| x      |   | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--------|--------|---------------------------------------------------------------------------------------------------|
|   |   |                                                                                              |
|   |   | For      the quarterly period ended: March      31, 2008                                          |

|  ̈ |   | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--------|--------|----------------------------------------------------------------------------------------------------|
|   |   |                                                                                               |
|   |   | For      the transition period from ____________ to ____________                                   |
|   |   |                                                                                               |
|   |   | Commission      file number: 001-33094                                                             |

| American      CareSource Holdings, Inc. |
|-----------------------------------------|

| Delaware                                                                                            |   | 20-0428568                                |
|-----------------------------------------------------------------------------------------------------|--------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization)                                 |   | (I.R.S.      Employer Identification No.) |
|                                                                                                |   |                                      |
| 5429 Lyndon B. Johnson Freeway,      Suite 700, Dallas, Texas  75240                      |
| (Address      of principal executive offices)                                                       |
|                                                                                                |
|                                                                                                |
| (972)      308-6830                                                                                 |
| (Issuer’s      telephone number, including area code)                                    |
|                                                                                                |
|                                                                                                |
| (Former      name, former address, and former fiscal year, if changed since last      report)  |

| q Large Accelerated      Filer                                                                                          | q Accelerated      Filer         |
|-------------------------------------------------------------------------------------------------------------------------|----------------------------------|
| q  Non-Accelerated      Filer  (do not check if a smaller reporting      company)    | x Smaller Reporting      Company |

----

| Part      I   | Financial      Information                                                                                                           | 1      |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      1.  | Financial      Statements                                                                                                            | 1      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|          | Consolidated      Balance Sheets      (unaudited)                                                                                    | 1      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|          | Consolidated      Statements of Operations (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 2      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|          | Consolidated      Statements of Stockholders’ Equity (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 3      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|          | Consolidated      Statements of Cash Flows (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 4      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|          | Notes      to Unaudited Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 5      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      2.  | Management’s      Discussion and Analysis of Financial Condition and Results of      Operation                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 9      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      4.  | Controls      and      Procedures                                                                                                    | 13     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Part      II  | Other      Information                                                                                                               | 13     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      1A. | Risk      Factors                                                                                                                    | 13     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Item      6.  | Exhibits                                                                                                                             | 14     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Signatures    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 15     |

----

|                                                                                                                                                                                                     |   | As      of                    |                    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|-------------------------|
| Assets                                                                                                                                                                                                   |   | March 31,2008(unaudited) |                    |   | December 31,2007 |   |
| Current      assets:                                                                                                                                                                                     |   |                          |                    |   |   |   |
| Cash      and cash equivalents                                                                                                                                                                           |   | $                             | 5,857,094               |   |   | $ | 4,272,498 |   |
| Accounts      receivable (less allowance for losses of $358,158  in 2008 and      $189,556 in 2007)                                                                                            |   |                          | 3,248,579               |   |   |   | 3,651,203 |   |
| Prepaid      and other current assets                                                                                                                                                                    |   |                          | 427,195                 |   |   |   | 409,445 |   |
| Total      current assets                                                                                                                                                                                |   |                          | 9,532,868               |   |   |   | 8,333,146 |   |
|                                                                                                                                                                                                     |   |                          |                    |   |   |   |   |   |
| Property      and equipment, net                                                                                                                                                                         |   |                          | 388,504                 |   |   |   | 332,450 |   |
|                                                                                                                                                                                                     |   |                          |                    |   |   |   |   |   |
| Other      Assets                                                                                                                                                                                        |   |                          |                    |   |   |   |   |   |
| Certificate      of deposit, restricted                                                                                                                                                                  |   |                          | 145,000                 |   |   |   | 145,000 |   |
| Deferred      income taxesOther      non-current assetsIntangible      assets                                                                                                                            |   |                          | 255,731164,5071,440,843 |   |   |   | 255,731237,2461,494,238 |   |
| Goodwill                                                                                                                                                                                                 |   |                          | 4,361,299               |   |   |   | 4,361,299 |   |
| Total      other assets                                                                                                                                                                                  |   |                          | 6,367,380               |   |   |   | 6,493,514 |   |
| Total      assets                                                                                                                                                                                        |   | $                             | 16,288,752              |   |   | $ | 15,159,110 |   |
|                                                                                                                                                                                                     |   |                          |                    |   |   |   |   |   |
| Liabilities      and stockholders’ equity                                                                                                                                                          |   |                          |                    |   |   |   |   |   |
|                                                                                                                                                                                                     |   |                          |                    |   |   |   |   |   |
| Current      Liabilities                                                                                                                                                                                 |   |                          |                    |   |   |   |   |   |
| Due      to service providers                                                                                                                                                                            |   | $                             | 3,709,889               |   |   | $ | 3,344,278 |   |
| Accounts      payable and accrued liabilities                                                                                                                                                            |   |                          | 1,288,963               |   |   |   | 1,320,036 |   |
| Current      maturities of long-term debt                                                                                                                                                                |   |                          | 56,697                  |   |   |   | 55,697 |   |
| Total      current liabilities                                                                                                                                                                           |   |                          | 5,055,549               |   |   |   | 4,720,011 |   |
|                                                                                                                                                                                                     |   |                          |                    |   |   |   |   |   |
| Long-term      debt                                                                                                                                                                                      |   |                          | 35,784                  |   |   |   | 50,348 |   |
|                                                                                                                                                                                                     |   |                          |                    |   |   |   |   |   |
| Total      liabilities                                                                                                                                                                                   |   |                          | 5,091,333               |   |   |   | 4,770,359 |   |
|                                                                                                                                                                                                     |   |                          |                    |   |   |   |   |   |
| Stockholders’      equity:                                                                                                                                                                         |   |                          |                    |   |   |   |   |   |
|                                                                                                                                                                                                     |   |                          |                    |   |   |   |   |   |
| Common      stock-par value $0.01, 40,000,000 shares authorized and 15,067,423 and      14,668,416 shares issued and outstanding as of March 31, 2008 and December      31, 2007,      respectively |   |                          | 150,674                 |   |   |   | 146,684 |   |
|                                                                                                                                                                                                     |   |                          |                    |   |   |   |   |   |
| Preferred      stock-par value $0.01, 10,000,000 shares authorized and none      outstanding                                                                                                             |   |                          | -                       |   |   |   | - |   |
|                                                                                                                                                                                                     |   |                          |                    |   |   |   |   |   |
| Additional      paid-in-capital                                                                                                                                                                          |   |                          | 17,897,140              |   |   |   | 17,613,880 |   |
| Accumulated      deficit                                                                                                                                                                                 |   |                          | (6,850,395              | ) |   |   | (7,371,813 | ) |
|                                                                                                                                                                                                     |   |                          |                    |   |   |   |   |   |
| Total      stockholders’ equity                                                                                                                                                                    |   |                          | 11,197,419              |   |   |   | 10,388,751 |   |
|                                                                                                                                                                                                     |   |                          |                    |   |   |   |   |   |
| Total      liabilities and stockholders’ equity                                                                                                                                                    |   | $                             | 16,288,752              |   |   | $ | 15,159,110 |   |

----

CONSOLIDATED STATEMENTS OFOPERATIONS (UNAUDITED)

|                                                    |   | Three      Months Ended |       |
|---------------------------------------------------------|--------|-------------------------|------------|
|                                                    |   | March 31,          |       |
|                                                    |   | 2008                    |       |   | 2007 |   |
|                                                    |   |                    |       |   |   |   |
| Net      revenue                                        |   | $                       | 11,505,675 |   |   | $ | 2,266,569 |   |
| Total      cost of revenues                             |   |                    | 9,801,122  |   |   |   | 2,101,643 |   |
|                                                    |   |                    |       |   |   |   |   |   |
| Contribution      margin                                |   |                    | 1,704,553  |   |   |   | 164,926 |   |
|                                                    |   |                    |       |   |   |   |   |   |
|                                                    |   |                    |       |   |   |   |   |   |
| Selling,      general, and administrative expense       |   |                    | 1,112,854  |   |   |   | 694,421 |   |
| Depreciation      and amortization                      |   |                    | 92,067     |   |   |   | 78,074 |   |
|                                                    |   |                    |       |   |   |   |   |   |
| Total      operating expense                            |   |                    | 1,204,921  |   |   |   | 772,495 |   |
|                                                    |   |                    |       |   |   |   |   |   |
| Operating  income      (loss)                 |   |                    | 499,632    |   |   |   | (607,569 | ) |
|  Financing      (income) expenses:                 |   |                    |       |   |   |   |   |   |
| Interest      income                                    |   |                    | (40,668    | ) |   |   | (53,874 | ) |
| Interest      expense                                   |   |                    | 1,838      |   |   |   | 11,071 |   |
| Debt      issuance cost                                 |   |                    | —    |   |   |   | 46,300 |   |
|                                                    |   |                    |       |   |   |   |   |   |
| Total      financing (income) expenses                  |   |                    | (38,830    | ) |   |   | 3,497 |   |
|                                                    |   |                    |       |   |   |   |   |   |
| Net      income (loss) before income taxes              |   |                    | 538,462    |   |   |   | (611,066 | ) |
| Income      tax provision                               |   |                    | 17,044     |   |   |   | — |   |
|                                                    |   |                    |       |   |   |   |   |   |
| Net      income (loss)                                  |   | $                       | 521,418    |   |   | $ | (611,066 | ) |
|                                                    |   |                    |       |   |   |   |   |   |
| Earnings      (loss) per common share:                  |   |                    |       |   |   |   |   |   |
|     Basic                           |   | $                       | 0.04       |   |   | $ | (0.04 | ) |
|     Diluted                         |   | $                       | 0.03       |   |   | $ | (0.04 | ) |
|                                                    |   |                    |       |   |   |   |   |   |
| Basic      weighted average common shares outstanding   |   |                    | 14,880,266 |   |   |   | 14,486,749 |   |
| Diluted      weighted average common shares outstanding |   |                    | 17,255,201 |   |   |   | 14,486,749 |   |

----

| AMERICAN      CARESOURCE HOLDINGS, INC. AND SUBSIDIARIESCONSOLIDATED      STATEMENT OF STOCKHOLDERS’ EQUITYFOR      THE THREE MONTHS ENDED MARCH 31, 2008 (UNAUDITED) |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                        |   | Common Stock |   |   | Additional Paid-In |   |   | Accumulated |   |   |   |   |
|                                                                                                                                                                        |   | Shares |   |   | Amount |   |   | Capital |   |   | Deficit |   |   | Total |   |
| Balance      December 31, 2007                                                                                                                                              |   |   | 14,668,416 |   |   | $ | 146,684 |   |   | $ | 17,613,880 |   |   | $ | (7,371,813 | ) |   | $ | 10,388,751 |   |
| Exercise      of stock options                                                                                                                                              |   |   | 399,007 |   |   |   | 3,990 |   |   |   | 125,735 |   |   |   | — |   |   |   | 129,725 |   |
| Stock-based      compensation expense                                                                                                                                       |   |   |   — |   |   |   |   — |   |   |   |   157,525 |   |   |   |   — |   |   |   |   157,525 |   |
| Net      income                                                                                                                                                             |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 521,418 |   |   |   | 521,418 |   |
| Balance      March      31, 2008                                                                                                                                            |   |   |     15,067,423 |   |   | $ |   150,674 |   |   | $ |   17,897,140 |   |   | $ | (6,850,395 | ) |   | $ |   11,197,419 |   |

----

|                                                                                                                                       |   | Three      Months Ended |      |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|
|                                                                                                                                       |   | March 31,          |      |
|                                                                                                                                       |   | 2008                    |      |   | 2007 |   |
|                                                                                                                                       |   |                    |      |   |   |   |
| Cash      flows from operating activities:                                                                                                 |   |                    |      |   |   |   |
|  Net      income (loss)                                                                                                               |   | $                       | 521,418   |   |   | $ | (611,066 | ) |
| Adjustments      to reconcile net income (loss) to net cash provided by (used in) operating      activities:                               |   |                    |      |   |   |   |   |   |
|        Stock-based      compensation expense                                                            |   |                    | 157,525   |   |   |   | 49,536 |   |
|        Depreciation      and amortization                                                               |   |                    | 92,067    |   |   |   | 78,074 |   |
|        Amortization      of debt issuance costs                                                         |   |                    | —   |   |   |   | 46,300 |   |
|        Client      management fee expense related to warrants                                           |   |                    | 13,228    |   |   |   | — |   |
| Changes      in operating assets and liabilities:                                                                                          |   |                    |      |   |   |   |   |   |
|        Accounts      receivable                                                                         |   |                    | 402,624   |   |   |   | 384,844 |   |
|        Prepaid      and other current assets                                                            |   |                    | 41,761    |   |   |   | (25,660 | ) |
|        Accounts      payable and accrued liabilities                                                    |   |                    | (31,073   | ) |   |   | (22,287 | ) |
|        Due      to service providers                                                                    |   |                    | 365,611   |   |   |   | (445,683 | ) |
|             Net      cash provided by (used in) operating      activities |   |                    | 1,563,161 |   |   |   | (545,942 | ) |
|                                                                                                                                       |   |                    |      |   |   |   |   |   |
| Cash      flows from investing activities:                                                                                                 |   |                    |      |   |   |   |   |   |
| Purchase      of property and equipment                                                                                                    |   |                    | (94,726   | ) |   |   | (18,833 | ) |
|           Net      cash used in investing activities                                     |   |                    | (94,726   | ) |   |   | (18,833 | ) |
|                                                                                                                                       |   |                    |      |   |   |   |   |   |
| Cash      flows from financing activities:                                                                                                 |   |                    |      |   |   |   |   |   |
| Payments      on long-term debt                                                                                                            |   |                    | (13,564   | ) |   |   | (309,659 | ) |
| Net      proceeds from the exercise of stock options                                                                                       |   |                    | 129,725   |   |   |   | 1,924 |   |
|             Net      cash provided by (used in) financing activities           |   | $                       | 116,161   |   |   |   | (307,735 | ) |
|                                                                                                                                       |   |                    |      |   |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents                                                                                  |   | $                       | 1,584,596 |   |   |   | (872,510 | ) |
|                                                                                                                                       |   |                    |      |   |   |   |   |   |
| Cash      and cash equivalents at beginning of period                                                                                      |   |                    | 4,272,498 |   |   |   | 5,025,380 |   |
| Cash      and cash equivalents at end of period                                                                                            |   | $                       | 5,857,094 |   |   | $ | 4,152,870 |   |
|                                                                                                                                       |   |                    |      |   |   |   |   |   |
| Supplemental      disclosures cash flow information:                                                                                       |   |                    |      |   |   |   |   |   |
| Cash      paid for interest                                                                                                                |   | $                       | 1,838     |   |   | $ | 29,931 |   |

----

Notes to Unaudited Consolidated Financial Statements for the periodended March 31, 2008

|   | · | The      Company negotiates a contract with the service provider and also      negotiates separate contracts with the payor. Neither the service provider      nor the payor can look through the Company and claim directly against the      other party. Each service provider contracts with the Company only, and      not with the payor.  Likewise, each payor contracts with the      Company only, and not with the service provider.  Each party      deals directly with the Company and does not deal directly with each  other. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | The      Company determines through negotiations which service providers will be      included in or excluded from the network to be offered to the      client payor based on, among other things, price andaccess. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      Company does not earn a fixed dollar amount per client transaction      regardless of the amount billed to clients or earn a stated percentage of      the amount billed to its clients. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      Company is responsible to the service provider for processing claims and      managing the claims its adjustorsprocess. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      Company sets prices to be settled with payors and separately negotiates      the prices to be settled with the service  providers. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | · | The      Company may realize a positive or negative margin represented by the      difference between the negotiated fees received from the payor and the      negotiated amount paid to serviceproviders. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|            |   | Three Months Ended March 31,      2008 |      | Three Months Ended March 31,      2007 |
|-----------------|--------|----------------------------------------|-----------|----------------------------------------|
|            |   |                                   |      |                                   |   |   |
|            |   | AccountsReceivable                     |      |                                   | Revenue |   |   | %      of TotalRevenue |   | AccountsReceivable |   |   | Revenue |   |   | %      of TotalRevenue |
|            |   |                                   |      |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customer      A |   | $                                      | 1,833,000 |                                   |   | $ | 7,067,000 |   |   |   | 61 | % |   | $ | 584,000 |   |   | $ | 1,859,000 |   |   |   | 82 | % |
| Customer      B |   |                                   | 1,188,000 |                                   |   |   | 4,015,000 |   |   |   | 35 | % |   |   | 113,000 |   |   |   | 40,000 |   |   |   | 2 | % |
| All      Others |   |                                   | 228,000   |                                   |   |   | 424,000 |   |   |   | 4 | % |   |   | 253,000 |   |   |   | 368,000 |   |   |   | 16 | % |
|            |   | $                                      | 3,249,000 |                                   |   | $ | 11,506,000 |   |   |   | 100 | % |   | $ | 950,000 |   |   | $ | 2,267,000 |   |   |   | 100 | % |

----

|                                                     | Three      Months EndedMarch 31, |   |
|----------------------------------------------------------|---------------------------------------|--------|
|                                                     | 2008                                  |   |   | 2007 |   |
| Numerator      for basic and diluted earnings per share: |                                  |   |   |   |
| Net      income (loss)                                   |                                  | $      | 521,418 |   |   | $ | (611,066 | ) |
| Denominator:                                             |                                  |   |   |   |   |   |   |   |
| Weighted-average      basic common shares outstanding    |                                  |   | 14,880,266 |   |   |   | 14,486,749 |   |
| Assumed      conversion of dilutive securities:          |                                  |   |   |   |   |   |   |   |
| Stock      options                                       |                                  |   | 859,796 |   |   |   | - |   |
| Warrants                                                 |                                  |   | 1,515,139 |   |   |   | - |   |
| Potentially      dilutive common shares                  |                                  |   | 2,374,935 |   |   |   | - |   |
| Denominator      for diluted earnings                    |                                  |   |   |   |   |   |   |   |
| per      share - Adjusted weighted-average shares        |                                  |   | 17,255,201 |   |   |   | 14,486,749 |   |
|                                                     |                                  |   |   |   |   |   |   |   |
| Earnings      (loss) per common share:                   |                                  |   |   |   |   |   |   |   |
| Basic                                                    |                                  | $      | 0.04 |   |   | $ | (0.04 | ) |
| Diluted                                                  |                                  | $      | 0.03 |   |   | $ | (0.04 | ) |

|                                                                                                                                                           |   | March 31,2008 |    |   | December 31,2007 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|-----------------------|--------|
| Notes      payable to Capital One Bank, $135,000 due September 2009, due in monthly      installments of approximately $4,143, including interest at      6.5% |   | $                  | 70,787  |   |                  | $      | 81,939 |   |
| Capital      lease obligations                                                                                                                                 |   |               | 21,694  |   |                  |   | 24,106 |   |
|                                                                                                                                                           |   |               | 92,481  |   |                  |   | 106,045 |   |
| Less      current maturities                                                                                                                                   |   |               | (56,697 | )      |                  |   | (55,697 | ) |
| Long-term      debt, less current maturities                                                                                                                   |   | $                  | 35,784  |   |                  | $      | 50,348 |   |

----

----

We believe it is important to communicate to our stockholders andpotential investors not only the Company’s current condition, but management’sforecasts about the Company’s future opportunities, performance and results,including, for example, information with respect to potential margin expansion,cash reserves and other financial items, and our strategies andprospects.  However, forward-looking statements are based on currentexpectations and assumptions and are subject to substantial risks anduncertainties, including, but not limited to, risks of market acceptance of, orpreference for, the Company’s systems and services, competitive forces, theimpact of geopolitical events and changes in government regulations, generaleconomic conditions and economic factors in the country and the healthcareindustry, and other risk factors as may be listed from time to time in theCompany’s filings with the SEC. In evaluating such forward-looking statements,investors should specifically consider the matters set forth under the caption“Risk Factors” appearing in our AnnualReport on Form 10-K for the year ended December 31, 2007 which was filed with the SEC on March 31,2008, as well as any other cautionary language contained in this quarterly report, any of which could cause ouractual results to differ materially from the expectations we describe in ourforward-looking statements.  Except to the extent required byapplicable securities laws and regulations, we disclaim any obligation to updateor revise information contained in any forward-looking statement containedherein to reflect events or circumstances occurring after the date of thisquarterly report.

----

----

|                                             |   | Statement      of Operations for the Quarters Ended |       |
|--------------------------------------------------|--------|-----------------------------------------------------|------------|
|                                             |   | March 31,      2008                            |       |   | March 31,      2007 |   |
|                                             |   |                                                |       |   |   |   |
| Net      revenue                                 |   | $                                                   | 11,505,675 |   |   | $ | 2,266,569 |   |
| Cost      of revenue                             |   |                                                | 9,801,122  |   |   |   | 2,101,643 |   |
| Contribution      margin                         |   |                                                | 1,704,553  |   |   |   | 164,926 |   |
|                                             |   |                                                |       |   |   |   |   |   |
| Selling,      general and administrative expense |   |                                                | 1,112,854  |   |   |   | 694,421 |   |
| Depreciation      and amortization               |   |                                                | 92,067     |   |   |   | 78,074 |   |
| Operating      income (loss)                     |   |                                                | 499,632    |   |   |   | (607,509 | ) |
| Financing      (income) expense                  |   |                                                | (38,830    | ) |   |   | 3,497 |   |
| Net      income (loss) before income taxes       |   |                                                | 538,462    |   |   |   | (611,066 | ) |
| Income      tax provision                        |   |                                                | 17,044     |   |   |   | — |   |
| Net      income (loss)                           |   | $                                                   | 521,418    |   |   | $ | (611,066 | ) |

----

----

Item 4.  Controls and Procedures.

----

Item 6.  Exhibits.

----

|   |              |   |   | American      CareSource Holdings, Inc.                  |
|--------|-------------------|--------|--------|---------------------------------------------------------------|
| Date:  | May      15, 2008 |   | By:    | /s/      David S. Boone                                       |
|   |              |   |   | David      S. BoonePresident      and Chief Executive Officer |
|   |              |   |   |                                                          |
| Date:  | May      15, 2008 |   | By:    | /s/      Steven J. Armond                                     |
|   |              |   |   | Steven      J. ArmondChief      Financial Officer             |

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| Exhibit      # | Description      of Exhibits |
|----------------|------------------------------|

| 14.1 | Code      of Business Conduct and Ethics |
|------|------------------------------------------|

| 20.1 | Audit      Committee Charter |
|------|------------------------------|

| 20.2 | Compensation      Committee Charter |
|------|-------------------------------------|

| 20.3 | Governance      and Nominations Committee Charter |
|------|---------------------------------------------------|

| 31.1 | Certification      of the Chief Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002. |
|------|-------------------------------------------------------------------------------------------------------------------|

| 31.2 | Certification      of the Chief Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002. |
|------|-------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002. |
|------|--------------------------------------------------------------------------------|