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

| **[X]   **                  | **Annual                report pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934**     |
|--------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|
|                                       | For                the fiscal year ended **December 31,                2006**                                                        |
|         |                                                                                                                                      |
| **[  ]   **       | **Transition                report pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934** |

**000-49745**

**UNITED      ESYSTEMS, INC.**

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

**       (228) 832-1597**

**None**

**Common      Stock, $.001 Par Value**

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

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

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

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| **CAUTIONARY                STATEMENT ABOUT FORWARD-LOOKING                STATEMENTS** |
|-----------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

*In      this annual report on Form 10-KSB we use the terms “Company,” “we,” “us” and“our” to refer to United eSystems, Inc. and its wholly owned subsidiary, United      Check Services, LLC (“United”). We refer to our $.001 par value common stock as      our common stock.*

*Except      for historical information, the following description of our business may      contain forward-looking statements, which involve risks and uncertainties. Our actual results could differ materially from those set forth in these      forward-looking statements as a result of a number of factors, including those      set forth under the heading “Risk Factors.”*

**Item      1.     DESCRIPTION OF      BUSINESS**

**History**

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**Industry      Background**

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**Business      Strategy**

*General      Strategy*

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*Acquisition      Strategy*

**Marketing      and Sales**

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**Operations**

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**Products      and Services**

*ACH      Processing Services*

*Verification      Services*

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*Stored      Value Products*

**Independent      Sales Organizations and Independent Sales Agents**

| ·   | Participate                in a future stock or stock option plan; |
|--------------------|--------------------------------------------------------------------|
| ·   | Work                with us to benefit from building a developing, entrepreneurial                company; |
|--------------------|------------------------------------------------------------------------------------------------------------|
| ·   | Participate                in an attractive, results-oriented compensation package;                and |
|--------------------|--------------------------------------------------------------------------------------------------------|
| ·   | Derive                additional incentive compensation by marketing other products and                services                we offer in conjunction with ACH processing                services. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Customers**

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**Competition**

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**Industry      Regulations**

**Employees**

**Risk      Factors**

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**Risks      Related To Our Business**

**We      rely on cooperative relationships with, and sponsorship by, banks, the absence      of which may prevent us from conducting our business      operations.**

**Merchant      fraud with respect to ACH transactions could cause us to incur significant      losses.**

**The      business in which we compete is highly competitive and there is no assurance      that our current products and services will stay competitive or that we will      be      able to introduce new products and services to compete      successfully.**

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**Security      breaches could impact our continued operations and cause us to lose      customers.**

**The      industry in which we operate involves rapidly changing technology and our      failure to improve our products and services or to offer new products and      services could cause us to lose customers.**

**Our      inability to protect or defend our trade secrets could hurt our      business.**

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**Failure      to obtain additional funds may impact our operations and future      growth.**

**While      we maintain insurance protection against claims related to our services, there      is no assurance that such protection will be adequate to cover potential claims      and our inability to otherwise pay such claims could harm our      business.**

**Increases      in the costs of technical compliance could harm our      business.**

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**We      have limited marketing experience and our marketing efforts may not result      in      significant increases in ACH processing business.**

**We      have a concentrated customer base and any significant adversities affecting      our      customers could have a material adverse effect on our      operations.**

*Management’s      Discussion and Analysis*

**Our      success depends on the continued service of our key management personnel and      the      loss of services from one or more of these individuals could negatively impact      our business**

**Item      2.     DESCRIPTION OF      PROPERTY**

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**Item      3.     LEGAL PROCEEDINGS**

*United      Check Services, L.L.C. v. Community Loans of America, Inc., *

**Item      4.     SUBMISSION OF MATTERS TO VOTE OF SECURITY      HOLDERS**

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

**Item      5.     MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER      MATTERS AND SMALL BUSINESS ISSUER PURCHASES OF EQUITY      SECURITIES**

**Market      Information**

**Holders**

**Dividends**

**Securities      Authorized for Issuance under Equity Compensation Plans**

| **Equity                Compensation Plan Information**                                                   |
|-----------------------------------------------------------------------------------------------------------|
|                                                                             | **      ** | **      ** | **      ** |
|                                                         | **Number                of securities to****be                issued upon exercise****of                outstanding options,****warrants                and rights** | **Weighted-average****exercise                price of****outstanding                options,****warrants                and rights** | **Number                of securities****remaining                available****for                future issuance****under                equity****compensation                plans****(excluding                securities****reflected                in column (a))** |
|                                                                             | **(a)** | **(b)** | **(c)** |
| Equity                compensationplans                approved bysecurity                holders         |   - |   - |   - |
|                                                                             |        |        |        |
| Equity                compensationplans                not approved bysecurity                holders (1) |   402,000 |   $.03 |   - |
|                                                                             |        |        |        |
| Total                                                                                                     | 402,000 | $.03 | - |

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

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

**Executive      Summary**

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**Results      of Operations**

**Year      ended December 31, 2006 compared to year ended December 31,      2005**

*Revenues*

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| **Revenue:**                                                                                                                                                                                                             |                           | **2006****Dollars** |                                                                                             | **Percentage**                 |                                                                                             |   | **2005****Dollars**            |   | **Percentage**                                                                                   |                           |                                                                                             | **Variance****Dollars** |                           |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------|--------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|--------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------------------------------------------------------------------------|-------------------------|--------------------------------|
|                                      |       |                |                  |       |                  |   |       |   |                  |       |                  |                    |       |   |                  |   |
|   ACH Processing                                                                                                                                                                                          |       | $                   | 1,159,814                                                                                        |       | 93.7                                                                                             | %      |       | $      | 642,656                                                                                          |       | 87.4                                                                                             | %                       |       | $ | 517,158 |   |
|   Verification Services                                                                                                                                                                                   |                           | $                   | 77,432                                                                                           |                           | 6.3                                                                                              | %      |                           |   | 49,452                                                                                           |                           | 6.7                                                                                              | %                       |                           | $ | 27,980 |   |
|   Commissions                                                                                                                                                                                                  |                           | $                   | -                                                                                                |                           | -                                                                                                |   |                           |   | 43,123                                                                                           |                           | 5.9                                                                                              | %                       |                           | $ | (43,123 | ) |
| Total                Revenue                                                                                                                                                                                             |                           | $                   | 1,237,246                                                                                        |                           | 100.0                                                                                            | %      |                           | $      | 735,231                                                                                          |                           | 100.0                                                                                            | %                       |                           | $ | 502,015 |   |

*Cost      of Revenue and Gross Profit*

| **Cost                of Revenue:**                                                                                                                                                                                      |                               | **2006****Dollars** |                                                                                             | **Percentage**                 |                                                                                             |   | **2005****Dollars**            |   | **Percentage**                                                                                   |                           |                                                                                             | **Variance****Dollars** |                           |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|---------------------|--------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|--------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------------------------------------------------------------------------|-------------------------|--------------------------------|
|                                      | **     ** |                |                  |       |                  |   |       |   |                  |       |                  |                    |       |   |                  |   |
|   ACH Costs                                                                                                                                                                                               |                               | $                   | 250,873                                                                                          |                           | 45.2                                                                                             | %      |                           | $      | 115,021                                                                                          |                           | 60.5                                                                                             | %                       |                           | $ | 135,852 |   |
|   ACH Commissions                                                                                                                                                                                         |                               |                | 205,971                                                                                          |                           | 37.1                                                                                             | %      |                           |   | 13,215                                                                                           |                           | 7.0                                                                                              | %                  |                           |   | 192,756 |   |
|   Depreciation                -ACH     System                                                                                                                                         |                               |                | 21,143                                                                                           |                           | 3.8                                                                                              | %      |                           |   | 11,400                                                                                           |                           | 6.0                                                                                              | %                  |                           |   | 9,743 |   |
|   Verification Fees                                                                                                                                                                                       |                               |                | 74,450                                                                                           |                           | 13.4                                                                                             | %      |                           |   | 49,814                                                                                           |                           | 26.2                                                                                             | %                       |                           |   | 24,636 |   |
|   Other                                                                                                                                                                                                        |                               |                | 3,212                                                                                            |                           | 0.5                                                                                              | %      |                           |   | 538                                                                                              |                           | 0.3                                                                                              | %                       |                           |   | 2,674 |   |
| Total Cost of Revenue                                                                                                                                                                                     |                               | $                   | 555,649                                                                                          |                           | 100.0                                                                                            | %      |                           | $      | 189,988                                                                                          |                           | 100.0                                                                                            | %                       |                           | $ | 365,661 |   |

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*Operating      Expenses*

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*General      and Administrative*

*Legal      Proceedings*

*Interest      Income and Expense*

*Impairment      of Long-Lived Assets*

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*Provision      for income taxes*

**Liquidity      and Capital Resources**

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*Legal      Proceedings*

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**Inflation**

**Critical      Accounting Policies**

**SIGNIFICANT      ACCOUNTING POLICIES**

*Revenue      Recognition*

*Property      and Equipment*

*Use      of Estimates*

*Restricted      Cash*

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**Item      7.     FINANCIAL STATEMENTS**

**Item      8.     CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON      ACCOUNTING AND FINANCIAL DISCLOSURE**

**Item      8A.     CONTROLS AND      PROCEDURES**

**Item      8B.     OTHER INFORMATION**

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**PART      III**

**Item      9.     DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS,      CONTROL PERSONS AND CORPORATE GOVERNANCE; COMPLIANCE WITH SECTION 16(a) OF      THE      EXCHANGE ACT**

| **Name**                                                                                                                                                                                                                                   |                           | **Age**                        |                           | **Position**                                                                                                                                                                                                                                                                                                                                                                               |                           | **Director Since**        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------|
|                                         |       |       |       |                                                                 |       |       |
| Jeffery                C. Swank                                                                                                                                                                                                            |                           | 46                             |                           | Chief                Executive Officer, President, and a Director                                                                                                                                                                                                                                                                                                                          |                           | 2005                           |
| Walter                Reid Green, Jr.                                                                                                                                                                                                      |                           | 48                             |                           | Chief                Financial Officer, Treasurer, Corporate Secretary and a                Director                                                                                                                                                                                                                                                                                       |                           | 2005                           |
| Monica                B. Haab                                                                                                                                                                                                              |                           | 40                             |                           | Director                                                                                                                                                                                                                                                                                                                                                                                   |                           | 2005                           |

**Mr.      Jeffery C. Swank**

**Mr.      Walter Reid Green, Jr**

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**Monica      B. Haab, **

**Family      Relationships**

**Board      of Directors**

**Board      Committees**

*Board      Nominees*

*Audit      Committee*

**Code      of Ethics**

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**Involvement      in Certain Legal Proceedings**

**Section      16(a) Beneficial Ownership Reporting Compliance**

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**Item      10.     EXECUTIVE      COMPENSATION**

**Summary      Compensation Table**

| **Salary                Compensation**                                                                         |   |
|----------------------------------------------------------------------------------------------------------------|--------|
| **Name and****Principal****Position(1)**                                                                  |   | **Fiscal****Year** |   | **Salary ($)** |   | **Bonus****($)** |   | **Stock****Awards** |   | **Options****Awards****($)(2)** |   | **Non-Equity****Incentive Plan****Compensation****($)** |   | **Nonqualified****Deferred****Compensation****Earnings ($)** |   | **All Other****Compensation****Compensation****($) (3)** |   | **Total ($)** |   |
| Jeffery C. SwankChief                Executive Officer and President                                 |   | 2006 |   | $ | — |   | $ | — |   | — |   | $ | — |   | — |   | — |   | — |   | $ | — |   |
|                                                                                                           |   |             |   |   |             |   |   |             |   |             |   |   |             |   |             |   |             |   |             |   |   |             |   |
| Walter Reid Green, Jr.Chief                Financial Officer, Treasurer and Corporate Secretary |   | 2006 |   | $ | 75,000 |   | $ | 1,500 |   | — |   | $ | 0 |   | — |   | — |   | — |   | $ | 76,500 |   |

|   | 1. | During                the fiscal year ended December 31, 2006, we only had two executive                officers, Messrs. Swank and Green. Neither executive officer, nor                any                employee, earned in excess of $100,000 in total                compensation. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Reflects                dollar amount expensed by us during applicable fiscal year for financial                statement reporting purposes pursuant to FAS 123R.  FAS 123R requires                us to measure the cost of employee services received in exchange                for an                award of equity instruments (options) based on the grant date fair                value                of the award, and to recognize that cost over the service period                over                which the options become exercisable (vest).  As a general rule, for                time-in-service-based options, we will immediately expense any option                or                portion thereof which is vested upon grant, while expensing the balance                on                a pro rata basis over the remaining vesting term of the option.  Mr.                Green is the only executive officer who has been granted options.                The                amount of compensation costs associated with the fair value of stock                options granted to Mr. Green is considered immaterial for financial                reporting purposes and we have not recognized any compensation expense.                For a description of FAS 123R and the assumptions used in determining                the                value of the options, see the notes to the consolidated financial                statements included with this                report. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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**Executive      Officer Outstanding Equity Awards At Fiscal Year-End**

| **Option                Awards**      |   |   | **Stock                Awards**                                                            |   |
|---------------------------------------|--------|--------|--------------------------------------------------------------------------------------------|--------|
| **Name**                              |   |   | **Number of****Securities****Underlying****Unexercised****Options(#)****Exercisable** |   |   | **Number of****Securities****Underlying****Unexercised****Options(#)****Unexercisable** |   |   | **Equity****Incentive Plan****Awards:****Number of****Securities****Underlying****Unexercised****Unearned****Options (#)** |   |   | **Option****Exercise****Price ($)** |   | **Option****Expiration****Date** |   |   | **Number of****Shares or****Units of****Stock That****Have Not****Vested (#)** |   |   | **Market****Value of****Shares or****Units of****Stock That****Have Not****Vested** |   |   | **Equity****Incentive****Plan****Awards:****Number****of****Unearned****Shares,****Units or****Other****Rights****That Have****Not****Vested** |   |   | **Equity****Incentive Plan****Awards:****Market or****Payout Value of****Unearned****Shares, Units or****Other Rights****That Have Not****Vested** |   |
| Jeffery                C. Swank       |   |   | —                                                                                    |   |   | — |   |   | — |   | $ | — |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
|                                  |   |   |                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Walter                Reid Green, Jr. |   |   | 312,000                                                                                    |   | - | — |   |   | — |   | $ | .03 |   | 03/30/2010 |   |   | — |   |   | — |   |   | — |   |   | — |   |
|                                  |   |   | 32,500                                                                                     |   |   | — |   |   | — |   | $ | .03 |   | 02/15/2011 |   |   | — |   |   | — |   |   | — |   |   | — |   |

**Employment      Agreements**

**Director      Compensation**

**Director      Compensation Table**

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| **Name(1)**                   |         | **Fee                Earned or****Paid                in Cash****($)** |         | **Option                Awards****($)** |         | **Other****Compensation****($)** |         | **Total****($)** |
|-------------------------------|--------------|------------------------------------------------------------------------|--------------|-----------------------------------------|--------------|----------------------------------|--------------|------------------|
| Monica                B. Haab |    | —                                                                |    | —                                 |    | —                          |    | —          |

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

**Item      11.     SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS      AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS**

| **Name                  and Address**                                                                                                         | **          ** | **Amount                  and Nature of****Beneficial                  Ownership****(1)** |                                                         | **Percent of Class** |
|-----------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------|-------------------------------------------------------------------------------------------|--------------------------------------------------------------|--------------------------------|
|                                                                                                            |                                                             |                                                                  |                                                         |                           |
| **Beneficial                  Owners of More than 5%:**                                                                                       |                                                             |                                                                                      |                                                         |                           |
| Paul                  J. Shovlain  15431                  O’Neal Road  Gulfport,                  Mississippi 39503 |                                                             | 7,657,500                                                                                 |                                                         | 41.9%                          |
|                                                                                                                                          |                                                             |                                                                                      |                                                         |                           |
| Leon                  Nowalsky  826                  Barracks Street  New                  Orleans, Louisiana 70116       |                                                             | 1,900,000                                                                                 |            | 10.4%                          |
|                                                                                                                                          |                                                             |                                                                                      |                                                         |                           |
| **Directors                  and Executive Officers:**                                                                                        |                                                             |                                                                                      |                                                         |                           |
| Jeffery                  C. Swank  15431                  O’Neal Road  Gulfport,                  Mississippi 39503 |                                                             | 7,657,500                                                                                 |            | 41.9%                          |

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| **Name                  and Address**                                                                                                           | **          ** | **Amount                  and Nature of****Beneficial                  Ownership****(1)** |   | **Percent of Class** |
|-------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------|-------------------------------------------------------------------------------------------|--------|--------------------------------|
|                                                                                                              |                                                             |                                                                  |   |                           |
| Walter                  Reid Green, Jr.  15431                  O’Neal   Gulfport,                  Mississippi 39503 |                                                             | 344,500                  (2)                                                              |   | 1.8%                           |
|                                                                                                                                            |                                                             |                                                                                      |   |                           |
| Monica                  B. Haab  334                  E. Livingston Place  Metairie,                  Louisiana 70005       |                                                             | 80,000                                                                                    |   | *                              |
|                                                                                                                                            |                                                             |                                                                                      |   |                           |
| All                  officers and directors as agroup                  (3 persons)                                                              |                                                             | 8,082,000                                                                                 |   | 43.4%                          |

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

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

| 2.   | Includes                344,500 shares which Mr. Green has the right to acquire pursuant                to the                exercise of options. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

**Changes      in Control**

**Securities      Authorized for Issuance under Equity Compensation Plans**

**Item      12.     CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS,      AND DIRECTOR INDEPENDENCE**

**Related      Party Transactions**

**Director      Independence**

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**Item      13.     EXHIBITS**

| (a)                                                                                                                                              | Exhibits:                                                                            |                                                                                                                                                                                                                                                                                                                                              |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                 |                |                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                         | 3.1                                                                                  | Articles                of Incorporation (incorporated by reference to Exhibit 3.1 to our                Registration Statement on Form 10-SB filed April 23,                2002).                                                                                                                                                          |
|                                                                                                                                                                 | 3.2                                                                                  | Bylaws                (incorporated by reference to Exhibit 3.2 to our Registration Statement                on                Form 10-SB filed April 23, 2002).                                                                                                                                                                             |
|                                                                                                                         | 3.3                                                                                  | First                Amended and Restated Articles of Incorporation (incorporated by reference                to Exhibit 3.3 to our Form 10-KSB filed on April 15,                2005).                                                                                                                                                     |
|                                                                                                                                                                 | 3.4                                                                                  | Certificate                of Amendment to the Articles of Incorporation (incorporated by reference                to Exhibit 3.4 to our Form 10-QSB filed on August 12,                2005).                                                                                                                                               |
|                                                                                                                         | 10.1                                                                                 | Contribution                Agreement between Riverbend Telecom, Inc., Riverbend Holdings, Inc.,                Leon                Nowalsky and the equity owners of United Check Services, LLC, dated                July 14, 2004 (incorporated by reference to Exhibit 10.5 to our Form                8-K filed on July 21, 2004). |
|                                                                                                                         | 10.2                                                                                 | Letter                Agreement dated August 5, 2004 (incorporated by reference to Exhibit                10.6 to our Form 8-K filed on August 30, 2004).                                                                                                                                                                               |
|                                                                                                                         | 10.3                                                                                 | Agreement                and Plan of Reorganization between Riverbend Telecom, Inc. and Riverbend                Holdings, Inc. dated March 30, 2005 (incorporated by reference to                Exhibit 10.7 to our Form 8-K filed on April 4,                2005).                                                                  |
|                                                                                                                         | 10.4                                                                                 | Employment                agreement for Walter Reid Green, Jr. dated March 30, 2005                (incorporated by reference to Exhibit 10.8 to our Form 8-K filed                on                April 1, 2005).**                                                                                                                  |
|                                                                                                                         | 10.5                                                                                 | Real                Estate Lease between Marston Lee and Kathy P. Rogers and United Check                Services (incorporated by reference to Exhibit 10.9 to our Form 10-QSB                filed on August 12, 2005).                                                                                                                         |
|                                                                                                                         | 14                                                                                   | Code                of Ethics (incorporated by reference to Exhibit 14 to our Form 10-KSB                filed on April 14, 2004).                                                                                                                                                                                                           |
|                                                                                                                         | 31.1                                                                                 | Principal                Executive Officer Certification under Section 302 of the Sarbanes-Oxley                Act of 2002*                                                                                                                                                                                                                      |
|                                                                                                                         | 31.2                                                                                 | Principal                Financial Officer Certification under Section 302 of the Sarbanes-Oxley                Act of 2002*                                                                                                                                                                                                                      |
|                                                                                                                         | 32.1                                                                                 | Principal                Executive Officer Certification under Section 906 of the Sarbanes-Oxley                Act of 2002*                                                                                                                                                                                                                      |
|                                                                                                                         | 32.2                                                                                 | Principal                Financial Officer Certification under Section 906 of the Sarbanes-Oxley                Act of 2002*                                                                                                                                                                                                                      |
| _____________________*    Filed                Herewith.**  Management                contracts and compensatory                plans. |

----

**Item      14.     PRINCIPAL ACCOUNTANT FEES AND      SERVICES**

|                                                                                                                                                            |   | **Fiscal                2006** |   |  **Fiscal                2005** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|--------------------------------------|--------|
| Audit                Fees                                                                                                                                       |   | $                              | 24,000 |                                 | $      | 29,381 |   |
| Audit-Related                fees                      |   |                           | -      |                                 |   | - |   |
| Tax                Fees                                                                                                                                         |   |                           | -      |                                 |   | - |   |
| All                Other Fees                                                                                                                                   |   |                           | -      |                                 |   | - |   |
| Total                Fees                                                                                                                                       |   | $                              | 24,000 |                                 | $      | 29,381 |   |

*Audit      Fees.*

*Audit-Related      Fees.*

*Tax      Fees.*

*All      Other Fees.*

----

| **SIGNATURES** |
|----------------|

|                                                                                                                                                                                                                                                          | UNITED                ESYSTEMS, INC.                                                                                                                                                            |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                           |                                                                                                                                                                             |
|                            Date:  March 29,                2007                     | By: /s/                Jeffery C.                Swank                       |
|                                                                                                                                                                                                                                                          |                      Jeffery C. Swank                                                                                                                                  |
|                                                                                                                                                                                                                                                          |       Chief                Executive Officer, President and Director                                                                                              |
|                                                                                                                                                                                                                                                          |       (Principal                Executive Officer)                                                                                                                |

| **Signature**                                                                                                                                                                                                                                                                                                                                    |   | **Title**                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | **Date**                                                                                                                                                                 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                          |   |                                                                         |   |                              |
|                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                       |
| /s/                Jeffery C. Swank                                                                                                                                                                                                                                                                                                              |   | Chief                Executive Officer, President and                                                                                                                                                                                                                                                                                                                                                                                      |   | March 29,                2007                                                                                                                                       |
| Jeffery                C. Swank                                                                                                                                                                                                                                                                                                                  |   | Director                (Principal Executive Officer)                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                       |
| /s/                Walter Reid Green, Jr.                                                                                                                                                                                                                                                                                                        |   | Chief                Financial Officer, Treasurer,                                                                                                                                                                                                                                                                                                                                                                                         |   | March 29,                2007                                                                                                                                       |
| Walter                Reid Green, Jr.                                                                                                                                                                                                                                                                                                            |   | Corporate                Secretary and Director(Principal                Financial Officer)                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                     |
| /s/                Monica B. Haab                                                                                                                                                                                                                                                                                                                |   | Director                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | March 29,                2007                                                                                                                                       |
| 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                - F-7    |
| Notes                to Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | F-8                - F-17   |

----

**United      eSystems, Inc.**

**UNITED      ESYSTEMS, INC.**

**UNITED      ESYSTEMS, INC. **

----

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | **December                31,**                                                                                          |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | **2006**                                                                                                                 |      |  **2005** |   |
|                                                                                                              |   |                      |      |                       |   |
| **CURRENT                ASSETS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                     |      |    |   |
| Cash                and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                                                                                                                        | 384,830   |   | $ | 146,296 |   |
| Restricted                Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                     | 826,647   |   |   | 1,519,235 |   |
| Certificate                of Deposit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                     | -         |   |   | 202,400 |   |
| Trade                Receivables, less allowance of $0 for 2006 and $9,400 for                2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                     | 89,015    |   |   | 21,025 |   |
| Commissions                Receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                     | -         |   |   | 207,505 |   |
| Other                Receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     | -         |   |   | 1,040 |   |
| Prepaid                Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                     | 2,195     |   |   | 7,257 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
| Total                Current Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                     | 1,302,687 |   |   | 2,104,758 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
| **PROPERTY                AND EQUIPMENT, NET**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                     | 66,015    |   |   | 126,969 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
| **OTHER                ASSETS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                     |      |   |   |   |   |
| Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                     | 12,620    |   |   | 32,620 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
| Total                Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                                                                                                                        | 1,381,322 |   | $ | 2,264,347 |   |

----

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | **December 31,**                                                                                                    |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | **2006**                                                                                                                 |      |  **2005** |   |
|                                                                                                                      |   |                      |      |                       |   |
| **CURRENT                LIABILITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                     |      |    |   |
| ACH                Settlements Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $                                                                                                                        | 823,147   |   | $ | 1,514,735 |   |
| Notes                Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     | 116,000   |   |   | 136,000 |   |
| Accounts                Payable and Accrued Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                     | 37,402    |   |   | 40,890 |   |
| Commissions                Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                     | -         |   |   | 238,150 |   |
| Customer's                Deposit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                     | 3,500     |   |   | 4,500 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
| Total                Current Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                     | 980,049   |   |   | 1,934,275 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
| Total                Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     | 980,049   |   |   | 1,934,275 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
| **STOCKHOLDERS'                EQUITY**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                     |      |   |   |   |   |
| Common                Stock - $.001 Par Value; 75,000,000 Shares Authorized,   18,291,667                Shares Issued and Outstanding in 2006 and 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                     | 18,292    |   |   | 18,292 |   |
| Additional                Paid-In Capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                     | 49,440    |   |   | 49,440 |   |
| Retained                Earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     | 333,541   |   |   | 262,340 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
|    Total                Stockholders' Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                     | 401,273   |   |   | 330,072 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
| Total                Liabilities and Stockholders' Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                                                                                                                        | 1,381,322 |   | $ | 2,264,347 |   |

----

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | **For                the Years Ended****December 31,**                                                              |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | **2006**                                                                                                                 |      |  **2005** |   |
|                                                                                                                      |   |                      |      |                       |   |
| **REVENUES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |      |    |   |
| ACH                Processing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                                                                                                                        | 1,159,814 |   | $ | 642,656 |   |
| Verification                Services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     | 77,432    |   |   | 49,452 |   |
| Commissions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                     | -         |   |   | 43,123 |   |
| Total                Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                     | 1,237,246 |   |   | 735,231 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
| **COST                OF REVENUES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                     | 555,649   |   |   | 189,988 |   |
| Gross                Profit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                     | 681,597   |   |   | 545,243 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
| **EXPENSES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |      |   |   |   |   |
| Operating                Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                     |      |   |   |   |   |
|    Personnel                Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     | 107,956   |   |   | 111,769 |   |
|    Telephone                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                     | 27,632    |   |   | 19,438 |   |
|    Travel                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                     | 12,890    |   |   | 17,594 |   |
|    Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                     | 112,915   |   |   | 109,699 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
| Total                Operating Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                     | 261,393   |   |   | 258,500 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
| Selling,                General and Administrative Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                     |      |   |   |   |   |
|    Personnel                Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     | 74,892    |   |   | 77,019 |   |
|    Legal                and Accounting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                     | 129,905   |   |   | 56,695 |   |
|    Marketing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                     | 35,281    |   |   | 50,189 |   |
|    Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                     | 3,368     |   |   | 1,525 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
| Total                Selling, General and Administrative Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                     | 243,446   |   |   | 185,428 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
| Total                Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                     | 504,839   |   |   | 443,928 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
| **INCOME                FROM OPERATIONS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                     | 176,758   |   |   | 101,315 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
| **OTHER                INCOME (EXPENSE)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                     |      |   |   |   |   |
| Interest                Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                     | 3,505     |   |   | 2,400 |   |
| Interest                Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                     | (11,730   | ) |   | (21,012 | ) |
| Impairment                of Long-Lived Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                     | (74,178   | ) |   | - |   |
| Total                Other (Expense)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     | (82,403   | ) |   | (18,612 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |      |   |   |   |   |
| **NET                INCOME BEFORE INCOME TAXES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                     | 94,355    |   |   | 82,703 |   |
| **INCOME                TAX EXPENSE**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                     | 23,154    |   |   | 24,411 |   |
| **NET                INCOME**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                                                                                                                        | 71,201    |   | $ | 58,292 |   |
| **EARNINGS                PER SHARE - BASIC**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                                                                                                                        | 0.00      |   | $ | 0.00 |   |
| **EARNINGS                PER SHARE - DILUTED**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $                                                                                                                        | 0.00      |   | $ | 0.00 |   |

----

| **UNITED                ESYSTEMS, INC AND SUBSIDIARY**                           |
|----------------------------------------------------------------------------------|
| **CONSOLIDATED                STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY**    |
| **FOR                THE YEARS ENDED DECEMBER 31, 2006 AND                2005** |

|                                                     |   | **Common****Stock**                                                                                                      |   |  **Additional****Paid-in****Capital**                                                                                     |   |  **Retained****Earnings**                                                                                                 |   |  **Total****Stockholders'****Equity**                                                                                     |    |
|----------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------|---------|
|                                                     |   |                      |   |                       |   |                       |   |                       |    |
| Balances                at January 1, 2005               |   | $                                                                                                                        | 17,362 |                                                                                                                           | $      | -                                                                                                                              |   | $                                                                                                                              | 204,048 |   | $ | 221,410 |   |
|                                                     |   |                                                                                                                     |   |                                                                                                                           |   |                                                                                                                           |   |                                                                                                                           |    |   |   |   |   |
| Sale                of Common Stock                      |   |                                                                                                                     | 930    |                                                                                                                           |   | 49,440                                                                                                                         |   |                                                                                                                           | -       |   |   | 50,370 |   |
|                                                     |   |                                                                                                                     |   |                                                                                                                           |   |                                                                                                                           |   |                                                                                                                           |    |   |   |   |   |
| Net                Income - Year Ended December 31, 2005 |   |                                                                                                                     | -      |                                                                                                                           |   | -                                                                                                                              |   |                                                                                                                           | 58,292  |   |   | 58,292 |   |
|                                                     |   |                                                                                                                     |   |                                                                                                                           |   |                                                                                                                           |   |                                                                                                                           |    |   |   |   |   |
| Balances                at December 31, 2005             |   |                                                                                                                     | 18,292 |                                                                                                                           |   | 49,440                                                                                                                         |   |                                                                                                                           | 262,340 |   |   | 330,072 |   |
|                                                     |   |                                                                                                                     |   |                                                                                                                           |   |                                                                                                                           |   |                                                                                                                           |    |   |   |   |   |
| Net                Income - Year Ended December 31, 2006 |   |                                                                                                                     | -      |                                                                                                                           |   | -                                                                                                                              |   |                                                                                                                           | 71,201  |   |   | 71,201 |   |
|                                                     |   |                                                                                                                     |   |                                                                                                                           |   |                                                                                                                           |   |                                                                                                                           |    |   |   |   |   |
| Balances                at December 31, 2006             |   | $                                                                                                                        | 18,292 |                                                                                                                           | $      | 49,440                                                                                                                         |   | $                                                                                                                              | 333,541 |   | $ | 401,273 |   |

----

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | **For                the Years Ended****December 31,**                                                              |     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | **2006**                                                                                                                 |     |  **2005** |   |
|                                                                                                                                  |   |                      |     |                       |   |
| **CASH                FLOWS FROM OPERATING ACTIVITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                     |     |    |   |
| Net                Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                                                                                                        | 71,201   |   | $ | 58,292 |   |
| Adjustments                to Reconcile Net Income to Net Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                     |     |   |   |   |   |
| Provided                by Operating Activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                     |     |   |   |   |   |
| Depreciation                Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                     | 38,119   |   |   | 25,314 |   |
| Increase                in Trade Receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     | (67,990  | ) |   | (21,025 | ) |
| Decrease                (Increase) in Commissions Receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     | 207,505  |   |   | (207,505 | ) |
| Decrease                (Increase) in Other Receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                     | 1,040    |   |   | (1,040 | ) |
| Impairment                of Long-Lived Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                     | 74,178   |   |   | - |   |
| Loss                on Disposal of Property and Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                     | -        |   |   | 3,256 |   |
| (Decrease)                Increase in ACH Settlements Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                     | (691,588 | ) |   | 1,222,066 |   |
| Decrease                (Increase) in Restricted Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                     | 692,588  |   |   | (1,223,567 | ) |
| Decrease                in Accounts Payable and Accrued Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                     | (3,488   | ) |   | (6,762 | ) |
| (Decrease)                Increase in Commissions Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                     | (238,150 | ) |   | 238,150 |   |
| Decrease                (Increase) in Prepaid Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                     | 5,062    |   |   | (2,953 | ) |
| (Decrease)                Increase in Customers' Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                     | (1,000   | ) |   | 1,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |     |   |   |   |   |
| Net                Cash Provided by Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                     | 87,477   |   |   | 85,226 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |     |   |   |   |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                     |     |   |   |   |   |
| Purchase                of Property and Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                     | (51,343  | ) |   | (54,702 | ) |
| Decrease                (Increase) in Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                     | 20,000   |   |   | (13,900 | ) |
| Redemption                of Certificate of Deposit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                     | 202,400  |   |   | - |   |
| Increase                in Certificate of Deposit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                     | -        |   |   | (2,400 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |     |   |   |   |   |
| Net                Cash Provided by (Used in) Investing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                     | 171,057  |   |   | (71,002 | ) |

----

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | **For                the Years Ended****December 31,**                                                              |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | **2006**                                                                                                                 |    |  **2005** |   |
|                                                                                                                                  |   |                      |    |                       |   |
| **CASH                FLOWS FOR FINANCING ACTIVITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                     |    |    |   |
| Proceeds                from Sale of Restricted Stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                                                                                                                        | -       |   | $ | 50,370 |   |
| Principal                payments on Notes Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                     | (20,000 | ) |   | (100,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |    |   |   |   |   |
| Net                Cash Used in Financing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     | (20,000 | ) |   | (49,630 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |    |   |   |   |   |
| **NET                INCREASE (DECREASE) IN CASH AND ****CASH                EQUIVALENTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                     | 238,534 |   |   | (35,406 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |    |   |   |   |   |
| **CASH                AND CASH EQUIVALENTS - BEGINNING OF YEAR**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                     | 146,296 |   |   | 181,702 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |    |   |   |   |   |
| **CASH                AND CASH EQUIVALENTS - END OF YEAR**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                                                                                                                        | 384,830 |   | $ | 146,296 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |    |   |   |   |   |
| **SUPPLEMENTAL                DISCLSOURE OF CASH FLOW ****INFORMATION**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                     |    |   |   |   |   |
| Payments                for Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                                                                                                                        | 14,033  |   | $ | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                     |    |   |   |   |   |
| Payments                for Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                                                                                                        | 11,730  |   | $ | 21,012 |   |

----

| **UNITED                ESYSTEMS, INC. AND SUBSIDIARY**                      |
|------------------------------------------------------------------------------|
| **NOTES                TO CONSOLIDATED FINANCIAL                STATEMENTS** |

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

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| **UNITED                ESYSTEMS, INC. AND SUBSIDIARY**                      |
|------------------------------------------------------------------------------|
| **NOTES                TO CONSOLIDATED FINANCIAL                STATEMENTS** |

| **NOTE B**                                                                            | **  ** | **SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES (Continued)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------------------------------------------------------------------|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                 |        | **USE                OF ESTIMATES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                 |        | The                preparation of financial statements in conformity with accounting                principles generally accepted in the United States of America requires                management to make estimates and assumptions that affect the reported                amounts of assets and liabilities at the date of the financial statements                and the reported amounts of revenues and expenses during the reporting                period. Actual results could differ from those                estimates.          |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                 |        | **REVENUE                RECOGNITION**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                 |        | United                charges customers a fee for its ACH services. For these transactions,                United recognizes only the fees generated as revenue. United recognizes                these fees as revenue when United has provided the service to its                customers.                                                                                                                                                                                                                                                   |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                 |        | Fees                for ACH services are based on contractually determined rates with                each                individual customer. Settlements paid to customers for ACH transactions                are submitted to the customer net of fees due to                United.                                                                                                                                                                                                                                                         |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                 |        | **BASIS                OF ACCOUNTING**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                 |        | The                books and records of the Company are kept on the accrual basis of                accounting, whereby revenues are recognized when earned and expenses                are                recognized when incurred.                                                                                                                                                                                                                                                                                                            |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                 |        | **PROPERTY                AND EQUIPMENT**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                 |        | Property                and equipment are stated at cost less accumulated depreciation.                Depreciation is computed using primarily straight-line methods over                the                estimated useful lives of the related assets, which ranges from three                to                seven years.                                                                                                                                                                                                                |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                 |        | **INCOME                TAXES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                 |        | Since                United is a single-member L.L.C., it will be treated as a disregarded                entity for federal income tax reporting purposes. As such, the Company                will include the revenues and expenses of United in its Federal income                tax                return.                                                                                                                                                                                                                                |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                 |        | Deferred                income tax assets and liabilities are determined using the liability                (or                balance sheet) method. Under this method, the net deferred tax asset                or                liability is determined based on the tax effects of the temporary                differences between the book and tax bases of the various balance                sheet                assets and liabilities and gives current recognition to change in                tax                rates and laws. |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                 |        | **ADVERTISING**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                 |        | Advertising                costs are charged to operations when incurred. The amount charged                to                operations for the years ended December 31, 2006 and 2005 totaled                $0 and                $2,800, respectively.                                                                                                                                                                                                                                                                                      |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                 |        | **STATEMENT                OF CASH FLOW INFORMATION**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                 |        | For                purposes of the Consolidated Statements of Cash Flows, the Company                considers all highly liquid investments purchased with an original                maturity of three months or less to be cash                equivalents.                                                                                                                                                                                                                                                                                  |

----

| **UNITED                ESYSTEMS, INC. AND SUBSIDIARY**                      |
|------------------------------------------------------------------------------|
| **NOTES                TO CONSOLIDATED FINANCIAL                STATEMENTS** |

| **NOTE B**                                                                            | **  ** | **SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES (Continued)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------------------------------------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                 |        | **RECENT                ACCOUNTING PRONOUNCEMENTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                 |        | In                February 2006, the Financial Accounting Standards Board (FASB) issued                Statement of Financial Accounting Standards (SFAS) No. 155, *Accounting                for Certain Hybrid Financial Instruments*.                This Statement amends FASB Statement No. 133, *Accounting                for* *Derivative                Instruments and Hedging Activities*,                and Statement No. 140, *Accounting                for Transfers and Servicing of Financial Assets and Extinguishments                of                Liabilities*.                This Statement permits fair value re-measurement for any hybrid financial                instrument that contains an embedded derivative that otherwise would                require bifurcation, clarifies which interest-only strips and                principal-only strips are not subject to the requirements of SFAS                No. 133,                establishes a requirement to evaluate interests in securities financial                assets to identify interests that are freestanding derivatives or                that are                hybrid financial instruments that contain an embedded derivative                requiring                bifurcation, and clarifies that concentrations of credit risk in                the form                of subordination are not embedded derivatives. This Statement is                effective                for all financial instruments acquired or issued after the beginning                of an                entity’s first fiscal year that begins after September 15,                2006. |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                 |        | In                March 2006, the FASB issued SFAS No. 156, *Accounting                for Servicing of Financial Assets*.                This Statement requires an entity to recognize a servicing asset                or                servicing liability each time it undertakes an obligation to service                a                financial asset by entering into a servicing contract in certain                prescribed situations. In addition, this Statement requires that                all                separately recognized servicing assets and servicing liabilities                be                measured at fair value, if practicable. The FASB recommends that                entities                should adopt this Statement as of the beginning of its first fiscal                year                that begins after September 15, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                 |        | In                September 2006, the FASB issued SFAS No. 157, *Fair                Value Measurements*.                This Statement defines fair value, establishes a framework for measuring                fair value in generally accepted accounting principles, and expands                disclosures about fair value measurements. This Statement is effective                for                financial statements issued for fiscal years beginning after                November 15, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                 |        | In                September 2006, the FASB issued SFAS No. 158, *Postretirement                Plans*.                This Statement requires an employer to recognize the overfunded or                underfunded status of a defined benefit postretirement plan (other                than a                multiemployer plan) as an asset or liability in its statement of                financial                position and to recognize changes in that funded status in the year                in                which the changes occur through comprehensive income. An employer                with                publicly traded equity securities is required to initially recognize                the                funded status of a defined benefit postretirement plan and to provide                the                required disclosures as of the end of the fiscal year ending after                December 15, 2006. An employer without publicly traded equity securities                is required to recognize the funded status of a defined benefit                postretirement plan and to provide the required disclosures as of                the end                of the fiscal year ending after June 15,                2007.                                                                                                                                                                                                                                                                                                                                                                                                                          |

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| **UNITED                ESYSTEMS, INC. AND SUBSIDIARY**                      |
|------------------------------------------------------------------------------|
| **NOTES                TO CONSOLIDATED FINANCIAL                STATEMENTS** |

| **NOTE B**                                                                            | **  ** | **SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES (Continued)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------------------------------------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                 |        | In                February 2007, the FASB issued SFAS No. 159, *The                Fair Value Option for Financial Assets and Financial                Liabilities*.                This Statement permits entities to choose to measure many financial                instruments and certain other items at fair value. The objective                is to                improve financial reporting by providing entities with the opportunity                to                mitigate volatility in reported earnings caused by measuring related                assets and liabilities differently without having to apply complex                hedge                accounting provisions. This Statement is expected to expand the use                of                fair value measurement. This Statement is effective as of the beginning                of                an entity’s first fiscal year that begins after November 15,                2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                 |        | In                June 2006, the FASB issued Interpretation Number (FIN) 48, *Accounting                for Uncertainty in Income Taxes (as amended)*.                This Interpretation clarifies the accounting for uncertainty in income                taxes recognized in an enterprise’s financial statements in accordance                with SFAS No. 109, *Accounting                for Income Taxes*.                This Interpretation prescribes a recognition threshold and measurement                attribute for the financial statement recognition and measurement                of a tax                position taken or expected to be taken in a tax return. This                Interpretation also provides guidance on derecognition, classification,                interest and penalties, accounting in interim periods, disclosure,                and                transition. This Interpretation is effective for fiscal years beginning                after December 15, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                       |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| **NOTE C**                                                                            | **  ** | **COMMISSIONS                RECEIVABLE/COMMISSIONS PAYABLE**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                 |        | During                2005, United entered into an arrangement whereby it was able to match                the                clients of an independent sales agent to an independent processor                of paper                bank drafts. As a result of this arrangement, United receives commissions                from the independent processor based on the volume of activity for                a                processing period; however, under an agreement with the independent                sales                agent, United forwards approximately 90% of the gross commissions                received                from the independent processor to the independent sales agent, and                United                recognizes as revenue only the portion of commissions it retains.                At                December 31, 2005, United was due $207,505 in gross commissions from                the independent processor, and was obligated to forward to the independent                sales agent $238,150. The amount of Commissions Payable exceeded                the                amount of Commissions Receivable at December 31, 2005 due to                commissions received by United in December 2005 that had not been                forwarded to the independent sales agent as of December 31, 2005.                During 2006 United discontinued this                activity. |

----

| **UNITED                ESYSTEMS, INC. AND SUBSIDIARY**                      |
|------------------------------------------------------------------------------|
| **NOTES                TO CONSOLIDATED FINANCIAL                STATEMENTS** |

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | **2006** |    |  **2005** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|----------------|--------|
| Computers                and Office Equipment                                                                                                                                                                                                                                                                                                                                                                                              |   | $        | 44,710  |           | $      | 39,295 |   |
| Furniture                and Fixtures                                                                                                                                                                                                                                                                                                                                                                                                      |   |     | 4,350   |           |   | 4,350 |   |
| Software                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |     | 64,168  |           |   | 125,068 |   |
| Leasehold                Improvements                                                                                                                                                                                                                                                                                                                                                                                                      |   |     | 3,826   |           |   | 3,826 |   |
| Less:                Accumulated Depreciation                                                                                                                                                                                                                                                                                                                                                                                              |   |     | (51,039 | )              |   | (45,570 | ) |
|                                                                         |   |     |         |           |   |  |   |
| Property                and Equipment, Net                                                                                                                                                                                                                                                                                                                                                                                                 |   | $        | 66,015  |           | $      | 126,969 |   |

|                 |    | Depreciation                expense charged to operations totaled $38,119 and $25,314 for the                years                ended December 31, 2006 and 2005, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------------------------------------------------------------------------------------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                 |    | During                2004 and 2005, proprietary software was developed for use in the                Company’s                ACH processing operations. In 2006, management entered into an agreement                with an established ACH software provider which enabled the Company                to                decrease its maintenance, compliance and transactional costs. This                new                system also automates some of the manual processes that were required                of                the proprietary system. As a result, management has discontinued                its use                of the proprietary software and has deemed it to be fully was impaired.                An                impairment loss equal to its remaining net book value of $74,178                has been                recognized in the consolidated statement of income for the year ended                December 31, 2006. |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| **NOTE E**                                                                            |         | **RESTRICTED                CASH**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                 |    | Restricted                cash consists primarily of funds maintained in United’s primary bank                account to facilitate ACH transactions. The Company has restricted                this                cash from operations in order to ensure that sufficient funds are                maintained to process and settle customer’s ACH                transactions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

| **UNITED                ESYSTEMS, INC. AND SUBSIDIARY**                      |
|------------------------------------------------------------------------------|
| **NOTES                TO CONSOLIDATED FINANCIAL                STATEMENTS** |

| **NOTE F**                                                                            | **  ** | **NOTES                PAYABLE**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------------------------------------------------------------------------------------------|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                 |        | In                September of 2004, the two existing members of United agreed to take                a                distribution for the amount of undistributed earnings accumulated                by                United through June 30, 2004, which amounted to $156,000. In order to                ease the cash flow requirements on United, the members agreed to                accept a                note for the amount of the distribution. The amount of the distribution                was combined with the amount of advances due to United’s members of                $100,000, and notes payable due to United’s members for the total amount                of $256,000 were established. The notes are unsecured, due on demand                and                require interest-only payments, at an annual percentage rate of 10%.                As of                December 31, 2006, and December 31, 2005, the outstanding                principal balance of these notes was $116,000 and $136,000,                respectively. |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| **NOTE G**                                                                            |             | **INCOME                TAXES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                 |        | The                provision for income taxes for 2006 and 2005 consists of the                following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | **Years                Ended****December 31,** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | **2006**                                            |   |  **2005** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                |   |    |   |
| Current                Tax Expense                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                                                   | 23,154 |   | $ | 24,411 |   |
| Deferred                Tax Expense                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                | -      |   |   | - |   |
|                                                                         |   |                                                |        |   |   |  |   |
| Total                Income Tax Expense                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                                                   | 23,154 |   | $ | 24,411 |   |

|                 |    | A                reconciliation of income tax at the statutory rate to the Company’s                effective rate is as follows: |
|--------------------------------------------------------------------------------------------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | **2006** |    |  **2005** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|----------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |     |    |      |   |
| Computed                at the Expected Statutory Rate                                                                                                                                                                                                                                                                                                                                                                                     |   | $        | 32,080  |           | $      | 28,119 |   |
| Surtax                Exemption                                                                                                                                                                                                                                                                                                                                                                                                            |   |     | (12,550 | )              |   | (6,299 | ) |
| State                Income Tax                                                                                                                                                                                                                                                                                                                                                                                                            |   |     | 3,624   |           |   | 2,591 |   |
|                                                                         |   |     |         |           |   |  |   |
| Income                Tax Expense                                                                                                                                                                                                                                                                                                                                                                                                          |   | $        | 23,154  |           | $      | 24,411 |   |

| **NOTE H**                                                                            |         | **SALE                OF RESTRICTED STOCK**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------------------------------------------------------------------------------------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                 |    | On                May 23, 2005, the Company completed a sale of 930,000 shares of restricted                common stock to a total of nine accredited investors. The gross proceeds                from the sale were $50,370, and the offering was conducted pursuant                to the                exemption from registration available under Section 4(2) and Rule                506 of                Regulation D of the Securities Act of 1933. The proceeds from this                sale                were utilized to supplement the cost incurred by the Company in                conjunction with the Contribution Agreement and Reverse Acquisition                described in Note A. |

----

| **UNITED                ESYSTEMS, INC. AND SUBSIDIARY**                      |
|------------------------------------------------------------------------------|
| **NOTES                TO CONSOLIDATED FINANCIAL                STATEMENTS** |

| **NOTE I**                                                                            | **  ** | **STOCK                OPTIONS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------------------------------------------------------------------------------------------|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                 |        | On                March 30, 2005, the Company entered into a qualified stock option                agreement, whereby the Company granted 312,000 options to its CFO.                On                February 15, 2006, the Company entered into nonqualified stock option                agreements with four key employees, granting a total of 90,000 options,                which included 32,500 options to its CFO. All of the options have                an                exercise price of $.03 per share, and were fully vested as of the                date of                the grant. The option agreements terminate five years from the date                they                were granted. No options were exercised in 2006 or in                2005. |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                 |        | The                fair value of each option grant was estimated on the date of the                grant                using the Black-Scholes option-pricing model with the assumptions                presented below:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

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

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

| **Options**                                                                                                                                                                          |   | **Shares** |    | **Weighted-Average****Exercise Price**                                                                              |   | **Weighted-Average****Remaining****Contractual****Term**                                                                 |   | **Aggregate****Intrinsic****Value**                                                                                      |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|---------|--------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|--------|
|                                |   |       |    |                      |   |                      |   |                      |   |
| Outstanding                at January                1, 2006                                                                                                                         |   |       | 312,000 |                                                                                                                     | $      | .03                                                                                                                      |   |                                                                                                                     |   |   |   |   |   |
| Granted                                                                                                                                                                              |   |       | 90,000  |                                                                                                                     |   | .03                                                                                                                      |   |                                                                                                                     |   |   |   |   |   |
| Exercised                                                                                                                                                                            |   |       | -       |                                                                                                                     |   | -                                                                                                                        |   |                                                                                                                     |   |   |   |   |   |
| Forfeited                or Expired                                                                                                                                                  |   |       | -       |                                                                                                                     |   | -                                                                                                                        |   |                                                                                                                     |   |   |   |   |   |
| Outstanding                at December                31, 2006                                                                                                                       |   |       | 402,000 |                                                                                                                     | $      | .03                                                                                                                      |   |                                                                                                                     | 3.89   |   | $ | .00 |   |
| Exercisable                at December                31, 2006                                                                                                                       |   |       | 402,000 |                                                                                                                     | $      | .03                                                                                                                      |   |                                                                                                                     | 3.89   |   | $ | .00 |   |

----

| **UNITED                ESYSTEMS, INC. AND SUBSIDIARY**                      |
|------------------------------------------------------------------------------|
| **NOTES                TO CONSOLIDATED FINANCIAL                STATEMENTS** |

| **NOTE I**                                                                            | **  ** | **STOCK                OPTIONS**                                                                                                                                                                                                                                                                                                                                                                                     |
|--------------------------------------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                 |        | During                2006, the Company adopted SFAS No. 123(R), which requires the recognition                of compensation expense associated with the fair value of stock options                granted. The amount of compensation cost associated with the fair                value of                stock options granted is considered to be immaterial for financial                reporting purposes. |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| **NOTE J**                                                                            |             | **SIGNIFICANT                CONCENTRATIONS**                                                                                                                                                                                                                                                                                                                                                                        |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                 |        | **RESTRICTED                CASH**                                                                                                                                                                                                                                                                                                                                                                                   |
|                 |        | At                December 31, 2006 and 2005, the Company maintained a balance with                a                financial institution in excess of FDIC insured limits.                                                                                                                                                                                                                                          |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                 |        | **MAJOR                CUSTOMERS**                                                                                                                                                                                                                                                                                                                                                                                   |
|                 |        | During                2006, United had transactions with three customers that amounted                to                approximately 53.8% of the United’s ACH processing revenue. These three                customers, The Hemi Group Co., LTD, Smokes-Spirits.com, LLC, and                Insight                Marketing, LLC. were not affiliated with the Company.                                    |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                 |        | During                2005, United had transactions with three customers that amounted                to                approximately 76% of United’s ACH Transactions revenue. These three                customers, Insight Marketing, LLC, Cash Advance USA, and Cash Advance                Now,                were not affiliated with the Company.                                                      |
|                                                                                       |             |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| **NOTE K**                                                                            | **  ** | **COMMITMENTS**                                                                                                                                                                                                                                                                                                                                                                                                      |
|                 |        |                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                 |        | **OPERATING                LEASES**                                                                                                                                                                                                                                                                                                                                                                                  |
|                 |        | On                May 1, 2005, United entered into an agreement to lease office facilities                at its present location. The lease term is for 36 months. Future                minimum                lease payments are as follows:                                                                                                                                                                      |

| **Year**                                                           |   | **Amount** |   |
|--------------------------------------------------------------------|--------|------------|--------|
|             |   |       |   |
| 2007                                                               |   | $          | 25,600 |   |
| 2008                                                               |   |       | 8,800  |   |
|                                                               |   |       |        |   |
|                                                               |   | $          | 34,400 |   |

|                 |    | Lease                expense for the years ended December 31, 2006 and 2005 amounted to                $23,250 and $16,200, respectively. |
|--------------------------------------------------------------------------------------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **UNITED                ESYSTEMS, INC. AND SUBSIDIARY**                      |
|------------------------------------------------------------------------------|
| **NOTES                TO CONSOLIDATED FINANCIAL                STATEMENTS** |

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

| **Year**                                                           |   | **Amount** |    |
|--------------------------------------------------------------------|--------|------------|---------|
|             |   |       |    |
| 2007                                                               |   | $          | 64,000  |   |
| 2008                                                               |   |       | 66,000  |   |
| 2009                                                               |   |       | 66,000  |   |
| 2010                                                               |   |       | 66,000  |   |
| 2011                                                               |   |       | 44,000  |   |
|                                                               |   |       |    |   |
|                                                               |   | $          | 306,000 |   |

| **NOTE                L**                                                                  |         | **RELATED                PARTY TRANSACTIONS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------------------------------------------------------------------------------------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                 |    | **NOTES                PAYABLE**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                 |    | As                disclosed in Note F, the Company has notes payable totaling $116,000                at                December 31, 2006, and $136,000 at December 31, 2005, due to majority                stockholders of the Company for funds advanced to United in prior                years                and for the amount of the distributions due to the former members                of                United.                                                                                                                                                                                                                                                                                                   |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                 |    | **TRANSACTIONS                WITH AFFILIATES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                 |    | We                conducted business with one entity which was considered to be a related                party. This entity, Payday Cash Advance of Alabama, LLC, was owned                by the                Company’s Chief Executive Officer, Jeff Swank, until August 2006. During                2006 and 2005, business with this entity amounted to approximately                1% and                2%, respectively, of our ACH processing revenue The fees we charged                this                entity for our ACH services were based on our normal business practices                and established pricing policies and were considered to be arms length                in                nature. |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| **NOTE M**                                                                            |         | **EARNINGS                PER SHARE**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                 |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                 |    | For                earnings per share calculations, the weighted average common shares                outstanding amounted to 18,291,667 and 17,361,667 for 2006 and 2005,                respectively. Options to purchase 402,000 shares at $.03 per share                were                outstanding during 2006, and 312,000 shares during 2005, but were                not                included in the computation of diluted earnings per share because                the                options’ exercise price was greater than the estimated market price of the                common shares.                                                                                                               |

----

| **UNITED                ESYSTEMS, INC. AND SUBSIDIARY**                      |
|------------------------------------------------------------------------------|
| **NOTES                TO CONSOLIDATED FINANCIAL                STATEMENTS** |

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

|                                                                                                                                                                                                                                                                                                   |   | **December 31,                2006**                                                              |    |  **December 31,                2005**                                                              |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|---------|--------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                   |   | **Carrying****Amount**                                                                                 |    |  **Fair****Value**                                                                                      |   |  **Carrying****Amount** |   |  **Fair****Value** |   |
|                                                   |   |                   |    |                    |   |                    |   |                    |   |
| Financial                Assets                                                                                                                                                                                                                                                                        |   |                                                                                                   |    |                                                                                                    |   |    |   |    |   |
|    Cash                and Cash Equivalents                                                                                                                                                                                                                                             |   | $                                                                                                      | 384,830 |                                                                                                         | $      | 384,830 |   | $ | 146,296 |   | $ | 146,296 |   |
|    Restricted                Cash                                                                                                                                                                                                                                                       |   |                                                                                                   | 826,647 |                                                                                                         |   | 826,647 |   |   | 1,519,235 |   |   | 1,519,235 |   |
|    Certificate                of Deposit                                                                                                                                                                                                                                                |   |                                                                                                   | -       |                                                                                                         |   | - |   |   | 202,400 |   |   | 202,400 |   |
| Financial                Liabilities                                                                                                                                                                                                                                                                   |   |                                                                                                   |    |                                                                                                         |   |   |   |   |   |   |   |   |   |
|    Notes                Payable                                                                                                                                                                                                                                                         |   | $                                                                                                      | 116,000 |                                                                                                         | $      | 116,000 |   | $ | 136,000 |   | $ | 136,000 |   |

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