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| SECURITIES      AND EXCHANGE COMMISSION |
|-----------------------------------------|
| Washington,      D.C. 20549             |
|                                    |
| FORM      10-KSB                        |

| [X]                         | Annual      report pursuant to Section 13 or 15(d) of the Securities Exchange Act of      1934     |
|--------------------------------------------|----------------------------------------------------------------------------------------------------|
|                                       | For      the fiscal year ended December 31,      2007                                         |
|         |                                                                                               |
| [  ]              | Transition      report pursuant to Section 13 or 15(d) of the Securities Exchange Act of      1934 |

| Nevada(State      or other jurisdiction ofincorporation      or organization)                       |               | 91-2150635(IRS      Employer Identification No.) |
|-----------------------------------------------------------------------------------------------------|--------------------------------------------------|--------------------------------------------------|
|                                                                  |          |               |
| 15431      O’Neal RoadGulfport,      Mississippi(Address      of Principal Executive Offices) |          |  39503(Zip      Code)                       |

| Documents      Incorporated By Reference:None |
|-----------------------------------------------|

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| TABLE      OF CONTENTS |
|------------------------|

| PART      I                                                                                                                          |                                                                                                                                            |
|--------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                 |                                                                                                                                            |
| Item      1.                                                                                                                         | Description of      Business                                                                                                                    |
|                                                                                                                                 |                                                                                                                                            |
| Item      2.                                                                                                                         | Description of      Property                                                                                                                    |
|                                                                                                                                 |                                                                                                                                            |
| Item      3.                                                                                                                         | Legal      Proceedings                                                                                                                          |
|                                                                                                                                 |                                                                                                                                            |
| Item      4.                                                                                                                         | Submission of Matters      to a Vote of Security Holders                                                                                        |
|                                                                                                                                 |                                                                                                                                            |
| PART      II                                                                                                                         |                                                                                                                                            |
|                                                                                                                                 |                                                                                                                                            |
| Item      5.                                                                                                                         | Market for Common      Equity, Related Stockholder Matters and Small Business Issuer Purchases of      Equity Securities                        |
|                                                                                                                                 |                                                                                                                                            |
| Item      6.                                                                                                                         | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                                           |
|                                                                                                                                 |                                                                                                                                            |
| Item      7.                                                                                                                         | Financial      Statements                                                                                                                       |
|                                                                                                                                 |                                                                                                                                            |
| Item      8.                                                                                                                         | Change In and      Disagreements with Accountants on Accounting and Financial      Disclosure                                                   |
|                                                                                                                                 |                                                                                                                                            |
| Item      8A(T).                                                                                                                     | Controls and      Procedures                                                                                                                    |
|                                                                                                                                 |                                                                                                                                            |
| Item      8B.                                                                                                                        | Other      Information                                                                                                                          |
|                                                                                                                                 |                                                                                                                                            |
| PART      III                                                                                                                        |                                                                                                                                            |
|                        |                                                                                                                                            |
| Item      9.                                                                                                                         | Directors, Executive      Officers, Promoters, Control Persons and Corporate Governance; Compliance      with Section 16(a) of the Exchange Act |
|                                                                                                                                 |                                                                                                                                            |
| Item      10.                                                                                                                        | Executive      Compensation                                                                                                                     |
|                                                                                                                                 |                                                                                                                                            |
| Item      11.                                                                                                                        | Security Ownership of      Certain Beneficial Owners and Management and Related Stockholder      Matters                                        |
|                                                                                                                                 |                                                                                                                                            |
| Item      12.                                                                                                                        | Certain Relationships      and Related Transactions, and Director    Independence                                                               |
|                                                                                                                                 |                                                                                                                                            |
| Item      13.                                                                                                                        | Exhibits                                                                                                                                        |
|                                                                                                                                 |                                                                                                                                            |
| Item      14.                                                                                                                        | Principal Accountant      Fees and Services                                                                                                     |

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| CAUTIONARY      STATEMENT ABOUT FORWARD-LOOKINGSTATEMENTS |
|-----------------------------------------------------------|

| ·   | general      economic and industry conditions; |
|--------------------|------------------------------------------------|

| ·   | our      capital requirements and dependence on the future sale of our equity      securities; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | our      limited operating history; |
|--------------------|-------------------------------------|

| ·   | intense      industry competition; |
|--------------------|------------------------------------|

| ·   | fluctuations      in the prevailing industry prices of check processing      services; |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | shortages      in availability of qualifiedpersonnel; |
|--------------------|-------------------------------------------------------|

| ·   | legal      and financial implications of unexpected catastrophic    events; |
|--------------------|-----------------------------------------------------------------------------|

| ·   | regulatory      or legislative changes effecting check processing    operations; |
|--------------------|----------------------------------------------------------------------------------|

| ·   | reliance      on, and the ability to attract, key personnel;  and |
|--------------------|-------------------------------------------------------------------|

| ·   | other      factors including those discussed under Risk Factors in this      report. |
|--------------------|--------------------------------------------------------------------------------------|

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| PART      I |
|-------------|

Item 1.     DESCRIPTION OFBUSINESS

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| ·   | Participate      in a future stock or stock optionplan; |
|--------------------|---------------------------------------------------------|

| ·   | Work      with us to benefit from building a developing, entrepreneurial      company; |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | Participate      in an attractive, results-oriented compensation package;    and |
|--------------------|----------------------------------------------------------------------------------|

| ·   | Receive      additional incentive compensation by marketing other products and services      we offer in conjunction with ACH processing  services. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 2.     DESCRIPTION OFPROPERTY

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Item 4.     SUBMISSION OF MATTERS TO VOTE OFSECURITY HOLDERS

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| PART      II |
|--------------|

Item 5.     MARKET FOR COMMON EQUITY, RELATEDSTOCKHOLDER MATTERS AND SMALL BUSINESS ISSUER PURCHASES OF EQUITYSECURITIES

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Item 6.     MANAGEMENT’S DISCUSSION ANDANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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| Revenue:                                                                                                                                                                                                                 |               | 2007Dollars |                                                                                             | Percentage         |                                                                                             |   | 2006Dollars        |   | Percentage                                                                                       |               |                                                                                             | VarianceDollars |               |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|-------------|--------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------|-----------------|--------------------|
|                                      |     |        |                  |     |                  |   |     |   |                  |     |                  |            |     |   |                  |   |
|   ACH Processing                                                                                                                                                                                          |     | $           | 1,087,121                                                                                        |     | 92.0                                                                                             | %      |     | $      | 1,159,814                                                                                        |     | 93.7                                                                                             | %               |     | $ |  (72,693 | ) |
|   Verification Services                                                                                                                                                                                   |               | $           | 64,001                                                                                           |               | 5.4                                                                                              | %      |               | $      | 77,432                                                                                           |               | 6.3                                                                                              | %               |               | $ | (13,431 | ) |
|   Commissions                                                                                                                                                                                                  |               | $           | 30,651                                                                                           |               | 2.6                                                                                              | %      |               | $      | -                                                                                                |               | -                                                                                                | %               |               | $ | 30,651 |   |
| Total      Revenue                                                                                                                                                                                                       |               | $           | 1,181,773                                                                                        |               | 100.0                                                                                            | %      |               | $      | 1,237,246                                                                                        |               | 100.0                                                                                            | %               |               | $ | (55,473 | ) |

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| Cost      of Revenue:                                                                                                                                                                                                    |               | 2007Dollars |                                                                                             | Percentage         |                                                                                             |   | 2006Dollars        |   | Percentage                                                                                       |               |                                                                                             | VarianceDollars |               |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|-------------|--------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------|-----------------|--------------------|
|                                      |     |        |                  |     |                  |   |     |   |                  |     |                  |            |     |   |                  |   |
|   ACH Costs                                                                                                                                                                                               |               | $           | 244,242                                                                                          |               | 34.6                                                                                             | %      |               | $      | 250,873                                                                                          |               | 45.2                                                                                             | %               |               | $ |  (6,631 | ) |
|   ACH Commissions                                                                                                                                                                                         |               |        | 392,693                                                                                          |               | 55.7                                                                                             | %      |               |   | 205,971                                                                                          |               | 37.1                                                                                             | %               |               |   | 186,722 |   |
|   Depreciation      –ACH System                                                                                                                                                                     |               |        | 11,233                                                                                           |               | 1.6                                                                                              | %      |               |   | 21,143                                                                                           |               | 3.8                                                                                              | %               |               |   | (9,910 | ) |
|   Verification Fees                                                                                                                                                                                       |               |        | 54,088                                                                                           |               | 7.7                                                                                              | %      |               |   | 74,450                                                                                           |               | 13.4                                                                                             | %               |               |   | (20,362 | ) |
|   Other                                                                                                                                                                                                        |               |        | 3,142                                                                                            |               | 0.4                                                                                              | %      |               |   | 3,212                                                                                            |               | 0.5                                                                                              | %               |               |   | (70 | ) |
| Total Cost of Revenue                                                                                                                                                                                     |               | $           | 705,398                                                                                          |               | 100.0                                                                                            | %      |               | $      | 555,649                                                                                          |               | 100.0                                                                                            | %               |               | $ | 149,749 |   |

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Item 7.     FINANCIALSTATEMENTS

Item 8.     CHANGES IN AND DISAGREEMENTS WITHACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Item 8A(T).     CONTROLS ANDPROCEDURES

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Item 8B.     OTHERINFORMATION

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Item 9.     DIRECTORS, EXECUTIVE OFFICERS,PROMOTERS, CONTROL PERSONS AND CORPORATE GOVERNANCE; COMPLIANCE WITH SECTION16(a) OF THE EXCHANGE ACT

| Name                                                                                                                                                                                                                                       |                           | Age                            |                           | Position                                                                                                                                                                                                                                                                                                                                                                                   |                           | Director Since            |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------|
|                                         |       |       |       |                                                                 |       |       |
| Jeffery      C. Swank                                                                                                                                                                                                                      |                           | 47                             |                           | Chief      Executive Officer, President, and a Director                                                                                                                                                                                                                                                                                                                                    |                           | 2005                           |
| Walter      Reid Green, Jr.                                                                                                                                                                                                                |                           | 49                             |                           | Chief      Financial Officer, Treasurer, Corporate Secretary and a      Director                                                                                                                                                                                                                                                                                                           |                           | 2005                           |
| Monica      B. Haab                                                                                                                                                                                                                        |                           | 41                             |                           | Director                                                                                                                                                                                                                                                                                                                                                                                   |                           | 2005                           |

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Item 10.     EXECUTIVECOMPENSATION

| Salary      Compensation                                                                             |
|------------------------------------------------------------------------------------------------------|
| Name andPrincipalPosition(1)                                                                    |   | FiscalYear |   | Salary ($) |   | Bonus($) |   | StockAwards |   | OptionsAwards($)(2) |   | Non-EquityIncentive PlanCompensation($) |   | NonqualifiedDeferredCompensationEarnings ($) |   | All OtherCompensationCompensation($) (3) |   | Total ($) |   |
| Jeffery C. SwankChief      Executive Officer and President                                 |   | 20072006 |   | $$ | —— |   | $$ | —— |   | $$ | —— |   | $$ | —— |   | $$ | —— |   | $$ | —— |   | $$ | —— |   | $$ | —— |   |
|                                                                                                 |   |               |   |   |               |   |   |               |   |   |               |   |   |               |   |   |             |   |   |             |   |   |             |   |   |               |   |
| Walter Reid Green, Jr.Chief      Financial Officer, Treasurer and Corporate Secretary |   | 20072006 |   | $$ | 75,00075,000 |   | $$ | 1,5001,500 |   | $$ | —— |   | $$ | —— |   | $$ | —— |   | $$ | —— |   | $$ | —— |   | $$ | 76,50076,500 |   |

| (1)   | During      the fiscal year ended December 31, 2007, we only had two executive      officers, Messrs. Swank and Green.  Neither executive officer,      nor any other employee, earned in excess of $100,000 in total      compensation. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Reflects      dollar amount expensed by us during applicable fiscal year for financial      statement reporting purposes pursuant to FAS 123R.  FAS 123R requires      us to measure the cost of employee services received in exchange for an      award of equity instruments (options) based on the grant date fair value      of the award, and to recognize that cost over the service period over      which the options become exercisable (vest).  As a general rule, for      time-in-service-based options, we will immediately expense any option or      portion thereof which is vested upon grant, while expensing the balance on      a pro rata basis over the remaining vesting term of the      option.   For a description of FAS 123R and the assumptions      used in determining the value of the options, see the notes to the      consolidated financial statements included with this    report. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Includes      all other compensation not reported in the preceding columns, including      (i) perquisites and other personal benefits, or property, unless the      aggregate amount of such compensation is less than $10,000; (ii) any      “gross-ups” or other amounts reimbursed during the fiscal year for the      payment of taxes; (iii) discounts from market price with respect to      securities purchased from the company except to the extent available      generally to all security holders or to all salaried employees; (iv) any      amounts paid or accrued in connection with any termination (including      without limitation through retirement, resignation, severance or      constructive termination, including change of responsibilities) or change      in control; (v) contributions to vested and unvested defined contribution      plans; (vi) any insurance premiums paid by, or on behalf of, the company      relating to life insurance for the benefit of the named executive officer;      and (vii) any dividends or other earnings paid on stock or option awards      that are not factored into the grant date fair value required to be      reported in a preceding column. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Option      Awards          |   |   | Stock      Awards                                                  |   |
|-----------------------------|--------|--------|--------------------------------------------------------------------|--------|
| Name                        |   |   | Number ofSecuritiesUnderlyingUnexercisedOptions(#)Exercisable |   |   | Number ofSecuritiesUnderlyingUnexercisedOptions(#)Unexercisable |   |   | EquityIncentive PlanAwards:Number ofSecuritiesUnderlyingUnexercisedUnearnedOptions (#) |   |   | OptionExercisePrice ($) |   | OptionExpirationDate |   |   | Number ofShares orUnits ofStock ThatHave NotVested (#) |   |   | MarketValue ofShares orUnits ofStock ThatHave NotVested |   |   | EquityIncentivePlanAwards:NumberofUnearnedShares,Units orOtherRightsThat HaveNotVested |   |   | EquityIncentive PlanAwards:Market orPayout Value ofUnearnedShares, Units orOther RightsThat Have NotVested |   |
| Jeffery      C. Swank       |   |   | —                                                            |   |   | — |   |   | — |   | $ | — |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
|                        |   |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Walter      Reid Green, Jr. |   |   | 312,000                                                            |   | - | — |   |   | — |   | $ | .03 |   | 03/30/2010 |   |   | — |   |   | — |   |   | — |   |   | — |   |
|                        |   |   | 32,500                                                             |   |   | — |   |   | — |   | $ | .03 |   | 02/15/2011 |   |   | — |   |   | — |   |   | — |   |   | — |   |

| Name(1)                |         | Fee      Earned orPaid      in Cash($) |   | StockAwards($) |   | OptionAwards($) |   | OtherCompensation($) |   | Total($) |
|------------------------|--------------|----------------------------------------|--------|----------------|--------|-----------------|--------|----------------------|--------|----------|
| Monica      B. Haab(2) |    | —                                |   | —        |   | —         |   | —              |   | —  |

| (1)   | Jeffery      C. Swank, our Chief Executive Officer and President, and Reid Green, our      Chief Financial Officer, Treasurer and Corporate Secretary, are not      included in this table as they are employees and thus receive no      compensation for their services as directors.  The compensation      received by Messrs. Swank and Green as employees is shown in the summary      compensation table above. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | As      of December 31, 2007, Ms. Haab had no options or stock awards      outstanding.  As disclosed in the beneficial ownership table      elsewhere in this annual report, Ms. Haab is the beneficial owner of      80,000 shares of our common stock. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 11.     SECURITY OWNERSHIP OF CERTAINBENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDERMATTERS

| Name      and Address                                                                                                 |            | Amount      and Nature ofBeneficial      Ownership(1) |                                                         | Percent of Class |
|-----------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|-------------------------------------------------------|--------------------------------------------------------------|----------------------------|
|                                                                                    |                                                         |                              |                                                         |                       |
| Beneficial      Owners of More than 5%:                                                                               |                                                         |                                                  |                                                         |                       |
| Paul      J. Shovlain  15431      O’Neal Road  Gulfport,      Mississippi 39503             |                                                         | 6,891,750                                             |                                                         | 37.7%                      |
|                                                                                                                  |                                                         |                                                  |                                                         |                       |
| Leon      Nowalsky  826      Barracks Street  New      Orleans, Louisiana 70116                   |                                                         | 3,431,500                                             |            | 18.8%                      |
|                                                                                                                  |                                                         |                                                  |                                                         |                       |
| Directors      and Executive Officers:                                                                                |                                                         |                                                  |                                                         |                       |
| Jeffery      C. Swank  15431      O’Neal Road  Gulfport,      Mississippi 39503             |                                                         | 6,891,750                                             |            | 37.7%                      |
|                                                                                                                  |                                                         |                                                  |                                                         |                       |
| Walter      Reid Green, Jr.  15431      O’Neal  Gulfport,      Mississippi  39503 |                                                         | 344,500      (2)                                      |                                                         | 1.8%                       |
|                                                                                                                  |                                                         |                                                  |                                                         |                       |
| Monica      B. Haab  334      E. Livingston Place  Metairie,      Louisiana  70005      |                                                         | 80,000                                                |                                                         | *                          |
|                                                                                                                  |                                                         |                                                  |                                                         |                       |
| All      officers and directors as agroup      (3 persons)                                                            |                                                         | 7,316,250                                             |                                                         | 39.3%                      |

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| * | Indicates      less than 1%. |
|---|------------------------------|

| (1)   | Calculated      pursuant to Rule 13d-3(d) of the Securities Exchange Act of 1934.       Unless otherwise stated below, each such person has sole voting and      investment power with respect to all such shares.  Under Rule      13d-3(d), shares not outstanding which are subject to options, warrants,      rights or conversion privileges exercisable within 60 days are deemed      outstanding for the purpose of calculating the number and percentage owned      by such person, but are not deemed outstanding for the purpose of      calculating the percentage owned by each other person    listed. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes      344,500 shares which Mr. Green has the right to acquire pursuant to the      exercise of options with an exercise price of $.03 per    share. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Equity      Compensation Plan Information                                   |
|-----------------------------------------------------------------------------|
|                                               |        |        |        |
|                           | Number      of securities tobe      issued upon exerciseof      outstanding options,warrants      and rights | Weighted-averageexercise      price ofoutstanding      options,warrants      and rights | Number      of securitiesremaining      availablefor      future issuanceunder      equitycompensation      plans(excluding      securitiesreflected      in column (a)) |
|                                               | (a) | (b) | (c) |
| Equity      compensationplans      approved bysecurity      holders         | — | — | — |
|                                               |        |        |        |
| Equity      compensationplans      not approved bysecurity      holders (1) |   402,000 |   $.03 |   - |
|                                               |        |        |        |
| Total                                                                       | 402,000 | $.03 | - |

| (1)   | Includes      options to purchase 344,500 shares of our common stock at $.03 per share      granted to Walter Reid Green, Jr., our Chief Financial Officer and options      to purchase 57,500 shares of our common stock at $.03 per share granted to      three of our employees. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item 12.     CERTAIN RELATIONSHIPS AND RELATEDTRANSACTIONS, AND DIRECTOR INDEPENDENCE

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Item 13.     EXHIBITS

| (a)                                            | Exhibits:                                                                            |                                                                                                                                                                                                                                                                                       |
|--------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                               |                |                                                                                                                                                                                                                                                                                       |
|                       | 3.1                                                                                  | Articles      of Incorporation (incorporated by reference to Exhibit 3.1 to our      Registration Statement on Form 10-SB filed April 23,      2002).                                                                                                                                 |
|                                                               | 3.2                                                                                  | Bylaws      (incorporated by reference to Exhibit 3.2 to our Registration Statement on      Form 10-SB filed April 23, 2002).                                                                                                                                                         |
|                       | 3.3                                                                                  | First      Amended and Restated Articles of Incorporation (incorporated by reference      to Exhibit 3.3 to our Form 10-KSB filed on April 15,      2005).                                                                                                                            |
|                                                               | 3.4                                                                                  | Certificate      of Amendment to the Articles of Incorporation (incorporated by reference      to Exhibit 3.4 to our Form 10-QSB filed on August 12,      2005).                                                                                                                      |
|                       | 10.1                                                                                 | Contribution      Agreement between Riverbend Telecom, Inc., Riverbend Holdings, Inc., Leon      Nowalsky and the equity owners of United Check Services, LLC, dated      July 14, 2004 (incorporated by reference to Exhibit 10.5 to our Form      8-K filed on July 21, 2004). |
|                       | 10.2                                                                                 | Letter      Agreement dated August 5, 2004 (incorporated by reference to Exhibit      10.6 to our Form 8-K filed on August 30, 2004).                                                                                                                                            |
|                       | 10.3                                                                                 | Agreement      and Plan of Reorganization between Riverbend Telecom, Inc. and Riverbend      Holdings, Inc. dated March 30, 2005 (incorporated by reference to      Exhibit 10.7 to our Form 8-K filed on April 4,  2005).                                                       |
|                       | 10.4                                                                                 | Real      Estate Lease between Marston Lee and Kathy P. Rogers and United Check      Services (incorporated by reference to Exhibit 10.9 to our Form 10-QSB      filed on August 12, 2005).                                                                                                |
|                       | 14                                                                                   | Code      of Ethics (incorporated by reference to Exhibit 14 to our Form      10-KSB  filed on April 14, 2004).                                                                                                                                                             |
|                       | 31.1                                                                                 | Principal      Executive Officer Certification under Section 302 of the Sarbanes-Oxley      Act of 2002*                                                                                                                                                                                   |
|                       | 31.2                                                                                 | Principal      Financial Officer Certification under Section 302 of the Sarbanes-Oxley      Act of 2002*                                                                                                                                                                                   |
|                       | 32.1                                                                                 | Principal      Executive Officer Certification under Section 906 of the Sarbanes-Oxley      Act of 2002*                                                                                                                                                                                   |
|                       | 32.2                                                                                 | Principal      Financial Officer Certification under Section 906 of the Sarbanes-Oxley      Act of 2002*                                                                                                                                                                                   |
| _____________________*    Filed      Herewith. |

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Item 14.     PRINCIPAL ACCOUNTANT FEES ANDSERVICES

|                                                                                                                                                  |   | Fiscal      2007 |   |   | Fiscal      2006 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|--------|------------------|--------|
| Audit      Fees                                                                                                                                       |   | $                | 27,900 |   |             | $      | 24,000 |   |
| Audit-Related      fees                      |   |             | -      |   |             |   | - |   |
| Tax      Fees                                                                                                                                         |   |             | -      |   |             |   | - |   |
| All      Other Fees                                                                                                                                   |   |             | -      |   |             |   | - |   |
| Total      Fees                                                                                                                                       |   | $                | 27,900 |   |             | $      | 24,000 |   |

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| SIGNATURES |
|------------|

|                                                                                                                                                              | UNITED      ESYSTEMS, INC.                                                                                                                                             |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                               |                                                                                                                                                    |
| Date:  March 12,      2008                     | By: /s/ Jeffery C.      Swank                       |
|                                                                                                                                                              |            Jeffery C. Swank                                                                                                                   |
|                                                                                                                                                              |       Chief      Executive Officer, President and Director                                                                               |
|                                                                                                                                                              |       (Principal      Executive Officer)                                                                                                 |

| Signature                                                                                                                                                                                                                                                                                                                                        |   | Title                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Date                                                                                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                          |   |                                                                         |   |                              |
|                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                       |
| /s/ Jeffery C.      Swank                                                                                                                                                                                                                                                                                                                        |   | Chief      Executive Officer, President and                                                                                                                                                                                                                                                                                                                                                                                                |   | March 12,      2008                                                                                                                                                 |
| Jeffery      C. Swank                                                                                                                                                                                                                                                                                                                            |   | Director      (Principal Executive Officer)                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                       |
| /s/ Walter Reid Green,      Jr.                                                                                                                                                                                                                                                                                                                  |   | Chief      Financial Officer, Treasurer,                                                                                                                                                                                                                                                                                                                                                                                                   |   | March 12,      2008                                                                                                                                                 |
| Walter      Reid Green, Jr.                                                                                                                                                                                                                                                                                                                      |   | Corporate      Secretary and Director(Principal      Financial Officer)                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                     |
| /s/ Monica B.      Haab                                                                                                                                                                                                                                                                                                                          |   | Director                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | March 12,      2008                                                                                                                                                 |
| Monica      B. Haab                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                     |

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| UNITED      ESYSTEMS, INC. AND SUBSIDARY |
|------------------------------------------|
|                                     |
| INDEX      TO FINANCIAL STATEMENTS       |

|                                                                                                                             | Page      No.         |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|
| Independent      Auditors’ Report                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | F-1                   |
| Consolidated      Balance Sheets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | F-2      – F-3  |
| Consolidated      Statements of Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | F-4                   |
| Consolidated      Statements of Changes in Stockholders’ Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | F-5                   |
| Consolidated      Statements of Cash Flows                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | F-6                   |
| Notes      to Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | F-7      – F-17 |

----

----

| UNITED      ESYSTEMS, INC. AND SUBSIDIARY |
|-------------------------------------------|
| CONSOLIDATED      BALANCE SHEETS          |
|                                      |   |   |   |   |   |   |
| ASSETS                                    |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | December      31, |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2007              |      |   | 2006 |   |
|                                                                                                              |   |              |      |   |   |   |
| CURRENT      ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |              |      |   |   |   |
| Cash and Cash      Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                 | 283,988   |   |   | $ | 384,830 |   |
| Restricted Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |              | 531,343   |   |   |   | 826,647 |   |
| Trade Receivables,      net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |              | 81,490    |   |   |   | 89,015 |   |
| PrepaidExpenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |              | 24,476    |   |   |   | 2,195 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |              |      |   |   |   |   |   |
| Total Current      Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |              | 921,297   |   |   |   | 1,302,687 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |              |      |   |   |   |   |   |
| PROPERTY      AND EQUIPMENT, NET                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |              | 60,735    |   |   |   | 66,015 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |              |      |   |   |   |   |   |
| OTHER      ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |              |      |   |   |   |   |   |
| Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |              | 62,620    |   |   |   | 12,620 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |              |      |   |   |   |   |   |
| Total Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                 | 1,044,652 |   |   | $ | 1,381,322 |   |

----

| UNITED      ESYSTEMS, INC. AND SUBSIDIARY |
|-------------------------------------------|
| CONSOLIDATED      BALANCE SHEETS          |
|                                      |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | December 31, |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2007              |      |   | 2006 |   |
|                                                                                                                      |   |              |      |   |   |   |
| CURRENT      LIABILITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |              |      |   |   |   |
| ACH Settlements      Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                 | 514,969   |   |   | $ | 823,147 |   |
| Notes Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |              | 70,000    |   |   |   | 116,000 |   |
| Accounts Payable and Accrued      Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |              | 34,036    |   |   |   | 37,402 |   |
| Customers’    Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |              | 16,374    |   |   |   | 3,500 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |              |      |   |   |   |   |   |
| Total Current      Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |              | 635,379   |   |   |   | 980,049 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |              |      |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |              |      |   |   |   |   |   |
| Total    Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |              | 635,379   |   |   |   | 980,049 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |              |      |   |   |   |   |   |
| STOCKHOLDERS'      EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |              |      |   |   |   |   |   |
| Common Stock - $.001 Par Value;      75,000,000 Shares Authorized,    18,291,667      Shares Issued and Outstanding in 2007 and 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |              | 18,292    |   |   |   | 18,292 |   |
| Additional Paid-In      Capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |              | 49,440    |   |   |   | 49,440 |   |
| Retained    Earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |              | 341,541   |   |   |   | 333,541 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |              |      |   |   |   |   |   |
|    Total      Stockholders' Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |              | 409,273   |   |   |   | 401,273 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |              |      |   |   |   |   |   |
| Total Liabilities and      Stockholders' Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $                 | 1,044,652 |   |   | $ | 1,381,322 |   |

----

| UNITED      ESYSTEMS, INC. AND SUBSIDIARY |
|-------------------------------------------|
| CONSOLIDATED      STATEMENTS OF INCOME    |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | For      the Years EndedDecember 31,                                                                                |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2007                                                                                                                     |   |   |   | 2006 |   |
|                                                                                                                      |   |                      |   |       |   |                      |   |
| REVENUES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                     |   |   |   |   |   |
| ACH Processing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $      | 1,087,121                                                                                                                |   |   | $ | 1,159,814 |   |
| Verification      Services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 64,001                                                                                                                   |   |   |   | 77,432 |   |
| Commissions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 30,651                                                                                                                   |   |   |   | - |   |
| Total Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 1,181,773                                                                                                                |   |   |   | 1,237,246 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |   |   |   |   |   |
| COST      OF REVENUES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 705,398                                                                                                                  |   |   |   | 555,649 |   |
| Gross Profit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 476,375                                                                                                                  |   |   |   | 681,597 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |   |   |   |   |   |
| EXPENSES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                     |   |   |   |   |   |
| Operating    Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                     |   |   |   |   |   |
|    Personnel      Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 126,720                                                                                                                  |   |   |   | 107,956 |   |
|    Travel                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 17,007                                                                                                                   |   |   |   | 12,890 |   |
|    Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 120,434                                                                                                                  |   |   |   | 140,547 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |   |   |   |   |   |
| Total Operating      Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 264,161                                                                                                                  |   |   |   | 261,393 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |   |   |   |   |   |
| Selling, General and      Administrative Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                     |   |   |   |   |   |
|    Personnel      Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 87,070                                                                                                                   |   |   |   | 74,892 |   |
|    Legal and      Accounting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 48,143                                                                                                                   |   |   |   | 129,905 |   |
|    Marketing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 36,200                                                                                                                   |   |   |   | 35,281 |   |
|    Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |  8,116                                                                                                              |   |   |   |  3,368 |   |
| Total Selling, General and      Administrative Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 179,529                                                                                                                  |   |   |   | 243,446 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |   |   |   |   |   |
| Total Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 443,690                                                                                                                  |   |   |   | 504,839 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |   |   |   |   |   |
| INCOME      FROM OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 32,685                                                                                                                   |   |   |   | 176,758 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |   |   |   |   |   |
| OTHER      INCOME (EXPENSE)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                     |   |   |   |   |   |
| Interest Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     -                                                                                                |   |   |   | 3,505 |   |
| InterestExpense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | (8,065                                                                                                                   | )      |   |   | (11,730 | ) |
| Other Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | (14,500                                                                                                                  | )      |   |   | - |   |
| Impairment of Long-Lived      Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | -                                                                                                                        |   |   |   | (74,178 | ) |
| Total Other    Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | (22,565                                                                                                                  | )      |   |   | (82,403 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |   |   |   |   |   |
| NET      INCOME BEFORE INCOME TAXES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 10,120                                                                                                                   |   |   |   | 94,355 |   |
| INCOME      TAX EXPENSE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2,120                                                                                                                    |   |   |   | 23,154 |   |
| NET      INCOME                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $      |  8,000                                                                                                              |   |   | $ | 71,201 |   |
| EARNINGS      PER SHARE – BASIC                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | $      | 0.00                                                                                                                     |   |   | $ | 0.00 |   |
| EARNINGS      PER SHARE – DILUTED                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | $      | 0.00                                                                                                                     |   |   | $ | 0.00 |   |

----

| UNITED      ESYSTEMS, INC AND SUBSIDIARY                        |
|-----------------------------------------------------------------|
| CONSOLIDATED      STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY |
| FOR      THE YEARS ENDED DECEMBER 31, 2007 AND2006              |

|                                           |   | CommonStock |   |   | AdditionalPaid-inCapital |   |   | RetainedEarnings |   |   | TotalStockholders'Equity |   |
|------------------------------------------------|--------|-------------|--------|--------|--------------------------|--------|--------|------------------|--------|--------|--------------------------|--------|
|                                           |   |        |   |   |                     |   |   |             |   |   |                     |   |
| Balances      at January 1, 2006               |   | $           | 18,292 |   |                     | $      | 49,440 |             |   | $      | 262,340                  |   |   | $ | 330,072 |   |
|                                           |   |        |   |   |                     |   |   |             |   |   |                     |   |   |   |   |   |
|                                           |   |        |   |   |                     |   |   |             |   |   |                     |   |   |   |   |   |
| Net      Income - Year Ended December 31, 2006 |   |        | -      |   |                     |   | -      |             |   |   | 71,201                   |   |   |   | 71,201 |   |
|                                           |   |        |   |   |                     |   |   |             |   |   |                     |   |   |   |   |   |
| Balances      at December 31, 2006             |   |        | 18,292 |   |                     |   | 49,440 |             |   |   | 333,541                  |   |   |   | 401,273 |   |
|                                           |   |        |   |   |                     |   |   |             |   |   |                     |   |   |   |   |   |
|                                           |   |        |   |   |                     |   |   |             |   |   |                     |   |   |   |   |   |
| Net      Income - Year Ended December 31, 2007 |   |        | -      |   |                     |   | -      |             |   |   | 8,000                    |   |   |   | 8,000 |   |
|                                           |   |        |   |   |                     |   |   |             |   |   |                     |   |   |   |   |   |
| Balances      at December 31, 2007             |   | $           | 18,292 |   |                     | $      | 49,440 |             |   | $      | 341,541                  |   |   | $ | 409,273 |   |

----

| UNITED      ESYSTEMS, INC. AND SUBSIDIARY  |
|--------------------------------------------|
| CONSOLIDATED      STATEMENTS OF CASH FLOWS |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | For      the Years EndedDecember 31,                                                                                |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2007                                                                                                                     |   |   |   | 2006 |   |
|                                                                                                                                  |   |                      |   |       |   |                      |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                     |   |   |   |   |   |
| Net Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | $      | 8,000                                                                                                                    |   |   | $ | 71,201 |   |
| Adjustments to Reconcile Net      Income to Net Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |   |   |   |   |   |
| Provided by Operating      Activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                     |   |   |   |   |   |
| Depreciation      Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 28,769                                                                                                                   |   |   |   | 38,119 |   |
| Decrease (Increase) in Trade      Receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 7,525                                                                                                                    |   |   |   | (67,990 | ) |
| Decrease in Commissions      Receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | -                                                                                                                        |   |   |   | 207,505 |   |
| Decrease in Other      Receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | -                                                                                                                        |   |   |   | 1,040 |   |
| Impairment of Long-Lived      Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | -                                                                                                                        |   |   |   | 74,178 |   |
| Decrease in ACH Settlements      Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | (308,178                                                                                                                 | )      |   |   | (691,588 | ) |
| Decrease in Restricted      Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 295,304                                                                                                                  |   |   |   | 692,588 |   |
| Decrease in Accounts Payable      and Accrued Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | (3,366                                                                                                                   | )      |   |   | (3,488 | ) |
| Decrease in Commissions      Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | -                                                                                                                        |   |   |   | (238,150 | ) |
| (Increase) Decrease in Prepaid      Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | (22,281                                                                                                                  | )      |   |   | 5,062 |   |
| Increase (Decrease) in      Customers' Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 12,874                                                                                                                   |   |   |   | (1,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |   |   |   |   |   |
| Net Cash Provided by Operating      Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 18,647                                                                                                                   |   |   |   | 87,477 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                     |   |   |   |   |   |
| Purchase of Property and      Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | (23,489                                                                                                                  | )      |   |   | (51,343 | ) |
| (Increase) Decrease in      Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | (50,000                                                                                                                  | )      |   |   | 20,000 |   |
| Redemption of Certificate of      Deposit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |     -                                                                                                |   |   |   | 202,400 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |   |   |   |   |   |
| Net Cash (Used in) Provided by      Investing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | (73,489                                                                                                                  | )      |   |   | 171,057 |   |

----

| UNITED      ESYSTEMS, INC. AND SUBSIDIARY             |
|-------------------------------------------------------|
| CONSOLIDATED      STATEMENTS OF CASH FLOWS(Continued) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | For      the Years EndedDecember 31,                                                                                |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2007                                                                                                                     |   |   |   | 2006 |   |
|                                                                                                                                  |   |                      |   |       |   |                      |   |
| CASH      FLOWS FOR FINANCING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     |   |   |   |   |   |
| Principal payments on Notes      Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $      | (46,000                                                                                                                  | )      |   | $ | (20,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |   |   |   |   |   |
| Net Cash Used in Financing      Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | (46,000                                                                                                                  | )      |   |   | (20,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |   |   |   |   |   |
| NET      (DECREASE) INCREASE IN CASH AND CASH      EQUIVALENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | (100,842                                                                                                                 | )      |   |   | 238,534 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS - BEGINNING OF YEAR                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 384,830                                                                                                                  |   |   |   | 146,296 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS - END OF YEAR                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $      | 283,988                                                                                                                  |   |   | $ | 384,830 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |   |   |   |   |   |
| SUPPLEMENTAL      DISCLSOURE OF CASH FLOW INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                     |   |   |   |   |   |
| Payments for    Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $      |  9,501                                                                                                              |   |   | $ | 14,033 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |   |   |   |   |   |
| Payments for      Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | $      |  8,065                                                                                                              |   |   | $ | 11,730 |   |

----

| UNITED      ESYSTEMS, INC. AND SUBSIDIARY      |
|------------------------------------------------|
| NOTES      TO CONSOLIDATED FINANCIALSTATEMENTS |

| NOTE A                                                                                |    | PLAN      OF REORGANIZATION AND CONTRIBUTION AGREEMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------------------------------------------------------------------------------------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                 |    | On March 30, 2005, Riverbend      Telecom, Inc. (Riverbend) entered into an Agreement and Plan of      Reorganization (the “Spin-Off Agreement”) between Riverbend and Riverbend      Holdings, Inc. (Holdings), its wholly owned subsidiary, pursuant to which      Riverbend transferred all of its assets, liabilities and other obligations      to Holdings in consideration for Holdings common stock.  In      addition, Riverbend distributed all of Holdings common stock to the      then-existing four Riverbend stockholders (the “Spin-Off”), on a pro rata      basis, one share of Holdings common stock for each Riverbend share held by      the stockholders.  Holdings was formed for the purpose of      effecting the reorganization of Riverbend and the subsequent distribution      of all of the Holdings common stock to Riverbend’s current      stockholders.  Holdings had previously filed a Form 10-SB with      the Securities and Exchange Commission regarding its common stock under      Section 12(g) of the Securities Exchange Act of 1934.                                                                                    |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                 |    | Upon consummation of the      Spin-Off, Riverbend completed the contribution transaction with United      Check Services, L.L.C. (United), a Louisiana limited liability company,      according to the terms of a Contribution Agreement entered into on      July 14, 2004, as amended by a Letter Agreement dated August 5,      2004 (collectively, the “Contribution Agreement”).  Pursuant to      the Contribution Agreement, the equity owners of United contributed all of      their limited liability membership interests in United to Riverbend in      exchange for 15,315,000 shares of Riverbend’s common stock.  As      a result of this transaction, United became a wholly-owned subsidiary of      Riverbend, and the members of United became the majority stockholders of      Riverbend, and the transaction was accounted for as a reverse      acquisition.  As a result of the Spin-Off, the current      telecommunications business of Riverbend is now carried on by Holdings,      and the automated clearing house services business of United is now      carried on by Riverbend, through its 100% ownership interest of      United. |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                 |    | On June 13, 2005, Riverbend      effected a name change from Riverbend Telecom, Inc. to United eSystems,      Inc. to better reflect the change in business operations as a result of      the consummation of the Plan of Reorganization and the      Contribution.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| NOTE      B                                                                                |         | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                 |    | NATURE      OF OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                 |    | As described in Note A, UNITED ESYSTEMS,      INC. (Company) serves as the holding company for United Check      Services, L.L.C. (United).  United provides automated clearing      house (ACH) services to businesses throughout the United      States.  The Company’s operations center is located in Gulfport,      Mississippi.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                 |    | BASIS      OF PRESENTATION AND CONSOLIDATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                 |    | The consolidated financial      statements include the accounts of the Company and its wholly-owned      subsidiary, United Check Services, L.L.C.  All significant      intercompany balances and transactions have been eliminated in      consolidation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

----

| UNITED      ESYSTEMS, INC. AND SUBSIDIARY      |
|------------------------------------------------|
| NOTES      TO CONSOLIDATED FINANCIALSTATEMENTS |

| NOTE B                                                                                |    | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES (Continued)                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------------------------------------------------------------------------------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                 |    | USE      OF ESTIMATES                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                 |    | The preparation of financial      statements in conformity with accounting principles generally accepted in      the United States of America requires management to make estimates and      assumptions that affect the reported amounts of assets and liabilities at      the date of the financial statements and the reported amounts of revenues      and expenses during the reporting period.  Actual results could      differ from those estimates. |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                 |    | REVENUE      RECOGNITION                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                 |    | United charges customers a fee      for its ACH services.  For these transactions, United recognizes      only the fees generated as revenue.  United recognizes these      fees as revenue when United has provided the service to its      customers.                                                                                                                                                                                            |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                 |    | Fees for ACH services are based      on contractually determined rates with each individual      customer.  Settlements paid to customers for ACH transactions      are submitted to the customer net of fees due toUnited.                                                                                                                                                                                                                                  |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                 |    | BASIS      OF ACCOUNTING                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                 |    | The books and records of the      Company are kept on the accrual basis of accounting, whereby revenues are      recognized when earned and expenses are recognized when      incurred.                                                                                                                                                                                                                                                                                |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                 |    | PROPERTY      AND EQUIPMENT                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                 |    | Property and equipment are stated      at cost less accumulated depreciation.  Depreciation is computed      using primarily straight-line methods over the estimated useful lives of      the related assets, which ranges from three to seven  years.                                                                                                                                                                                                      |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                 |    | INCOME      TAXES                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                 |    | Since United is a single-member      L.L.C., it will be treated as a disregarded entity for federal income tax      reporting purposes.  As such, the Company will include the      revenues and expenses of United in its Federal income tax      return.                                                                                                                                                                                                   |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                 |    | Deferred income tax assets and      liabilities are determined using the liability (or balance sheet)      method.  Under this method, the net deferred tax asset or      liability is determined based on the tax effects of the temporary      differences between the book and tax bases of the various balance sheet      assets and liabilities and gives current recognition to change in tax      rates and laws.                                     |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                 |    | ADVERTISING                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                 |    | Advertising costs are charged to      operations when incurred.  The amount charged to operations for      the years ended December 31, 2007 and 2006, totaled $4,489 and $-0-,      respectively.                                                                                                                                                                                                                                                           |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                 |    | STATEMENT      OF CASH FLOW INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                 |    | For purposes of the Consolidated      Statements of Cash Flows, the Company considers all highly liquid      investments purchased with an original maturity of three months or less to      be cash equivalents.                                                                                                                                                                                                                                                      |

----

| UNITED      ESYSTEMS, INC. AND SUBSIDIARY      |
|------------------------------------------------|
| NOTES      TO CONSOLIDATED FINANCIALSTATEMENTS |

| NOTE B                                                                                |    | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------------------------------------------------------------------------------------------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                 |    | RECENT      ACCOUNTING PRONOUNCEMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                 |    | In June 2006, the FASB issued      Interpretation Number (FIN) 48, Accounting for Uncertainty in      Income Taxes (as amended).  This Interpretation clarifies      the accounting for uncertainty in income taxes recognized in an      enterprise’s financial statements in accordance with SFAS No. 109, Accounting for Income      Taxes.  This Interpretation prescribes a recognition      threshold and measurement attribute for the financial statement      recognition and measurement of a tax position taken or expected to be      taken in a tax return.  This Interpretation also provides      guidance on derecognition, classification, interest and penalties,      accounting in interim periods, disclosure, and transition.  This      Interpretation is effective for fiscal years beginning after December 15,      2006.                                                                                                                                                                                                                                                                                                                                                       |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                 |    | In September 2006, the FASB      issued SFAS No. 157, Fair Value      Measurements.  This Statement defines fair value,      establishes a framework for measuring fair value in generally accepted      accounting principles, and expands disclosures about fair value      measurements.  This Statement is effective for financial      statements issued for fiscal years beginning after November 15,      2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                 |    | In September 2006, the FASB      issued SFAS No. 158, Employers’ Accounting for      Defined Benefit Pension and Other Postretirement Plans (as      amended).  This Statement improves financial reporting by      requiring an employer to recognize the overfunded or underfunded status of      a defined benefit postretirement plan (other than a multiemployer plan) as      an asset or liability in its statement of financial position and to      recognize changes in that funded status in the year in which the changes      occur through comprehensive income.  This Statement also      requires an employer to measure the funded status of a plan as of the date      of its year-end statement of financial position.  An employer      with publicly traded equity securities shall initially apply the      requirement to recognize the funded status of a benefit plan as of the end      of the fiscal year ending after December 31, 2006.  The      requirement to measure plan assets and benefit obligations as of the date      of the employer’s fiscal year-end statement of financial position is      effective for fiscal years ending after December 31,  2008. |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                 |    | In February 2007, the FASB issued      SFAS No. 159, The Fair      Value Option for Financial Assets and Financial Liabilities (as      amended).  This Statement permits entities to choose to      measure many financial instruments and certain other items at fair      value.  The objective is to provide entities with the      opportunity to mitigate volatility in reported earnings caused by      measuring related assets and liabilities differently without having to      apply complex hedge accounting provisions.  This Statement is      effective as of the beginning of an entity’s first fiscal year that begins      after November 15, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

| UNITED      ESYSTEMS, INC. AND SUBSIDIARY      |
|------------------------------------------------|
| NOTES      TO CONSOLIDATED FINANCIALSTATEMENTS |

| NOTE B                                                                                |    | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------------------------------------------------------------------------------------------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                 |    | In December 2007, the FASB issued      SFAS No. 160, Noncontrolling Interests in      Consolidated Financial Statements (an amendment of ARB No.      51).  This Statement was issued to improve the relevance,      comparability, and transparency of the financial information that a      reporting entity provides in its consolidated financial      statements.  This Statement is effective for fiscal years, and      interim periods with those fiscal years, beginning on or after December      31, 2008. |

| NOTE      C                                                                                |         | PROPERTY      AND EQUIPMENT                                            |
|--------------------------------------------------------------------------------------------|--------------|------------------------------------------------------------------------|
|                 |    |                                                                   |
|                 |    | Property and equipment consisted      of the following at December 31: |

|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2007                                                                                                                     |   |                           |   | 2006                                                                                                                     |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|--------|
| Computers      and Office Equipment                                                                                                                                                                                                                                                                                                                                                                                                        | $      | 57,999                                                                                                                   |   |                           | $      | 44,710                                                                                                                   |   |
| Furniture      and Fixtures                                                                                                                                                                                                                                                                                                                                                                                                                |   | 4,350                                                                                                                    |   |                           |   | 4,350                                                                                                                    |   |
| Software                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 74,368                                                                                                                   |   |                           |   |  64,168                                                                                                             |   |
| Leasehold      Improvements                                                                                                                                                                                                                                                                                                                                                                                                                |   | 3,826                                                                                                                    |   |                           |   | 3,826                                                                                                                    |   |
| Less:  Accumulated      Depreciation                                                                                                                                                                                                                                                                                                                                                                                             |   | (79,808                                                                                                                  | )      |                           |   | (51,039                                                                                                                  | )      |
|                                                                         |   |                      |   |       |   |                      |   |
| Property      and Equipment, Net                                                                                                                                                                                                                                                                                                                                                                                                           | $      | 60,735                                                                                                                   |   |                           | $      |  66,015                                                                                                             |   |

|                 |    | Depreciation expense charged to      operations totaled $28,769 and $38,119 for the years ended December 31,      2007 and 2006, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------------------------------------------------------------------------------------------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                 |    | Prior to 2006, proprietary      software was developed for use in the Company’s ACH processing      operations.  In 2006, management entered into an agreement with      an established ACH software provider which enabled the Company to decrease      its maintenance, compliance and transactional costs.  This new      system also automates some of the manual processes that were required of      the proprietary system.  As a result, management has      discontinued its use of the proprietary software and has deemed it to be      fully impaired.   An impairment loss equal to its remaining      net book value of $74,178 has been recognized in the consolidated      statement of income for the year ended December 31,    2006. |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| NOTE D                                                                                |         | RESTRICTED      CASH                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                 |    | Restricted cash consists      primarily of funds maintained in United’s primary bank account to      facilitate ACH transactions.  The Company has restricted this      cash from operations in order to ensure that sufficient funds are      maintained to process and settle customer’s ACH    transactions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

----

| UNITED      ESYSTEMS, INC. AND SUBSIDIARY      |
|------------------------------------------------|
| NOTES      TO CONSOLIDATED FINANCIALSTATEMENTS |

| NOTE E                                                                                |    | NOTES      PAYABLE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------------------------------------------------------------------------------------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                 |    | In September of 2004, the two      existing members of United agreed to take a distribution for the amount of      undistributed earnings accumulated by United through June 30, 2004,      which amounted to $156,000.  In order to ease the cash flow      requirements on United, the members agreed to accept a note for the amount      of the distribution.  The amount of the distribution was      combined with the amount of advances due to United’s members of $100,000,      and notes payable due to United’s members for the total amount of $256,000      were established.  The notes are unsecured, due on demand and      require interest-only payments, at an annual percentage rate of      10%.  As of December 31, 2007, and December 31, 2006,      the outstanding principal balance of these notes was $70,000 and $116,000,      respectively. |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| NOTE F                                                                                |         | INCOME      TAXES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                 |    | The provision for income taxes      for 2007 and 2006, consists of thefollowing:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Years      EndedDecember 31,                                                                                        |                           |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|--------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2007                                                                                                                     |                           |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                     |                           |   |   |   |
| Current      Tax Expense                                                                                                                                                                                                                                                                                                                                                                                                                   | $      | 2,120                                                                                                                    |                           | $ | 23,154 |   |
| Deferred      Tax Expense                                                                                                                                                                                                                                                                                                                                                                                                                  |   | -                                                                                                                        |                           |   | - |   |
|                                                                         |   |                      |       |   |                      |   |
| Total Income Tax      Expense                                                                                                                                                                                                                                                                                                                                                                                                              | $      | 2,120                                                                                                                    |                           | $ | 23,154 |   |

|                 |    | The Company’s provision for      income tax expense is equivalent to 21% of the Company’s net income before      taxes, as management has deemed that there is no material difference      between book and tax income. |
|--------------------------------------------------------------------------------------------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| UNITED      ESYSTEMS, INC. AND SUBSIDIARY      |
|------------------------------------------------|
| NOTES      TO CONSOLIDATED FINANCIALSTATEMENTS |

| NOTE G                                                                                |    | STOCK      OPTIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------------------------------------------------------------------------------------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                 |    | On March 30, 2005, the Company      entered into a qualified stock option agreement, whereby the Company      granted 312,000 options to its CFO.  On February 15, 2006,      the Company entered into nonqualified stock option agreements with four      key employees, granting a total of 90,000 options, which included 32,500      options to its CFO.  All of the options have an exercise price      of $.03 per share, and were fully vested as of the date of the      grant. |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                 |    | The fair value of each option      grant was estimated on the date of the grant using the Black-Scholes      option-pricing model with the assumptions presented  below:                                                                                                                                                                                                                                                                                                                                         |

|                                                                                 |   | 2006           |   |   | 2005           |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|----------------|--------|
| Expected      Volatility                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |           | 16.76  | %      |           |   | 13.82 | % |
| Expected      Term                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 4.0      Years |   |   | 4.0      Years |   |
| Expected      Dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $              | 0.00   |   |           | $      | 0.00 |   |
| Risk      Free Rate                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |           | 4.00   | %      |           |   | 4.50 | % |
| Weighted-Average      Grant Date Calculated Value                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $              | .00    |   |           | $      | .00 |   |

|                 |    | There is no active external or      internal market for the Company’s common shares.  Thus, it was      not possible to estimate the expected volatility of the Company’s share      price in estimating fair value of options granted.  Accordingly,      as a substitute for such volatility, the Company used the historic      volatility of the S & P Small Cap Index.  The expected term      represents the period of time that options granted are expected to be      outstanding.  The risk-free rate is based on the U.S. Treasury      yield curve for the period equal to the expected life of the      options. |
|--------------------------------------------------------------------------------------------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                 |    | A summary of option activity as      of December 31, 2007, and 2006, and changes during the years then      ended is presented below:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

| Options                                                                                                                                                                              |               | Shares  |               | Weighted-AverageExercise Price                                                                                      |               | Weighted-AverageRemainingContractualTerm                                                                                 |               | AggregateIntrinsicValue                                                                                                  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|---------|--------------------|--------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------------------------------|
|                                |     |    |     |                      |     |                      |     |                      |
| Outstanding      atJanuary      1, 2007                                                                                                                                              |               | 402,000 |               | $.03                                                                                                                     |               |                                                                                                                     |               |                                                                                                                     |
| Granted                                                                                                                                                                              |               | -       |               | -                                                                                                                        |               |                                                                                                                     |               |                                                                                                                     |
| Exercised                                                                                                                                                                            |               | -       |               | -                                                                                                                        |               |                                                                                                                     |               |                                                                                                                     |
| Forfeited      or Expired                                                                                                                                                            |               | -       |               | -                                                                                                                        |               |                                                                                                                     |               |                                                                                                                     |
| Outstanding      atDecember      31, 2007                                                                                                                                            |               | 402,000 |               | $.03                                                                                                                     |               | 2.89                                                                                                                     |               | $.00                                                                                                                     |
| Exercisable      atDecember      31, 2007                                                                                                                                            |               | 402,000 |               | $.03                                                                                                                     |               | 2.89                                                                                                                     |               | $.00                                                                                                                     |

----

| UNITED      ESYSTEMS, INC. AND SUBSIDIARY      |
|------------------------------------------------|
| NOTES      TO CONSOLIDATED FINANCIALSTATEMENTS |

| NOTE G                                                                                |    | STOCK      OPTIONS (Continued) |
|--------------------------------------------------------------------------------------------|--------------|--------------------------------|
|                 |    |                           |

| Options                                                                                                                                                                              |               | Shares  |               | Weighted-AverageExercise Price                                                                                      |               | Weighted-AverageRemainingContractualTerm                                                                                 |               | AggregateIntrinsicValue                                                                                                  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|---------|--------------------|--------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------------------------------|
|                                |     |    |     |                      |     |                      |     |                      |
| Outstanding      atJanuary      1, 2006                                                                                                                                              |               | 312,000 |               | $.03                                                                                                                     |               |                                                                                                                     |               |                                                                                                                     |
| Granted                                                                                                                                                                              |               | 90,000  |               |   .03                                                                                                          |               |                                                                                                                     |               |                                                                                                                     |
| Exercised                                                                                                                                                                            |               | -       |               | -                                                                                                                        |               |                                                                                                                     |               |                                                                                                                     |
| Forfeited      or Expired                                                                                                                                                            |               | -       |               | -                                                                                                                        |               |                                                                                                                     |               |                                                                                                                     |
| Outstanding      atDecember      31, 2006                                                                                                                                            |               | 402,000 |               | $.03                                                                                                                     |               | 3.89                                                                                                                     |               | $.00                                                                                                                     |
| Exercisable      atDecember      31, 2006                                                                                                                                            |               | 402,000 |               | $.03                                                                                                                     |               | 3.89                                                                                                                     |               | $.00                                                                                                                     |

|                 |    | During 2006, the Company adopted      SFAS No. 123(R), which requires the recognition of compensation expense      associated with the fair value of stock options granted.  The      amount of compensation cost associated with the stock options granted is      considered to be immaterial for financial reporting    purposes. |
|--------------------------------------------------------------------------------------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |    |                                                                                                                                                                                                                                                                                                                                           |
| NOTE H                                                                                |         | SIGNIFICANT      CONCENTRATIONS                                                                                                                                                                                                                                                                                                                |
|                 |    |                                                                                                                                                                                                                                                                                                                                           |
|                 |    | CASH                                                                                                                                                                                                                                                                                                                                           |
|                 |    | At December 31, 2007 and 2006,      the Company maintained a balance with a financial institution in excess of      FDIC insured limits.                                                                                                                                                                                                       |
|                 |    |                                                                                                                                                                                                                                                                                                                                           |
|                 |    | MAJOR      CUSTOMERS                                                                                                                                                                                                                                                                                                                           |
|                 |    | During 2007, United had      transactions with three customers that amounted to approximately 64.6% of      the United’s total revenue.  These three customers, The Hemi      Group Co. LTD, Smokes-Spirits.com, LLC, and Insight Marketing, LLC, were      not affiliated with the Company.                                   |
|                 |    |                                                                                                                                                                                                                                                                                                                                           |
|                 |    | During 2006, United had      transactions with three customers that amounted to approximately 53.8% of      United’s total revenue.  These three customers, Insight      Marketing, LLC, Cash Advance USA, and Cash Advance Now, were not      affiliated with the Company.                                                    |

----

| UNITED      ESYSTEMS, INC. AND SUBSIDIARY      |
|------------------------------------------------|
| NOTES      TO CONSOLIDATED FINANCIALSTATEMENTS |

| NOTE I                                                                                |    | COMMITMENTS                                                                                                                                                                                                             |
|--------------------------------------------------------------------------------------------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |    |                                                                                                                                                                                                                    |
|                 |    | OPERATING      LEASES                                                                                                                                                                                                   |
|                 |    | On May 1, 2005, United entered      into an agreement to lease office facilities at its present      location.  The lease term is for 36 months.  Future      minimum lease payments are asfollows: |

| Year   |   | Amount |   |
|--------|--------|--------|--------|
|   |   |   |   |
| 2008   |   | $      | 8,800  |   |

|                 |    | Lease expense for the years ended      December 31, 2007 and 2006, amounted to $25,600 and $23,250,      respectively. |
|--------------------------------------------------------------------------------------------|--------------|-----------------------------------------------------------------------------------------------------------------------------|

|                 |    | ACH      PROCESSING AGREEMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------------------------------------------------------------------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |    | On August 4, 2006, United      entered into an ACH processing agreement that provided for the utilization      of an internet based ACH processing system, inclusive of bank and      processing fees.  The term of the agreement is 60 months, and      renewable for successive 12 month periods thereafter.  If      management elects to terminate this agreement during its initial term      without cause, the agreement provides for a liquidation fee equal to the      average monthly processing volume at termination times the number of      months remaining in the agreement, subject to a maximum of      $66,000.  Future minimum payments associated with this agreement      are as follows: |

| Year                                                               |   | Amount |    |
|--------------------------------------------------------------------|--------|--------|---------|
|             |   |   |    |
| 2008                                                               |   | $      | 66,000  |   |
| 2009                                                               |   |   | 66,000  |   |
| 2010                                                               |   |   | 66,000  |   |
| 2011                                                               |   |   | 44,000  |   |
|                                                               |   |   |    |   |
|                                                               |   | $      | 242,000 |   |

----

| UNITED      ESYSTEMS, INC. AND SUBSIDIARY      |
|------------------------------------------------|
| NOTES      TO CONSOLIDATED FINANCIALSTATEMENTS |

| NOTE      J                                                                                |         | RELATED      PARTY TRANSACTIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------------------------------------------------------------------------------------------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                 |    | NOTES      PAYABLE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                 |    | As disclosed in Note E, the      Company has notes payable totaling $70,000 at December 31, 2007, and      $116,000 at December 31, 2006, due to majority stockholders of the Company      for funds advanced to United in prior years and for the amount of the      distributions due to the former members of United.                                                                                                                                                                                                                                                                                             |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                 |    | TRANSACTIONS      WITH AFFILIATES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                 |    | We conducted business with one      entity which was considered to be a related party.  This entity,      Payday Cash Advance of Alabama, LLC, was owned by the Company’s Chief      Executive Officer, Jeff Swank, until August 2006.  During 2006,      business with this entity amounted to approximately 1% of our ACH      processing revenue   The fees the Company charged      this entity for ACH services were based on its normal business      practices and established pricing policies and were considered to be arms      length in nature. |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| NOTE K                                                                                |         | EARNINGS      PER SHARE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                 |    | For earnings per share      calculations, the weighted average common shares outstanding amounted to      18,291,667 for 2007 and 2006.  Options to purchase 402,000      shares at $.03 per share were outstanding during 2007 and 2006, but were      not included in the computation of diluted earnings per share because the      options’ exercise price was greater than the estimated market price of the      common shares.                                                                                                                                                                     |

----

| UNITED      ESYSTEMS, INC. AND SUBSIDIARY      |
|------------------------------------------------|
| NOTES      TO CONSOLIDATED FINANCIALSTATEMENTS |

| NOTE L                                                                                |    | ESTIMATED      FAIR VALUE OF FINANCIAL INSTRUMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------------------------------------------------------------------------------------------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                 |    | The following disclosure is made      in accordance with the requirements of SFAS No. 107, Disclosures About Fair Value      of Financial Instruments.  Financial instruments are      defined as cash and contractual rights and obligations that require      settlement, directly or indirectly, in cash.  In cases where      quoted market prices are not available, fair values have been estimated      using the present value of future cash flows or other valuation      techniques.  The results of these techniques are highly      sensitive to the assumptions used, such as those concerning appropriate      discount rates and estimates of future cash flows, which require      considerable judgment.  Accordingly, estimates presented herein      are not necessarily indicative of the amounts the Company could realize in      a current settlement of the underlying financial      instruments.  SFAS No. 107 excludes certain financial      instruments and all non-financial instruments from its disclosure      requirements.  These disclosures should not be interpreted as      representing an aggregate measure of the underlying value of the      Company. |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                 |    | The estimated fair values of the      Company’s financial instruments are asfollows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

|                                                                                                                                                                                                                                                                                                   |   | December 31,      2007 |    |   | December 31,      2006 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------|-----------------------------|--------|
|                                                                                                                                                                                                                                                                                                   |   | CarryingAmount              |    |   | FairValue                   |   |   | CarryingAmount |   |   | FairValue |   |
|                                                   |   |                        |    |   |                        |   |   |   |   |   |   |   |
| Financial      Assets                                                                                                                                                                                                                                                                                  |   |                        |    |   |                        |   |   |   |   |   |   |   |
|    Cash      and Cash Equivalents                                                                                                                                                                                                                                                       |   | $                           | 283,988 |   |                        | $      | 283,988 |   |   | $ | 384,830 |   |   | $ | 384,830 |   |
|    Restricted      Cash                                                                                                                                                                                                                                                                 |   |                        | 531,343 |   |                        |   | 531,343 |   |   |   | 826,647 |   |   |   | 826,647 |   |
| Financial      Liabilities                                                                                                                                                                                                                                                                             |   |                        |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |
|    Notes      Payable                                                                                                                                                                                                                                                                   |   | $                           | 70,000  |   |                        | $      | 70,000 |   |   | $ | 116,000 |   |   | $ | 116,000 |   |

|                 |    | The following methods and      assumptions were used by the Company in estimating fair value disclosures      for financial instruments: |
|--------------------------------------------------------------------------------------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------|
|                 |    |                                                                                                                                     |
|                 |    | Cash and Cash      Equivalents                                                                                                           |
|                 |    | The carrying amount of cash and      equivalents approximates fair values.                                                               |
|                 |    |                                                                                                                                     |
|                 |    | Restricted      Cash                                                                                                                     |
|                 |    | The carrying amount of restricted      cash approximates fair values.                                                                    |
|                 |    |                                                                                                                                     |
|                 |    | Certificate of      Deposit                                                                                                              |
|                 |    | The certificate of deposit      matures on an annual basis.  As such, the carrying amount      approximates fair value.        |
|                 |    |                                                                                                                                     |
|                 |    | Notes      Payable                                                                                                                       |
|                 |    | The carrying amount of notes      payable approximates fair values.                                                                      |