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| x      | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                                         |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|
|   |    For the fiscal year ended December 31, 2010.                                                                    |
|   | OR                                                                                                                                     |
| o      | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                                     |
|   |    For the transition period from              to |

| UNITED ESYSTEMS, INC.                                          |
|----------------------------------------------------------------|
| (Exact name of registrant as specified in its charter)         |
|                                                           |   |   |
| Nevada                                                         |   | 91-2150635 |
| (State or other jurisdiction of incorporation or organization) |   | (IRS Employer Identification No.) |
|                                                           |   |   |
| 2150 North Hwy 190, Covington, LA                              |   | 70433 |
| (Address of Principal Executive Offices)                       |   | (Zip Code) |
|                                                           |   |   |
| Registrant’s telephone number, including area code:      |   | (228) 832-1597 |
|                                                           |   |   |
| Securities registered pursuant to Section 12(b) of the Act:    |   | None |
|                                                           |   |   |
| Securities registered pursuant to Section 12(g) of the Act:    |   | Common Stock, $.001 Par Value |

| Large accelerated filer o | Accelerated filer o | Non-accelerated filer o(Do not check if a smaller reporting company) | Smaller reporting company x |
|--------------------------------|-------------------------------|---------------------------------------------------------------------------|----------------------------------|

| Class                         | Outstanding at March 21, 2011 |
|-------------------------------|------------------------------------|
| Common Stock, $.001 par value | 39,333,879 shares                  |

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|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Page   |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| PART I        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 1.  | Business                                                                                                                   | 4      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 1A. | Risk Factors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 14     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 1B. | Unresolved Staff Comments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 19     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 2.  | Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 19     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 3.  | Legal Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 19     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 4.  | [Reserved]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 19     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| PART II       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 5.  | Market for Common Stock, Related Stockholder Matters and Issuer Purchases of Equity Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 20     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 6.  | Selected Financial Data                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 20     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 7.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 21     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 7A. | Quantitative and Qualitative Disclosures About Market Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 27     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 8.  | Financial Statements and Supplementary Data                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 27     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 9.  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 27     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 9A. | Controls and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 27     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 9B. | Other Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 28     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| PART III |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 10. | Directors, Executive Officers and Corporate Governance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 29     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 11. | Executive Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 32     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 34     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 13. | Certain Relationships and Related Transactions, and Director Independence                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 36     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 14. | Principal Accountant Fees and Services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 39     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| PART IV       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Item 15. | Exhibits and Financial Statement Schedules                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 39     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| SIGNATURES    | 42                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

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

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

|   | · | the liquidity of the Company’s common stock will be affected by the lack of a trading market; |
|--------|--------|-----------------------------------------------------------------------------------------------------|

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

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

|   | · | shortages in availability of qualified personnel; |
|--------|--------|---------------------------------------------------|

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

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

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

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|   | · | 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 and credit card processing services. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Revenue:                                                                                                                                                                                                                 | 2010Dollars |                                                                                             | %      |                                                                                             |   | 2009Dollars |   | %                                                                                                |   |                                                                                             | VarianceDollars |               |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|--------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|-------------|--------|--------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|-----------------|--------------------|
|                                      |        |                  |   |                  |   |        |   |                  |   |                  |            |     |   |                  |   |
|   ACH Processing                                                                                                                                                                                          | $           | 1,157,173                                                                                        |   | 42.5                                                                                             | %      |        | $      | 813,461                                                                                          |   | 29.8                                                                                             | %               |     | $ |  343,712 |   |
|   Verification Services                                                                                                                                                                                   | $           | 33,324                                                                                           |   | 1.2                                                                                              | %      |        | $      | 180,440                                                                                          |   | 6.6                                                                                              | %               |               | $ | (147,116 | ) |
|   Credit Card Services                                                                                                                                                                                         | $           | 1,533,640                                                                                        |   | 56.3                                                                                             | %      |        | $      | 1,736,167                                                                                        |   | 63.6                                                                                             | %               |               | $ | (202,527 | ) |
| Total Revenue                                                                                                                                                                                                            | $           | 2,724,137                                                                                        |   | 100.0                                                                                            | %      |        | $      | 2,730,068                                                                                        |   | 100.0                                                                                            | %               |               | $ | (5,931 | ) |

| Cost of Revenue:                                                                                                                                                                                                         | 2010   |                                                                                             | %      |                                                                                             |   | 2009   |   | %                                                                                                |   |                                                                                             | VarianceDollars |               |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|--------|--------|--------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|-----------------|--------------------|
|                                      |   |                  |   |                  |   |   |   |                  |   |                  |            |     |   |                  |   |
|   ACH Services                                                                                                                                                                                            | $      | 392,847                                                                                          |   | 41.1                                                                                             | %      |   | $      | 207,792                                                                                          |   | 23.4                                                                                             | %               |               | $ | 185,055 |   |
|   Verification Services                                                                                                                                                                                        |   | 40,843                                                                                           |   | 4.3                                                                                              | %      |   |   | 126,251                                                                                          |   | 14.2                                                                                             | %               |               |   |  (85,408 | ) |
|   Credit Card Services                                                                                                                                                                                         |   | 521,628                                                                                          |   | 54.6                                                                                             | %      |   |   | 552,651                                                                                          |   | 62.4                                                                                             | %               |               |   | (31,023 | ) |
| Total Cost of Revenue                                                                                                                                                                                     | $      | 955,318                                                                                          |   | 100.0                                                                                            | %      |   | $      | 886,694                                                                                          |   | 100.0                                                                                            | %               |               | $ | 68,624 |   |

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|   | · | We may experience reductions in the amount of payments we process for merchants as a result of a downturn in consumer activity and consumer confidence. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We may be negatively impacted in our credit card processing business if consumers are unable to maintain existing credit card limits or have credit card services terminated. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We may experience difficulties in maintaining or re-financing our existing credit facilities at either equivalent or more favorable rates. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | New sources of borrowed capital may become more expensive or unavailable which may inhibit our ability to grow. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | Competition may become more intense and we may be required to reduce pricing to maintain the business we have and/or to obtain new business through our existing sales force. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name                                                                                                                                                                                                                                       |                           | Age                            |                           | Position                                                                                                                                                                                                                                                                                                                                                                                   |                           | Director Since            |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------|
|                                         |       |       |       |                                                                 |       |       |
| Walter Reid Green, Jr.                                                                                                                                                                                                                     |                           | 52                             |                           | Chief Executive Officer, President, Chief Financial Officer, Treasurer, Corporate Secretary and a Director                                                                                                                                                                                                                                                                                 |                           | 2005                           |
| William R. Plummer                                                                                                                                                                                                                         |                           | 66                             |                           | Sales Development Manager and a Director                                                                                                                                                                                                                                                                                                                                                   |                           | 2008                           |
| Monica B. Haab                                                                                                                                                                                                                             |                           | 44                             |                           | Director                                                                                                                                                                                                                                                                                                                                                                                   |                           | 2005                           |

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| Salary Compensation                                                                                                      |
|--------------------------------------------------------------------------------------------------------------------------|
| Name andPrincipalPosition(1)                                                                                        |   | FiscalYear |   | Salary ($) |   | Bonus($) |   | StockAwards |   | OptionsAwards($)(2) |   | Non-EquityIncentive PlanCompensation($) |   | NonqualifiedDeferredCompensationEarnings ($) |   | All OtherCompensationCompensation($)(3) |   | Total ($) |   |
|                                                                                                                     |   |               |   |   |               |   |   |               |   |   |               |   |   |               |   |   |             |   |   |             |   |   |             |   |   |               |   |
| Walter Reid Green, Jr.Chief Executive Officer, President, Chief Financial Officer and Corporate Secretary |   | 20102009 |   | $$ | 100,000100,000 |   | $$ | 3,5001,500 |   | $$ | —— |   | $$ | — —  |   | $$ | —— |   | $$ | —— |   | $$ | —— |   | $$ | 103,500101,500 |   |

| (1) |    | During the fiscal year ended December 31, 2010, we only had one executive officer, Mr. Green.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |         | Amounts shown do not reflect compensation actually received, but represent the grant date fair value as determined pursuant to ASC Topic 718.  The assumptions underlying the calculation under ASC Topic 718 are discussed under Note I to our 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 |   |
| Walter Reid Green, Jr |   |   | 897,500                                                            |   |   | — |   |   | — |   | $ | .05 |   | 08/20/2018 |   |   | — |   |   | — |   |   | — |   |   | — |   |

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

| (1) |   | Walter Reid Green, Jr., our Chief Executive Officer, President, Chief Financial Officer, Treasurer and Corporate Secretary, is not included in this table as he is an employee and thus received no compensation for services as a director.  The compensation received by Mr. Green as an employee is shown in the summary compensation table included elsewhere in this report. |
|-----|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |   | Ms. Haab is our only non-employee director.  As of December 31, 2010, 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 239,198 shares of our common stock.                                                                                |

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| Name and Address                                                                                       |   | SharesBeneficiallyOwned |      |   | Percentageof Class |   |
|--------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|--------|--------------------|--------|
|                                                                                                   |   |                    |      |   |               |   |   |   |
| Beneficial Owners of More than 5%:                                                                     |   |                    |      |   |               |   |   |   |
| American Timeshare Associates, Inc.  82 Roslyn Avenue  Sea Cliff, New York 11579   |   |                    | 2,644,616 | (1)    |               |   | 6.7 | % |
|                                                                                                   |   |                    |      |   |               |   |   |   |
| Ron Katz  82 Roslyn Avenue  Sea Cliff, New York 11579                              |   |                    | 2,788,462 | (2)    |               |   | 7.1 | % |
|                                                                                                   |   |                    |      |   |               |   |   |   |
| Leon Nowalsky  826 Barracks Street  New Orleans, Louisiana 70116                   |   |                    | 3,991,500 | (3)    |               |   | 10.1 | % |
|                                                                                                   |   |                    |      |   |               |   |   |   |
| Paul J. Shovlain  P.O. Box 15855 Tallahassee, Florida  32317                  |   |                    | 6,891,750 |   |               |   | 17.5 | % |
|                                                                                                   |   |                    |      |   |               |   |   |   |
| Robert J. Sorrentino  3811 Hollow Crossing Drive  Orlando, Florida 32817           |   |                    | 8,935,058 |   |               |   | 22.7 | % |
|                                                                                                   |   |                    |      |   |               |   |   |   |
| Directors and Named Executive Officers:                                                                |   |                    |      |   |               |   |   |   |
| Walter Reid Green, Jr.  15431 O’Neal  Gulfport, Mississippi  39503 |   |                    | 1,112,500 | (4)    |               |   | 2.8 | % |
|                                                                                                   |   |                    |      |   |               |   |   |   |
| Monica B. Haab   15431 O’Neal  Gulfport, Mississippi  39503   |   |                    | 239,198   |   |               |   | 0.6 | % |
|                                                                                                   |   |                    |      |   |               |   |   |   |

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| Name and Address |   | SharesBeneficiallyOwned |   |   | Percentageof Class |   |
|------------------|--------|-------------------------|--------|--------|--------------------|--------|
|             |   |                    |   |   |               |   |   |   |

| William R. Plummer   15431 O’Neal  Gulfport, Mississippi  39503 |   |   | 6,396,000 | (5)    |   |   | 16.3   | %      |
|----------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|
|                                                                                                     |   |   |      |   |   |   |   |   |
| All officers and directors as a group (3 persons)                                                        |   |   | 7,747,698 |   |   |   | 19.3   | %      |

| (1) |         | Ron Katz is the president and sole shareholder of American Timeshare Associates, Inc. and has sole voting and dispositive power over the shares held by American Timeshare Associates, Inc.                                                                                                                                                                                                    |
|-----|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |    | Includes the 2,644,616 shares held by American Timeshare Associates, Inc. as set forth in this table and 143,846 shares held by Net Com Data Corp. of N.Y.  Mr. Katz is the president and sole shareholder of both entities and may be deemed to be the beneficial owner of all shares owned by those entities.                                                                      |
| (3) |         | Mr. Nowalsky is the direct owner of 3,791,500 shares of common stock and exercises the sole power to direct the voting or disposition of these shares. In addition, he is the indirect owner of 125,000 shares of common stock, owned by his wife and 75,000 shares of common stock owned by Riverbend Holdings, Inc., of which he serves as an officer, director and significant shareholder. |
| (4) |         | Includes 897,500 shares which Mr. Green has the right to acquire pursuant to the exercise options with an exercise price of $.05 per share.                                                                                                                                                                                                                                                    |
| (5) |         | Includes 3,198,000 shares owned by Mr. Plummer’s spouse, Beverly Plummer.                                                                                                                                                                                                                                                                                                                |

| 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 (1)     | 1,157,000 | $.05 | 718,000 |
|                                |        |        |        |
| Equity compensationplans not approved bysecurity holders     |   - |   - |   - |
|                                |        |        |        |
| Total                                                        | 1,157,000 | $.05 | 718,000 |

| (1) |   | Includes our 2008 Incentive Stock Plan which was approved by stockholders at our annual meeting on January 15, 2009. |
|-----|--------|---------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                             |   | Fiscal 2010 |   |   | Fiscal 2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------|--------|-------------|--------|
| Audit Fees (1)                                                                                                                                   |   | $           | 42,142 |   |        | $      | 46,375 |   |
| Audit-Related fees                      |   |        | -      |   |        |   | - |   |
| Tax Fees                                                                                                                                         |   |        | 6,431  |   |        |   | - |   |
| All Other Fees                                                                                                                                   |   |        | 430    |   |        |   | - |   |
| Total Fees                                                                                                                                       |   | $           | 49,003 |   |        | $      | 46,375 |   |

| (1) |    | Includes fees for the Company’s annual audits and reviews of the Company’s quarterly financial statements or services that are normally provided by the accountant in connection with statutory or regulatory filings or engagements. |
|-----|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

PART

ITEM

|   | (1) | Financial Statements.  The consolidated financial statements of United eSystems, Inc., which are listed on the Index to Financial Statements appearing on page F-1 of this report. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Financial Statement Schedules.  All schedules for which provision is made in the applicable accounting regulations of the SEC are omitted because of the absence of conditions under which they are required or because the required information is included in the consolidated financial statements and related notes thereto. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Exhibits.  The following is a list of exhibits filed as part of this annual report on Form 10-K. |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|           | 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  |               | First Amended and Restated Articles of Incorporation (incorporated by reference to Exhibit 3.3 to our Form 10-KSB filed on April 15, 2005).                                                                                                                       |
|                                                   | 3.3  |               | 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).                                                                                                                 |
|                                                   | 3.4  |               | Certificate of Amendment to the Articles of Incorporation (incorporated by reference to Appendix A to our Definitive Information Statement on Schedule 14C filed on February 28, 2011).                                                                                |
|                                                   | 3.5  |               | Bylaws (incorporated by reference to Exhibit 3.2 to our Registration Statement on Form 10-SB filed April 23, 2002).                                                                                                                                               |
|                                                   | 3.6  |               | First Amended Bylaws of United eSystems, Inc. (incorporated by reference to Exhibit 3.1 to our Form 8-K filed on October 14, 2008).                                                                                                                               |
|           | 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). |

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|           | 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).                                                                                                                                |
|                                                   | 10.5  |   | Real Estate Lease Renewal dated March 17, 2008 (incorporated by reference to Exhibit 10.1 to our Form 10-Q filed on August 13, 2008).                                                                                                                                                             |
|                                                   | 10.6  |   | United eSystems, Inc. 2008 Incentive Stock Plan (incorporated by reference to Exhibit 10.1 to our Form 10-Q filed on November 14, 2008).+                                                                                                                                                              |
|                                                   | 10.7  |   | NetCom Data Southern Corp. Share Purchase Agreement dated August 22, 2008 (incorporated by reference to Exhibit 10.1 to our Form 8-K filed on August 28, 2008).                                                                                                                                   |
|                                                   | 10.8  |   | Robert J. Sorrentino Secured Promissory Note dated August 22, 2008 (incorporated by reference to Exhibit 10.2 to our Form 8-K filed on August 28, 2008).                                                                                                                                          |
|                                                   | 10.9  |   | Robert J. Sorrentino Security Agreement dated August 22, 2008 (incorporated by reference to Exhibit 10.3 to our Form 8-K filed on August 22, 2008).                                                                                                                                               |
|                                                   | 10.10 |   | Purchase Agreement dated September 17, 2008 between Netcom Data Corp. and Net Com Data Corp of N.Y. and American Timeshare Associates, Inc. (incorporated by reference to Exhibit 10.1 to our Form 8-K filed on September 23, 2008).                                                                   |
|                                                   | 10.11 |   | Promissory Note dated September 17, 2008 issued to Thermo Credit, LLC. (incorporated by reference to Exhibit 10.2 to our Form 8-K filed on September 23, 2008).                                                                                                                                        |
|                                                   | 10.12 |   | Loan, Pledge, and Security Agreement dated September 17, 2008 by and among Thermo Credit, LLC and United eSystems, Inc., Netcom Data Southern Corp., Netcom Data Corp. and United Check Services, L.L.C. (incorporated by reference to Exhibit 10.3 to our Form 8-K filed on September 23, 2008).      |
|                                                   | 10.13 |   | Subordination Agreement dated September 17, 2008 by and among Robert Sorrentino, Thermo Credit, LLC and United eSystems, Inc., Netcom Data Southern Corp, Netcom Data Corp. and United Check Services, L.L.C. (incorporated by reference to Exhibit 10.4 to our Form 8-K filed on September 23, 2008). |
|                                                   | 10.14 |   | Pledge and Control Agreement dated September 17, 2008 by and among Thermo Credit, LLC and Leon Nowalsky and Robert Sorrentino (incorporated by reference to Exhibit 10.5 to our Form 8-K filed on September 23, 2008).                                                                                 |
|                                                   | 10.15 |   | Service Agreement dated July 13, 2008 between LaSalle Bank, N.A. and Netcom Data Corp. (incorporated by reference to Exhibit 10.6 to our Form 8-K filed on September 23, 2008).                                                                                                                   |
|                                                   | 10.16 |   | Amendment to Thermo Credit, LLC Loan, Pledge and Security Agreement and related Promissory Note dated March 17, 2009. (incorporated by reference to Exhibit 10.16 to our Form 10-K filed on March 31, 2009).                                                                                      |
|                                                   | 10.17 |   | Employment Agreement between Netcom Data Southern Corp. and William R. Plummer dated August 22, 2008 (incorporated by reference to Exhibit 10.2 to our Form 10-Q filed on May 15, 2009).+                                                                                                         |
|                                                   | 10.18 |   | Non-Competition, Confidentiality, and Non-Solicitation Agreement between the Company, Netcom Data Southern Corp. and William R. Plummer dated August 22, 2008 (incorporated by reference to Exhibit 10.3 to our Form 10-Q filed on May 15, 2009).+                                                |
|                                                   | 10.19 |   | Amendment to Security Agreement and Promissory Note between Robert J. Sorrentino and United eSystems, Inc. dated May 27, 2009 (incorporated by reference to Exhibit 10.1 to our Form 10-Q filed on August 14, 2009).                                                                              |
|                                                   | 10.20 |   | Amendment Agreement dated August 23, 2009 to Unsecured Promissory Note between the Company and William R. Plummer (incorporated by reference to Exhibit 10.1 to our Form 8-K filed on August 24, 2009).                                                                                           |
|                                                   | 10.21 |   | Third Amendment to Agreement, dated March 31, 2010, to the Thermo Credit, LLC Loan, Pledge, and Security Agreement and related Promissory Note (incorporated by reference to Exhibit 10.1 to our Form 8-K filed on April 19, 2010).                                                                         |
|                                                   | 10.22 |   | Fourth Amendment to Agreement, dated June 30, 2010, to the Thermo Credit, LLC Loan, Pledge, and Security Agreement and related Promissory Note (incorporated by reference to Exhibit 10.1 to our Form 8-K filed on July 2, 2010).                                                                           |
|                                                   | 10.23 |   | Fifth Amendment to Agreement, dated December 31, 2010, to the Thermo Credit, LLC Loan, Pledge, and Security Agreement and related Promissory Note (incorporated by reference to Exhibit 10.1 to our Form 8-K filed on December 23, 2010).                                                                   |

----

|                                                   | 10.24 |   | Loan and Security Agreement between United eSystems, Inc. and Robert J. Sorrentino, dated December 28, 2010 (incorporated by reference to Exhibit 10.1 to our Form 8-K filed on December 29, 2010).   |
|--------------------------------------------------------|-------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                   | 10.25 |   | Robert J. Sorrentino Promissory Note dated December 29, 2010 (incorporated by reference to Exhibit 10.2 to our Form 8-K filed on December 29, 2010).                                                  |
|                                                   | 10.26 |   | Amendment Agreement dated April 8, 2011, to Unsecured Promissory Note between the Company and William R. Plummer (incorporated by reference by Exhibit 10.1 to our Form 8-K filed on April 13, 2011). |
|           | 14.1  |   | Code of Ethics (incorporated by reference to Exhibit 14 to our Form 10-KSB filed on April 14, 2004).                                                                                             |
|                                                   | 21.1  |   | List of Subsidiaries of United eSystems (incorporated by reference to Exhibit 21.1 to our Form 10-K filed on March 31, 2009).                                                                    |
|           | 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.*                                                                                                       |

----

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

|                                                                                                                                                    | UNITED ESYSTEMS, INC.                                                                                                                                               |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                     |                                                                                                                                                 |
| Date:  April 15, 2011                     | By: /s/ Walter Reid Green, Jr.                                                                                                                                 |
|                                                                                                                                                    |       Walter Reid Green, Jr.                                                                                                               |
|                                                                                                                                                    |       Chief Executive Officer and Chief Financial Officer                                                                             |
|                                                                                                                                                    |       (Principal Executive Officer, Principal Financial Officer       and Principal Accounting Officer) |

| Signature                                                                                                                                                                                                                                                                                                                                        |   | Title                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Date                                                                                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                          |   |                                                                         |   |                              |
|                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                       |
| /s/ Walter Reid Green, Jr.                                                                                                                                                                                                                                                                                                                       |   | Chief Executive Officer, Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                           |   | April 15, 2011                                                                                                                                                           |
| Walter Reid Green, Jr.                                                                                                                                                                                                                                                                                                                           |   |  and Director                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                       |
| /s/ William R. Plummer                                                                                                                                                                                                                                                                                                                           |   | Director                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | April 15, 2011                                                                                                                                                           |
| William R. Plummer                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                     |
| /s/ Monica B. Haab                                                                                                                                                                                                                                                                                                                               |   | Director                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | April 15, 2011                                                                                                                                                           |
| Monica B. Haab                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                     |

----

| 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-21 |

----

----

| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | December 31,2010 |       |   | December 31,2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|------------|--------|------------------|--------|
|                                                                                                                                                                                            |   |             |       |   |             |   |
| CURRENT ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |             |       |   |             |   |
| Cash and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                | 137,732    |   |             | $      | 228,213 |   |
| Restricted Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             | 406,594    |   |             |   | 271,624 |   |
| Trade Receivables, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             | 66,838     |   |             |   | 93,021 |   |
| Deferred Tax Asset, current                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |             | --         |   |             |   | 206,338 |   |
| Prepaid Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             | 20,000     |   |             |   | 104,000 |   |
| Prepaid Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             | 11,877     |   |             |   | 30,584 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |       |   |             |   |   |   |
| Total Current Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             | 643,041    |   |             |   | 933,780 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |       |   |             |   |   |   |
| PROPERTY AND EQUIPMENT, NET                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |             | 26,369     |   |             |   | 52,400 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |       |   |             |   |   |   |
| OTHER ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |             |       |   |             |   |   |   |
| Intangible Assets, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             | 4,465,934  |   |             |   | 4,932,499 |   |
| Deferred Tax Asset, Non-current                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             | -          |   |             |   | 65,678 |   |
| Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |             | 63,315     |   |             |   | 85,250 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |       |   |             |   |   |   |
| Total Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                | 5,198,659  |   |             | $      | 6,069,607 |   |
|                                                                                                                      |   |             |       |   |             |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |       |   |             |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |       |   |             |   |   |   |
| CURRENT LIABILITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |             |       |   |             |   |   |   |
| ACH Settlements Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                | 378,988    |   |             | $      | 258,019 |   |
| Current Portion Long-Term Debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |             | 867,484    |   |             |   | 2,422,100 |   |
| Accounts Payable and Accrued Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |             | 54,325     |   |             |   | 63,022 |   |
| Customers’ Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |             | 27,605     |   |             |   | 13,605 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |       |   |             |   |   |   |
| Total Current Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |             | 1,328,402  |   |             |   | 2,756,746 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |       |   |             |   |   |   |
| LONG TERM LIABILITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |             |       |   |             |   |   |   |
| Notes Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |             | 3,221,841  |   |             |   | 2,610,325 |   |
| Deferred Tax Liabilities, Non-current                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |             | 3,051      |   |             |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |       |   |             |   |   |   |
| Total Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             | 4,553,294  |   |             |   | 5,367,071 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |       |   |             |   |   |   |
| STOCKHOLDERS' EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |       |   |             |   |   |   |
| Common Stock - $.001 Par Value; 75,000,000 Shares Authorized, 39,445,129 and 34,272,629  shares Issued and Outstanding at December 31, 2010 and 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |             | 39,445     |   |             |   | 34,272 |   |
| Additional Paid-In Capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             | 1,743,761  |   |             |   | 847,339 |   |
| Retained Earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             | (1,137,841 | )      |             |   | (179,075 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |       |   |             |   |   |   |
| Total Stockholders' Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             | 645,365    |   |             |   | 702,536 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |       |   |             |   |   |   |
| Total Liabilities and Stockholders' Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                | 5,198,659  |   |             | $      | 6,069,607 |   |

----

| UNITED ESYSTEMS, INC. AND SUBSIDIARIES |
|----------------------------------------|
| CONSOLIDATED STATEMENTS OF OPERATIONS  |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | For the Years EndedDecember 31,                                                                                     |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2010                                                                                                                     |   |   |   | 2009 |   |
|                                                                                                                      |   |                      |   |       |   |                      |   |
| REVENUES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                     |   |   |   |   |   |
| ACH Processing Services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | $      |   1,157,173                                                                                                    |   |   | $ |   813,461 |   |
| Verification Services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 33,324                                                                                                                   |   |   |   | 180,440 |   |
| Credit Card Services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 1,533,640                                                                                                                |   |   |   | 1,736,167 |   |
| Total Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2,724,137                                                                                                                |   |   |   | 2,730,068 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |   |   |   |   |   |
| COST OF REVENUES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 955,318                                                                                                                  |   |   |   | 886,694 |   |
| Gross Profit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 1,768,819                                                                                                                |   |   |   | 1,843,374 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |   |   |   |   |   |
| EXPENSES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                     |   |   |   |   |   |
| Operating Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                     |   |   |   |   |   |
|    Personnel Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 157,385                                                                                                                  |   |   |   | 139,165 |   |
|    Travel                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 46,780                                                                                                                   |   |   |   | 72,142 |   |
|    Amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 607,653                                                                                                                  |   |   |   | 538,272 |   |
|    Commissions and fees expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 141,904                                                                                                                  |   |   |   | 151,139 |   |
|    Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 234,815                                                                                                                  |   |   |   | 224,262 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |   |   |   |   |   |
| Total Operating Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 1,188,537                                                                                                                |   |   |   | 1,124,980 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |   |   |   |   |   |
| Selling, General and Administrative Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |   |   |   |   |   |
|    Personnel Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 528,841                                                                                                                  |   |   |   | 512,707 |   |
|    Legal and Accounting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 92,959                                                                                                                   |   |   |   | 123,672 |   |
|    Marketing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 24,170                                                                                                                   |   |   |   | 36,453 |   |
|    Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |  11,675                                                                                                             |   |   |   |  22,688 |   |
| Total Selling, General and Administrative Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 657,645                                                                                                                  |   |   |   | 695,520 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |   |   |   |   |   |
| Total Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 1,846,182                                                                                                                |   |   |   | 1,820,500 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |   |   |   |   |   |
| (LOSS) INCOME FROM OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |  (77,363                                                                                                            | )      |   |   |  22,874 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                     |   |   |   |   |   |
| Interest Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |    485                                                                                                    |   |   |   |    2,429 |   |
| Interest Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | (588,672                                                                                                                 | )      |   |   | (647,999 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |   |   |   |   |   |
| Total Other Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | (588,187                                                                                                                 | )      |   |   | (645,570 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |   |   |   |   |   |
| NET LOSS BEFORE INCOME TAXES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | (665,550                                                                                                                 | )      |   |   | (622,696 | ) |
| INCOME TAX (EXPENSE) BENEFIT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | (293,216                                                                                                                 | )      |   |   | 221,709 |   |
| NET LOSS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | $      |  (958,766                                                                                                           | )      |   | $ |  (400,987 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |   |   |   |   |   |
| LOSS PER SHARE – BASIC                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | $      | 0.02                                                                                                                     |   |   | $ | 0.01 |   |
| LOSS PER SHARE – DILUTED                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $      | 0.02                                                                                                                     |   |   | $ | 0.01 |   |

----

|                                                                  |   | Common Stock |       |   | AdditionalPaid-In |   |   | Retained |   |   | TotalStockholders' |   |
|-----------------------------------------------------------------------|--------|--------------|------------|--------|-------------------|--------|--------|----------|--------|--------|--------------------|--------|
|                                                                  |   | Shares       |       |   | Amount            |   |   | Capital  |   |   | Earnings           |   |   | Equity |   |
|                                                                  |   |         |       |   |              |   |   |     |   |   |               |   |   |   |   |
| Balance at January 1, 2009                                            |   |         | 34,316,667 |   |              | $      | 34,317 |     |   | $      | 850,346            |   |   | $ | 221,912 |   |   | $ | 1,106,575 |   |
|                                                                  |   |         |       |   |              |   |   |     |   |   |               |   |   |   |   |   |   |   |   |   |
| Employees’ exercise of stock options                            |   |         | 42,500     |   |              |   | 42     |     |   |   | 1,233              |   |   |   | -- |   |   |   | 1,275 |   |
|                                                                  |   |         |       |   |              |   |   |     |   |   |               |   |   |   |   |   |   |   |   |   |
| Attrition Reimbursement under terms of Acquired Credit Card Portfolio |   |         | (86,538    | )      |              |   | (87    | )        |   |   | (4,240             | )      |   |   | -- |   |   |   | (4,327 | ) |
|                                                                  |   |         |       |   |              |   |   |     |   |   |               |   |   |   |   |   |   |   |   |   |
| Net Loss                                                              |   |         | -          |   |              |   | -      |     |   |   | -                  |   |   |   | (400,987 | ) |   |   | (400,987 | ) |
|                                                                  |   |         |       |   |              |   |   |     |   |   |               |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2009                                          |   |         | 34,272,629 |   |              | $      | 34,272 |     |   | $      | 847,339            |   |   | $ | (179,075 | ) |   | $ | 702,536 |   |
|                                                                  |   |         |       |   |              |   |   |     |   |   |               |   |   |   |   |   |   |   |   |   |
| Private Placement Equity Offering                                     |   |         | 5,072,500  |   |              |   | 5,073  |     |   |   | 893,522            |   |   |   | - |   |   |   | 898,595 |   |
|                                                                  |   |         |       |   |              |   |   |     |   |   |               |   |   |   |   |   |   |   |   |   |
| Employees’ exercise of stock options                            |   |         | 100,000    |   |              |   | 100    |     |   |   | 2,900              |   |   |   | - |   |   |   | 3,000 |   |
|                                                                  |   |         |       |   |              |   |   |     |   |   |               |   |   |   |   |   |   |   |   |   |
| Net Loss                                                              |   |         | -          |   |              |   | -      |     |   |   | -                  |   |   |   | (958,766 | ) |   |   | (958,766 | ) |
|                                                                  |   |         |       |   |              |   |   |     |   |   |               |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2010                                          |   |         | 39,445,129 |   |              | $      | 39,445 |     |   | $      | 1,743,761          |   |   | $ | (1,137,841 | ) |   | $ | 645,365 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | For The Years Ended December 31,                                                                                   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2010                                                                                                               |   |   |   | 2009 |   |
|                                                                                                           |   |                     |   |       |   |                     |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |   |   |   |   |   |
| Net Loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $      |  (958,766                                                                                                     | )      |   | $ |  (400,987 | ) |
| Adjustments to Reconcile Net Loss to Net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                               |   |   |   |   |   |
| Cash Provided by Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                               |   |   |   |   |   |
| Depreciation and Amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 636,778                                                                                                            |   |   |   | 568,318 |   |
| Decrease (Increase) in Trade Receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 26,183                                                                                                             |   |   |   | (8,215 | ) |
| (Increase) in Prepaid Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | (1,293                                                                                                             | )      |   |   | (10,965 | ) |
| Decrease in Prepaid Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 104,000                                                                                                            |   |   |   | 102,000 |   |
| (Increase) Decrease in Restricted Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | (134,970                                                                                                           | )      |   |   | 82,078 |   |
| Decrease (Increase) in Deferred Tax Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 275,066                                                                                                            |   |   |   | (272,016 | ) |
| Increase (Decrease) in ACH Settlements Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 120,969                                                                                                            |   |   |   | (78,578 | ) |
| (Decrease) Increase in Accounts Payable and Accrued Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | (8,693                                                                                                             | )      |   |   | 45,098 |   |
| Increase (Decrease) in Customer Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 14,000                                                                                                             |   |   |   | (3,500 | ) |
| Net Cash Provided by Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 73,270                                                                                                             |   |   |   | 23,233 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |   |   |   |   |   |
| Acquisition of Property and Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | (3,094                                                                                                             | )      |   |   | (24,789 | ) |
| Cash paid in conjunction with acquisition of Portfolio Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | (141,088                                                                                                           | )      |   |   | - |   |
| Proceeds from Asset Purchase Escrow                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | --                                                                                                                 |   |   |   | 186,818 |   |
| Decrease (Increase) in Other Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 21,935                                                                                                             |   |   |   | (21,935 | ) |
| Net Cash (Used in) Provided by Investing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | (122,247                                                                                                           | )      |   |   | 140,094 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |   |   |   |   |   |
|      Net Proceeds from Private Placement Stock Offering                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 898,595                                                                                                            |   |   |   | - |   |
| Proceeds from notes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 661,000                                                                                                            |   |   |   | - |   |
| Proceeds from employee stock options exercised                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 3,000                                                                                                              |   |   |   | 1,275 |   |
| Principal paid on notes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | (1,604,100                                                                                                         | )      |   |   | (303,233 | ) |
| Net Cash Used in Financing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | (41,505                                                                                                            | )      |   |   | (301,958 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |   |   |   |   |   |
| NET DECREASE IN CASH AND CASH EQUIVALENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | (90,481                                                                                                            | )      |   |   | (138,631 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS – BEGINNING OF YEAR                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 228,213                                                                                                            |   |   |   | 366,844 |   |
| CASH AND CASH EQUIVALENTS – END OF YEAR                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $      | 137,732                                                                                                            |   |   | $ | 228,213 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                               |   |   |   |   |   |
| Cash Paid During the Period for Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $      | 484,672                                                                                                            |   |   | $ | 543,999 |   |
| Cash Paid During the Period for Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 15,000                                                                                                             |   |   |   | 5,000 |   |

----

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----

|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2010                                                                                                                     |   |                           |   | 2009                                                                                                                     |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|--------|
| Computers and Office Equipment                                                                                                                                                                                                                                                                                                                                                                                                             | $      | 84,094                                                                                                                   |   |                           | $      | 83,452                                                                                                                   |   |
| Furniture and Fixtures                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 8,626                                                                                                                    |   |                           |   | 8,626                                                                                                                    |   |
| Software                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 89,523                                                                                                                   |   |                           |   | 87,027                                                                                                                   |   |
| Leasehold Improvements                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 14,846                                                                                                                   |   |                           |   | 14,846                                                                                                                   |   |
| Less:  Accumulated Depreciation                                                                                                                                                                                                                                                                                                                                                                                                  |   | (170,720                                                                                                                 | )      |                           |   | (141,551                                                                                                                 | )      |
|                                                                         |   |                      |   |       |   |                      |   |
| Property and Equipment, Net                                                                                                                                                                                                                                                                                                                                                                                                                | $      | 26,369                                                                                                                   |   |                           | $      | 52,400                                                                                                                   |   |

----

|                                     |   | December 31, 2010 |      |   | December 31, 2009 |   |
|------------------------------------------|--------|-------------------|-----------|--------|-------------------|--------|
|                                     |   | Gross             |      |   | Accumulated       |   |   | Gross |   |   | Accumulated |   |
|                                     |   | Amount            |      |   | Amortization      |   |   | Amount |   |   | Amortization |   |
|                                     |   |              |      |   |              |   |   |   |   |   |   |   |
| Customer Contracts - NDS                 |   | $                 | 3,402,925 |   |              | $      | 738,138 |   |   | $ | 3,402,925 |   |   | $ | 424,450 |   |
| Customer Contracts - Portfolio Purchases |   |              | 2,576,665 |   |              |   | 775,518 |   |   |   | 2,431,248 |   |   |   | 477,224 |   |
|                                     |   |              |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Totals                                   |   | $                 | 5,979,590 |   |              | $      | 1,513,656 |   |   | $ | 5,834,173 |   |   | $ | 901,674 |   |

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | December 31                                                                                                              |                           |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|--------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2010                                                                                                                     |                           |   | 2009 |   |
| Due to Shareholders                                                                                                                                                                                                                                                                                                                                                                                                                        | $      | 102,000                                                                                                                  |                           | $ | 70,000 |   |
| Share Purchase Note – NDS                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2,675,000                                                                                                                |                           |   | 2,675,000 |   |
| Sorrentino Notes                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 812,325                                                                                                                  |                           |   | 357,425 |   |
| Thermo Credit Note                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 500,000                                                                                                                  |                           |   | 1,930,000 |   |
|                                                                         |   |                      |       |   |                      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       | $      | 4,089,325                                                                                                                |                           | $ | 5,032,425 |   |

| Year               |   | Amount |      |
|--------------------|--------|--------|-----------|
|               |   |   |      |
| 2011               |   | $      | 867,484   |   |
| 2012               |   |   | 364,615   |   |
| 2013               |   |   | 398,647   |   |
| 2014               |   |   | 2,458,579 |   |
|   Totals |   | $      | 4,089,325 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Years EndedDecember 31,                                                                                             |                           |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|--------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2010                                                                                                                     |                           |   | 2009 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                     |                           |   |   |   |
| Current Tax Benefit                                                                                                                                                                                                                                                                                                                                                                                                                        | $      | -                                                                                                                        |                           | $ | - |   |
| Deferred Tax Expense (Benefit)                                                                                                                                                                                                                                                                                                                                                                                                             |   | 293,216                                                                                                                  |                           |   | (221,709 | ) |
|                                                                         |   |                      |       |   |                      |   |
| Total Income Tax Expense (Benefit)                                                                                                                                                                                                                                                                                                                                                                                                         | $      | 293,216                                                                                                                  |                           | $ | (221,709 | ) |

|                                                                                 |   | December 31, |     |
|--------------------------------------------------------------------------------------|--------|--------------|----------|
|                                                                                 |   | 2010         |     |   | 2009 |   |
| Deferred Tax Assets                                                                  |   |         |     |   |   |   |
| Net Operating Loss Carryforwards                                                     |   | $            | 377,611  |   |   | $ | 206,338 |   |
| Amortization of Intangibles                                                          |   |         | 74,091   |   |   |   | 65,678 |   |
|                                                                                 |   |         |     |   |   |   |   |   |
| Total Deferred Tax Assets                                                            |   |         | 451,702  |   |   |   | 272,016 |   |
|                                                                                 |   |         |     |   |   |   |   |   |
| Deferred Tax Liabilities                                                             |   |         |     |   |   |   |   |   |
|        Property and Equipment                     |   |         | (3,051   | ) |   |   | - |   |
|          Total Deferred Tax Liabilities |   |         | (3,051   | ) |   |   |   |   |
|          Valuation Allowance            |   |         | (451,702 | ) |   |   | - |   |
|         Net Deferred Tax (Liability) Asset   |   | $            | (3,051   | ) |   | $ | 272,016 |   |

----

| Expected Volatility                                        | 29.15%    |
|------------------------------------------------------------|-----------|
| Expected Term                                              | 5.0 Years |
| Expected Dividends                                         | $0.00     |
| Risk Free Rate                                             | 3.79%     |
| Weighted-Average Fair Value of Options Granted During 2008 | $.015     |

----

| Options                                                                                                                                                                              |               | Shares    |               | Weighted-AverageExercise Price                                                                                      |               | Weighted-AverageRemainingContractualTerm                                                                                 |               | AggregateIntrinsicValue                                                                                                  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|-----------|--------------------|--------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------------------------------|
|                                |     |      |     |                      |     |                      |     |                      |
| Outstanding at January 1, 2010                                                                                                                                                       |               | 1,416,500 |               | $.05                                                                                                                     |               | 5.52                                                                                                                     |               | $.00                                                                                                                     |
| Granted                                                                                                                                                                              |               | -         |               | -                                                                                                                        |               |                                                                                                                     |               |                                                                                                                     |
| Exercised                                                                                                                                                                            |               | 100,000   |               | $.03                                                                                                                     |               |                                                                                                                     |               |                                                                                                                     |
| Forfeited or Expired                                                                                                                                                                 |               | 159,500   |               | $.03                                                                                                                     |               |                                                                                                                     |               |                                                                                                                     |
| Outstanding at December 31, 2010                                                                                                                                                     |               | 1,157,000 |               | $.05                                                                                                                     |               | 7.52                                                                                                                     |               | $.00                                                                                                                     |
| Exercisable at December 31, 2010                                                                                                                                                     |               | 1,157,000 |               | $.05                                                                                                                     |               | 7.52                                                                                                                     |               | $.00                                                                                                                     |

| Options                                                                                                                                                                              |               | Shares    |               | Weighted-AverageExercise Price                                                                                      |               | Weighted-AverageRemainingContractualTerm                                                                                 |               | AggregateIntrinsicValue                                                                                                  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|-----------|--------------------|--------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------------------------------|
|                                |     |      |     |                      |     |                      |     |                      |
| Outstanding at January 1, 2009                                                                                                                                                       |               | 1,459,000 |               | $.05                                                                                                                     |               | 7.52                                                                                                                     |               | $.00                                                                                                                     |
| Granted                                                                                                                                                                              |               | -         |               | -                                                                                                                        |               |                                                                                                                     |               |                                                                                                                     |
| Exercised                                                                                                                                                                            |               | 42,500    |               | $.03                                                                                                                     |               |                                                                                                                     |               |                                                                                                                     |
| Forfeited or Expired                                                                                                                                                                 |               | -         |               | -                                                                                                                        |               |                                                                                                                     |               |                                                                                                                     |
| Outstanding at December 31, 2009                                                                                                                                                     |               | 1,416,500 |               | $.05                                                                                                                     |               | 6.52                                                                                                                     |               | $.00                                                                                                                     |
| Exercisable at December 31, 2009                                                                                                                                                     |               | 1,416,500 |               | $.05                                                                                                                     |               | 6.52                                                                                                                     |               | $.00                                                                                                                     |

----

| Year   |   | Amount |   |
|--------|--------|--------|--------|
|   |   |   |   |
| 2011   |   |   | 11,700 |   |
| 2012   |   |   | 6,338  |   |
| Total  |   | $      | 18,038 |   |

| Year   |   | Amount |   |
|--------|--------|--------|--------|
|   |   |   |   |
| 2011   |   |   | 32,000 |   |
| 2012   |   |   | --     |   |
| Total  |   | $      | 32,000 |   |

| Year   |   | Amount |   |
|--------|--------|--------|--------|
|   |   |   |   |
| 2011   |   |   | 28,200 |   |
| 2012   |   |   | 28,200 |   |
| 2013   |   |   | 23,500 |   |
| Total  |   | $      | 79,900 |   |

----

| Year              |   | Amount |    |
|-------------------|--------|--------|---------|
|              |   |   |    |
| 2011              |   | $      | 106,452 |   |
| 2012              |   |   | --      |   |
|              |   |   |    |   |
|   Total |   | $      | 106,452 |   |

| Year   |   | Amount |   |
|--------|--------|--------|--------|
|   |   |   |   |
| 2011   |   |   | 44,000 |   |
| 2012   |   |   | --     |   |
|   |   |   |   |   |
|   |   | $      | 44,000 |   |

----

|                                                                                                                                                                                                                                                                                                   |   | December 31, 2010 |      |   | December 31, 2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|-----------|--------|------------------------|--------|
|                                                                                                                                                                                                                                                                                                   |   | CarryingAmount         |      |   | FairValue              |   |   | CarryingAmount |   |   | FairValue |   |
|                                                   |   |                   |      |   |                   |   |   |   |   |   |   |   |
| Financial Assets                                                                                                                                                                                                                                                                                       |   |                   |      |   |                   |   |   |   |   |   |   |   |
|    Cash and Cash Equivalents                                                                                                                                                                                                                                                            |   | $                      | 137,732   |   |                   | $      | 137,732 |   |   |   | 228,213 |   |   | $ | 228,213 |   |
|    Restricted Cash                                                                                                                                                                                                                                                                      |   |                   | 406,594   |   |                   |   | 406,594 |   |   |   | 271,624 |   |   |   | 271,624 |   |
| Financial Liabilities                                                                                                                                                                                                                                                                                  |   |                   |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|    Notes Payable                                                                                                                                                                                                                                                                        |   | $                      | 4,089,325 |   |                   | $      | 4,089,325 |   |   |   | 5,032,425 |   |   | $ | 5,032,425 |   |

----