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


For
      the
      quarterly period ended March 31, 2007


OR


o
      TRANSITION REPORT
      PURSUANT TO SECTION 13


OR
      15(d)
      OF THE SECURITIES EXCHANGE ACT OF 1934


For
      the
      transition period from ____________ to ____________





Commission
      file number 0-27359





**CSMG
      TECHNOLOGIES, INC.**


(Exact
      name of small business issuer as specified in its charter)




Texas
              (State
                or other jurisdiction of
              incorporation
                or organization)
            74-2653437
              (IRS
                Employer
              Identification
                No.)





501
      North
      Shoreline Drive, Suite 701 North


Corpus
      Christi, TX 78471


(301)
      887-7546


(Address
      and telephone number of registrant’s principal


executive
      offices and principal place of business)





Securities
      registered under Section 12(b) of the Exchange Act: None





Securities
      registered under Section 12(g) of the Exchange Act:


Common
      Stock, $0.001 par value


(Title
      of
      Class)





Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act of 1934 during the past 12 months (or for such shorter
      period that the registrant was required to file such reports), and (2) has
      been
      subject to such filing requirements for the past 90 days. Yes x No o





As
      of
      March 31, 2007, the Company had 35,248,228 shares of its $.001 par value common
      stock issued and outstanding.





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act). Yes
o
      No x





Transitional
      Small Business Disclosure Format (check one): Yes o No x









**TABLE
      OF CONTENTS**




PagePART
                I - FINANCIAL INFORMATIONItem
                1. Financial Statements
            1Reviewed
                Financial Statements:Report
                of Independent Registered Public Accounting Firm
            1Consolidated
                Balance Sheets at March 31, 2007 (Unaudited)and December 31,
                2006
            2Consolidated
                Statement of Operations (Unaudited) for the Three Months Ended March
                31,
                2007 and 2006
            4Consolidated
                Statement of Cash Flows (Unaudited) for the Three Months Ended March
                31,
                2007 and 2006
            5Consolidated
                Statement of Stockholders’ Equity for the Three Months Ended March 31,
                2006
            6Notes
                to the Financial Statements
            7Item
                2. Management’s Discussion and Analysis or Plan of
                Operation
            9Item
                3. Controls and Procedures
            13PART
                II - OTHER INFORMATIONItem
                1. Legal Proceedings
            14Item
                2. Unregistered Sales of Equity Securities and Use of
                Proceeds
            16Item
                6. Exhibits
            17SIGNATURES
            18








**PART
        I - FINANCIAL INFORMATION**
 
 **Item
        1.**   **Financial
        Statements**
 
 **Report
        on Review by Registered Independent Accountant**
  To
        the
        Board of Directors and Stockholders of
 CSMG
        Technologies, Inc. and consolidated Subsidiaries
 
 I
        have
        reviewed the accompanying interim consolidated balance sheet of CSMG
        Technologies, Inc. and consolidated Subsidiaries as of March 31, 2007 and
        December 31, 2006 and the related interim consolidated statements of operations,
        cash flows, and stockholders’ equity for the three-month periods then ended as
        of March 31, 2007 and March 31, 2006. These interim consolidated financial
        statements are the responsibility of the Company’s management.
 
 I
        conducted my review in accordance with standards established by the Public
        Company Accounting Oversight Board (United States). A review of interim
        consolidated financial statements consists principally of applying analytical
        procedures and making inquiries of persons responsible for financial and
        accounting matters. It is substantially less in scope than an audit conducted
        in
        accordance with generally accepted auditing standards, the objective of which
        is
        the expression of an opinion regarding the financial statements taken as
        a
        whole. Accordingly, I do not express such an opinion.
 
 Based
        on
        my review, I am not aware of any material modifications that should be made
        to
        the accompanying interim consolidated financial statements in order for them
        to
        be in conformity with accounting principles generally accepted in the United
        States of America.
 
 The
        accompanying interim consolidated financial statements have been prepared
        assuming that the Company will continue as a going concern. As discussed
        in Note
        2 to the interim consolidated financial statements, the Company has suffered
        recurring losses from operations that raised substantial doubt about its
        ability
        to continue as a going concern. Management’s plans in regard to these matters
        are also described in Note 2. The interim consolidated financial statements
        do
        not include any adjustments that might result from the outcome of this
        uncertainty.
  Gary
        Skibicki, CPA, PC
 Oklahoma
        City, OK
 May
        21,
        2007
  1


**CSMG
                  TECHNOLOGIES, INC.****AND
                  SUBSIDIARIES**CONSOLIDATED
                  BALANCE SHEETSASSETS
  UnauditedMar
                  31, 2007
              
              Dec
                  31, 2006Current
                  AssetsCash
              
              $
              451,440
              
              $
              868,217Account
                  Receivable - United Engeering Company
              
              
              278,500
              
              
              -Total
                  Current Assets
              
              
              729,940
              
              
              868,217Fixed
                  AssetsFurniture
                  and Equipment
              
              
              65,284
              
              
              65,284Less
                  Accumulated Depreciation
              
              
              (61,890
              )
              
              (61,793
              )Total
                  Fixed Assets
              
              
              3,394
              
              
              3,491Other
                  AssetsInvestment
                  - United Engineering Company
              
              
              -
              
              
              53,383Total
                  Other Assets
              
              
              -
              
              
              53,383Total
                  Assets
              
              $
              733,334
              
              $
              925,091


The
        accompanying notes are an integral part of these interim financial
        statements.




2


**CSMG
                  TECHNOLOGIES, INC.****AND
                  SUBSIDIARIES**CONSOLIDATED
                  BALANCE SHEETS (CONTINUED)LIABILITIES
  UnauditedMar
                  31, 2007
              
              Dec
                  31, 2006Current
                  LiabilitiesAccounts
                  Payable
              
              $
              56,533
              
              $
              89,474Interest
                  Payable
              
              
              1,473,414
              
              
              1,531,513Payroll
                  Taxes Payable
              
              
              37,533
              
              
              12,762Notes
                  Payable to Stockholders
              
              
              2,406,844
              
              
              2,758,978Notes
                  Payable - Others
              
              
              2,874,999
              
              
              2,749,999CO2
                  Equipment Payable
              
              
              206,749
              
              
              206,749Accrued
                  CO2 expenses
              
              
              134,833
              
              
              134,833Total
                  Current Liabilities
              
              
              7,190,905
              
              
              7,484,308Long
                  Term LiabilitiesLong
                  Term Contract IAW
              
              
              200,000
              
              
              200,000Fee
                  Debenture Payable
              
              
              -
              
              
              -Total
                  Long-Term Liabilities
              
              
              200,000
              
              
              200,000Total
                  Liabilities
              
              
              7,390,905
              
              
              7,684,308Minority
                  Interest in Consolidated Subsidiary
              
              
              206,000
              
              
              206,000STOCKHOLDERS'
                  EQUITYCommon
                  stock $.001 par value, 80,000,000 sharesauthorized;
                  35,248,228 shares issued, 34,679,515shares
                  outstanding, 488,000 shares subscribedat
                  March 31, 2007; and 33,464,418 shares issued,32,894,856
                  shares outstanding and 488,854 sharessubscribed
                  at December 31, 2006.
              
              
              35,248
              
              
              33,464Preferred
                  Stock $.001 par value, 10,000,000 sharesauthorized;
                  0 shares issued, 0 shares outstanding
              
              
              -
              
              
              -Additional
                  Paid in Capital
              
              
              11,062,708
              
              
              9,922,095Less
                  - Common Stock Subscriptions Receivable
              
              
              (488
              )
              
              (488
              )Cumulative
                  Translation Adjustment ( Loss)
              
              
              (337,190
              )
              
              (337,190
              )Accumulated
                  (Deficit)
              
              
              (17,591,564
              )
              
              (16,550,813
              )Treasury
                  Stock
              
              
              (32,285
              )
              
              (32,285
              )Total
                  Stockholders' Equity
              
              
              (6,863,571
              )
              
              (6,965,217
              )Total
                  Liabilities and Stockholders' Equity
              
              $
              733,334
              
              $
              925,091


The
        accompanying notes are an integral part of these interim financial
        statements.




3


**CSMG
                  TECHNOLOGIES, INC.****AND
                  SUBSIDIARIES**CONSOLIDATED
                  STATEMENT OF OPERATIONSUnaudited
  Jan
                  1, 2007-
              
              Jan
                  1, 2006-Mar
                  31, 2007
              
              Mar
                  31, 2006Revenues
              
              $
              -
              
              $
              -General
                  and Administrative Expenses
              
              
              1,096,066
              
              
              346,750Funded
                  R & D
              
              
              -
              
              
              -Cost
                  of Funded R & D
              
              
              174,376
              
              
              33,377Net
                  R & D Cost
              
              
              174,376
              
              
              33,377Operating
                  (Loss)
              
              
              (1,270,442
              )
              
              (380,127
              )Interest
                  Income
              
              
              4,574
              
              
              -Interest
                  in Income (Loss) of Unconsolidated Companies
              
              
              -
              
              
              (27,696
              )(Loss)
                  from Continuing Operations
              
              
              (1,265,868
              )
              
              (407,823
              )Gain
                  on Sale of United Engineering Co.
              
              
              225,117Income
                  Taxes
              
              
              -
              
              
              -Net
                  (Loss)
              
              $
              (1,040,751
              )
              $
              (407,823
              )Net
                  (Loss) Per Share Common Stock
              
              
              (0.03
              )
              
              (0.02
              )Weighted
                  Average Common Shares Outstanding
              
              
              34,438,508
              
              
              26,780,935
  Basic
                  and diluted earnings (loss) per share are the same. The corporation
                  is
                  reporting a net loss for the
                  reporting periods and any potentially dilutive securities are antidilutive
                  (reduce net loss) and therefore
                  not presented.


The
        accompanying notes are an integral part of these interim financial
        statements.


4


**CSMG
                  TECHNOLOGIES, INC.****AND
                  SUBSIDIARIES**CONSOLIDATED
                  STATEMENT OF CASH FLOWSUnaudited
  Jan
                  1, 2007-
              
              Jan
                  1, 2006-Mar
                  31, 2007
              
              Mar
                  31, 2006Cash
                  Flows from Operating ActivitiesNet
                  (Loss)
              
              $
              (1,040,751
              )
              $
              (407,823
              )Equity
                  Loss from Investee
              
              
              -
              
              
              27,693Depreciation
                  and Amortization
              
              
              96
              
              
              8,096Services
                  for Common Stock
              
              
              280,000
              
              
              -Stock
                  for Interest
              
              
              128,445
              
              
              -Stock
                  for Notes
              
              
              225,098
              
              
              -United
                  Engineering Sale
              
              
              (225,117
              )
              
              -Increase
                  (Decrease) Current Liabilities
              
              
              (8,170
              )
              
              (14,699
              )Increase
                  Accrued Interest
              
              
              (58,099
              )
              
              -Net
                  Cash used in Operating Activities
              
              
              (698,498
              )
              
              (386,733
              )Cash
                  Flows from Investing ActivitiesPurchase
                  Equipment and Patent
              
              
              -
              
              
              (14,966
              )Net
                  Cash used in Investing Activities
              
              
              -
              
              
              (14,966
              )Cash
                  Flows from Financing ActivitiesIncrease
                  Notes Payable
              
              
              252,724
              
              
              120,399Increase
                  Stock Issue
              
              
              28,997
              
              
              294,878Net
                  Cash provided by Financing Activities
              
              
              281,721
              
              
              415,277Net
                  Increase (Decrease) in Cash and Cash Equivalents
              
              
              (416,777
              )
              
              13,578Cash
                  and Cash Equivalents at Beginning of Period
              
              
              868,217
              
              
              (1,534
              )Cash
                  and Cash Equivalents at End of Period
              
              $
              451,440
              
              $
              12,044


The
        accompanying notes are an integral part of these interim financial
        statements.




5


**CSMG
                  TECHNOLOGIES, INC.****AND
                  SUBSIDIARIES**CONSOLIDATED
                  STATEMENT OF STOCKHOLDERS' EQUITYJANUARY
                  1, 2007 - MARCH 31, 2007Unaudited
  Description
              
              No.
                    Common
                  Shares
                    (Ea.)
              
              Par
                  Value
              
              Additional
                Paid
                  In
                Capital
              
              Stock
                  Subscribed
              
              Accumulated
                Other
                  Comprehensive
                Income
                  (Loss)
              
              Accumulated
                  Deficit
              
              Treasury
                  Stock
              
              TotalBalance
                  January 1, 2007
              
              
              33,464,418
              
              $
              33,464
              
              $
              9,922,095
              
              $
              (488
              )
              $
              (337,190
              )
              $
              (16,550,813
              )
              $
              (32,285
              )
              $
              (6,965,217
              )Common
                  Stock Sold
              
              
              47,922
              
              
              48
              
              
              28,951
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              28,999Common
                  Stock Issued for Services
              
              
              700,000
              
              
              700
              
              
              279,300
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              280,000Common
                  Stock Issued for Interest
              
              
              197,893
              
              
              198
              
              
              128,247
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              128,445Common
                  Stock Issued for Notes
              
              
              837,995
              
              
              838
              
              
              479,020
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              479,858Common
                  Stock Escrowed
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -Expenses
              
              
              -
              
              
              -
              
              
              225,095
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              225,095Net
                  (Loss)
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              (1,040,751
              )
              
              -
              
              
              (1,040,751
              )Other
                  Comprehensive Income (Loss)
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -Foreign
                  Exchange Gain (Loss)
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -Balance
                  March 31, 2007
              
              
              35,248,228
              
              $
              35,248
              
              $
              11,062,708
              
              $
              (488
              )
              $
              (337,190
              )
              $
              (17,591,564
              )
              $
              (32,285
              )
              $
              (6,863,571
              )Treasury
                  Shares
              
              
              (80,713
              )Shares
                  Outstanding
              
              
              35,167,515




The
        accompanying notes are an integral part of these interim financial
        statements.




6





**CSMG
      TECHNOLOGIES, INC.**


**AND
      SUBSIDIARIES**


**NOTES
      TO FINANCIAL STATEMENTS**


**MARCH
      31, 2007**





**NOTE
      1**


**BASIS
      OF PRESENTATION**





The
      accompanying unaudited interim consolidated financial statements have been
      prepared in accordance with standards established by the Public Company
      Accounting Oversight Board (United States). Accordingly, they do not include
      all
      of the information and footnotes required by generally accepted accounting
      principles for complete financial statements. In the opinion of management,
      all
      adjustments considered necessary for a fair presentation have been included.
      Operating results for the three-month period ending March 31, 2007 are not
      necessarily indicative of the results that may be expected for the year ended
      December 31, 2007. For further information, refer to the audited annual
      consolidated financial statements and footnotes thereto for the year ended
      December 31, 2006.





**NOTE
      2**


**GOING
      CONCERN**





The
      Company’s financial statements have been presented on the basis that it is a
      going concern, which contemplates the realization of assets and the satisfaction
      of liabilities in the normal course of business. The Company incurred a net
      loss
      of $1,040,751 for the three months ended March 31, 2007 and when combined with
      prior year net losses raises substantial doubt as to the Company’s ability to
      obtain debt and/or equity financing and achieve profitable
      operations.





The
      Company’s management has raised funds through equity and/or debt offerings. In
      June 2006 we signed with Empire Financial Group for a best efforts bridge
      financing of $3 million, all of which has been raised resulting in net proceeds
      to the Company totaling approximately $2.6 million. In addition, we have signed
      a letter of intent with Empire Financial Group relating to a $5 million firm
      commitment underwritten IPO for Live Tissue Connect, Inc., our tissue
      welding/bonding technology subsidiary. The possible consequences of not
      obtaining additional funds either through equity offerings, debt offerings,
      or
      sale of technologies is that there will not be sufficient money to fund the
      capital projects required to earn long-term planned revenues of the
      Company.





The
      Company’s ability to continue as a going concern also involves the carbon
      dioxide separator equipment which is currently inactive due to possible
      technical problems. This equipment is within specification for its contract
      with
      DuPont; however, with no prior production at Chastang there is no assurance
      that
      this will be successful. The landfill operator has requested that the Company
      move the equipment from the site either to another landfill or to storage or
      salvage, and discussions are now in progress between the Company and the
      landfill operator.




7


**CSMG
      TECHNOLOGIES, INC.**


**AND
      SUBSIDIARIES**


**NOTES
      TO FINANCIAL STATEMENTS**


**MARCH
      31, 2007**





**NOTE
      2**


**GOING
      CONCERN (continued)**





Although
      a gas purchase contract was recently obtained by the Company and litigation
      was
      recently favorably resolved, accounting standard FAS 144 has a requirement
      that
      because no cash flow has been generated as of December 31, 2005, the CO2
      equipment had to be been written down to a zero value with an impairment loss
      of
      $1,417,647 included in 2005 operating expenses. For the same reason, the tissue
      bonding and CO2 patents had to be written down during the 3rd quarter 2006
      for a
      total $476,304 and are included in the 3rd quarter operating loss. While this
      affects the financial statements of the Company, it does not affect the actual
      value of the equipment, patents or the ability of the Company to perform on
      its
      contracts.





The
      December 31, 2005 annual financial statements explained under Note 6 that the
      Company filed a motion to dismiss a lawsuit filed by Nature Coast Collections
      regarding loan defaults to Stonegate Management. The lawsuit was originally
      filed in the Federal District Court for the Middle District of Florida and
      was
      dismissed on May 2, 2006 for lack of personal jurisdiction and refiled June
      30,
      2006 in Federal District Court for the Southern District of Texas. The lawsuit
      is claiming payment for an aggregate principal sum of $630,000 plus interest
      and
      costs on four defaulted notes and it is unclear how the ultimate resolution
      will
      impact the Company.





**NOTE
      3**


**GAIN
      ON SALE OF UNITED ENGINEERING COMPANY**





By
      unanimous consent of the shareholders, United Engineering Company, a Ukraine
      company and a 33% owned subsidiary of the Company, was sold to Region Invest,
      LTD of Dnipropetrovsk, Ukraine in March 2007. The Company received $330,000
      for
      its 1/3 ownership before taxes and fee deductions, or $278,500 net of taxes
      and
      fees in early April 2007.





8


**Item
      2.**  **Management’s
      Discussion and Analysis of Financial Condition and Results of
      Operations**





*The
      following discussion and analysis should be read in conjunction with the
      financial statements and the accompanying notes thereto for the period ended
      March 31, 2007 and is qualified in its entirety by the foregoing and by more
      detailed financial information appearing elsewhere. See “Item 1. Financial
      Statements.”*





**Results
      of Operations**





**Three
      Months Ended March 31, 2007 compared to Three Months Ended March 31,
      2006**





We
      had no
      revenues in the three months ended March 31, 2007, compared to no revenues
      in
      during the comparable three-month period of 2006.





Operating
      expenses increased to $1,270,442 from $380,127 for the three months ended March
      31, 2007 compared to 2006. The increase is attributable primarily to an increase
      in general and administrative expenses of $749,316, or 216%, including finance
      fees, $280,000 in Rule 144 stock for consultant fees, legal fees, as well as
      increased tissue welding R&D $140,999, a charge of $225,095 for note
      conversion difference between price of conversion and market price, investor
      relations, and increased travel for consultants from US and Ukraine for meetings
      in US and Ukraine.





For
      the
      three months ended March 31, 2007, we had a net loss from operations of
      $1,265,868 compared to $407,823 for the three months ended March 31,
      2006.





We
      accrued a one time gain for the three months ended March 31, 2007 of $225,117
      on
      the sale of United Engineering Company, our joint venture in Ukraine in which
      we
      had a one-third interest. We incurred a net loss of $27,696 from the operations
      of United Engineering Company during the comparable three-month period of
      2006.





Altogether,
      we reported a net loss of $1,040,751, or $0.03 per share, for the three months
      ended March 31, 2007, compared to $407,823, or $0.02 per share, for the three
      months ended March 31, 2006. Our net loss for the three months ended March
      31,
      2007 included an extraordinary gain of $225,117.





**Liquidity
      and Capital Resources**





We
      were
      able to meet our cash requirements during this quarter as a result of the bridge
      loan in the aggregate amount of $3,000,000 placed by Empire Financial Group
      from
      July 2006 to March 2007. We converted an aggregate of $608,303 in notes held
      by
      certain shareholders into an aggregate of 813,666 shares of Rule 144 common
      stock, which included conversion of $100,000 of the note held by Cornell Capital
      Partners, L.P. into Rule 144 common stock. We also paid $280,000 in consulting
      fees in Rule 144 stock. Additionally, we sold $30,000 of Rule 144 stock at
      market price.




9





**Overview**





**Live
      Tissue Bonding Equipment** **.** The E.O.
      Paton Institute of Electric Welding of the Ukraine National Academy of Sciences,
      Kiev, Ukraine (the “Paton Institute”) and the International Association of
      Welding (“IAW”), developed equipment that bonds and reconnects blood vessels and
      other soft tissues and organs using radio frequency fusion in substantially
      less
      time than other technologies. Animal testing resulted in minimal scar tissue
      formation . To date this equipment and technology has been used in more than
      7,000 human surgeries in Ukraine. In addition, our experience is that there
      is
      no need for prolonged special training of surgeons and surgical personnel to
      use
      this equipment.





To
      date,
      two United States patents, one European Union patent and one Australian patent
      have been issued and approximately 27 pending patent applications in the United
      States and overseas in connection with this live tissue bonding equipment.
      In
      addition, the Ukraine Ministry of Health has approved the technology for
      commercial development in Ukraine.





In
      2002,
      we formed Live Tissue Connect, Inc., a Delaware corporation, through which
      we
      will develop the tissue bonding technology. We own 86% of Live Tissue Connect,
      Inc. In March 2005, Live Tissue Connect entered into an agreement with ConMed
      Corporation of Utica, New York involving a potential licensing of our
      technology. That agreement, and all rights and licenses granted to ConMed under
      that agreement, expired on May 31, 2005 without action by ConMed or
      us.





Until
      the
      end of 2005, all surgeries with the equipment were performed using prototype
      equipment in Ukraine hospitals during human clinical trials. During the Ukraine
      human clinical trials, we developed a device prototype that has performed than
      80 types of surgical procedures. Subsequently, we successfully developed and
      tested a specialized device for duct and vessel sealing. This is the first
      of
      several specialized devices we intend to develop using the prototype equipment.
      At the end of third quarter of 2006, we began developing a second specialized
      device designed for intestinal surgery that we expect to be ready for
      demonstration in February 2007. We believe that developing specialized devices
      for specific surgical procedures will enable us to license our technology for
      use in different surgical procedures to different medical device distribution
      companies.





In
      late
      2005, our Ukraine partner received its first commercial order, from the Ukraine
      Ministry of Health, for ten sets of equipment. We did not participate in the
      revenues of this sale but will benefit from the additional funding of the
      development of the technology. We will participate in the revenues from all
      future sales. Additionally, in 2006 we will be marketing the equipment in
      several countries that recognize the Ukraine Ministry of Health approval.





Approval
      of the process and equipment by the United States Food and Drug Administration
      (“FDA”) is required before we can market, distribute or use our equipment in the
      United States. We have begun the process for FDA discovery and developing the
      regulatory and commercial equipment models for submission to the FDA. Additional
      human testing may be required to obtain FDA approval. In November 2006, we
      engaged a regulatory and equipment consultant to assist in obtaining FDA
      approval. We plan to file with the FDA and for the European CE (Conformité
Européne) Mark in early 2007. The FDA filing process is progressing positively
      but is taking a bit longer than first anticipated in order to provide a
      thorough, complete and solid FDA filing which is expected shortly. Additionally
      we have opened negotiations with several prominent medial device manufacturing
      and marketing companies interested in developing, licensing or marketing
      specific procedure types.




10





We
      are
      beginning to market the bonding equipment in Ukraine or other Eastern European
      countries and plan to market the equipment in the United States and other
      countries if regulatory approval is received. We have continued our plans to
      manufacture prototypes in Ukraine and are continuing clinical trials in Ukraine
      for comprehensive human testing. We began this clinical work in May 2000. To
      date, we have completed more than 7,000 successful human surgeries and more
      than
      80 types of surgical procedures.





We
      estimate that in excess of $6.5 million have been expended in developing the
      tissue bonding technology and that $1.5 million of additional funds must be
      expended to bring this technology to market.





**Anaerobic
      Farm Waste Disposal Equipment** **.** Product
      has been discontinued.





**Carbon
      Dioxide Separator** **.** We own
      the technology for exclusive worldwide patent rights to a carbon dioxide (CO2)
      separator technology. Most of our CO2 separator equipment is manufactured in
      Ukraine. The equipment separates CO2 and other impurities from the gas produced
      in landfills and converts the remaining gas to a cleaner, up to 98% pure methane
      gas for use in internal combustion engines or for sale to natural gas companies.
      This equipment was developed for us by the Institute of Gas, Ukraine National
      Academy of Sciences, and is being manufactured for us by Sumy Frunze in Sumy,
      Ukraine.





In
      February 2006, we signed a contract with DuPont to provide up to 500,000 MM BTU a year
      of commercial quality gas to a DuPont plant near Mobile, Alabama. The gas does
      not need to meet national gas pipeline quality specifications to fulfill the
      DuPont contract, but based on current raw gas analysis, we believe the gas
      produced will be well above the required contractual specification. We are
      currently negotiating with pipeline companies for installation of a 6.2-mile
      pipeline.





The
      status of our CO2 separator project in Chastang County, Alabama is that the
      installation was completed during March 2003. Start-up and equipment adjustment
      were delayed while waiting for the landfill gas owner to complete installation
      of the end-user pipeline and gas metering system. This was installed near the
      end of March just as our Ukraine supervisory team had to return to Ukraine.
      In
      addition, the landfill gas quality was well below expected levels and required
      repairs to the gas gathering system to reduce air intake. The landfill gas
      owner
      coordinated and completed these repairs during the next few weeks, finishing
      toward the end of May. The Ukraine supervisory team returned in early June
      to
      oversee service, start-up and adjust the equipment. Poor weather caused some
      delays but this was completed in about two weeks. As we prepared to begin
      start-up operations and equipment adjustment, Waste Management Inc. (“WMI”, the
      operator of the landfill) ordered Resource Technology Corporation “RTC” (the
      holder of the gas ownership contract) off the landfill for breach of contract.
      and contended that our CO2 separator equipment produces methane gas that fails
      to meet gas quality specifications and that, therefore, the agreement to buy
      the
      gas is terminated. This contention was litigated in RTC’s chapter 11
      reorganization proceeding. During the court proceedings in February 2006 the
      company learned that RTC had erroneously misstated to WMI that the equipment
      was
      fully operational and processing the landfill gas into commercially usable
      gas
      after March 2003. In fact, CSMG had refused to bring the Ukraine start-up team
      back to the Chastang landfill until RTC properly replaced leaking well heads
      and
      closed other air leaks in the raw landfill gas collection system. During March
      2003 the company made two tests of the processed raw landfill gas during a
      30-minute period to evaluate the effectiveness of the CO2 removal equipment
      at
      the site for removing CO2 from the landfill gas. At the time of testing RTC
      had
      not adjusted the well heads to stop air leakage into the system. The raw gas
      specifications were 43% CH4 - 42% CO2 and 15% O2 and N combined. Test 1 of
      the
      processed gas showed CO2 to be at a 3.33% level and test 2 after minor equipment
      adjustments showed CO2 at a 2.5% level. The CO2 separator removes CO2 but not
      O2
      and N. O2 and N control is a function of tuning or managing the gas collection
      system. CSMG has the additional technology to remove the N and O2 if such
      equipment is necessary. In May 2003 CSMG brought the Ukraine team to Chastang
      after the collection system had been repaired, but WMI filed for contract breach
      against RTC after learning of the misstatement.




11





On
      December 16, 2004 we entered into a contract with WMI to operate the CO2
      separator at Chastang, Alabama. The agreement was approved in February 2005
      by
      the RTC trustee and the U.S. Bankruptcy Court; however, the settlement agreement
      was appealed by RTC insider creditors and on January 11, 2006 the appeals court
      refused to hear the appeal.


Waste
      Management and the Company are currently discussing the future capability of
      the
      Chastang site to produce sufficient waste gas volume of the appropriate
      composition to enable the Company’s carbon dioxide scrubber to produce saleable
      gas in marketable quantities to service neighboring industry.  If the
      actions being taken at the site by Waste Management is deemed to be insufficient
      for supporting commercial sales of treated waste gas, an alternate site will
      be
      sought by the Company.





**Outlook**





*The
      company’s future results of operations and the other forward-looking statements
      contained in this Outlook involve a number of risks and uncertainties. Among
      the
      factors that could cause actual results to differ materially are the following:
      inability of the company to obtain needed additional capital, loss of personnel,
      particularly Chief Executive Officer Donald S. Robbins or other key executives,
      interruptions in the supply of equipment from manufacturers of the equipment,
      the development of competing products by well-capitalized competitors, and
      an
      accident involving life or serious bodily harm that fairly or unfairly would
      bring into question the safety of using the company’s products.*





The
      Cornell Capital Partners Transaction :





On
      March
      29, 2004, we entered into an Equity Line of Credit Agreement with Cornell
      Capital Partners, L.P. (“Cornell Capital”). The registration statement for
      issuing new shares to Cornell Capital under the Equity Line of Credit expired
      in
      June 2006. As of March 31, 2007, we had sold an aggregate of 15,680,052
      shares of common stock to Cornell Capital for total proceeds of $2,083,638
      pursuant to the Equity Line of Credit.  We have escrowed 488,854 shares
      with Cornell’s escrow agent to use as repayment of our current credit line
      balance and future credit line use.  We are currently working with Cornell
      to repay the remaining current credit line balance of $242,000 plus interest
      in
      cash or restricted Rule 144 stock.




12





The
      Empire Financial Group Transaction :





On
      June
      30, 2006, we engaged Empire Financial Group, Inc., for a firm commitment public
      offering of approximately $5 million in shares common stock of Live
      Tissue Connect ,
      Inc.
      and to immediately raise up to $3 million in a privately placed bridge financing
      for us, all of which has been raised resulting in net proceeds to the Company
      totaling approximately $2.6 million. Neither the offering price of the shares
      nor the amount of shares to be registered has been determined in connection
      with
      the proposed Live Tissue Connect public offering. We paid $414,000 in fees,
      along with an initial $10,000 fee, to Empire Financial Group.





**Off-Balance
      Sheet Arrangements**





We
      have a
      lease on our office space with 11 months remaining until it expires. Our rent
      is
      $1,268 a month, for a total of $15,519 in remaining obligations.





Other
      than the office lease, our company has not entered into any transaction,
      agreement or other contractual arrangement with an entity unconsolidated with
      us
      under which we have





·
            an
                obligation under a guarantee
                contract,





·
            a
                retained or contingent interest in assets transferred to the
                unconsolidated entity or similar arrangement that serves as credit,
                liquidity or market risk support to such entity for such
                assets,





·
            any
                obligation, including a contingent obligation, under a contract that
                would
                be accounted for as a derivative instrument,
                or





·
            any
                obligation, including a contingent obligation, arising out of a variable
                interest in an unconsolidated entity that is held by us and material
                to us
                where such entity provides financing, liquidity, market risk or credit
                risk support to, or engages in leasing, hedging or research and
                development services with us.





**Item
      3.**   **Controls
      and Procedures**





Under
      the
      supervision and with the participation of our management, including our
      principal executive and financial officers, we conducted an evaluation of our
      disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)
      under the Securities Exchange Act of 1934) as of the end of the period covered
      by this Quarterly Report on Form 10-QSB. Based upon that evaluation, management
      concluded that the design and operation of our disclosure controls and
      procedures were effective to ensure that information required to be disclosed
      by
      us in reports that we file or submit under the Exchange Act is recorded,
      processed, summarized and reported within the time periods specified in the
      rules and forms of the Securities and Exchange Commission and that information
      required to be disclosed in the reports that we file or submit under the
      Exchange Act is accumulated and communicated to management, including our
      principal executive and financial officers, to allow timely decisions regarding
      required disclosure.


13


There
      have been no changes in our internal controls over financial reporting that
      occurred during the period covered by this Quarterly Report on Form 10-QSB
      that
      have materially affected, or are reasonably likely to materially affect, our
      internal controls over financial reporting.





**PART
      II - OTHER INFORMATION**





**Item
      1.**   **Legal
      Proceedings** **.**





CSMG
      was
      sued on February 10, 2005 by Banco Panamericano, Inc. in the Circuit Court
      of
      Cook County, Illinois, *Banco
      Panamericano, Inc. v. Consortium Service Management Group, Inc. and CSMG Gastech
      LLC* ,
      Case
      No. 2005L001514. The complaint alleges that CSMG entered into a short-term
      promissory note dated February 15, 2002 (the “Note”) by which CSMG borrowed from
      Banco Panamericano $203,800 at 12% interest, the Note being due April 1, 2002.
      The complaint alleged that the Note was secured by all of CSMG’s equipment,
      inventory, accounts, general intangibles and other properties. The complaint
      alleged that the Note is in default and that CSMG owed Banco Panamericano
      $514,920 as of February 9, 2005.




CSMG
      alleges as follows with regard to the allegations of Banco
      Panamericano:




·
            Banco
                Panamericano is not a bank but a Nebraska corporation that is affiliated
                with Resource Technologies Corporation (“RTC”), a company that is a debtor
                in a federal chapter 11 reorganization
                case.





·
            CSMG
                and RTC had entered into a contract (the “Contract”) whereby CSMG would
                provide equipment (the “Equipment”), at CSMG’s cost, to filter landfill
                gas from a landfill operated by RTC located in Alabama so as to provide
                marketable methane gas. Among RTC’s obligations under the Contract was a
                commitment to provide a pipeline hookup to the purchaser of the gas.
                CSMG
                and RTC would share in the proceeds from the sale of the methane
                gas.





·
            CSMG
                lacked the funds to perform its obligations under the Contract, RTC
                arranged for its affiliate, Banco Panamericano, to lend CSMG $203,800
                to
                enable CSMG to meet these obligations. It was understood by CSMG,
                RTC and
                Banco Panamericano that CSMG would liquidate the Note from its share
                of
                the proceeds of sale of the methane
                gas.





·
            CSMG
                installed the Equipment but RTC never performed its obligations under
                the
                Contract and Banco Panamericano never loaned any funds to CSMG. Rather,
                Banco Panamericano advised CSMG, from time to time, that CSMG had
                incurred
                several indistinctly-described financial obligations to RTC and that
                Banco
                Panamericano had advanced the funds subject to the Note to its affiliate,
                RTC, to cover such obligations. Such allegations of CSMG indebtedness
                to
                RTC were not true.




14




·
            The
                intention of RC and Banco Panamericano from the beginning was to
                have CSMG
                execute the Note - secured by the Equipment, to cause the Note to
                go into
                default, and to obtain title to the Equipment through the rights
                of a
                secured creditor.





CSMG
      believes that it, not the plaintiff, is the injured party and that this
      litigation properly belongs in RTC’s chapter 11 proceedings in the federal
      bankruptcy court.





CSMG
      has
      answered the complaint and filed counterclaims. On March 2, 2005, the case
      was
      removed from the Circuit Court of Cook County, Illinois to the Federal District
      Court for the Northern District of Illinois. CSMG filed a motion to have the
      proceeding referred to the United States Bankruptcy Court for the Northern
      District of Illinois where the bankruptcy proceeding of Resource Technology
      Corporation is pending. The Federal District Court referred the proceeding
      to
      the United States Bankruptcy Court on December 6, 2005. A status call has been
      set by the United States Bankruptcy Court for October 26, 2006. At the status
      call, the Court stated that it would review the issue of CSMG’s standing to
      bring a substantive consolidation suit in the United States Bankruptcy Court.
      The Court has not yet issued a ruling.





On
      June
      30, 2006, CSMG was served by Nature Coast Collections, Inc. in the Federal
      District Court for the Southern District of Texas, *Nature
      Coast Collections, Inc. v. Consortium Service Management Group, Inc., Donald
      S.
      Robbins and Gordon W. Allison* .
      The
      complaint alleges that Nature Coast Collections, Inc. is the assignee of the
      original payee, Stonegate Management, Ltd., a Costa Rican entity, of four
      promissory notes executed by CSMG, Donald S. Robbins as guarantor, and Gordon
      W.
      Allison as guarantor. The amount claimed in the suit is the aggregate principal
      sum of $630,000, with interest, costs and attorney fees. CSMG has answered
      the
      complaint and filed a counterclaim alleging, among other matters, that Nature
      Coast Collections, Inc. is an affiliate of the debtor in the bankruptcy
      proceeding in the Northern District of Illinois referred to above, Resource
      Technology Corporation, and that CSMG should be authorized to offset its losses
      caused by its contractual relationship with Resource Technology Corporation
      against the claims of Nature Coast Collections, Inc. CSMG has moved the Federal
      District Court for the Southern District of Texas to transfer the proceeding
      to
      the Federal District Court for the Northern District of Illinois so that the
      litigation can be referred to the United States Bankruptcy Court for the
      Northern District of Illinois. This motion was granted.




15


**Item
      2.**   **Unregistered
      Sales of Equity Securities**





Set
      forth
      below are previously unreported sales of our common stock since December 31,
      2006 in transactions exempt from registration pursuant to Section 4(2) of the
      Securities Act of 1933.





**Person**
            
            **Date**
            
            **No.
                of**
              **Shares**
            
            **Price**
              **Per
                Share**
            
            **Type
                of**
              **Consideration**Robert
                Machen
            
            1-3-07
            
            150,000
            
            .40
            
            FeesDonald
                S. Robbins
            
            1-3-07
            
            150,000
            
            .40
            
            FeesEsmeralda
                Robbins
            
            1-3-07
            
            150,000
            
            .40
            
            FeesConrad
                Derdeyn
            
            1-3-07
            
            150,000
            
            .40
            
            FeesBruce
                Jones
            
            1-3-07
            
            100,000
            
            .40
            
            FeesLawrence
                J. Berger
            
            2-5-07
            
            4,167
            
            .48
            
            CashLee
                A. Gonzales
            
            2-5-07
            
            2,183
            
            .48
            
            CashLee
                A. Gonzales
            
            2-5-07
            
            2,184
            
            .48
            
            CashAnn
                Elkins
            
            2-5-07
            
            2,184
            
            .48
            
            CashEisen
                and Nettie Espina
            
            2/28/07
            
            71,689
            
            .625
            
            Note
                conversionWilliam
                Dodge
            
            2/28/07
            
            156,002
            
            .625
            
            Note
                conversionCraig
                O’ Shoney
            
            2/12/07
            
            31,250
            
            .64
            
            CashNorma
                Wilke
            
            2/28/07
            
            31,178
            
            .625
            
            Note
                conversionJ
                & C Diversified
            
            2/28/07
            
            25,364
            
            .625
            
            Note
                ConversionBarbara
                Berger7002
            
            2/12/07
            
            3,125
            
            .64
            
            CashPaul
                N. Strayer
            
            2/12/07
            
            1,563
            
            .64
            
            CashSterling
                Trust Co. FBO
              Kathryn
                Kissinger IRA
            
            2/28/07
            
            51,070
            
            .625
            
            Note
                ConversionSterling
                Trust Co. FBO
              James
                Prejean, IRA
            
            2/28/07
            
            42,973
            
            .625
            
            Note
                ConversionSterling
                Trust Co. FBO
              James
                Prejean, IRA
            
            2/28/07
            
            14,080
            
            .625
            
            Note
                ConversionRobert
                Jacquenotte
            
            3-8-07
            
            33,267
            
            .625
            
            Note
                ConversionKaren
                L. Swisher
            
            3-6-07
            
            1,266
            
            .79
            
            Cash
                PurchaseJames
                Brown
            
            3-13-07
            
            166,000
            
            .625
            
            Note
                conversionDavid
                Eastman
            
            3-13-07
            
            166,000
            
            .625
            
            Note
                conversionSterling
                Trust Co. FBO
              Rob
                Williams Roth IRA
            
            3-13-07
            
            53,931
            
            .625
            
            Note
                conversion





All
      of
      the persons purchasing shares of common stock were known to management, and
      they
      were all accredited investors.




16


**Item
      6.**   **Exhibits
      and Reports on Form 8-K**





**(a)**  **Exhibits**





The
      following exhibits are filed as part of this Form 10-QSB:





Exhibit
                No.
            
            Description31.1
            
            Certification
                of the Chief Executive Officer required by Rule 13a-14(a) or Rule
                15d-14(a).31.2
            
            Certification
                of the Chief Financial Officer required by Rule 13a-14(a) or Rule
                15d-14(a).32.1
            
            Certification
                of the Chief Executive Officer and Chief Financial Officer required
                by
                Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C.
                1350.





17


SIGNATURES





In
      accordance with the requirements of the Exchange Act, the registrant caused
      this
      report to be signed on its behalf by the undersigned, thereunto duly
      authorized.


Dated:
              May 21, 2007
            CSMG
              TECHNOLOGIES,
              INC.By:
            */s/
                Donald S. Robbins*Donald
                S. Robbins, President




18