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**U.S.        SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,        D.C. 20549**

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**FORM      10-QSB **

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|   | *(Mark                  One)*  |                                                                                                                                     |
|--------|-------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|
|   | x                                   |   QUARTERLY                    REPORT PURSUANT TO SECTION 13 OR 15(D) OFTHE                    SECURITIES EXCHANGE ACT OF 1934 |   |

|   | o |   TRANSITION                  REPORT PURSUANT TO SECTION 13 OR 15(D)OF THE SECURITIES EXCHANGE                  ACT |   |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------|--------|

**N/A**
**N/A**

**Card      Activation Technologies, Inc.**

| **Delaware**                          | **20-5769015**                                 |
|---------------------------------------|------------------------------------------------|
| State                of Incorporation | IRS                Employer Identification No. |

**53      West Jackson Blvd., Suite 1618**

**Chicago,      Illinois 60604-3749**

**(312)      972-1662**

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*Table            of Contents*

**CARD      ACTIVATION TECHNOLOGIES, INC.**

**INDEX      TO FORM 10-QSB FILING**

**FOR      THE THREE AND NINE MONTHS ENDED June 30, 2007**

**TABLE      OF CONTENTS**

|                                                                                                                                                                    | **PART                I**                                  |                                                                                          |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------------------------------------------------------------------------------------|
|                                                                                                                                                                    | **FINANCIAL                INFORMATION**                   | **PAGE**                                                                                      |
|                                                                                                                                                                    |                                                       |                                                                                          |   |
| Item                1.     Financial Statements                                                                                                     |                                                       |
|                                                                                                                                                                    | Condensed                Balance Sheet                     |                                                                                          |
|                                                                                                                                                                    |                                                       | As                of June 30, 2007                                                            | 3 |
|                                                                                                                                                                    | Condensed                Statements of Operations          |                                                                                          |
|                                                                                                                                                                    |                                                       | For                the Three and Nine months ended June 30,                2007               |   |
|                                                                                                                                                                    |                                                       | And                for the period August 29, 2006 (Inception) to June 30,                2007 | 4 |
|                                                                                                                                                                    | Condensed                Statements of Cash Flows          |                                                                                          |
|                                                                                                                                                                    |                                                       | For                the Nine months ended June 30, 2007                                        |   |
|                                                                                                                                                                    |                                                       | And                for the period August 29, 2006 (Inception) to June 30,                2007 | 5 |
|                                                                                                                                                                    |                                                       |                                                                                          |   |
|                                                                                                                                                                    | Notes                to Condensed Financial Statements     | 6                                                                                             |
|                                                                                                                                                                    |                                                       |                                                                                          |   |
| Item                2.    Management’s Discussion and                Analysis of Financial Condition and Results of                Operations | 7                                                          |
|                                                                                                                                                                    |                                                       |                                                                                          |   |
| Item                3.    Control and Procedures.                                                                                              | 11                                                         |
|                                                                                                                                                                    |                                                       |                                                                                          |   |
| **PART                II**                                                                                                                                              |                                                       |
| **OTHER                INFORMATION**                                                                                                                                    |                                                       |
|                                                                                                                                                                    |                                                       |                                                                                          |   |
| Item                1.     Legal Proceedings                                                                                                   | 11                                                         |
|                                                                                                                                                                    |                                                       |                                                                                          |   |
| Item                2.     Changes in Securities and                Small Business Issuer Purchases of Equity Securities                            | 12                                                         |
|                                                                                                                                                                    |                                                       |                                                                                          |   |
| Item                3.     Defaults upon Senior                Securities                                                                           | 12                                                         |
|                                                                                                                                                                    |                                                       |                                                                                          |   |
| Item                4.     Submission of Matters to a                Vote of Security Holders                                                       | 12                                                         |
|                                                                                                                                                                    |                                                       |                                                                                          |   |
| Item                5.     Other                Information                                                                                         | 12                                                         |
|                                                                                                                                                                    |                                                       |
| Item                5.                    Exhibits                                                                                                  | 12                                                         |
|                                                                                                                                                                    |                                                       |                                                                                          |   |
| **CERTIFICATIONS**                                                                                                                                                      |                                                       |
|                                                                                                                                                                    |                                                       |                                                                                          |   |
|                                                                                                                                                                    | Exhibit                31 – Management certification | 14-17                                                                                         |
|                                                                                                                                                                    |                                                       |                                                                                          |   |
|                                                                                                                                                                    | Exhibit                32 – Sarbanes-Oxley Act       | 14-17                                                                                         |

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*Table            of Contents*

**PART      I – FINANCIAL INFORMATION**

**ITEM      1 – FINANCIAL STATEMENTS**

**CARD      ACTIVATION TECHNOLOGIES INC.**

**CONDENSED      BALANCE SHEET**

**Development      Stage Company**

|                                                                                                                             |   | Unaudited**June                30, 2007** |     |
|----------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|----------|
| ASSETS                                                                                                                           |   |                                      |     |
|                                                                                                                             |   |                                      |     |
| CURRENT                ASSETS                                                                                                    |   |                                      |     |
| Cash                                                                                                                             |   | $                                         | -        |   |
| Total                current assets                                                                                              |   |                                      | -        |   |
|                                                                                                                             |   |                                      |     |   |
| TOTAL                ASSETS                                                                                                      |   | $                                         | -        |   |
|                                                                                                                             |   |                                      |     |   |
| LIABILITIES                AND STOCKHOLDERS' EQUITY:                                                                             |   |                                      |     |   |
|                                                                                                                             |   |                                      |     |   |
| CURRENT                LIABILITIES:                                                                                              |   |                                      |     |   |
| Accounts                payable                                                                                                  |   | $                                         | 40,235   |   |
| Bank                overdraft                                                                                                    |   |                                      | 2,600    |   |
| Total                current liabilities                                                                                         |   |                                      | 42,835   |   |
| Loans                Payable - Affiliate                                                                                         |   |                                      | 62,641   |   |
|                                                                                                                             |   |                                      |     |   |
| Total                liabilities                                                                                                 |   |                                      | 105,476  |   |
|                                                                                                                             |   |                                      |     |   |
| STOCKHOLDERS'                DEFICIT:                                                                                            |   |                                      |     |   |
| Preferred                stock, $.0001 par value, 1,000,000 shares authorized  0 issued                and outstanding |   |                                      | -        |   |
| Common                stock, $.0001 par value, 175,000,000 shares                authorized  146,770,504 outstanding   |   |                                      | 14,677   |   |
|                                                                                                                             |   |                                      | -        |   |
| Paid                in capital                                                                                                   |   |                                      | -        |   |
| Accumulated                deficit                                                                                               |   |                                      | (120,153 | ) |
| Total                stockholders' deficit                                                                                       |   |                                      | (105,476 | ) |
|                                                                                                                             |   |                                      |     |   |
| TOTAL                LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                       |   | $                                         | -        |   |

**3**

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*Table            of Contents*

**CARD      ACTIVATION TECHNOLOGIES INC.**

**CONDENSED      STATEMENT OF OPERATIONS**

**Development      Stage Company**

**FOR      THE THREE AND NINE MONTHS ENDED JUNE 30, 2007**

**AND      FOR THE PERIOD FROM AUGUST 29, 2006 (INCEPTION) TO JUNE 30, 2007**

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|                                                       |   | **Three                Months** |       |   | **Nine                Months** |   |       | **For the Period****from August 29, 2006****(inception) to****June                  30, 2007** |   |
|------------------------------------------------------------|--------|---------------------------------|------------|--------|--------------------------------|--------|------------|-----------------------------------------------------------------------------------------------------------------------------------|--------|
| Revenue                                                    |   |                            | 45,000     |   |                           |   | 45,000     |                                                                                                                              |   |   | 45,000 |   |
| Total                                                      |   |                            | -          |   |                           |   | -          |                                                                                                                              |   |   | - |   |
|                                                       |   |                            |       |   |                           |   |       |                                                                                                                              |   |   |   |   |
| OPERATING                EXPENSES:                         |   |                            |       |   |                           |   |       |                                                                                                                              |   |   |   |   |
| General                and Administrative                  |   |                            | 55,100     |   |                           |   | 149,395    |                                                                                                                              |   |   | 165,153 |   |
| Total                operating expenses                    |   |                            | 55,100     |   |                           |   | 149,395    |                                                                                                                              |   |   | 165,153 |   |
| OPERATING                LOSS                              |   |                            | (10,100    | )      |                           |   | (104,395   | )                                                                                                                                 |   |   | (120,153 | ) |
|                                                       |   |                            |       |   |                           |   |       |                                                                                                                              |   |   |   |   |
| OTHER                (INCOME) AND EXPENSES                 |   |                            |       |   |                           |   |       |                                                                                                                              |   |   |   |   |
| Total                other expense                         |   |                            | -          |   |                           |   | -          |                                                                                                                              |   |   | - |   |
|                                                       |   |                            |       |   |                           |   |       |                                                                                                                              |   |   |   |   |
| LOSS                BEFORE INCOME TAXES                    |   |                            | (10,100    | )      |                           |   | (104,395   | )                                                                                                                                 |   |   | (120,153 | ) |
|                                                       |   |                            |       |   |                           |   |       |                                                                                                                              |   |   |   |   |
| INCOME                TAX (BENEFIT) PROVISION              |   |                            | -          |   |                           |   | -          |                                                                                                                              |   |   | - |   |
|                                                       |   |                            |       |   |                           |   |       |                                                                                                                              |   |   |   |   |
| NET                LOSS                                    |   | $                               | (10,100    | )      |                           | $      | (104,395   | )                                                                                                                                 |   | $ | (120,153 | ) |
|                                                       |   |                            |       |   |                           |   |       |                                                                                                                              |   |   |   |   |
| NET                LOSS PER SHARE:                         |   |                            |       |   |                           |   |       |                                                                                                                              |   |   |   |   |
|                                                       |   |                            |       |   |                           |   |       |                                                                                                                              |   |   |   |   |
| Basic:                                                     |   |                            | (0.00      | )      |                           |   | (0.01      | )                                                                                                                                 |   |   |   |   |
|                                                       |   |                            |       |   |                           |   |       |                                                                                                                              |   |   |   |   |
| Diluted:                                                   |   |                            | (0.00      | )      |                           |   | (0.01      | )                                                                                                                                 |   |   |   |   |
|                                                       |   |                            |       |   |                           |   |       |                                                                                                                              |   |   |   |   |
|                                                       |   |                            |       |   |                           |   |       |                                                                                                                              |   |   |   |   |
| WEIGHTED                AVERAGE COMMON SHARES OUTSTANDING: |   |                            |       |   |                           |   |       |                                                                                                                              |   |
|                                                       |   |                            |       |   |                           |   |       |                                                                                                                              |   |   |   |   |
| Basic                                                      |   |                            | 14,677,504 |   |                           |   | 14,677,504 |                                                                                                                              |   |   |   |   |
|                                                       |   |                            |       |   |                           |   |       |                                                                                                                              |   |   |   |   |
| Diluted                                                    |   |                            | 14,677,504 |   |                           |   | 14,677,504 |                                                                                                                              |   |   |   |   |

**4**

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*Table            of Contents*

**CARD      ACTIVATION TECHNOLOGIES INC.**

**CONDENSED      STATEMENT OF CASH FLOWS**

**Development      Stage Company**

**FOR      THE NINE MONTHS ENDED JUNE 30, 2007**

**AND      FOR THE PERIOD FROM AUGUST 29, 2006 (INCEPTION) TO JUNE 30, 2007**

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| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                          |   | **Nine                Months** |     |   | **For the Period****from August 29, 2006****(inception) to****June                  30, 2007** |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------------------------------|----------|--------|-----------------------------------------------------------------------------------------------------------------------------------|--------|
| Net                (loss)                                                                                     |   | $                              | (104,395 | )      |                                                                                                                              | $      | (120,153 | ) |
| Adjustments                to reconcile net income to net cash (used in) operating                activities: |   |                           |     |   |                                                                                                                              |   |   |   |
| Common                Stock Issued in Spin off                                                                |   |                           | 14,677   |   |                                                                                                                              |   | 14,677 |   |
| Changes                in assets and liabilities:                                                             |   |                           |     |   |                                                                                                                              |   |   |   |
| Accounts                payable                                                                               |   |                           | 40,235   |   |                                                                                                                              |   | 55,993 |   |
| Net                cash  (used in) operating activities                                             |   |                           | (49,483  | )      |                                                                                                                              |   | (49,483 | ) |
|                                                                                                          |   |                           |     |   |                                                                                                                              |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                                                          |   |                           |     |   |                                                                                                                              |   |   |   |
|                                                                                                          |   |                           | -        |   |                                                                                                                              |   | - |   |
| Net                cash from investing activities                                                             |   |                           | -        |   |                                                                                                                              |   | - |   |
|                                                                                                          |   |                           |     |   |                                                                                                                              |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                          |   |                           |     |   |                                                                                                                              |   |   |   |
|                                                                                                          |   |                           | -        |   |                                                                                                                              |   | - |   |
| Loans                from Affiliates                                                                          |   |                           | 46,883   |   |                                                                                                                              |   | 46,883 |   |
| Net                cash provided by financing activities                                                      |   |                           | 46,883   |   |                                                                                                                              |   | 46,883 |   |
|                                                                                                          |   |                           |     |   |                                                                                                                              |   |   |   |
| INCREASE                IN CASH                                                                               |   |                           | (2,600   | )      |                                                                                                                              |   | (2,600 | ) |
| CASH,                BEGINNING OF YEAR                                                                        |   |                           | -        |   |                                                                                                                              |   | - |   |
| CASH,                END OF YEAR                                                                              |   |                           | (2,600   | )      |                                                                                                                              |   | (2,600 | ) |

**5**

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*Table            of Contents*

**CARD      ACTIVATION TECHNOLOGIES, INC.**

**NOTES      TO CONDENSED FINANCIAL STATEMENTS THREE AND NINE MONTHS ENDED JUNE 30,      2007**

*Management’s Discussion and Analysis      or Plan of Operation.*

**Overview**

**6**

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*Table            of Contents*

**ITEM      2 - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL      CONDITION AND RESULTS OF OPERATIONS**

**7**

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*Table          of Contents*

**Overview**

**Plan      of Operations**

|   | Ÿ | CAT                is incorporated in Delaware with the focus on the licensing of the                proprietary patented technology for processing debit and gift card                transactions. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | We                have identified hundreds of retail chains who the company believes                are                presently utilizing our patented technology in the use of debit cards,                gift cards, phone cards, affinity cards and value                cards. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | We                intend to generate revenues primarily by charging licensing fees                to the                retailers who are utilizing our patented                technology |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | Under                an administrative services agreement between the MedCom and us, we                have                agreed to share certain administrative functions and personnel until                we                can establish our own administrative operating systems and hire its                own                personnel. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Our      Growth Strategies**

|   | Ÿ | The                Company was incorporated for the sole purpose of financing and litigating                patent infringements related to the unauthorized use of our patented                technology for the processing of debit, gift and other                cards. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | The                Company is looking at expanding its market and looks for an acquisition                that complements the Company and generates                revenues. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | Once                we begin receiving royalties, we expect the revenues of such royalties                shall permit us to be self-funding. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|

|   | Ÿ | We                intend to require, wherever our patents apply, reasonable royalties                in                exchange for licensing our intellectual                property. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | By                providing a licensing model, we expect to be able to convert many,                if not                all, of these infringers to licensees for our patented                system. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**COMPETITION**

**8**

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*Table            of Contents*

**Patent      Technology**

**Results        of Operations**

**Liquidity        and Capital Resources**

**Liabilities**

** **

**9**

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*Table            of Contents*

**Critical      Accounting Policies**

*Revenue      Recognition*

*Share-Based      Payment*

**10**

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*Table            of Contents*

**Additional      Information**

**ITEM      3.  CONTROLS AND      PROCEDURES**

**Evaluation      of Disclosure Controls and Procedures**

**PART      II – OTHER INFORMATION**

**ITEM      1.   LEGAL PROCEEDINGS**

**11**

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*Table            of Contents*

**ITEM        2.    CHANGES IN SECURITIES AND SMALL        BUSINESS ISSUER PURCHASES OF EQUITY SECURITIES**

**ITEM        3.    DEFAULTS UPON SENIOR        SECURITIES**

**ITEM4.   SUBMISSION        OF MATTERS TO A VOTE OF        SECURITY HOLDERS**

**ITEM        5.    OTHER INFORMATION**

**ITEM        6.    EXHIBITS**

| **31.1** | Certification                of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley                Act  |
|----------|---------------------------------------------------------------------------------------------------------------------------|
|     |                                                                                                                      |
| **31.2** | Certification                of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley                Act. |
|     |                                                                                                                      |
| **32.1** | Certification                of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley                Act. |
|     |                                                                                                                      |
| **32.2** | Certification                of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley                Act. |

**12**

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*Table          of Contents*

**SIGNATURES**

| Registrant                     | *Card                Activation Technologies, Inc.*                                                     |
|--------------------------------|---------------------------------------------------------------------------------------------------------|
| Date:                          | *By:                /s/ William P. Williams*                                                            |
| August                14, 2007 |                                                                                                    |
|                           |                                                                                                    |
|                           | William                P. Williams                                                                      |
|                           | Chairman,                President Chief Executive Officer (Principle Executive                Officer) |

**13**

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