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| NEVADA                                                         | 88-0199674                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
|                                                           |                                 |
| 7800 BELFORT PARKWAY, SUITE 165                                |                                 |
| JACKSONVILLE, FLORIDA                                          | 32256                                |
| (Address of principal executive offices)                       | (Zip Code)                           |

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| Large accelerated Filer  ̈ | Accelerated Filer  ̈    |
|--------------------------------|-----------------------------|
| Non-accelerated Filer  ̈   | Smaller reporting company x |

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| TABLE OF CONTENTS   | Page No.                                                                         |
|---------------------|---------------------------------------------------------------------------------------|
|                |                                                                                  |   |
| PART  I   | FINANCIAL INFORMATION                                                                 |   |
|                |                                                                                  |   |
| Item  1.  | Financial Statements (unaudited)                                                      |   4 |
| Item  2.  | Management's Discussion and Analysis of Financial Condition and Results of Operations | 18 |
| Item  3.  | Quantitative and Qualitative Disclosure About Market Risk                             | 28 |
| Item  4.  | Controls and Procedures                                                               | 28 |
|                |                                                                                  |   |
| PART  II  | OTHER INFORMATION                                                                     |   |
|                |                                                                                  |   |
| Item  1.  | Legal Proceedings                                                                     | 29 |
| Item  1A. | Risk Factors                                                                          | 29 |
| Item  2.  | Unregistered Sales of Equity Securities and Use of Proceeds                           | 29 |
| Item  3.  | Defaults Upon Senior Securities                                                       | 29 |
| Item  4.  | [Removed and Reserved]                                                                | 29 |
| Item  5.  | Other Information                                                                     | 29 |
| Item  6.  | Exhibits                                                                              | 29 |
|                |                                                                                  |   |
| SIGNATURES          |                                                                                  | 30 |

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|                                                                           |   | (Unaudited)              |       |   | (Audited)                   |   |
|--------------------------------------------------------------------------------|--------|--------------------------|------------|--------|-----------------------------|--------|
|                                                                           |   | March 31, 2011 |       |   | December 31, 2010 |   |
| ASSETS                                                                         |   |                     |       |   |                        |   |
| Current assets                                                                 |   |                     |       |   |                        |   |
| Cash and cash equivalents                                                      |   | $                        | 1,656,850  |   |                        | $      | 1,743,562 |   |
| Accounts receivable, net of allowance of $5,302 in 2011 and $4,354 in 2010     |   |                     | 954,366    |   |                        |   | 410,956 |   |
| Inventory, net of allowance for obsolescence of $182,572 in 2011 and 2010 |   |                     | 1,938,129  |   |                        |   | 1,389,606 |   |
| Deferred tax asset - current                                                   |   |                     | 363,926    |   |                        |   | 363,926 |   |
| Prepaid expenses and other current assets                                      |   |                     | 108,397    |   |                        |   | 139,551 |   |
| Total current assets                                                           |   |                     | 5,021,668  |   |                        |   | 4,047,601 |   |
|                                                                           |   |                     |       |   |                        |   |   |   |
| Fixed assets, net                                                              |   |                     | 9,349,037  |   |                        |   | 9,581,561 |   |
|                                                                           |   |                     |       |   |                        |   |   |   |
| Other assets                                                                   |   |                     |       |   |                        |   |   |   |
| Merchant contracts, net                                                        |   |                     | 12,012,871 |   |                        |   | 10,879,029 |   |
| Intangible assets, net                                                         |   |                     | 4,209,293  |   |                        |   | 4,219,216 |   |
| Deferred tax asset - non-current                                               |   |                     | 1,611,285  |   |                        |   | 1,611,285 |   |
| Other assets                                                                   |   |                     | 95,969     |   |                        |   | 66,807 |   |
|                                                                           |   |                     |       |   |                        |   |   |   |
| Total assets                                                                   |   | $                        | 32,300,123 |   |                        | $      | 30,405,499 |   |
|                                                                           |   |                     |       |   |                        |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                           |   |                     |       |   |                        |   |   |   |
| Current liabilities                                                            |   |                     |       |   |                        |   |   |   |
| Accounts payable and accrued liabilities                                       |   | $                        | 5,725,898  |   |                        | $      | 4,604,837 |   |
| Notes payable - related parties  - current portion, net              |   |                     | 30,547     |   |                        |   | 29,740 |   |
| Notes payable - current portion                                                |   |                     | 22,316     |   |                        |   | 21,777 |   |
| Senior lenders' notes payable - current portion, net                           |   |                     | 3,070,362  |   |                        |   | 2,426,915 |   |
| Capital lease obligations - current portion                                    |   |                     | 411,649    |   |                        |   | 455,188 |   |
| Total current liabilities                                                      |   |                     | 9,260,772  |   |                        |   | 7,538,457 |   |
|                                                                           |   |                     |       |   |                        |   |   |   |
| Long-term liabilities                                                          |   |                     |       |   |                        |   |   |   |
| Notes payable - related parties - long-term portion, net                       |   |                     | 35,918     |   |                        |   | 43,694 |   |
| Notes payable - long-term portion                                              |   |                     | 45,706     |   |                        |   | 51,476 |   |
| Senior lenders' notes payable - long-term portion, net                         |   |                     | 7,300,382  |   |                        |   | 6,622,539 |   |
| Capital lease obligations - long-term portion                                  |   |                     | 129,231    |   |                        |   | 205,275 |   |
| Total liabilities                                                              |   |                     | 16,772,009 |   |                        |   | 14,461,441 |   |
|                                                                           |   |                     |       |   |                        |   |   |   |
| Stockholders' equity                                                           |   |                     |       |   |                        |   |   |   |
| Preferred stock; $0.001 par value; 5,000,000 shares                            |   |                     |       |   |                        |   |   |   |
| authorized, no shares issued and outstanding                                   |   |                     | -          |   |                        |   | - |   |
| Common stock; $0.001 par value; 45,000,000 shares authorized,                  |   |                     |       |   |                        |   |   |   |
| 22,985,188 and 22,292,469 shares issued and 22,544,726 and 22,139,444 shares   |   |                     |       |   |                        |   |   |   |
| outstanding at March 31, 2011 and December 31, 2010, respectively              |   |                     | 22,594     |   |                        |   | 22,188 |   |
| Additional paid-in capital                                                     |   |                     | 23,468,177 |   |                        |   | 23,202,338 |   |
| Accumulated deficit                                                            |   |                     | (7,742,146 | )      |                        |   | (7,198,502 | ) |
| Treasury stock; 440,462 and 153,025 shares of common stock at cost             |   |                     |       |   |                        |   |   |   |
| at March 31, 2011 and December 31, 2010, respectively                          |   |                     | (220,511   | )      |                        |   | (81,966 | ) |
| Total stockholders' equity                                                     |   |                     | 15,528,114 |   |                        |   | 15,944,058 |   |
| Total liabilities and stockholders' equity                                     |   | $                        | 32,300,123 |   |                        | $      | 30,405,499 |   |

----

|                                          |   | For the Three Months Ended |       |
|-----------------------------------------------|--------|------------------------------------------------|------------|
|                                          |   | March 31, 2011                       |       |   | March 31, 2010 |   |
|                                          |   |                                           |       |   |   |   |
| Revenues                                      |   | $                                              | 7,950,071  |   |   | $ | 5,380,078 |   |
|                                          |   |                                           |       |   |   |   |   |   |
| Cost of revenues                              |   |                                           | 4,876,170  |   |   |   | 2,857,934 |   |
| Gross profit                                  |   |                                           | 3,073,901  |   |   |   | 2,522,144 |   |
|                                          |   |                                           |       |   |   |   |   |   |
| Operating expenses                            |   |                                           |       |   |   |   |   |   |
| Depreciation expense                          |   |                                           | 575,324    |   |   |   | 309,895 |   |
| Amortization of intangible merchant contracts |   |                                           | 288,438    |   |   |   | 199,332 |   |
| Selling, general and administrative           |   |                                           | 1,963,646  |   |   |   | 1,525,863 |   |
| Restructuring charges                         |   |                                           | 485,040    |   |   |   | - |   |
| Stock compensation expense                    |   |                                           | 21,700     |   |   |   | 47,155 |   |
| Total operating expenses                      |   |                                           | 3,334,148  |   |   |   | 2,082,245 |   |
| Operating income (loss) from operations       |   |                                           |       |   |   |   |   |   |
| before items shown below                      |   |                                           | (260,247   | ) |   |   | 439,899 |   |
|                                          |   |                                           |       |   |   |   |   |   |
| Interest expense, net                         |   |                                           | (170,897   | ) |   |   | (121,331 | ) |
| Other non-operating expense                   |   |                                           | (112,500   | ) |   |   | - |   |
| Net income (loss)                             |   | $                                              | (543,644   | ) |   | $ | 318,568 |   |
|                                          |   |                                           |       |   |   |   |   |   |
| Income (loss) per common share - basic:       |   |                                           |       |   |   |   |   |   |
| Net income (loss) per common share            |   | $                                              | (0.02      | ) |   | $ | 0.02 |   |
|                                          |   |                                           |       |   |   |   |   |   |
| Income (loss) per common share - diluted:     |   |                                           |       |   |   |   |   |   |
| Net income (loss) per common share            |   | $                                              | (0.02      | ) |   | $ | 0.01 |   |
|                                          |   |                                           |       |   |   |   |   |   |
| Weighted average common shares outstanding:   |   |                                           |       |   |   |   |   |   |
| Basic                                         |   |                                           | 22,287,759 |   |   |   | 21,892,152 |   |
| Diluted                                       |   |                                           | 22,287,759 |   |   |   | 23,758,755 |   |

----

|                                                                                 |   | For the Three Months Ended |       |
|--------------------------------------------------------------------------------------|--------|------------------------------------------------|------------|
|                                                                                 |   | March 31, 2011                       |       |   | March 31, 2010 |   |
|                                                                                 |   |                                           |       |   |   |   |
| Cash flows from operating activities:                                                |   |                                           |       |   |   |   |
| Income (loss) from operations                                                        |   | $                                              | (543,644   | ) |   | $ | 318,568 |   |
| Adjustments to reconcile net income (loss) from operations                           |   |                                           |       |   |   |   |   |   |
| to net cash provided by (used in) operating activities:                              |   |                                           |       |   |   |   |   |   |
| Stock based compensation                                                             |   |                                           | 21,700     |   |   |   | 47,155 |   |
| Depreciation expense                                                                 |   |                                           | 575,324    |   |   |   | 309,895 |   |
| Amortization of intangible merchant contracts                                        |   |                                           | 288,438    |   |   |   | 199,332 |   |
| Amortization of capitalized loan fees                                                |   |                                           | 17,800     |   |   |   | 6,470 |   |
| Allowance for doubtful accounts                                                      |   |                                           | (5,052     | ) |   |   | 3,963 |   |
| Changes in operating assets and liabilities, net of effects of acquisition of Tejas: |   |                                           |       |   |   |   |   |   |
| Change in accounts receivable, net                                                   |   |                                           | (538,358   | ) |   |   | (57,635 | ) |
| Change in inventory, net                                                             |   |                                           | (459,607   | ) |   |   | (56,636 | ) |
| Change in prepaid expenses and other current assets                                  |   |                                           | 31,154     |   |   |   | (196,721 | ) |
| Change in other assets                                                               |   |                                           | (29,162    | ) |   |   | (5,500 | ) |
| Change in intangible assets, net                                                     |   |                                           | (7,877     | ) |   |   | (3,878 | ) |
| Change in accounts payable and accrued liabilities                                   |   |                                           | 621,061    |   |   |   | 354,163 |   |
| Net cash provided by (used in) operating activities                                  |   |                                           | (28,223    | ) |   |   | 919,176 |   |
|                                                                                 |   |                                           |       |   |   |   |   |   |
| Cash flows from investing activities:                                                |   |                                           |       |   |   |   |   |   |
| Cash paid for Tejas acquisition                                                      |   |                                           | (875,000   | ) |   |   | - |   |
| Costs of acquiring merchant contracts                                                |   |                                           | (55,596    | ) |   |   | (275 | ) |
| Purchase of property and equipment                                                   |   |                                           | (317,400   | ) |   |   | (409,592 | ) |
| Net cash used in investing activities                                                |   |                                           | (1,247,996 | ) |   |   | (409,867 | ) |
|                                                                                 |   |                                           |       |   |   |   |   |   |
| Cash flows from financing activities:                                                |   |                                           |       |   |   |   |   |   |
| Proceeds from senior lenders'  notes payable                               |   |                                           | 1,907,775  |   |   |   | - |   |
| Proceeds from notes payable                                                          |   |                                           | -          |   |   |   | 225,282 |   |
| Principal payments on senior lenders'  notes payable                       |   |                                           | (586,485   | ) |   |   | (449,160 | ) |
| Principal payments on notes payable                                                  |   |                                           | (5,231     | ) |   |   | (17,329 | ) |
| Principal payments on notes payable - related parties                                |   |                                           | (6,969     | ) |   |   | (6,220 | ) |
| Principal payments on capital lease obligations                                      |   |                                           | (119,583   | ) |   |   | (195,904 | ) |
| Net cash provided by (used in) financing activities                                  |   |                                           | 1,189,507  |   |   |   | (443,331 | ) |
| Increase (decrease) in cash                                                          |   |                                           | (86,712    | ) |   |   | 65,978 |   |
| Cash, beginning of period                                                            |   |                                           | 1,743,562  |   |   |   | 2,007,860 |   |
| Cash, end of the period                                                              |   | $                                              | 1,656,850  |   |   | $ | 2,073,838 |   |
|                                                                                 |   |                                           |       |   |   |   |   |   |
| Cash paid for interest                                                               |   | $                                              | 151,302    |   |   | $ | 115,032 |   |

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|                                                                                        |   | For the Three Months Ended |      |
|---------------------------------------------------------------------------------------------|--------|------------------------------------------------|-----------|
| SUPPLEMENTAL CASH FLOW INFORMATION                                           |   | March 31, 2011                       |      |   | March 31, 2010 |   |
|                                                                                        |   |                                           |      |   |   |   |
| The significant non-cash investing and financing activities of the Company were as follows: |   |                                           |      |   |   |   |
|                                                                                        |   |                                           |      |   |   |   |
| Investing activities:                                                                       |   |                                           |      |   |   |   |
| Acquisition of assets of Tejas:                                                             |   |                                           |      |   |   |   |
| Computer equipment                                                                          |   | $                                              | 25,400    |   |   | $ | - |   |
| DVD inventory                                                                               |   |                                           | 88,916    |   |   |   |   |   |
| Merchant contracts                                                                          |   |                                           | 1,366,684 |   |   |   | - |   |
| Assets acquired                                                                             |   |                                           | 1,481,000 |   |   |   | - |   |
| Common stock issued, subject to restrictions                                                |   |                                           | (106,000  | ) |   |   |   |   |
| Accounts payable and accrued liabilities                                                    |   |                                           | (500,000  | ) |   |   | - |   |
| Cash paid for Tejas acquisition                                                             |   | $                                              | 875,000   |   |   | $ | - |   |
|                                                                                        |   |                                           |      |   |   |   |   |   |
| Financing activities:                                                                       |   |                                           |      |   |   |   |   |   |
| Settlement of stock option exercises through issuance of treasury stock:                    |   |                                           |      |   |   |   |   |   |
| Repurchase of treasury stock, 287,437 and 33,374 shares of common stock at                  |   |                                           |      |   |   |   |   |   |
| cost for the three month periods ended March 31, 2011 and 2010, respectively                |   | $                                              | (138,545  | ) |   | $ | (30,000 | ) |
| Total non-cash financing activities                                                         |   | $                                              | (138,545  | ) |   | $ | (30,000 | ) |

----

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|                                    |   | For the Three Months Ended |      |
|-----------------------------------------|--------|------------------------------------------------|-----------|
|                                    |   | March 31, 2011                       |      |   | March 31, 2010 |   |
|                                    |   |                                           |      |   |   |   |
| ATM Surcharge / Convenience Fee revenue |   | $                                              | 3,794,384 |   |   | $ | 3,085,166 |   |
| ATM Interchange revenue                 |   |                                           | 1,707,164 |   |   |   | 1,814,160 |   |
| ATM Processing revenue                  |   |                                           | 45,647    |   |   |   | 44,290 |   |
| ATM Sales revenue                       |   |                                           | 52,121    |   |   |   | 65,628 |   |
| Other ATM revenue                       |   |                                           | 347,261   |   |   |   | 327,964 |   |
| DVD Rental revenue                      |   |                                           | 2,003,494 |   |   |   | 42,870 |   |
| Total revenue                           |   | $                                              | 7,950,071 |   |   | $ | 5,380,078 |   |
|                                    |   |                                           |      |   |   |   |   |   |
|                                    |   | For the Three Months Ended |      |
|                                    |   | March 31, 2011                       |      |   | March 31, 2010 |   |
|                                    |   |                                           |      |   |   |   |   |   |
| ATM Operating revenue                   |   | $                                              | 5,894,456 |   |   | $ | 5,271,580 |   |
| ATM Sales revenue                       |   |                                           | 52,121    |   |   |   | 65,628 |   |
| DVD Operating revenue                   |   |                                           | 2,003,494 |   |   |   | 42,870 |   |
| Total revenue                           |   | $                                              | 7,950,071 |   |   | $ | 5,380,078 |   |

|                                     |   | For the Three Months Ended |      |
|------------------------------------------|--------|------------------------------------------------|-----------|
|                                     |   | March 31, 2011                       |      |   | March 31, 2010 |   |
|                                     |   |                                           |      |   |   |   |
| ATM Merchant residual / commission costs |   | $                                              | 1,901,119 |   |   | $ | 1,517,028 |   |
| ATM Cost of cash                         |   |                                           | 686,382   |   |   |   | 538,579 |   |
| ATM Processing costs                     |   |                                           | 282,104   |   |   |   | 237,249 |   |
| ATM Communication costs                  |   |                                           | 101,915   |   |   |   | 164,618 |   |
| ATM Sales costs                          |   |                                           | 39,391    |   |   |   | 109,303 |   |
| Other ATM cost of revenues               |   |                                           | 384,792   |   |   |   | 231,627 |   |
| DVD operating costs                      |   |                                           | 1,480,467 |   |   |   | 59,530 |   |
| Total cost of revenues                   |   | $                                              | 4,876,170 |   |   | $ | 2,857,934 |   |
|                                     |   |                                           |      |   |   |   |   |   |
|                                     |   | For the Three Months Ended |      |
|                                     |   | March 31, 2011                       |      |   | March 31, 2010 |   |
|                                     |   |                                           |      |   |   |   |   |   |
| Cost of ATM Operating revenue            |   | $                                              | 3,356,312 |   |   | $ | 2,689,101 |   |
| ATM Sales costs                          |   |                                           | 39,391    |   |   |   | 109,303 |   |
| Cost of DVD Operating revenue            |   |                                           | 1,480,467 |   |   |   | 59,530 |   |
| Total cost of revenues                   |   | $                                              | 4,876,170 |   |   | $ | 2,857,934 |   |

|   | The components of inventory for the periods ended March 31, 2011 and December 31, 2010, respectively, are as follows: |
|--------|-----------------------------------------------------------------------------------------------------------------------|

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|                                     |   | March 31, 2011 |      |   | December 31, 2010 |   |
|------------------------------------------|--------|--------------------------|-----------|--------|-----------------------------|--------|
|                                     |   |                     |      |   |                        |   |
| ATM Parts and supplies                   |   | $                        | 138,327   |   |                        | $      | 127,495 |   |
| Automated teller machines                |   |                     | 205,093   |   |                        |   | 202,482 |   |
| DVD rental kiosks                        |   |                     | 222,942   |   |                        |   | 222,942 |   |
| DVD library                              |   |                     | 1,554,339 |   |                        |   | 1,019,259 |   |
|                                     |   |                     | 2,120,701 |   |                        |   | 1,572,178 |   |
| Less: reserve for inventory obsolescence |   |                     | 182,572   |   |                        |   | 182,572 |   |
| Inventory, net                           |   | $                        | 1,938,129 |   |                        | $      | 1,389,606 |   |

|                                                     |   | Gross Carrying Value |       |   | AccumulatedAmortization |   |      | Net    |   |
|----------------------------------------------------------|--------|--------------------------------|------------|--------|-------------------------|--------|-----------|--------|--------|
|                                                     |   |                           |       |   |                    |   |      |   |   |
| Goodwill                                                 |   | $                              | 4,189,645  |   |                    | $      | 168,286   |   |   | $ | 4,021,359 |   |
| Other intangible assets                                  |   |                           | 230,437    |   |                    |   | 42,503    |   |   |   | 187,934 |   |
| Merchant contracts, net                                  |   |                           | 17,308,847 |   |                    |   | 5,295,976 |   |   |   | 12,012,871 |   |
| Total intangible assets, net and merchant contracts, net |   | $                              | 21,728,929 |   |                    | $      | 5,506,765 |   |   | $ | 16,222,164 |   |

----

|                                                             |   | For the Three Months Ended |       |
|------------------------------------------------------------------|--------|------------------------------------------------|------------|
|                                                             |   | March 31, 2011                       |       |   | March 31, 2010 |   |
| Numerator                                                        |   |                                           |       |   |   |   |
| Income (loss) from continuing operations                         |   | $                                              | (543,644   | ) |   | $ | 318,568 |   |
|                                                             |   |                                           |       |   |   |   |   |   |
| Numerator for diluted income (loss) per share                    |   |                                           |       |   |   |   |   |   |
| available to common stockholders                                 |   | $                                              | (543,644   | ) |   | $ | 318,568 |   |
|                                                             |   |                                           |       |   |   |   |   |   |
| Denominator                                                      |   |                                           |       |   |   |   |   |   |
| Weighted average shares                                          |   |                                           | 22,287,759 |   |   |   | 21,892,152 |   |
| Effect of dilutive securities:                                   |   |                                           |       |   |   |   |   |   |
| Treasury method, effect of employee stock options & warrants |   |                                           | -          |   |   |   | 1,866,603 |   |
|                                                             |   |                                           |       |   |   |   |   |   |
| Denominator for diluted income (loss) per share adjusted         |   |                                           |       |   |   |   |   |   |
| weighted shares after assumed exercises                          |   |                                           | 22,287,759 |   |   |   | 23,758,755 |   |
|                                                             |   |                                           |       |   |   |   |   |   |
| Income (loss) per common share - basic:                          |   |                                           |       |   |   |   |   |   |
| Net Income (loss) per common share                               |   | $                                              | (0.02      | ) |   | $ | 0.02 |   |
|                                                             |   |                                           |       |   |   |   |   |   |
| Income (loss) per common share - diluted:                        |   |                                           |       |   |   |   |   |   |
| Net Income (loss) per common share                               |   | $                                              | (0.02      | ) |   | $ | 0.01 |   |

----

----

| Computer equipment |   | $                                           | 25,400    |   |
|--------------------|--------|---------------------------------------------|-----------|--------|
| DVD inventory      |   |                                        | 88,916    |   |
| Merchant contract  |   |                                        | 1,366,684 |   |
| Assets acquired    |   | $        | 1,481,000 |   |

|                                                 |   | March 31, 2011 |      |   | December 31, 2010 |   |
|------------------------------------------------------|--------|--------------------------|-----------|--------|-----------------------------|--------|
|                                                 |   |                     |      |   |                        |   |
| Accounts payable                                     |   | $                        | 1,724,659 |   |                        | $      | 1,688,818 |   |
| Accrued commissions/residual payments                |   |                     | 1,661,154 |   |                        |   | 1,216,266 |   |
| Accrued cost of cash and cash replenishment expenses |   |                     | 372,257   |   |                        |   | 303,027 |   |
| Accrued payroll                                      |   |                     | 262,541   |   |                        |   | 204,086 |   |
| Accrued severance                                    |   |                     | 476,547   |   |                        |   | - |   |
| Accrued audit fees                                   |   |                     | 68,375    |   |                        |   | 84,500 |   |
| Accrued interest                                     |   |                     | 32,634    |   |                        |   | 22,995 |   |
| Accrued legal fees                                   |   |                     | 2,657     |   |                        |   | 54,056 |   |
| Asset retirement obligation                          |   |                     | 87,902    |   |                        |   | 88,074 |   |
| Accrued taxes                                        |   |                     | 228,494   |   |                        |   | 226,336 |   |
| Payable due to Tejas for acquisition                 |   |                     | 500,000   |   |                        |   | - |   |
| Other                                                |   |                     | 308,678   |   |                        |   | 716,679 |   |
| Accounts payable and accrued liabilities             |   | $                        | 5,725,898 |   |                        | $      | 4,604,837 |   |

----

|                                                    |   | March 31, 2011 |       |   | December 31, 2010 |   |
|---------------------------------------------------------|--------|--------------------------|------------|--------|-----------------------------|--------|
|                                                    |   |                     |       |   |                        |   |
| Fifth Third Bank, term loan                             |   | $                        | 3,750,000  |   |                        | $      | 4,166,668 |   |
| Fifth Third Bank, equipment lease line                  |   |                     | 4,232,525  |   |                        |   | 3,725,158 |   |
| Fifth Third Bank, draw loan                             |   |                     | 1,355,158  |   |                        |   | 824,567 |   |
| Fifth Third Bank, $1.65 million draw loan               |   |                     | 1,033,061  |   |                        |   | 333,061 |   |
|                                                    |   |                     | 10,370,744 |   |                        |   | 9,049,454 |   |
| Less: current portion                                   |   |                     | 3,070,362  |   |                        |   | 2,426,915 |   |
| Long-term portion, net of senior lenders' notes payable |   | $                        | 7,300,382  |   |                        | $      | 6,622,539 |   |

----

|                          |   |              |       |   |    |   |   | Additional  |   |   |       |   |   |          |       |   | Total  |   |
|------------------------------------|--------|-------------------|------------|--------|---------|--------|--------|-------------|--------|--------|------------|--------|--------|---------------|------------|--------|--------|--------|
|                               |   | Common Stock |       |   | Paid-in |   |   | Accumulated |   |   | Treasury   |   |   | Stockholders' |       |
|                               |   | Shares            |       |   | Amount  |   |   | Capital     |   |   | Deficit    |   |   | Stock         |       |   | Equity |   |
|                               |   |              |       |   |    |   |   |        |   |   |       |   |   |          |       |   |   |   |
| Balances, December 31, 2010        |   |              | 22,139,444 |   |    | $      | 22,188 |        |   | $      | 23,202,338 |   |   | $             | (7,198,502 | )      |   | $      | (81,966 | ) |   | $ | 15,944,058 |   |
|                               |   |              |       |   |    |   |   |        |   |   |       |   |   |          |       |   |   |   |   |   |   |   |   |   |
| Stock compensation expense         |   |              | -          |   |    |   | -      |        |   |   | 21,700     |   |   |          | -          |   |   |   | - |   |   |   | 21,700 |   |
|                               |   |              |       |   |    |   |   |        |   |   |       |   |   |          |       |   |   |   |   |   |   |   |   |   |
| Shares issued in Tejas Acquisition |   |              | 199,400    |   |    |   | 200    |        |   |   | 105,800    |   |   |          | -          |   |   |   | - |   |   |   | 106,000 |   |
|                               |   |              |       |   |    |   |   |        |   |   |       |   |   |          |       |   |   |   |   |   |   |   |   |   |
| Stock options exercised, cashless  |   |              | 205,882    |   |    |   | 206    |        |   |   | 138,339    |   |   |          | -          |   |   |   | (138,545 | ) |   |   | - |   |
|                               |   |              |       |   |    |   |   |        |   |   |       |   |   |          |       |   |   |   |   |   |   |   |   |   |
| Net loss                           |   |              | -          |   |    |   | -      |        |   |   | -          |   |   |          | (543,644   | )      |   |   | - |   |   |   | (543,644 | ) |
|                               |   |              |       |   |    |   |   |        |   |   |       |   |   |          |       |   |   |   |   |   |   |   |   |   |
| Balances, March 31, 2011           |   |              | 22,544,726 |   |    | $      | 22,594 |        |   | $      | 23,468,177 |   |   | $             | (7,742,146 | )      |   | $      | (220,511 | ) |   | $ | 15,528,114 |   |

----

----

|                                         |   | For the Three Months Ended |       |
|----------------------------------------------|--------|------------------------------------------------|------------|
|                                         |   | March 31, 2011                       |       |   | March 31, 2010 |   |
|                                         |   |                                           |       |   |   |   |
| Revenue:                                     |   |                                           |       |   |   |   |
| ATM Services                                 |   | $                                              | 5,946,577  |   |   | $ | 5,337,208 |   |
| DVD Services                                 |   |                                           | 2,003,494  |   |   |   | 42,870 |   |
| Corporate Support                            |   |                                           | -          |   |   |   | - |   |
| Consolidated revenue                         |   | $                                              | 7,950,071  |   |   | $ | 5,380,078 |   |
|                                         |   |                                           |       |   |   |   |   |   |
| Gross profit:                                |   |                                           |       |   |   |   |   |   |
| ATM Services                                 |   | $                                              | 2,550,874  |   |   | $ | 2,538,804 |   |
| DVD Services                                 |   |                                           | 523,027    |   |   |   | (16,660 | ) |
| Corporate Support                            |   |                                           | -          |   |   |   | - |   |
| Consolidated gross profit                    |   | $                                              | 3,073,901  |   |   | $ | 2,522,144 |   |
|                                         |   |                                           |       |   |   |   |   |   |
| SG&A:                                    |   |                                           |       |   |   |   |   |   |
| ATM Services                                 |   | $                                              | 1,098,567  |   |   | $ | 1,056,111 |   |
| DVD Services                                 |   |                                           | 482,805    |   |   |   | 93,680 |   |
| Corporate Support                            |   |                                           | 382,274    |   |   |   | 376,072 |   |
| Consolidated SG&A                        |   | $                                              | 1,963,646  |   |   | $ | 1,525,863 |   |
|                                         |   |                                           |       |   |   |   |   |   |
| Stock compensation expense:                  |   |                                           |       |   |   |   |   |   |
| ATM Services                                 |   | $                                              | -          |   |   | $ | - |   |
| DVD Services                                 |   |                                           | -          |   |   |   | - |   |
| Corporate Support                            |   |                                           | 21,700     |   |   |   | 47,155 |   |
| Consolidated stock compensation expense      |   | $                                              | 21,700     |   |   | $ | 47,155 |   |
|                                         |   |                                           |       |   |   |   |   |   |
| Depreciation & Amortization:             |   |                                           |       |   |   |   |   |   |
| ATM Services                                 |   | $                                              | 479,216    |   |   | $ | 413,139 |   |
| DVD Services                                 |   |                                           | 308,273    |   |   |   | 15,151 |   |
| Corporate Support                            |   |                                           | 76,273     |   |   |   | 80,937 |   |
| Consolidated depreciation & amortization |   | $                                              | 863,762    |   |   | $ | 509,227 |   |
|                                         |   |                                           |       |   |   |   |   |   |
| Restructuring charges                        |   |                                           |       |   |   |   |   |   |
| ATM Services                                 |   | $                                              | 24,218     |   |   | $ | - |   |
| DVD Services                                 |   |                                           | -          |   |   |   | - |   |
| Corporate Support                            |   |                                           | 460,822    |   |   |   | - |   |
| Consolidated restructuring charges           |   | $                                              | 485,040    |   |   | $ | - |   |
|                                         |   |                                           |       |   |   |   |   |   |
| Operating income (loss):                     |   |                                           |       |   |   |   |   |   |
| ATM Services                                 |   | $                                              | 948,873    |   |   | $ | 1,069,554 |   |
| DVD Services                                 |   |                                           | (268,051   | ) |   |   | (125,491 | ) |
| Corporate Support                            |   |                                           | (941,069   | ) |   |   | (504,164 | ) |
| Consolidated operating income (loss)         |   | $                                              | (260,247   | ) |   | $ | 439,899 |   |
|                                         |   |                                           |       |   |   |   |   |   |
| Net income (loss):                           |   |                                           |       |   |   |   |   |   |
| ATM Services                                 |   | $                                              | 933,125    |   |   | $ | 1,040,776 |   |
| DVD Services                                 |   |                                           | (230,551   | ) |   |   | (125,491 | ) |
| Corporate Support                            |   |                                           | (1,246,218 | ) |   |   | (596,717 | ) |
| Consolidated net income (loss)               |   | $                                              | (543,644   | ) |   | $ | 318,568 |   |
|                                         |   |                                           |       |   |   |   |   |   |
| Adjusted EBITDA:                             |   |                                           |       |   |   |   |   |   |
| ATM Services                                 |   | $                                              | 1,452,307  |   |   | $ | 1,482,693 |   |
| DVD Services                                 |   |                                           | 40,222     |   |   |   | (110,340 | ) |
| Corporate Support                            |   |                                           | (382,274   | ) |   |   | (376,072 | ) |
| Consolidated Adjusted EBITDA                 |   | $                                              | 1,110,255  |   |   | $ | 996,281 |   |

----

|                |   | March 31, |       |   | December 31, |   |
|---------------------|--------|----------------|------------|--------|-------------------|--------|
|                |   | 2011           |       |   | 2010              |   |
| Assets:             |   |           |       |   |              |   |
| ATM Services        |   | $              | 26,135,144 |   |              | $      | 24,944,071 |   |
| DVD Services        |   |           | 6,164,979  |   |              |   | 5,461,428 |   |
| Consolidated assets |   | $              | 32,300,123 |   |              | $      | 30,405,499 |   |

----

|   | · | Low overall entry barriers; |
|--------|--------|-----------------------------|

|   | · | Absence of national economies of scale; |
|--------|--------|-----------------------------------------|

|   | · | Seasonal and geographic volume fluctuations; |
|--------|--------|----------------------------------------------|

|   | · | The need for local presence in some market segments; and |
|--------|--------|----------------------------------------------------------|

|   | · | The need for low overhead. |
|--------|--------|----------------------------|

|   | · | Emergence of debit cards, “pay pass” machines and RFID as substitutes for cash in making purchases; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | Increasing acceptance of debit cards by younger demographics; and |
|--------|--------|-------------------------------------------------------------------|

|   | · | Market saturation of prime ATM locations in the United States. |
|--------|--------|----------------------------------------------------------------|

----

|   | · | As our competitors seek to exit the business; |
|--------|--------|-----------------------------------------------|

|   | · | As our competitors encounter financial and regulatory difficulties; and |
|--------|--------|-------------------------------------------------------------------------|

|   | · | As financial institutions seek to reduce their costs of managing an ATM channel during a period of decreasing ATM usage. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

----

|                                               |   | For the Three Months Ended |   |
|----------------------------------------------------|--------|------------------------------------------------|--------|
|                                               |   | March 31, 2011                                 |   |   | March 31, 2010 |   |
|                                               |   |                                           |   |   |   |   |
| Revenues                                           |   |                                           | 100.0  | % |   |   | 100.0 | % |
| Cost of revenues                                   |   |                                           | 61.3   | % |   |   | 53.1 | % |
| Gross profit                                       |   |                                           | 38.7   | % |   |   | 46.9 | % |
|                                               |   |                                           |   |   |   |   |   |   |
| Depreciation expense                               |   |                                           | 7.2    | % |   |   | 5.8 | % |
| Amortization of intangible merchant contracts      |   |                                           | 3.6    | % |   |   | 3.7 | % |
| Selling, general and administrative                |   |                                           | 24.7   | % |   |   | 28.4 | % |
| Restructuring charges                              |   |                                           | 6.1    | % |   |   | 0.0 | % |
| Stock compensation expense                         |   |                                           | 0.3    | % |   |   | 0.9 | % |
| Total operating expenses                           |   |                                           | 41.9   | % |   |   | 38.7 | % |
| Operating income (loss) from  operations |   |                                           |   |   |   |   |   |   |
| before items shown below                           |   |                                           | (3.3   | )% |   |   | 8.2 | % |
|                                               |   |                                           |   |   |   |   |   |   |
| Interest expense, net                              |   |                                           | (2.1   | )% |   |   | (2.3 | )% |
| Other non-operating expense                        |   |                                           | (1.4   | )% |   |   | 0.0 | % |
| Net income (loss)                                  |   |                                           | (6.8   | )% |   |   | 5.9 | % |
| EBITDA (1)                                         |   |                                           | 6.2    | % |   |   | 17.6 | % |

----

----

|                                          |   | For the Three Months Ended |      |   | 2011 to 2010   |   |      | 2011 to 2010 |   |
|-----------------------------------------------|--------|------------------------------------------------|-----------|--------|--------------------------|--------|-----------|------------------------|--------|
|                                          |   | March 31, 2011                       |      |   | March 31, 2010 |   |      | $ Change          |   |   | % Change |   |
|                                          |   |                                           |      |   |                     |   |      |                   |   |   |   |   |
| Depreciation expense                          |   | $                                              | 575,324   |   |                     | $      | 309,895   |                   |   | $ | 265,429 |   |   |   | 85.7 | % |
| Amortization of intangible merchant contracts |   |                                           | 288,438   |   |                     |   | 199,332   |                   |   |   | 89,106 |   |   |   | 44.7 | % |
| Selling, general and administrative           |   |                                           | 1,963,646 |   |                     |   | 1,525,863 |                   |   |   | 437,783 |   |   |   | 28.7 | % |
| Restructuring charges                         |   |                                           | 485,040   |   |                     |   | -         |                   |   |   | 485,040 |   |   |   | (100.0 | )% |
| Stock compensation expense                    |   |                                           | 21,700    |   |                     |   | 47,155    |                   |   |   | (25,455 | ) |   |   | (54.0 | )% |
| Total operating expenses                      |   | $                                              | 3,334,148 |   |                     | $      | 2,082,245 |                   |   | $ | 1,251,903 |   |   |   | 60.1 | % |

----

|                                          |   | For the Three Months Ended |     |
|-----------------------------------------------|--------|------------------------------------------------|----------|
|                                          |   | March 31, 2011                       |     |   | March 31, 2010 |   |
|                                          |   |                                           |     |   |   |   |
| Net income (loss) from operations             |   | $                                              | (543,644 | ) |   | $ | 318,568 |   |
| Interest expense, net                         |   |                                           | 170,897  |   |   |   | 121,331 |   |
| Depreciation expense                          |   |                                           | 575,324  |   |   |   | 309,895 |   |
| Amortization of intangible merchant contracts |   |                                           | 288,438  |   |   |   | 199,332 |   |
| EBITDA from operations                        |   | $                                              | 491,015  |   |   | $ | 949,126 |   |

----

|                                          |   | For the Three Months Ended |      |
|-----------------------------------------------|--------|------------------------------------------------|-----------|
|                                          |   | March 31, 2011                       |      |   | March 31, 2010 |   |
|                                          |   |                                           |      |   |   |   |
| Net income (loss) from operations             |   | $                                              | (543,644  | ) |   | $ | 318,568 |   |
| Interest expense, net                         |   |                                           | 170,897   |   |   |   | 121,331 |   |
| Depreciation expense                          |   |                                           | 575,324   |   |   |   | 309,895 |   |
| Amortization of intangible merchant contracts |   |                                           | 288,438   |   |   |   | 199,332 |   |
| Restructuring charges                         |   |                                           | 485,040   |   |   |   | - |   |
| Stock compensation expense                    |   |                                           | 21,700    |   |   |   | 47,155 |   |
| Other non operating expense                   |   |                                           | 112,500   |   |   |   | - |   |
| Adjusted EBITDA from operations               |   | $                                              | 1,110,255 |   |   | $ | 996,281 |   |

----

|                                                |   | For the Three Months Ended |       |   | 2011 to 2010   |   |     | 2011 to 2010 |   |
|-----------------------------------------------------|--------|------------------------------------------------|------------|--------|--------------------------|--------|----------|------------------------|--------|
|                                                |   | March 31, 2011                       |       |   | March 31, 2010 |   |     | $ Change          |   |   | % Change |   |
|                                                |   |                                           |       |   |                     |   |     |                   |   |   |   |   |
| Net cash provided by (used in) operating activities |   | $                                              | (28,223    | )      |                     | $      | 919,176  |                   |   | $ | (947,399 | ) |   |   | (103.1 | )% |
| Net cash used in investing activities               |   |                                           | (1,247,996 | )      |                     |   | (409,867 | )                      |   |   | (838,129 | ) |   |   | 204.5 | % |
| Net cash provided by (used in) financing activities |   |                                           | 1,189,507  |   |                     |   | (443,331 | )                      |   |   | 1,632,838 |   |   |   | (368.3 | )% |
| Increase (decrease) in cash                         |   | $                                              | (86,712    | )      |                     | $      | 65,978   |                   |   | $ | (152,690 | ) |   |   |   |   |

----

|   | ·  | Wilmington Savings Fund Society. Beginning in September 2004, the Company has an arrangement with Wilmington Savings Fund Society allowing us to obtain up to $20,000,000 in vault cash.   The WSFS contract may be terminated by WSFS at any time upon breach by us and upon the occurrence of certain other events. Under this arrangement, we are required to pay a monthly service fee on the outstanding amount equal to the prime rate of interest, plus a specified percentage, and must pay monthly "bank" and insurance fees. We are also required to maintain insurance on the vault cash. The contract currently in place with WSFS expires on October 31, 2011, with a one year automatic renewal period unless one party gives 60 days notice of their intention not to renew.  As of March 31, 2011, the Company had 6 ATMs funded by WSFS with a vault cash outstanding balance of approximately $81,000 in connection with this arrangement. |
|--------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·  | Elan (formerly GenPass Technologies).  On November 24, 2006, we signed a Cash Provisioning Agreement with Elan allowing us to obtain up to $30,000,000 in vault cash.  The Elan contract may be terminated by Elan at any time upon breach by us and upon the occurrence of certain other events.  Under this arrangement, we are required to pay a monthly service fee on the average terminal balance plus a load factor.  In addition, we are required to maintain insurance on the vault cash.  The contract currently in place with Elan expires on August 11, 2011.  As of March 31, 2011, the Company had 1,626 ATMs funded by Elan with a vault cash outstanding balance of about approximately $46,500,000. |
|--------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ·  | Various Branded Cash Partners.  Nationwide has partnered with numerous banks and credit unions to market specific Nationwide ATMs to the cardholders of these institutions.  We add signage and marketing material to the ATM so that the ATM is easily identified as being associated with the bank or credit union, and the cardholders of these institutions receive surcharge free transactions at the designated ATMs.  This provides the bank or credit union additional marketing power and another point of access to funds for their cardholders.  In return for this benefit, the bank or credit union, provide and manage the vault cash in the specified ATM(s), as well as provide and pay for cash replenishment and first line maintenance.  The advantage to Nationwide is that this reduces the costs associated with vault cash, cash replenishment and first line maintenance by approximately 50%.  Another advantage is that with a branded ATM, transactions volumes traditionally increase more than at non-branded ATMs.  As of March 31, 2011, Nationwide had 45 branded financial partners, which funded 438 ATMs. |
|--------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ExhibitNumber   |   |  Description                                                                                                                               |
|-----------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|            |   |                                                                                                                                            |
| 3.1   |   | Articles of Incorporation - Restated and Amended May 30, 2001 (Incorporated by reference to Form 10KSB filed with the SEC on March 31, 2003).   |
|            |   |                                                                                                                                            |
| 3.2   |   | By-Laws of Global Axcess Corp - As Amended and Restated  (Incorporated by reference to Form 8-K filed with the SEC on April 6, 2010). |
|            |   |                                                                                                                                            |
| 3.3             |   | Amendment to the Articles of Incorporation  (Incorporated by reference to Form 10-K/A filed with the SEC on January 28, 2011).        |
|            |   |                                                                                                                                            |
| 31.1            |   | Certification of the Chief Executive Officer of Global Axcess Corp pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                   |
|            |   |                                                                                                                                            |
| 31.2            |   | Certification of the Chief Financial Officer of Global Axcess Corp pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                   |
|            |   |                                                                                                                                            |
| 32.1            |   | Certification of the Chief Executive Officer of Global Axcess Corppursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                    |
|            |   |                                                                                                                                            |
| 32.2            |   | Certification of the Chief Financial Officer of Global Axcess Corp pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.              |

----

| GLOBAL AXCESS CORP                                       |
|----------------------------------------------------------|
|                                                     |
| By: /s/ Michael I. Connolly                              |
| Michael I. Connolly                                      |
| Interim President and Interim Co-Chief Executive Officer |
| (interim principal executive officer)                    |

| Signature               |   | Title                                                              |   |
|-------------------------|--------|--------------------------------------------------------------------|--------|
|                    |   |                                                               |   |
| /S/ Michael J. Loiacono |   | Chief Financial Officer and Chief Accounting Officer               |
| Michael J. Loiacono     |   | (principal financial officer and principal accounting officer)     |
|                    |   |                                                               |   |
| /S/ Michael I. Connolly |   | Interim President, Interim Co-Chief Executive Officer and Director |
| Michael I. Connolly     |   | (interim principal executive officer)                              |   |
|                    |   |                                                               |   |
| /S/ Lock Ireland        |   |                                                               |   |
| Lock Ireland            |   | Interim Co-Chief Executive Officer, Vice Chairman and Director     |

----