177 for the three months ended June 30, 2005, a decrease in cash used in
operating activities of $153,862. The decrease in cash used in continuing
operations is the result of our increases in accounts payable and accrued
expenses primarily as a result of our non payment of interest.

Investment Activities

Net cash provided by investing activities for the three months ended June 30,
2006 was $5,948 compared to net cash provided by investing activities of
$590,840 for the three months ended June 30, 2006 a decrease of $584,856. This
decrease is the result of our inability to collect on the remaining cases in our
portfolio of cases in the discontinued Litigation Finance Business.

Financing Activities

Net cash provided by financing activities was $41,300 for the three months ended
June 30, 2006 as compared to net cash used by finance activities of $302,947 for
the three months ended June 30, 2005 an increase of $344,247. Net cash provided
by financing activities for the three months ended June 30, 2006 consisted of
officer loans and are classified as current operations. Net cash used in
financing activities from discontinued operations was $302,947 for the three
months ended June 30, 2005 as a result of repayments of third party non-recourse
loans from funding of cases that were settled and collected during the period.

Principal Commitments

We conduct our operations utilizing leased facilities under a non-cancelable
operating lease agreement expiring on October 31, 2006. Future minimum lease
commitments, excluding property taxes and insurance, are $13,816 through the end
of the lease term.


                                       10
<PAGE>

Off-Balance Sheet Arrangements

At June 30, 2006, we did not have any transactions, obligations or relationships
that could be considered off-balance sheet arrangements.

Item 3.  Controls and Procedures.

(a)   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.

(b)   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 August 8, 2005, a lawsuit was filed against the Company by a former CEO and
director in the Superior Court of the State of California, Case Number BC
337914, demanding payment of two promissory notes in the amounts of $600,000 and
$40,000 and purporting other amounts due and owning by the Company for past
wages and other fees due related to cases for which the former CEO and director
participated in the funding. It is the Company's position that the notes were
the result of improper, invalid and illegal transfers of debts from other
entities to Case Financial that were done without Board Approval in violation of
Delaware and California Corporate Law and in breach of the former CEO and
director fiduciary duties. The Company does not believe the outcome of this case
will have a material effect on the financial condition of the Company as stated
in that the promissory notes and the accrued interest thereon are recorded as
liabilities of the Company and other claims purported to be due and owning by
the Company for past wages and other fees due related to cases for which the
former CEO and director participated in the funding are without merit.


                                       11
<PAGE>

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. On October 5, 2005,
Mr. Gregory, Mr. Pollock, and the Company executed a Settlement and Release
Agreement regarding this action pursuant to which; a) Mr. Gregory would return
to the Company for cancellation 750,000 shares of common stock owned or
controlled by him and return and cancel two promissory notes of the Company
totaling $100,000; b) Mr. Pollock would return to the Company for cancellation
100,000 shares of common stock owned or controlled by him and repay in cash to
the Company $15,160; c) Mr. Pollock and Mr. Gregory would be released from
further action by the majority stockholder and the Company with respect to the
claims made in the derivative lawsuit, and; d) Mr. Pollock and Mr. Gregory agree
to waive any and all further claims against the Company and the major
stockholder. The foregoing agreement was approved by the Court of Chancery in
the State of Delaware and was consummated in February 2006. Mr. Alden and Mr.
Bibicoff remain as defendants in this action. Further, Mr. Alden filed a breach
of contract action, which has been stayed, by the court pending outcome of the
derivative action suit. Additionally, on April 19, 2006 Mr. Alden filed a
wrongful termination action, which the Company has filed a motion to stay
pending the outcome of the derivative action suit.

On June 2, 2006, a suit was filed against the Company by a relative of Eric
Alden a former CEO and director of the Company in the Superior Court of the
State of California, Case Number BC 347120, 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. The Company does not believe
that the outcome of this case will have a material effect on the financial
condition of the Company.

On June 23, 2006, a suit was filed against the Company by a relative of Eric
Alden a former CEO and director of the Company in the Superior Court of the
State of California, Case Number BC 347120, demanding repayment of two advances
made to attorneys by the Company on the plaintiff's behalf. The Company does not
believe that the outcome of this case will have a material effect on the
financial condition of the Company.

In addition to the foregoing, the Company has initiated several actions against
attorneys who where the beneficiary of the companies litigation financing
programs and who breached their agreements with the Company relative to such
financing. The Company has fully reserved the amounts outstanding for these
advances, which have since been classified as assets from discontinued
operations.

Item 2.  Unregistered Sale of Equity Securities.

On October 19, 2005, the Company issued 200,000 shares of its common stock in
payment of accrued interest on the outstanding convertible debentures in the
amount of $7,175 ($0.072 per share).

On October 20, 2005, the Company entered into a one year agreement for services
with Kaliber Management Corporation ("Kaliber") to assist the Company in seeking
additional capital pursuant to which the Company issued to Kaliber 300,000
shares of its common stock and agreed to pay a finders' fees for corporate
financings with entities introduced to the Company by Kaliber in the amount of
5% on the first $1.0 million in financing, 4% on amounts between $1.0 million
and $2.0 million, 3% on amounts between $2.0 million and $3.0 million, 2% on
amounts between $3.0 million and $4.0 million, and 1% on amounts over $4.0
million . The market value of the stock on the date granted was $0.08 per share
for a total of $24,000 was charged to financial consulting fees.

On October 25, 2005, the Company issued 150,000 shares of its common stock to
each of the Company's four directors, a total of 600,000 shares, as compensation
for services for the year ended September 30, 2005. The market value of the
stock on the date granted was $0.10 per share for a total of $60,000, which was
charged to director's compensation as of September 30, 2005.

                                       12
<PAGE>

On November 23, 2005, the Company entered into a one year agreement for services
with James Caplan, dba Market Maker's ("Market Maker's"), to assist the Company
in investor relations, pursuant to which the Company agreed to pay $1,000 per
month and issued to Market Maker's 100,000 shares of its common stock upon
signing and further agreed to issue an additional 100,000 shares of its common
stock after a ninety day evaluation period. The market value of the stock on the
date granted was $0.21 per share for a total of $21,000 was charged to financial
consulting fees.

On January 9, 2006, the Company issued 50,000 shares of common stock to the
holder of the secured note payable in accordance with the terms of the secured
note entered into on December 30, 2005 as additional interest expense. The
common stock was valued at $0.11 per share resulting in charge to expense of
$5,500.

On April 5, 2006 in accordance with the terms of a secured note payable, the
Company issued 50,000 shares of common stock to the note holder. The market
value of the stock on the date of issue was $0.31 per share, which will result
in a charge to interest of $15,500, which will be amortized through December 31,
2006, the remaining term of the note.

On April 5, 2006 in accordance with the terms of a one-year agreement for
services, the Company issued 100,000 shares of common stock to the Market
Maker's. The market value of the stock on the date of issue was $0.31 per share,
which will result in a charge to general and administrative expense of $31,000,
which will be amortized through November 2006, the remaining term of the
agreement.

On May 3, 2006, a shareholder exercised a warrant to purchase 100,000 shares of
the Company common stock at an exercise price of $0.10 per share. The company
received $10,000.00 as a result of this transaction.

Item 3.  Defaults In Senior Securities.

As of June 30, 2006, the Company is in default on the following notes:

<TABLE>
<CAPTION>
<S>                                                                                          <C>
     1.  Note payable, unsecured, payable May 23, 2004 plus interest at 8% per
         annum. The Company is in default on this loan and, as of March 31, 2006
         accrued interest totaled $100,000. The note holder has filed suit
         against the Company for non-payment.                                                $ 600,000

     2.  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

     3.  Promissory demand notes, unsecured, interest payable monthly at 12.0% per
         annum. The Company is in default on all of these notes due to non-payment
         of interest and, as of March 31, 2006, accrued interest totaled $47,462.
         The note holder of a $40,000 note included herein has filed suit against
         the Company for non-payment.                                                        $ 110,000

     4.  Note payable unsecured payable May 23, 2004 plus interest at 8% per annum.
         The Company is in default on this note due to non-payment of interest.              $ 100,000
</TABLE>


                                       13
<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                          <C>
     5.  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
         non-payment of interest.                                                            $  50,000

     6.  Promissory demand notes, unsecured, interest payable monthly at 12.0% per
         annum. The Company is in default on these notes due to non-payment 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: August 20, 2006                  /s/ Michael Schaffer
                                        ----------------------------------------
                                        By: Michael Schaffer
                                        Its: Chief Executive Officer (Principal
                                        Executive Officer)


Dated: August 20, 2006                  /s/ Lawrence Schaffer
                                        ----------------------------------------
                                        By: Lawrence Schaffer
                                        Its: Chief Financial Officer (Principal
                                        Financial Officer and Principal
                                        Accounting Officer)


                                       14