----

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

**FORM        10-QSB**

**BLUEGATE        CORPORATION**

| Nevada                                                                                           | 76-0640970                                            |
|--------------------------------------------------------------------------------------------------|-------------------------------------------------------|
| (State                  or Other Jurisdiction of Incorporation                  or Organization) | (I.R.S.                  Employer Identification No.) |

| 701                  North Post Oak, Road, Suite 630, Houston, Texas | 77024  |
|----------------------------------------------------------------------|--------|
| (Address                  of Principal Executive Office)             |   |

|   | Yes                    x | No                    o |
|--------|--------------------------|-------------------------|

|   | Yes                  o  | No                  x |
|--------|------------------------------|-----------------------|

|   | Yes                    o  | No                    x |
|--------|--------------------------------|-------------------------|

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BLUEGATE        CORPORATION

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|                     | PART                  I. FINANCIAL INFORMATION                                                                                       |   |
|--------------------------|--------------------------------------------------------------------------------------------------------------------------------------|--------|
|                     |                                                                                                                                 |   |
|                     |                                                                                                                                 |   |
|                     |                                                                                                                                 |   |
| ITEM                  1. | FINANCIAL                  STATEMENTS                                                                                                |   |
|                     |                                                                                                                                 |   |
|                     | Unaudited                  Consolidated Financial                  Statements                                                        | F-1    |
|                     |                                                                                                                                 |   |
|                     | Unaudited                  Consolidated Balance Sheets as of March 31, 2006 and                  December 31, 2005                   | F-1    |
|                     |                                                                                                                                 |   |
|                     | Unaudited                  Consolidated Statements of Operations for the three                  months ended March 31, 2006 and 2005 | F-2    |
|                     |                                                                                                                                 |   |
|                     | Unaudited                  Consolidated Statements of Cash Flows for the three                  months ended March 31, 2006 and 2005 | F-3    |
|                     |                                                                                                                                 |   |
|                     | Notes                  to Unaudited Consolidated Financial                  Statements                                               | F-5    |
|                     |                                                                                                                                 |   |
|                     |                                                                                                                                 |   |
|                     |                                                                                                                                 |   |
| ITEM                  2. | MANAGEMENT'S                  DISCUSSION AND ANALYSIS                                                                                | I-1    |
|                     |                                                                                                                                 |   |
|                     |                                                                                                                                 |   |
|                     |                                                                                                                                 |   |
| ITEM                  3. | CONTROLS                  AND PROCEDURES                                                                                             | I-7    |
|                     |                                                                                                                                 |   |
|                     |                                                                                                                                 |   |
|                     |                                                                                                                                 |   |
|                     |                                                                                                                                 |   |
|                     | PART                  II. OTHER INFORMATION                                                                                          |   |
|                     |                                                                                                                                 |   |
|                     |                                                                                                                                 |   |
|                     |                                                                                                                                 |   |
| ITEM                  1. | LEGAL                  PROCEEDINGS                                                                                                   | II-1   |
|                     |                                                                                                                                 |   |
| ITEM                  2. | UNREGISTERED                  SALES OF EQUITY SECURITIES AND USE OF                  PROCEEDS                                        | II-1   |
|                     |                                                                                                                                 |   |
| ITEM 5.             | OTHER                  INFORMATION                                                                                                   | II-2   |
|                     |                                                                                                                                 |   |
| ITEM                  6. | EXHIBITS                                                                                                                             | II-2   |
|                     |                                                                                                                                 |   |
|                     | SIGNATURES                                                                                                                           | II-3   |
|                     |                                                                                                                                 |   |
|                     | CERTIFICATIONS                                                                                                                       | II-4   |

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*Table            of Contents*

| ITEM                  1. | FINANCIAL                  STATEMENTS |
|--------------------------|---------------------------------------|

OR

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | **March                  31,****2006** |        | **December                  31**,**2005** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|-------------|-------------------------------------------|--------|
| **ASSETS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | **(Unaudited)**                        |        |                                      |   |
| Current                  assets:                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                   |        |                                      |   |
| Cash                  and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                                      | 356,085     |                                      | $      | 27,791 |   |
| Accounts                  receivable, net                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                   | 280,013     |                                      |   | 365,131 |   |
| Prepaid                  expenses and other                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   | 17,550      |                                      |   | 46,809 |   |
| Total                  current assets                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                   | 653,648     |                                      |   | 439,731 |   |
| Property                  and equipment, net                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                   | 89,856      |                                      |   | 106,157 |   |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                   | 83,202      |                                      |   | 83,202 |   |
| Intangibles,                  net                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                   | 23,520      |                                      |   | 25,912 |   |
| Total                  assets                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                                      | 850,226     |                                      | $      | 655,002 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                   |        |                                      |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS’ DEFICIT**                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                   |        |                                      |   |   |   |
| Current                  liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                   |        |                                      |   |   |   |
| Convertible                  notes payable, net of unamortized discount of -0- at March 31,                  2006 and                  $242,316 at December 31, 2005                                                                                                                                                                                                                                                                                                       |   | $                                      | 500,000     |                                      | $      | 257,684 |   |
| Note                  payable                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                   | 12,800      |                                      |   | 12,800 |   |
| Notes                  payable to related parties                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                   | 348,417     |                                      |   | 25,000 |   |
| Accounts                  payable                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                   | 501,989     |                                      |   | 491,337 |   |
| Accrued                  liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                   | 147,954     |                                      |   | 174,674 |   |
| Deferred                  revenue                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                   | 556,501     |                                      |   | 404,553 |   |
| Total                  current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                   | 2,067,661   |                                      |   | 1,366,048 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                   |        |                                      |   |   |   |
| Commitments                  and contingencies                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                   | -           |                                      |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                   |        |                                      |   |   |   |
| Stockholders’                  deficit:                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                   |        |                                      |   |   |   |
| Series                  A Convertible Non-Redeemable Preferred stock, $.001 par value,                  20,000,000                  shares authorized, -0- and 110.242 shares issued and outstanding                  at March                  31, 2006 and December 31, 2005, respectively, $5,000 per share                  liquidation                  preference ($551,210 aggregate liquidation preference at December                  31,                  2005) |   |                                   | -           |                                      |   | - |   |
| Series                  B Convertible Non-Redeemable Preferred stock, $.001 par value,                  10,000,000                  shares authorized;** **no                  shares issued and outstanding                                                                                                                                                                                                                                                          |   |                                   | -           |                                      |   | - |   |
| Common                  stock, $.001 par value, 50,000,000 shares authorized, 8,141,369                  and                  6,332,376 shares issued and outstanding at March 31, 2006 and December                  31,                  2005, respectively                                                                                                                                                                                                              |   |                                   | 8,141       |                                      |   | 6,332 |   |
| Additional                  paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   | 11,370,935  |                                      |   | 10,841,189 |   |
| Subscription                  receivable                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                   | (75,007     | )                                         |   | (15,007 | ) |
| Deferred                  compensation                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                   | -           |                                      |   | (34,592 | ) |
| Accumulated                  deficit                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                   | (12,521,504 | )                                         |   | (11,508,968 | ) |
| Total                  stockholders’ deficit                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                   | (1,217,435  | )                                         |   | (711,046 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                   |        |                                      |   |   |   |
| Total                  liabilities and stockholders’ deficit                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                                      | 850,226     |                                      | $      | 655,002 |   |

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*Table            of Contents*

ORP

|                                                                 |   | **March                  31,****2006** |       | **March                  31,****2005** |   |
|----------------------------------------------------------------------|--------|----------------------------------------|------------|----------------------------------------|--------|
|                                                                 |   |                                   |       |                                   |   |
|                                                                 |   |                                   |       |                                   |   |
| Service                  revenue                                     |   | $                                      | 935,649    |                                   | $      | 465,831 |   |
|                                                                 |   |                                   |       |                                   |   |   |   |
| Cost                  of services                                    |   |                                   | 422,740    |                                   |   | 188,011 |   |
| Gross                  margin                                        |   |                                   | 512,909    |                                   |   | 277,820 |   |
|                                                                 |   |                                   |       |                                   |   |   |   |
| Selling,                  general and administrative expenses        |   |                                   | 1,266,273  |                                   |   | 1,153,397 |   |
|                                                                 |   |                                   |       |                                   |   |   |   |
| Loss                  from operations                                |   |                                   | (753,364   | )                                      |   | (875,577 | ) |
|                                                                 |   |                                   |       |                                   |   |   |   |
| Loss                  on conversion of notes payable to common stock |   |                                   | -          |                                   |   | (892,882 | ) |
| Interest                  expense                                    |   |                                   | 263,385    |                                   |   | 30,979 |   |
| Other                  income, net                                   |   |                                   | 4,213      |                                   |   | 2,994 |   |
|                                                                 |   |                                   |       |                                   |   |   |   |
| Net                  loss                                            |   | $                                      | (1,012,536 | )                                      | $      | (1,796,444 | ) |
|                                                                 |   |                                   |       |                                   |   |   |   |
| Basic                  and diluted loss per common share:            |   | $                                      | (0.15      | )                                      | $      | (0.55 | ) |
|                                                                 |   |                                   |       |                                   |   |   |   |
| Weighted                  average shares outstanding - Basic and     |   |                                   |       |                                   |   |   |   |
| Diluted                                                              |   |                                   | 6,889,515  |                                   |   | 3,263,370 |   |

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*Table            of Contents*

|                                                                                                              |   | **March                    31,** |       | **March                    31,** |   |
|-------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|------------|----------------------------------|--------|
|                                                                                                              |   | **2006**                         |       | **2005**                         |   |
| Cash                    flows from operating activities:                                                          |   |                             |       |                             |   |
| Net                    loss                                                                                       |   | $                                | (1,012,536 | )                                | $      | (1,796,444 | ) |
| Adjustments                    to reconcile net loss to net cash used in operating                    activities: |   |                             |       |                             |   |   |   |
| Loss                    from discontinued operations                                                              |   |                             |       |                             |   |   |   |
| Accretion                    of debt discount                                                                     |   |                             | 242,316    |                             |   | - |   |
| Depreciation                    and amortization                                                                  |   |                             | 20,151     |                             |   | 19,424 |   |
| Common                    stock issued for services                                                               |   |                             | 16,220     |                             |   | 182,692 |   |
| Common                    stock options and warrants issued for services                                          |   |                             | 294,926    |                             |   | 100,388 |   |
| Loss                    on debt conversion                                                                        |   |                             | -          |                             |   | 892,882 |   |
| Changes                    in operating assets and liabilities:                                                   |   |                             |       |                             |   |   |   |
| Accounts                    receivable                                                                            |   |                             | 85,118     |                             |   | 63,732 |   |
| Prepaid                    expenses and other                                                                     |   |                             | (2,741     | )                                |   | (805 | ) |
| Accounts                    payable and accrued liabilities                                                       |   |                             | (25,311    | )                                |   | 359,016 |   |
| Deferred                    revenue                                                                               |   |                             | 151,948    |                             |   | (20,871 | ) |
|                                                                                                              |   |                             |       |                             |   |   |   |
| Net                    cash used in operating activities                                                          |   |                             | (229,909   | )                                |   | (199,986 | ) |
|                                                                                                              |   |                             |       |                             |   |   |   |
| Cash                    flows from investing activities:                                                          |   |                             |       |                             |   |   |   |
| Proceeds                    from note receivable                                                                  |   |                             | 32,000     |                             |   | - |   |
| Payments                    received on note receivable                                                           |   |                             | -          |                             |   | 20,788 |   |
| Purchase                    of property and equipment                                                             |   |                             | (1,457     | )                                |   | (42,769 | ) |
|                                                                                                              |   |                             |       |                             |   |   |   |
| Net                    cash provided by (used in) investing activities                                       |   |                             | 30,543     |                             |   | (21,981 | ) |
|                                                                                                              |   |                             |       |                             |   |   |   |
| Cash                    flows from financing activities:                                                          |   |                             |       |                             |   |   |   |
| Change                    in bank overdraft                                                                       |   |                             | 68,365     |                             |   | (9,620 | ) |
| Proceeds                    from notes payable                                                                    |   |                             | 375,394    |                             |   | 10,000 |   |
| Repayment                    of notes payable                                                                     |   |                             | (111,099   | )                                |   | - |   |
| Collection                    of subscription receivable                                                          |   |                             | -          |                             |   | 2,631 |   |
| Proceeds                    from sale of common stock                                                             |   |                             | 195,000    |                             |   | 251,865 |   |
|                                                                                                              |   |                             |       |                             |   |   |   |
| Net                    cash provided by financing activities                                                 |   |                             | 527,660    |                             |   | 254,876 |   |
|                                                                                                              |   |                             |       |                             |   |   |   |
| Net                    increase in cash and cash equivalents                                                      |   |                             | 328,294    |                             |   | 32,909 |   |
|                                                                                                              |   |                             |       |                             |   |   |   |
| Cash                    and cash equivalents at beginning of period                                               |   |                             | 27,791     |                             |   | 3,708 |   |
|                                                                                                              |   |                             |       |                             |   |   |   |
| Cash                    and cash equivalents at end of period                                                     |   | $                                | 356,085    |                             | $      | 36,617 |   |

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*Table              of Contents*

|                                                                    |   | **Three                  Months Ended** |   |
|-------------------------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                                    |   | **March                  31, 2006**     |   | **March                  31, 2005** |   |
| Non                  Cash Transactions:                                 |   |                                    |   |   |   |
|                                                                    |   |                                    |   |   |   |
| Common                  stock issued for conversion of notes payable    |   | $                                       | -      |   | $ | 355,018 |   |
| Common                  stock issued for conversion of accrued interest |   |                                    | -      |   |   | 56,573 |   |
| Common                  stock issued for conversion of accounts payable |   |                                    | -      |   |   | 154,297 |   |

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*Table            of Contents*

BLUEGATE        CORPORATION

| 1. | BASIS                  OF PRESENTATION |
|----|----------------------------------------|

| 2. | ACQUISITION                  OF TRILLIANT CORPORATION ASSETS |
|----|--------------------------------------------------------------|

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*Table            of Contents*

| Property                  and equipment |   | $      | 17,270  |   |
|-----------------------------------------|--------|--------|---------|--------|
| Computer                  software      |   |   | 41,893  |   |
| Customer                  list          |   |   | 28,702  |   |
| Accounts                  receivable    |   |   | 170,777 |   |
| Goodwill                                |   |   | 83,202  |   |
| Total                                   |   | $      | 341,844 |   |

|                                         |   | Three                  Months Ended March 31, |       |
|----------------------------------------------|--------|-----------------------------------------------|------------|
|                                         |   | 2006                                          |       | 2005 |   |
| Service                  revenue             |   | $                                             | 935,649    |   | $ | 689,251 |   |
|                                         |   |                                          |       |   |   |   |   |
| Net                  loss                    |   |                                          | (1,012,536 | ) |   | (1,828,332 | ) |
|                                         |   |                                          |       |   |   |   |   |
| Net                  (loss) per common share |   |                                          | (0.15      | ) |   | (0.56 | ) |

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*Table            of Contents*

| 3. | NOTES                  PAYABLE |
|----|--------------------------------|

|                                                                                                                                                                                                                                             |   | 3/31/2006 |     | 12/31/2005 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|----------|------------|--------|
| **Convertible                  notes payable**                                                                                                                                                                                                   |   |      |     |       |   |
| 10%                  convertible notes payable, dated September 26, 2005, due on April                  26,                  2006, net of discount of -0- at March 31, 2006 and $242,316 at                  December                  31, 2005. |   | $         | 500,000  |       | $      | 257,684 |   |
| Total                  convertible notes payable                                                                                                                                                                                                 |   | $         | 500,000  |       | $      | 257,684 |   |
|                                                                                                                                                                                                                                             |   |      |     |       |   |   |   |
| The                  carrying value of the convertible notes payable is as                  follows:                                                                                                                                             |   |      |     |       |   |   |   |
|                                                                                                                                                                                                                                             |   |      |     |       |   |   |   |
| Proceeds                  from debt issuance                                                                                                                                                                                                     |   | $         | 500,000  |       | $      | 500,000 |   |
| Less:                    discount related to warrants                                                                                                                                                                                  |   |      | (236,540 | )          |   | (236,540 | ) |
| discount                  related to conversion feature                                                                                                                                                                                          |   |      | (189,748 | )          |   | (189,748 | ) |
| financing                  costs                                                                                                                                                                                                                 |   |      | (73,712  | )          |   | (73,712 | ) |
| Add:                  Discount amortization                                                                                                                                                                                                      |   |      | 500,000  |       |   | 257,684 |   |
|                                                                                                                                                                                                                                             |   | $         | 500,000  |       | $      | 257,684 |   |
|                                                                                                                                                                                                                                             |   |      |     |       |   |   |   |
| **Notes                  payable**                                                                                                                                                                                                               |   |      |     |       |   |   |   |
| 10%                  note payable due upon demand                                                                                                                                                                                                |   | $         | 12,800   |       | $      | 12,800 |   |
|                                                                                                                                                                                                                                             |   | $         | 12,800   |       | $      | 12,800 |   |
| **Notes                  payable to related parties**                                                                                                                                                                                            |   |      |     |       |   |   |   |
| 10%                  notes payable to William Koehler due on June 30, 2006                                                                                                                                                                       |   | $         | 161,014  |       | $      | 25,000 |   |
| 10%                  notes payable to Manfred Sternberg due on June 30, 2006                                                                                                                                                                     |   |      | 187,403  |       |   | - |   |
| Total                  notes payable to related parties                                                                                                                                                                                          |   | $         | 348,417  |       | $      | 25,000 |   |

| 4. | COMMON                  STOCK, OPTIONS AND WARRANTS |
|----|-----------------------------------------------------|

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*Table            of Contents*

| 5. | SUBSEQUENT                  EVENTS |
|----|------------------------------------|

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*Table            of Contents*

| ITEM                  2. | MANAGEMENT'S                  DISCUSSION AND ANALYSIS OR PLAN OF                  OPERATION |
|--------------------------|---------------------------------------------------------------------------------------------|

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*Table            of Contents*

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*Table            of Contents*

|   | - | Access                  and content providers, such as AOL, Microsoft , EarthLink and Time                  Warner; |
|--------|---|---------------------------------------------------------------------------------------------------------------------|

|   | - | Local,                  regional and national Internet service providers, such as Megapath,                  EarthLink, XO Communications and                  Mindspring; |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Regional,                  national and international telecommunications companies, such as                  AT&T,                  MCI and Allegiance Telecom; |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | On-line                  services offered by incumbent cable providers such as Time                  Warner; |
|--------|---|--------------------------------------------------------------------------------------------------------------|

|   | - | DSL                  providers such as Covad. |
|--------|---|-----------------------------------------------|

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*Table              of Contents*

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*Table            of Contents*

|                                                |   | Three                  Months Ended March 31, |       |
|-----------------------------------------------------|--------|-----------------------------------------------|------------|
|                                                |   | 2006                                          |       | 2005 |   |
|                                                |   |                                          |       |   |   |
| Net                  loss                           |   | $                                             | (1,012,536 | ) | $ | (1,796,444 | ) |
|                                                |   |                                          |       |   |   |   |   |
| Negative                  cash flow from operations |   |                                          | (229,909   | ) |   | (199,986 | ) |
| Negative                  working capital           |   |                                          | (1,414,013 | ) |   | (1,045,776 | ) |
| Stockholders'                  deficit              |   |                                          | (1,217,435 | ) |   | (982,973 | ) |

|   | - | Our                  ability to locate sources of debt or equity funding to meet current                  commitments and near-term future                  requirements. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Our                  ability to achieve profitability and ultimately generate sufficient                  cash                  flow from operations to sustain our continuing                  operations. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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*Table            of Contents*

|   | - | The                  cost of operating our VPN |
|--------|---|------------------------------------------------|

|   | - | The                  cost of third-party software |
|--------|---|---------------------------------------------------|

|   | - | The                  cost of sales and marketing |
|--------|---|--------------------------------------------------|

|   | - | The                  rate at which we expand our                  operations |
|--------|---|------------------------------------------------------------------------------|

|   | - | The                  response of competitors |
|--------|---|----------------------------------------------|

|   | - | Capital                  expenditures |
|--------|---|---------------------------------------|

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*Table            of Contents*

| ITEM                  3. | CONTROLS                  AND PROCEDURES |
|--------------------------|------------------------------------------|

|   | (a) | Evaluation                    of disclosure controls and procedures. Based on their evaluation                    of our                    disclosure controls and procedures (as defined in Rule 13a-15e                    under the                    Securities Exchange Act of 1934 (the "Exchange Act")), our principle                    executive officer and principle financial officer have concluded                    that as                    of the end of the period covered by this quarterly report on                    Form 10-QSB                    such disclosure controls and procedures were not effective to                    ensure that                    information required to be disclosed by us in reports that we                    file or                    submit under the Exchange Act is recorded, processed, summarized                    and                    reported within the time periods specified in Securities and                    Exchange                    Commission rules and forms, because of several adjustments required                    by our                    auditors predominantly in the areas of debt and equity. Specifically,                    our                    independent auditors identified deficiencies in our internal                    controls and                    disclosure controls related to the valuation of discounts for                    convertible                    debt with detachable warrants, expense recognition and issuances                    of our                    stock and stock options. Appropriate adjustments and footnote                    disclosures                    have been recorded and disclosed in our Interim Report on Form                    10-QSB. We                    are in the process of improving our internal controls in an effort                    to                    remediate these deficiencies through the following efforts: 1)                    employing a                    full time controller who is a CPA and has public company and                    operational                    experience, 2) implementing better controls and procedures over                    debt                    valuation, expense recognition and stock and stock option issuances,                    and                    3) improving supervision and training of our accounting staff.                    We are                    continuing our efforts to improve and strengthen our control                    processes and                    procedures to fully remedy these deficiencies. Our management                    and                    directors will continue to work with our auditors and other outside                    advisors to ensure that our controls and procedures are adequate                    and                    effective. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Changes                      in internal control over financial reporting. During the quarter                      under                      report, there was no change in our internal control over financial                      reporting that has materially affected, or is reasonably likely                      to                      materially affect, our internal control over financial                      reporting. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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*Table            of Contents*

PART        II

| ITEM                  1. | LEGAL                  PROCEEDINGS |
|--------------------------|------------------------------------|

| ITEM                  2. | UNREGISTERED                  SALES OF EQUITY SECURITIES |
|--------------------------|----------------------------------------------------------|

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*Table            of Contents*

| ITEM                  5. | OTHER                  INFORMATION |
|--------------------------|------------------------------------|

| ITEM                  6. | EXHIBITS |
|--------------------------|----------|

| Exhibit                  Number | ExhibitName                                                      |   |
|---------------------------------|------------------------------------------------------------------|--------|
|                            |                                                             |   |
| 31.1                            | Certification                  pursuant to Section 13a-14 of CEO |   |
|                            |                                                             |   |
| 31.2                            | Certification                  pursuant to Section 13a-14 of CFO |   |
|                            |                                                             |   |
| 32.1                            | Certification                  pursuant to Section 1350 of CEO   |   |
|                            |                                                             |   |
| 32.2                            | Certification                  pursuant to Section 1350 of CFO   |   |

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*Table            of Contents*

TUR

|                                |   | Bluegate                  Corporation    |   |
|-------------------------------------|--------|------------------------------------------|--------|
|                                |   |                                     |   |
| Date:                  May 11, 2006 | /s/    | Manfred                  Sternberg       |   |
|                                |   | Manfred                  Sternberg,      |   |
|                                |   | Chief                  Executive Officer |   |
|                                |   |                                     |   |
|                                |   |                                     |   |
|                                |   | Bluegate                  Corporation    |   |
|                                |   |                                     |   |
| Date:                  May 11, 2006 | /s/    | Steven                  M. Plumb         |   |
|                                |   | Steven                  M. Plumb, CPA,   |   |
|                                |   | Chief                  Financial Officer |   |

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