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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-QSB**

| x | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|---|--------------------------------------------------------------------------------------------------------------------------------------|

|  ̈ | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | For                the transition period from: ________ to                ________. |
|--------|-------------------------------------------------------------------------------------|

| Delaware                                                                     | 75-1695953                                         |
|------------------------------------------------------------------------------|----------------------------------------------------|
| (State                or other jurisdiction of ncorporation or organization) | (I.R.S.                Employer dentification No.) |

**APPLICABLE      ONLY TO ISSUERS INVOLVED IN BANKRUPTCY**

**PROCEEDINGS      DURING THE PRECEDING FIVE YEARS**

**APPLICABLE      ONLY TO CORPORATE ISSUERS**

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**KENT      FINANCIAL SERVICES, INC. AND SUBSIDIARIES**

**FORM      10-QSB**

|                                                                                                                                                    | PageNumber |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|                                                                                                                                                    |       |
| **PART                I. FINANCIAL INFORMATION**                                                                                                        |
|                                                                                                                                                    |       |
| **Item                1.     Financial Statements**                                                                                 |       |
|                                                                                                                                                    |       |
| Condensed                Consolidated Balance Sheet as of September 30, 2006                                                                            | 3          |
|                                                                                                                                                    |       |
| Condensed                Consolidated Statement of Operations for the                                                                                   |       |
| Three                Months Ended September 30, 2006 and 2005                                                                                           | 4          |
| Nine                Months Ended September 30, 2006 and 2005                                                                                            | 5          |
|                                                                                                                                                    |       |
| Condensed                Consolidated Statement of Cash Flows                                                                                           |       |
| Nine                Months Ended September 30, 2006 and 2005                                                                                            | 6          |
|                                                                                                                                                    |       |
| Notes                to Condensed Consolidated Financial Statements                                                                                     | 7          |
|                                                                                                                                                    |       |
| **Item                2.     Management's Discussion and Analysis of                Financial Condition and Results of Operations** | 14         |
|                                                                                                                                                    |       |
| **Item                3.     Controls and                Procedures**                                                               | 17         |
|                                                                                                                                                    |       |
| **PART                II. OTHER INFORMATION**                                                                                                           |
|                                                                                                                                                    |       |
| **Item                1.     Legal Proceedings**                                                                                    | 18         |
|                                                                                                                                                    |       |
| **Item                2.     Unregistered Sales of Equity Securities and Use                of Proceeds**                           | 18         |
|                                                                                                                                                    |       |
| **Item                3.**                    **Defaults                Upon Senior Securities**                                    | 18         |
|                                                                                                                                                    |       |
| **Item                4.     Submission of Matters to a Vote of Security                Holders**                                   | 18         |
|                                                                                                                                                    |       |
| **Item                5.     Other Information**                                                                                    | 19         |
|                                                                                                                                                    |       |
| **Item                6.     Exhibits**                                                                                             | 19         |
|                                                                                                                                                    |       |
| **Signatures**                                                                                                                                          | 20         |

----

| **PART                I****-** | **FINANCIAL                INFORMATION** |
|--------------------------------|------------------------------------------|

| **Item                1.****-** | **Financial                Statements** |
|---------------------------------|-----------------------------------------|

**KENT      FINANCIAL SERVICES, INC. AND SUBSIDIARIES**

| ASSETS                                                                                                                                                            |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|                                                                                                                                                              |   |   |   |
| Current                  Assets:                                                                                                                                  |   |   |   |
| Cash                  and cash equivalents                                                                                                                        |   | $      | 535    |   |
| Short-term                  investments                                                                                                                           |   |   | 12,700 |   |
| Securities                  owned                                                                                                                                 |   |   | 118    |   |
| Accounts                  receivable                                                                                                                              |   |   | 101    |   |
| Other                  current assets                                                                                                                             |   |   | 53     |   |
|                                                                                                                                                              |   |   |   |   |
| Total                  current assets                                                                                                                             |   |   | 13,507 |   |
|                                                                                                                                                              |   |   |   |   |
| Property                  and equipment:                                                                                                                          |   |   |   |   |
| Office                  furniture and equipment, net of accumulated depreciation of                  $5                                                           |   |   | 2      |   |
|                                                                                                                                                              |   |   |   |   |
| Goodwill                                                                                                                                                          |   |   | 90     |   |
|                                                                                                                                                              |   |   |   |   |
| Total                  assets                                                                                                                                     |   | $      | 13,599 |   |
|                                                                                                                                                              |   |   |   |   |
| LIABILITIES                  AND STOCKHOLDERS’ EQUITY                                                                                                       |   |   |   |   |
|                                                                                                                                                              |   |   |   |   |
| Current                  liabilities:                                                                                                                             |   |   |   |   |
| Accounts                  payable and accrued expenses                                                                                                            |   | $      | 1,042  |   |
|                                                                                                                                                              |   |   |   |   |
| Minority                  interest in subsidiaries                                                                                                                |   |   | 5,228  |   |
|                                                                                                                                                              |   |   |   |   |
| Stockholders'                        equity:                                                                                                                      |   |   | -      |   |
| Preferred                  stock without par value; 500,000 shares authorized; none outstanding                                                                   |   |   |   |   |
| Common                      stock, $.10 par value; 4,000,000 shares authorized; 2,800,000                      shares                      issued and outstanding |   |   | 280    |   |
| Additional                  paid-in capital                                                                                                                       |   |   | 12,397 |   |
| Accumulated                  deficit                                                                                                                              |   |   | (5,348 | ) |
|                                                                                                                                                              |   |   |   |   |
| Total                  stockholders' equity                                                                                                                       |   |   | 7,329  |   |
|                                                                                                                                                              |   |   |   |   |
| Total                  liabilities and stockholders' equity                                                                                                       |   | $      | 13,599 |   |

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**KENT      FINANCIAL SERVICES, INC. AND SUBSIDIARIES**

|                                                                                                  |   | Three                    Months EndedSeptember                    30, |   |
|-------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|
|                                                                                                  |   |                                                                  | 2006   |   |   | 2005 |   |
| Revenues:                                                                                             |   |                                                                  |   |   |   |   |   |
| Seminar                  fees                                                                         |   | $                                                                     | 108    |   | $ | 29 |   |
| Interest                  and dividends                                                               |   |                                                                  | 165    |   |   | 102 |   |
| Investing                  gains (losses)                                                             |   |                                                                  | 11     |   |   | (125 | ) |
| Sale                  of patent rights by subsidiary                                                  |   |                                                                  | 50     |   |   |   |   |
| Other                  income                                                                         |   |                                                                  | 13     |   |   | 47 |   |
|                                                                                                  |   |                                                                  |   |   |   |   |   |
| Total                  revenues                                                                       |   |                                                                  | 347    |   |   | 53 |   |
|                                                                                                  |   |                                                                  |   |   |   |   |   |
| Expenses:                                                                                             |   |                                                                  |   |   |   |   |   |
| General                  and administrative                                                           |   |                                                                  | 488    |   |   | 244 |   |
|                                                                                                  |   |                                                                  |   |   |   |   |   |
| Loss                  before income taxes and minority interest                                       |   |                                                                  | (141   | ) |   | (191 | ) |
| Provision                  for income taxes                                                           |   |                                                                  | 1      |   |   | - |   |
|                                                                                                  |   |                                                                  |   |   |   |   |   |
| Loss                  before minority interest                                                        |   |                                                                  | (142   | ) |   | (191 | ) |
| Minority                  interest in subsidiaries losses                                             |   |                                                                  | 16     |   |   | 10 |   |
|                                                                                                  |   |                                                                  |   |   |   |   |   |
|                                                                                                  |   |                                                                  |   |   |   |   |   |
| Net                  loss                                                                             |   | $                                                                     | (126   | ) | $ | (181 | ) |
|                                                                                                  |   |                                                                  |   |   |   |   |   |
|                                                                                                  |   |                                                                  |   |   |   |   |   |
| Basic                  and diluted net loss per common share                                          |   | $                                                                     | (0.04  | ) | $ | (0.06 | ) |
|                                                                                                  |   |                                                                  |   |   |   |   |   |
| Weighted                    average number of common shares outstanding (in                    000's) |   |                                                                  | 2,801  |   |   | 2,817 |   |

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**KENT      FINANCIAL SERVICES, INC. AND SUBSIDIARIES**

|                                                                                                     |   | Nine                  Months Ended September                    30, |   |
|----------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|
|                                                                                                     |   | 2006                                                                |   | 2005 |   |
| Revenues:                                                                                                |   |                                                                |   |   |   |
| Seminar                  fees                                                                            |   | $                                                                   | 275    |   | $ | 57 |   |
| Management                  fee income                                                                   |   |                                                                |   |   |   | 12 |   |
| Interest                  and dividends                                                                  |   |                                                                | 453    |   |   | 278 |   |
| Investing                  losses                                                                        |   |                                                                |   |   |   | (155 | ) |
| Sale                  of patent rights by subsidiary                                                     |   |                                                                | 50     |   |   |   |   |
| Other                  income                                                                            |   |                                                                | 40     |   |   | 229 |   |
|                                                                                                     |   |                                                                |   |   |   |   |   |
| Total                  revenues                                                                          |   |                                                                | 818    |   |   | 421 |   |
|                                                                                                     |   |                                                                |   |   |   |   |   |
| Expenses:                                                                                                |   |                                                                |   |   |   |   |   |
| General                  and administrative                                                              |   |                                                                | 1,361  |   |   | 861 |   |
|                                                                                                     |   |                                                                |   |   |   |   |   |
| Loss                    before income taxes, minority interest and extraordinary                    item |   |                                                                | (543   | ) |   | (440 | ) |
| Provision                  for income taxes                                                              |   |                                                                | 8      |   |   | 22 |   |
| Loss                    before minority interest and extraordinary item                                  |   |                                                                | (551   | ) |   | (462 | ) |
| Minority                  interest in subsidiaries losses                                                |   |                                                                | 75     |   |   | 35 |   |
|                                                                                                     |   |                                                                |   |   |   |   |   |
| Loss                  before extraordinary item                                                          |   |                                                                | (476   | ) |   | (427 | ) |
| Extraordinary                    gain due to purchase of subsidiary stock                                |   |                                                                | 28     |   |   | - |   |
|                                                                                                     |   |                                                                |   |   |   |   |   |
| Net                  loss                                                                                |   | $                                                                   | (448   | ) | $ | (427 | ) |
|                                                                                                     |   |                                                                |   |   |   |   |   |
| Basic                  and diluted net loss per common share:                                            |   |                                                                |   |   |   |   |   |
| Loss                  per share before extraordinary item                                                |   | $                                                                   | (0.17  | ) | $ | (0.15 | ) |
| Extraordinary                  gain                                                                      |   |                                                                | 0.01   |   |   | - |   |
|                                                                                                     |   |                                                                |   |   |   |   |   |
| Net                  loss per share                                                                      |   | $                                                                   | (0.16  | ) | $ | (0.15 | ) |
|                                                                                                     |   |                                                                |   |   |   |   |   |
| Weighted                    average number of common shares outstanding (in                    000's)    |   |                                                                | 2,803  |   |   | 2,830 |   |

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**KENT      FINANCIAL SERVICES, INC. AND SUBSIDIARIES**

|                                                                                                                            |   | Nine                    Months EndedSeptember                  30, |    |
|---------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|---------|
|                                                                                                                            |   | 2006                                                               |    | 2005 |   |
| Cash                  flows from operating activities:                                                                          |   |                                                               |    |   |   |
| Net                  loss                                                                                                       |   | $                                                                  | (448    | ) | $ | (427 | ) |
| Adjustments                    to reconcile net loss to net cash provided by (used in) operating                    activities: |   |                                                               |    |   |   |   |   |
| Depreciation                                                                                                                    |   |                                                               | 2       |   |   | 1 |   |
| Unrealized                  losses on securities owned                                                                          |   |                                                               | 23      |   |   | 198 |   |
| Interest                  receivable on short-term investments                                                                  |   |                                                               | (154    | ) |   |   |   |
| Stock-based                  compensation expense                                                                               |   |                                                               | 27      |   |   |   |   |
| Extraordinary                  gain on purchase of stock of subsidiary                                                          |   |                                                               | (28     | ) |   |   |   |
| Minority                  interest in subsidiaries losses                                                                       |   |                                                               | (75     | ) |   | (35 | ) |
| Change                  in securities owned                                                                                     |   |                                                               |    |   |   | 624 |   |
| Change                  in accounts receivable and other assets                                                                 |   |                                                               | (121    | ) |   | 141 |   |
| Change                  in accounts payable and accrued expenses                                                                |   |                                                               | 14      |   |   | 85 |   |
|                                                                                                                            |   |                                                               |    |   |   |   |   |
| Net                    cash provided by (used in) operating activities                                                          |   |                                                               | (760    | ) |   | 587 |   |
|                                                                                                                            |   |                                                               |    |   |   |   |   |
| Cash                  flows from investing activities:                                                                          |   |                                                               |    |   |   |   |   |
| Purchase                  of stock of subsidiary                                                                                |   |                                                               | (192    | ) |   |   |   |
| Purchase                  of short-term investments                                                                             |   |                                                               | (12,601 | ) |   |   |   |
| Maturity                  of short-term investments                                                                             |   |                                                               | 12,278  |   |   |   |   |
| Cash                  acquired through consolidation of:                                                                        |   |                                                               |    |   |   |   |   |
| The                  Academy for Teaching and Leadership, Inc.                                                                  |   |                                                               |    |   |   | 50 |   |
| General                  Devices                                                                                                |   |                                                               |    |   |   | 74 |   |
|                                                                                                                            |   |                                                               |    |   |   |   |   |
| Net                  cash provided by (used in) investing activities                                                            |   |                                                               | (515    | ) |   | 124 |   |
|                                                                                                                            |   |                                                               |    |   |   |   |   |
| Cash                  flows from financing activities:                                                                          |   |                                                               |    |   |   |   |   |
| Dividends                  paid                                                                                                 |   |                                                               |    |   |   | (851 | ) |
| Repurchase                  of common stock                                                                                     |   |                                                               | (80     | ) |   | (82 | ) |
|                                                                                                                            |   |                                                               |    |   |   |   |   |
| Net                  cash used in financing activities                                                                          |   |                                                               | (80     | ) |   | (933 | ) |
|                                                                                                                            |   |                                                               |    |   |   |   |   |
| Net                  decrease in cash and cash equivalents                                                                      |   |                                                               | (1,355  | ) |   | (222 | ) |
| Cash                  and cash equivalents at beginning of period                                                               |   |                                                               | 1,890   |   |   | 14,156 |   |
|                                                                                                                            |   |                                                               |    |   |   |   |   |
| Cash                  and cash equivalents at end of period                                                                     |   | $                                                                  | 535     |   | $ | 13,934 |   |
|                                                                                                                            |   |                                                               |    |   |   |   |   |
| Supplemental                  disclosure of cash flow information:                                                              |   |                                                               |    |   |   |   |   |
| Cash                  paid for:                                                                                                 |   |                                                               |    |   |   |   |   |
| Taxes                                                                                                                           |   | $                                                                  | 8       |   | $ | 11 |   |

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**KENT      FINANCIAL SERVICES, INC. AND SUBSIDIARIES**

**NOTE      A**
**Basis      of Presentation**

**NOTE      B**
**Business      and Segment Information**

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|                                                  |   | BuisnessDevelopmentActivities |   | EducationalServices |   | All                    OtherOperations |   | Eliminations |   | ConsolidatedTotals |   |
|-------------------------------------------------------|--------|-------------------------------|--------|---------------------|--------|----------------------------------------|--------|--------------|--------|--------------------|--------|
| Three                  Months Ended Sept. 30, 2006    |   |                          |   |                |   |                                   |   |         |   |               |   |
| Revenues                  from external customers     |   |                          |   |                | $      | 108                                    |   | $            | 5      |               |   |   |   | $ | 113 |   |
| Management                  fees                      |   |                          |   |                |   |                                   |   |         | 63     |               | $      | (63 | ) |   |   |   |
| Interest                  revenue                     |   | $                             | 137    |                |   | 3                                      |   |         | 25     |               |   |   |   |   | 165 |   |
| Investing                  gains                      |   |                          |   |                |   |                                   |   |         | 11     |               |   |   |   |   | 11 |   |
| Other                  Income                         |   |                          | 50     |                |   |                                   |   |         | 8      |               |   |   |   |   | 58 |   |
|                                                  |   |                          |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| Total                  revenues                       |   |                          | 187    |                |   | 111                                    |   |         | 112    |               |   | (63 | ) |   | 347 |   |
|                                                  |   |                          |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| General                  and administrative expenses  |   |                          | (205   | )                   |   | (130                                   | )      |         | (216   | )                  |   | 63 |   |   | (488 | ) |
| Income                  tax expense                   |   |                          |   |                |   |                                   |   |         | (1     | )                  |   |   |   |   | (1 | ) |
| Minority                  interest                    |   |                          | 9      |                |   | 7                                      |   |         |   |               |   |   |   |   | 16 |   |
|                                                  |   |                          |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| Net                  loss by segment                  |   | $                             | (9     | )                   | $      | (12                                    | )      | $            | (105   | )                  |   | - |   | $ | (126 | ) |
|                                                  |   |                          |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| Nine                  Months Ended September 30, 2006 |   |                          |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| Revenues                  from external customers     |   |                          |   |                | $      | 275                                    |   | $            | 32     |               |   |   |   | $ | 307 |   |
| Management                  fees                      |   |                          |   |                |   |                                   |   |         | 189    |               | $      | (189 | ) |   |   |   |
| Interest                  revenue                     |   | $                             | 373    |                |   | 7                                      |   |         | 73     |               |   |   |   |   | 453 |   |
| Other                  Income                         |   |                          | 50     |                |   |                                   |   |         | 8      |               |   |   |   |   | 58 |   |
|                                                  |   |                          |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| Total                  revenues                       |   |                          | 423    |                |   | 282                                    |   |         | 302    |               |   | (189 | ) |   | 818 |   |
|                                                  |   |                          |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| General                  and administrative expenses  |   |                          | (605   | )                   |   | (252                                   | )      |         | (693   | )                  |   | 189 |   |   | (1,361 | ) |
| Income                  tax expense                   |   |                          | (1     | )                   |   | (1                                     | )      |         | (6     | )                  |   |   |   |   | (8 | ) |
| Minority                  interest                    |   |                          | 87     |                |   | (12                                    | )      |         |   |               |   |   |   |   | 75 |   |
| Extraordinary                  gain                   |   |                          |   |                |   |                                   |   |         | 28     |               |   |   |   |   | 28 |   |
|                                                  |   |                          |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| Net                  income (loss) by segment         |   | $                             | (96    | )                   | $      | 17                                     |   | $            | (369   | )                  |   | - |   | $ | (448 | ) |
|                                                  |   |                          |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| As                  of September 30, 2006             |   |                          |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| Total                  assets by segment              |   | $                             | 11,008 |                | $      | 439                                    |   | $            | 2,152  |               |   | - |   | $ | 13,599 |   |

----

|                                                   |   | BusinessDevelopmentActivites |   | EducationalServices |   | All                    OtherOperations |   | Eliminations |   | ConsolidatedTotals |   |
|--------------------------------------------------------|--------|------------------------------|--------|---------------------|--------|----------------------------------------|--------|--------------|--------|--------------------|--------|
| Three                  Months Ended September 30, 2005 |   |                         |   |                |   |                                   |   |         |   |               |   |
| Revenues                  from external customers      |   |                         |   |                | $      | 29                                     |   | $            | 47     |               |   |   |   | $ | 76 |   |
| Management                  fees                       |   |                         |   |                |   |                                   |   |         | 45     |               | $      | (45 | ) |   | - |   |
| Interest                  revenue                      |   | $                            | 93     |                |   | 2                                      |   |         | 7      |               |   |   |   |   | 102 |   |
| Investing                  losses                      |   |                         |   |                |   |                                   |   |         | (125   | )                  |   |   |   |   | (125 | ) |
|                                                   |   |                         |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| Total                  revenues                        |   |                         | 93     |                |   | 31                                     |   |         | (26    | )                  |   | (45 | ) |   | 53 |   |
|                                                   |   |                         |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| General                  and administrative expenses   |   |                         | (82    | )                   |   | (39                                    | )      |         | (168   | )                  |   | 45 |   |   | (244 | ) |
| Minority                  interest                     |   |                         | (5     | )                   |   | 3                                      |   |         | 12     |               |   |   |   |   | 10 |   |
|                                                   |   |                         |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| Net                  income (loss) by segment          |   | $                            | 6      |                | $      | (5                                     | )      | $            | (182   | )                  |   | - |   | $ | (181 | ) |
|                                                   |   |                         |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| Nine                  Months Ended September 30, 2005  |   |                         |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| Revenues                  from external customers      |   |                         |   |                | $      | 57                                     |   | $            | 229    |               |   |   |   | $ | 286 |   |
| Management                  fees                       |   |                         |   |                |   |                                   |   |         | 147    |               | $      | (135 | ) |   | 12 |   |
| Interest                  revenue                      |   | $                            | 234    |                |   | 5                                      |   |         | 39     |               |   |   |   |   | 278 |   |
| Investing                  losses                      |   |                         |   |                |   |                                   |   |         | (155   | )                  |   |   |   |   | (155 | ) |
|                                                   |   |                         |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| Total                  revenues                        |   |                         | 234    |                |   | 62                                     |   |         | 260    |               |   | (135 | ) |   | 421 |   |
|                                                   |   |                         |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| General                  and administrative expenses   |   |                         | (262   | )                   |   | (83                                    | )      |         | (651   | )                  |   | 135 |   |   | (861 | ) |
| Income                  tax expense                    |   |                         | (1     | )                   |   |                                   |   |         | (21    | )                  |   |   |   |   | (22 | ) |
| Minority                  interest                     |   |                         | 15     |                |   | 8                                      |   |         | 12     |               |   |   |   |   | 35 |   |
|                                                   |   |                         |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| Net                  loss by segment                   |   | $                            | (14    | )                   | $      | (13                                    | )      | $            | (400   | )                  |   | - |   | $ | (427 | ) |
|                                                   |   |                         |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| As                  of September 30, 2005              |   |                         |   |                |   |                                   |   |         |   |               |   |   |   |   |   |   |
| Total                  assets by segment               |   | $                            | 11,334 |                | $      | 419                                    |   | $            | 2,700  |               |   | - |   | $ | 14,453 |   |

**NOTE      C -**
**Securities      Owned**

|                                                  |   | FairValue                        |   | %Owned |   |
|-------------------------------------------------------|--------|----------------------------------|--------|--------|--------|
|                                                  |   | (in                $000’s) |   |   |   |
|                                                  |   |                             |   |   |   |
| Golf                Rounds.com, Inc. (193,800 shares) |   | $                                | 116    |   |   | 5.6 | % |
| All                other portfolio positions          |   |                             | 2      |   |   |   |   |
|                                                  |   |                             |   |   |   |   |   |
| Total                securities owned                 |   | $                                | 118    |   |   |   |   |

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**NOTE      D -**
**Capital      Stock Activity**

**Dividends**

**Common      Stock Repurchases**

**NOTE      E -**
**Net      Income (Loss) Per Share**

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**NOTE      F - Stock Option Plans**

**Kent      International Stock Options Plans**

**NOTE      G -**
**Related      Party Transactions**

----

**NOTE      H -**
**Legal      Proceedings**

**Texas      American Petrochemicals, Inc. (“TAPI”)**

**NOTE      I - Dissolution of Subsidiaries**

**NOTE      J - Net Operating Loss Carryforwards**

----

**NOTE      K - New Accounting Pronouncements**

*Accounting      for Uncertainty in Income Taxes - an Interpretation of FASB Statement No.      109*
*Accounting      for Income Taxes. *

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| **Item                2****.                -** | **Management's                Discussion and Analysis of Financial Condition and Results of                Operations** |
|-------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|

**Results      of Operations**

**Revenue**

----

**Expenses**

**Liquidity      and Capital Resources**

**Other      Disclosures - Related Party Transactions**

----

**Other      Disclosures - Dissolution of Subsidiaries**

----

**Off-Balance      Sheet Arrangements**

| **Item                3****.                -** | **Controls                and Procedures** |
|-------------------------------------------------|--------------------------------------------|

**Compliance      with Section 404 of Sarbanes-Oxley Act**

----

| **PART                II****-** | **OTHER                INFORMATION** |
|---------------------------------|--------------------------------------|

| **ITEM                1.****-** | **Legal                Proceedings** |
|---------------------------------|--------------------------------------|

**Texas      American Petrochemicals, Inc. (“TAPI”)**

| **ITEM                2.****-** | **Unregistered                Sales of Equity Securities and Use of                Proceeds** |
|---------------------------------|-----------------------------------------------------------------------------------------------|

**Purchase      of Equity Securities**

| Period                                                                  | TotalNumber                  ofSharesPurchased | AveragePrice                  Paidper                  Share | Total                  Number ofSharesPurchased                  asPart                  of PubliclyAnnouncedPlans                  orPrograms | MaximumNumber                  ofShares                  that MayYet                  BePurchasedUnder                  the Plansor                  Programs |
|-------------------------------------------------------------------------|------------------------------------------------|--------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| July                  1, 2006 -July                  31, 2006           | 152                                            | $                  2.27                                      | 152                                                                                                                                            | 108,558                                                                                                                                                       |
| August                  1, 2006 -August                  31, 2006       | 2,932                                          | 2.22                                                         | 2,932                                                                                                                                          | 105,626                                                                                                                                                       |
| September                  1, 2006 -September                  30, 2006 | -                                              | -                                                            | -                                                                                                                                              | 105,626                                                                                                                                                       |
| Total                                                                   | 3,084                                          | $                  2.22                                      | 3,084                                                                                                                                          | 105,626                                                                                                                                                       |

| (1) | In                August 2004, the Board of Directors approved a stock repurchase program                authorizing the Company to repurchase up to 200,000 shares of its                common                stock. This program has no expiration                date. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **ITEM                3.****-** | **Defaults                Upon Senior Securities** |
|---------------------------------|----------------------------------------------------|

| **ITEM                4.****-** | **Submission                of Matters to a Vote of Security                Holders** |
|---------------------------------|---------------------------------------------------------------------------------------|

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| **ITEM                5.****-** | **Other                Information** |
|---------------------------------|--------------------------------------|

| **ITEM                6.****-** | **Exhibits** |
|---------------------------------|--------------|

| (a) | Exhibits |
|-----|----------|

|   | 3.1 | Bylaws                of the Registrant, as amended. (l) |
|--------|-----|----------------------------------------------------------|

|   | 3.2(a) | Articles                of Incorporation of Registrant, as amended (including certificate                of stock                designation for $2.575 Cumulative Convertible Exchangeable Preferred                Stock). (2) |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2(b) | Certificate                of Amendment to Certificate of Incorpora-tion.                (3) |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | 3.2(c) | Certificate                of Amendment to Certificate of Incorporation dated September 26,                1991.                (4) |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.1 | Employment                Agreement dated December 31, 2002 by and between Kent Financial Services,                Inc. and Paul O. Koether. (5) ** |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.2 | Employment                Agreement dated May 1, 2006 by and between Kent Financial Services,                Inc.                and Bryan P. Healey. (6) ** |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.1 | Certification                pursuant to Section 302 of the Sarbanes-Oxley Act of                2002. |
|--------|------|--------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification                pursuant to Section 302 of the Sarbanes-Oxley Act of                2002. |
|--------|------|--------------------------------------------------------------------------------------------------------|

|   | 32 | Certification                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002. |
|--------|----|--------------------------------------------------------------------------------------------------------|

| (1) | Incorporated                by reference to Texas American Energy Corporation Registration Statement,                as amended, on Form S-l, No.                33-11109. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated                by reference to Texas American Energy Corporation Form 10-K, for                the                fiscal year ended December 31,                1984. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated                by reference to Texas American Energy Corporation Form 10-K for the                fiscal                year ended December 31, 1987. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Incorporated                by reference to Kent Financial Services, Inc. Form 10-Q for the quarter                ended September 30, 1991. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Incorporated                by reference to Kent Financial Services, Inc., Form 10-KSB for the                fiscal                year ended December 31, 2002 |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Incorporated                by reference to Kent Financial Services, Inc. Form 8-K filed on May                1,                2006. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|

| ** | Compensatory                Plan |
|----|----------------------------------|

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**SIGNATURES**

|                                   | KENT                FINANCIAL SERVICES, INC. |
|----------------------------------------|----------------------------------------------|
|                                   |                                         |
|                                   |                                         |
|                                   |                                         |
| Dated:                October 30, 2006 | By:                                          | /s/                Bryan P. Healey |   |
|                                   |                                         | Bryan                P. Healey |
|                                   |                                         | Chief                Financial Officer and |
|                                   |                                         | Secretary                (Principal Financial and Accounting Officer, and officer duly authorized                to sign on behalf of the small business                issuer) |

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