U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-QSB

(Mark One)
[x] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
OF 1934

For the quarterly period ended September 30, 2006

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ___________ to ___________

Commission file number: 000-29087

Datascension, Inc.
--------------------------------------------
(Name of small business issuer in its charter)

Nevada 87-037462
- ------------------------ --------------
(State or other jurisdiction of (IRS Employer incorporation or
organization) Identification No.)

145 S. State College Blvd, Suite 350, Brea, CA 92821
--------------------------------------------------------
(Address of principal executive offices) (Zip Code)

714-482-9750 (Telephone) 714-482-9751 (Fax)
--------------------------------------------
(Issuer's telephone number)

N/A
----------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)

Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act 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 [ ]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).

Yes [ ] No [X]

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDING DURING THE PRECEDING FIVE YEARS

Check whether the Registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. Yes [ ] No [ ]

APPLICABLE ONLY TO CORPORATE ISSUERS

The Registrant has 17,987,221 shares issued and outstanding, par value $.001
per share as of November 7, 2006. The Registrant has 505,900 shares of
Preferred Stock Series B issued and outstanding as of November 7, 2006.

Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]

TABLE OF CONTENTS

Page No.

PART I. FINANCIAL INFORMATION

Item 1.Financial Statements
Balance Sheet (unaudited) F1
Statements of Operations (unaudited) F2
Statements of Cash Flows (unaudited) F3
Notes to Financial Statements F4-F7

Item 2. Management's Discussion and Analysis of Planof Operation 5

Item 3. Controls and Procedures 8

PART II. OTHER INFORMATION

Item 1. Legal Proceedings 8

Item 2. Unregistered Sales of Equity and Use of Proceeds 9

Item 3. Defaults upon Senior Securities 10

Item 4. Submission of Matters to a Vote of Security Holders 10

Item 5. Other Information 10

Item 6. Exhibits and Reports on Form 8-K 10

Signatures 11

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

The condensed financial statements of Datascension, Inc., ("DSEN")
included herein have been prepared in accordance with the instructions to
quarterly reports on Form 10-QSB pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote data
necessary for fair presentation of financial position and results of operations
in conformity with accounting principles generally accepted in the United
States of America have been condensed or omitted. It is therefore suggested
that these financial statements be read in conjunction with the summary of
significant accounting policies and notes to financial statements included in
DSEN's Annual Report on Form 10-KSB for the year ended December 31, 2005.

In the opinion of management, all adjustments necessary in order to make
the financial position, results of operations and changes in financial position
at September 30, 2006, and for all periods presented not misleading have been
made. The results of operations for the period ended September 30, 2006 are
not necessarily an indication of operating results to be expected for the full
year ending December 31, 2006.

DATASCENSION, INC.
CONSOLIDATED BALANCE SHEET

ASSETS
Unaudited Audited
9/30/06 12/31/05
------------ -----------

CURRENT ASSETS:
Cash $ 884,019 $ 275,287
Accounts receivable 2,315,350 2,254,078
Prepaid expenses 276,221 114,749
Construction in progress 1,696,400 -
Investment in Century Innovations - 108,469
------------ -----------
TOTAL CURRENT ASSETS $ 5,171,990 $ 2,752,583

Property and equiptment, net of accumulated
depreciation 1,005,857 936,859

OTHER ASSETS:

Website assets, net of amortization 2,981 4,520
Deposits 41,749 20,249
Goodwill 1,692,782 1,692,782
------------ -----------
TOTAL OTHER ASSETS 1,737,512 1,717,551
------------ -----------
TOTAL ASSETS $ 7,915,359 $ 5,406,993
============ ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

9/30/06 12/31/05
------------ -----------
CURRENT LIABILITIES:
Accounts payable $ 364,315 $ 135,467
Accrued expenses 1,158,901 1,766,493
Notes payable, related party 2,000 9,000
Short term notes payable 164,912 200,000
Convertible debt 3,274,217 1,153,723
Derivative liability 189,341 1,003,106
Warrant liability 504,568 278,502
Current portion of long-term notes payable - 104,402
------------ -----------
TOTAL CURRENT LIABILITIES $ 5,658,255 $ 4,650,694
------------ -----------
LONG-TERM DEBT
Long-term notes payable, net of current portion - 139,885
------------ -----------
TOTAL LONG-TERM DEBT - 139,885

TOTAL LIABILITIES 5,658,255 4,790,579

STOCKHOLDERS' EQUITY:
Common stock:
Common stock, $0.001 par value, 200,000,000
shares authorized; 17,987,221 and 17,482,221 shares
issued, 17,891,388 and 17,386,388 outstanding at
September 30, 2006 and December 31, 2005, respectively 161,605 161,100
Additional paid-in capital-common stock 12,044,627 11,563,045
Preferred stock Series B:
Preferred stock, $0.001 par value, 10,000,000
shares authorized; 508,500 Series B shares
issued and outstanding at September 30, 2006 506 506
Additional paid-in capital-preferred Series B 481,994 481,994
Subscriptions receivable - (296,875)
Treasury stock, at cost; 95,833 at September 30, 2006 (134,388) (134,388)
Accumulated deficit (10,297,240) (11,158,968)
------------ -----------
TOTAL STOCKHOLDERS' EQUITY 2,257,104 616,414
------------ -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 7,915,359 $ 5,406,993
============ ===========

The accompanying notes to the financial statements should be read in
conjunction with the above financial statements.

F-1

DATASCENSION, INC.
CONSOLIDATED STATEMENT OF OPERATIONS

UNAUDITED UNAUDITED
UNAUDITED RESTATED UNAUDITED RESTATED
FOR THE FOR THE FOR THE FOR THE AUDITED
3 MONTHS 3 MONTHS 9 MONTHS 9 MONTHS FOR THE
ENDED ENDED ENDED ENDED YEAR ENDED
9/30/06 9/30/05 9/30/06 9/30/05 12/31/05
----------- ------------ ----------- ----------- -----------

Revenue $ 4,217,471 $ 2,365,454 $10,827,468 $ 6,864,011 $ 9,752,935

Cost of Goods Sold 3,003,854 2,127,257 8,042,058 5,718,341 7,633,641
----------- ------------ ----------- ----------- -----------
Gross Profit 1,213,617 238,197 2,785,410 1,145,670 2,119,295

Expenses:
Selling, general and administrative $ 778,086 $ 560,697 $ 2,003,370 $ 1,409,080 $ 2,141,277
Stock based compensation - - 694,351 - -
Depreciation and amortization 58,396 44,888 167,242 131,885 190,530
----------- ------------ ----------- ----------- -----------
Total expenses 836,482 605,585 2,864,963 1,540,965 2,331,807
----------- ------------ ----------- ----------- -----------
Operating Income 377,136 (367,388) (79,553) (395,295) (212,512)

Other Income (Expense):

Interest income - 281 $ - 610 610
Other expenses - (108,517) - - -
Forgiveness of debt 592,186 - 592,186 2,962 2,962
Other income - 3,000 4,603 6,382 6,446
Interest expense (171,036) (81,362) (321,986) (263,125) (313,421)
Other Income (Expense) related
to convertible 1,738,467 228,269 1,513,649 2,863,902 2,978,779
Interest income (expense) related
to convertible (357,976) (160,725) (738,654) (483,100) (641,065)
Total other income 1,801,641 (10,537) 941,281 2,127,631 2,034,311
----------- ------------ ----------- ----------- -----------
Net Income (loss) $ 2,178,777 $ (377,925) $ 861,728 $ 1,732,336 $ 1,821,798
=========== =========== =========== =========== ===========
Basic weighted average number
of common shares outstanding 17,987,221 17,207,290 17,734,291 17,099,415 18,145,903
=========== =========== =========== =========== ===========
Diluted weighted average number
of common shares outstanding 48,715,151 17,207,290 48,462,221 28,390,550 40,965,903
=========== =========== =========== =========== ===========
Basic Net Income Per Share $ 0.12 $ (0.02) $ 0.05 $ 0.10 $ 0.10
=========== =========== =========== =========== ===========
Diluted Net Income Per Share $ 0.04 $ (0.02) $ 0.02 $ 0.06 $ 0.04
=========== =========== =========== =========== ===========

The accompanying notes to the financial statements should be read in
conjunction with the above financial statements.

F-2

DATASCENSION, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS

Unaudited Unaudited
For the 9 months For the 9 months
ended ended
09/30/06 09/30/05
---------------- ----------------

Cash Flows From Operating Activities:
Net income $ 861,728 $ 1,732,336
Adjustments to reconcile net income to net
cash provided by operating activities:
Issued (canceled) for services 748,962 -
Write off of century innovations 108,469
Noncash expenses associated with convertible debt (308,413) -
Change in warrant liability 165,241 (1,277,900)
Change in derivative liability (444,527) (1,519,669)
Depreciation and amortization 167,242 131,885
(Decrease) in asset held for sale - 1,015,014
Distribution of asset held for sale - (1,003,831)
Increase in construction of progress (1,696,400) -
Forgiveness of debt (592,186) -
(Increase) Decrease in accounts receivable (61,272) 14,443
Increase in prepaid expenses (161,472) 188,295
Increase in deposits (21,500) 5,150
Decrease in accounts payable 228,848 (54,322)
Decrease in accrued expenses (15,407) (7,608)
---------------- ----------------
Net cash used by operating activities $ (1,020,686) $ (776,207)

Cash Flows From Investing Activities:
Purchase of property and equipment (234,701) (485,119)
---------------- ----------------
Net cash used by investing activities (234,701) (485,119)

Cash Flows From Financing Activities:
Increase (decrease) in notes payable (279,375) 201,782
Increase (Decrease) in related party payable (7,000) (39,038)
Increase (Decrease) in convertible debt 2,120,495 626,650
Increase (Decrease) in stock subscriptions - 119,063
Issuance of common stock 30,000 -
---------------- ----------------
Net cash provided by financing activities 1,864,120 908,457
---------------- ----------------
Net Increase in Cash 608,733 (352,869)

Balance, Beginning 275,286 556,593
---------------- ----------------
Balance, Ending $ 884,019 $ 203,724
================ ================
Interest Paid $ 321,986 $ 263,125
================ ================
Taxes Paid $ - $ -
================ ================

The accompanying notes to the financial statements should be read in
conjunction with the above financial statements.

F-3

DATASCENSION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - HISTORY AND ORGANIZATION OF THE COMPANY

Datascension, Inc. (formerly known as Nutek, Inc.) was incorporated in August
1991 under the laws of the State of Nevada as Nutek, Inc. (the "Company") and
is engaged in the market research industry.

Datascension International, Inc. and related assets were purchased on September
27, 2001 for $2,200,000 using company shares at fair market value. Datascension
International, Inc. is a data solutions company representing a unique expertise
in the collecting, storage, processing, and interpretation of data. During
2002, Datascension International, Inc. expanded operations into Costa Rica.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting
The Company's policy is to prepare the financial statements on the accrual
basis of accounting. The fiscal year end is December 31.

In the opinion of management, all adjustments necessary in order to make the
financial position, results of operations and changes in financial position at
September 30, 2006, and for all periods presented not misleading have been
made. The results of operations for the period ended September 30, 2006 are not
necessarily an indication of operating results to be expected for the full year
ending December 31, 2006.

During the three months ended September 30, 2006, we recorded an other income
item of $1,738,467, of which $1,042,758 of income related to the debt features
and $695,709 related to the warrants, to reflect the change in fair value of
the derivative and warrant liability.

At each balance sheet date, we adjust the derivative financial instruments to
their estimated fair value and analyze the instruments to determine their
classification as a liability or equity. The estimated fair value of the debt
features was determined using the probability weighted averaged expected cash
flows / Lattice Model. The model uses several assumptions including: historical
stock price volatility (utilizing a rolling 120 day period), risk-free interest
rate (3.50%), remaining maturity, and the closing price of the Company's common
stock to determine estimated fair value of the derivative asset. For the three
months ended September 30, 2006, the estimated value of the company's debt
features decreased to $189,343 and the estimated fair value of the warrant
liability decreased to $504,568, thus the company recorded an "other income"
item on the consolidated statement of operations for the change in fair value
of the debt features and warrants of $1,042,758 and $695,709, respectively, for
the three months ended September 30, 2006.

F-4

NOTE 3 - PROPERTY AND EQUIPMENT

Property and equipment are made up of the following as of September 30, 2006:

Equipment and machinery $ 472,500
Office equipment 1,072,871
Leasehold improvements 9,959
Accumulated depreciation (763,086)
---------
Subtotal $ 792,244

Licenses $ 230,000
Websites 4,520
Accumulated amortization (17,967)
---------
Subtotal $ 216,553
---------
Total $1,005,857

NOTE 4 - NOTES PAYABLE

NOTES PAYABLE - $1,875,000, NOVEMBER 2004

In November 2004, the Company issued $1,875,000 in principal amount of Notes to
third parties. As part of the financing transaction, the Company issued
warrants to purchase 3,125,000 shares of common stock at a per share purchase
price of $0.30 per share.

The Notes accrue interest at a rate of prime + 3% per annum. The Notes are due
and payable in November 2007. After a thorough review of the terms of the note
and respective covenants, the company has determined the more conservative
method of including the entire debt as a current liability on the balance
sheet. The convertible note and warrant documents were filed in an 8-K by the
Company on November 23, 2004. The Note was entered into pursuant to the terms
of a subscription agreement between the Company and the Holder, which was also
included in the 8-K filed on November 23, 2004. The $1,875,000 in proceeds from
the financing transaction were allocated to the debt features and to the
warrants based upon their fair values. After the latter allocations, there was
$170,061 of remaining value to be allocated to the Note on the financial
statements. The debt discount is being accreted using the effective interest
method over the term of the note.

The value of the discount on the converted notes on the books is being accreted
over the term of the note (three years). For the three months ended September
30, 2006, the Company accreted $139,792 of the debt discount related to these
Notes.

F-5

WARRANTS ISSUED

The estimated fair value of the 3,125,000 warrants at issuance (11/11/2004) was
$936,714 and has been classified as a derivative instrument and recorded as a
liability on the Company's balance sheet in accordance with current
authoritative guidance. The estimated fair value of the warrants was determined
using the Black-Scholes option-pricing model with a closing price of $0.40, an
exercise price of $0.30, a 5.0 year term, and a volatility factor of 89%. The
model uses several assumptions including: historical stock price volatility
(utilizing a rolling 120 day period), risk-free interest rate (3.50%),
remaining maturity, and the closing price of the Company's common stock to
determine estimated fair value of the derivative liability. In accordance with
the provisions of SFAS No. 133, Accounting for Derivative Instruments, the
Company is required to adjust the carrying value of the instrument to its fair
value at each balance sheet date and recognize any change since the prior
balance sheet date as a component of Other Income (Expense). The warrant
derivative liability at September 30, 2006 was $192,185.

The recorded value of such warrants can fluctuate significantly based on
fluctuations in the market value of the underlying securities of the issuer of
the warrants, as well as in the volatility of the stock price during the term
used for observation and the term remaining for the warrants.

In accordance with Statement of Financial Accounting Standards No. 133,
"Accounting for Derivative Instruments and Hedging Activities," as amended
("SFAS 133"), the debt features provision (collectively, the features)
contained in the terms governing the Notes are not clearly and closely related
to the characteristics of the Notes. Accordingly, the features qualified as
embedded derivative instruments at issuance and, because they do not qualify
for any scope exception within SFAS 133, they were required by SFAS 133 to be
accounted for separately from the debt instrument and recorded as derivative
financial instruments.

Because the terms of the 2004 convertible note require such classification, the
accounting rules required additional convertible notes and non-employee
warrants to also be classified as liabilities, regardless of the terms of the
new notes and / or warrants. This presumption has been made due to the company
no longer having the control to physical or net share settle subsequent
convertible instruments because it is tainted by the terms of the 2004
convertible notes. Were the 2004 convertible notes to not have contained those
terms or even if the 2004 transaction were not entered into, it could have
altered the treatment of subsequent notes and the conversion features of the
latter agreements may have resulted in a different accounting treatment from
the liability classification. The June 30, 2005 note, as well as any subsequent
convertible notes or warrants, will be treated as derivative liabilities until
all such provisions are settled.

NOTES PAYABLE - $125,000, MARCH 2005

In March 2005, the Company issued $125,000 in principal amount of Notes to
third parties. As part of the financing transaction, the Company issued
warrants to purchase 300,000 shares of common stock at a per share purchase
price of $0.50 per share. The Warrants shall be exercisable until five (5)
years after the Issue Date of the Warrants.

The $125,000 in proceeds from the financing transaction were allocated to the
conversion option, call option and to the warrants based upon their fair
values. After the latter allocations, the company allocated $58,667 to the
carrying value of the debt. That debt discount is being accreted using the
effective interest method over the term of the note.

WARRANTS ISSUED

The estimated fair value of the 300,000 warrants at issuance (3/31/2005) was
$56,785 and has been classified as a derivative instrument and recorded as a
liability on the Company's balance sheet in accordance with current
authoritative guidance. The estimated fair value of the warrants was determined
using the Black-Scholes option-pricing model. The model uses several
assumptions including: historical stock price volatility (utilizing a rolling
120 day period), risk-free interest rate (3.50%), remaining maturity, and the
closing price of the Company's common stock to determine estimated fair value
of the derivative liability.

DEBT FEATURES

Pursuant to the terms of the Notes, these notes are convertible at the option
of the holder, at anytime on or prior to maturity. There is an additional
interest rate adjustment feature, a liquidated damages clause, a cash premium
option, and the redemption option. The debt features represents an embedded
derivative that is required to be accounted for apart from the underlying
Notes. At issuance of the Notes (3/31/05), the debt features had an estimated
initial fair value of $9,548, which was recorded as a discount to the Notes and
a derivative liability on the consolidated balance sheet. In subsequent
periods, if the price of the security changes, the embedded derivative
financial instrument related to the debt features will be adjusted to fair
value with the corresponding charge or credit to other expense or income. The
estimated fair value of the debt features was determined using the probability
weighted averaged expected cash flows / Lattice Model. The model uses several
assumptions including: historical stock price volatility (utilizing a rolling
120 day period), risk-free interest rate (3.50%), remaining maturity, and the
closing price of the Company's common stock to determine estimated fair value
of the derivative liability.

The significant fluctuations can create significant income and expense items on
the financial statements of the company.

F-6

NOTES PAYABLE - $1,702,859, JUNE 2006

In June 2006, the Company issued $1,702,859 in principal amount of Notes to
third parties. As part of the financing transaction, the Company issued
warrants to purchase 4,865,311 shares of common stock at a per share purchase
price of $0.40 per share.

The Notes accrue interest at a rate of prime + 3% per annum. The Notes are due
and payable in June 2008. After a thorough review of the terms of the note and
respective covenants, the company has determined the more conservative method
of including the entire debt as a current liability on the balance sheet. The
convertible note and warrant documents were filed in an 8-K by the Company on
June 16, 2006. The Note was entered into pursuant to the terms of a
subscription agreement between the Company and the Holder, which was also
included in the 8-K filed on June 16, 2006. The $1,702,859 in proceeds from the
financing transaction were allocated to the debt features and to the warrants
based upon their fair values. After the latter allocations, there was $692,299
of remaining value to be allocated to the Note on the financial statements.
The debt discount is being accreted using the effective interest method over
the term of the note.

The value of the discount on the converted notes on the books is being accreted
over the term of the note (three years). For the three months ended September
30, 2006, the Company accreted $208,189 of the debt discount related to these
Notes.

WARRANTS ISSUED

The estimated fair value of the 4,865,311 warrants at issuance was $437,791 and
has been classified as a derivative instrument and recorded as a liability on
the Company's balance sheet in accordance with current authoritative guidance.
The estimated fair value of the warrants was determined using the Black-Scholes
option-pricing model with a closing price of $0.28, an exercise price of $0.40,
a 5.0 year term, and a volatility factor of 44%. The model uses several
assumptions including: historical stock price volatility (utilizing a rolling
120 day period), risk-free interest rate (3.50%), remaining maturity, and the
closing price of the Company's common stock to determine estimated fair value
of the derivative liability. In accordance with the provisions of SFAS No. 133,
Accounting for Derivative Instruments, the Company is required to adjust the
carrying value of the instrument to its fair value at each balance sheet date
and recognize any change since the prior balance sheet date as a component of
Other Income (Expense). The warrant derivative liability at September 30, 2006
was $294,631.

NOTES PAYABLE - $200,000, MAY 2005

On May 18, 2005, the company received $200,000 in the form of a promissory note
at 12% per year. The note does not specify a term for when it is due.

NON-EMPLOYEE WARRANTS

During June 2006, the company issued 100,000 warrants at $0.30 per share to two
consultants.

The estimated fair value of the 100,000 warrants at issuance was $12,264 and
has been classified as a derivative instrument and recorded as a liability on
the Company's balance sheet in accordance with current authoritative guidance.
The estimated fair value of the warrants was determined using the Black-Scholes
option-pricing model with a closing price of $0.29, an exercise price of $0.30,
a 5.0 year term, and a volatility factor of 44%. The model uses several
assumptions including: historical stock price volatility (utilizing a rolling
120 day period), risk-free interest rate (3.50%), remaining maturity, and the
closing price of the Company's common stock to determine estimated fair value
of the derivative liability. In accordance with the provisions of SFAS No. 133,
Accounting for Derivative Instruments, the Company is required to adjust the
carrying value of the instrument to its fair value at each balance sheet date
and recognize any change since the prior balance sheet date as a component of
Other Income (Expense). The warrant derivative liability at September 30, 2006
was $8,132.

For the three months ended September 30, 2006:

$ 312,698 income, decrease in value of 2004 derivative liability
265,419 income, decrease in value of 2004 warrant liability
140 income, decrease in 2005 derivative liability
19,950 income, decrease in value of 2005 warrant liability
729,920 income, decrease in 2006 derivative liability
401,328 income, decrease in value of 2006 warrant liability
9,012 income, decrease in value of 2006 consultants warrants
- ----------
$1,738,467 other income related to convertible debt

For the three months ended September 30, 2006, the company recorded $357,976 of
interest expense related to the accretion of debt related to the convertible
financing.

For the three months ended September 30, 2006:

$ 139,792 of interest expense related to accretion of 2004 convertible debt
9,995 of interest expense related to accretion of 2005 convertible debt
208,189 of interest expense related to accretion of 2005 convertible debt
- ---------
$ 357,976 of interest expense related to convertible debt

The balance of the carrying value of the convertible debt as of September 30,
2006 is:

$2,802,135 June 30, 2006 value
139,792 accretion of 2004 convertible debt
9,995 accretion of 2005 convertible debt
208,189 accretion of 2006 convertible debt
114,106 interest accrual on loans
- ----------
$3,274,217 September 30, 2006 carrying value of debt

The balance of the carrying value of the derivative liability as of September
30, 2006 is:

$1,232,101 June 30, 2006 value of derivative liability
( 312,698) income, decrease in 2004 derivative liability
( 140) income, decrease in 2005 derivative liability
( 729,920) income, decrease in 2006 derivative liability
- ----------
$ 189,343 September 30, 2006 value of derivative liability

The balance of the carrying value of the warrant liability as of September 30,
2006 is:

$1,200,277 June 30, 2006 value of warrant liability
(265,419) income, decrease in value of 2004 warrant liability
(19,950) income, decrease in 2005 warrant liability
(401,328) income, decrease in 2006 warrant liability
(9,012) income, decrease in 2006 warrant liability to consultants
- ----------
$ 504,568 September 30, 2006 value of warrant liability

NOTE 5 - STOCKHOLDERS' EQUITY

The company issued shares of common stock for services during the nine months
ended September 30, 2006. 500,000 of shares were issued to Scott Kincer, the
CEO; 150,000 shares were issued to Joey Harmon, the COO; 30,000 shares were
issued to Robert Sandelman, a director; and 30,000 shares were issued to David
Lieberman, a director. All stock was valued at $0.30 per share.

100,000 shares were issued to a consultant and 25,000 shares were issued to an
employee as compensation, valued at $30,000 and $7,500 (respectively) or $0.30
per share.

60,000 shares of common stock were sold for $0.50 per share to an investor and
10,000 shares of common stock were issued to a debtor as interest expense,
valued at $3,000 or $0.30 per share.

3,250,000 options were issued to officers with a $0.30 exercise price, a 5 year
term and given a 44% volatility, Black Scholes calculated this as a $398,587
expense for the quarter per FASB 123R.

There were no other issuances of stock or options other than those mentioned
above and in Note 4.

NOTE 6 - RELATED PARTY TRANSACTIONS

As of September 30, 2006, the Company has an outstanding note payable to Murray
Conradie, the Company's former CEO, in the amount of $2,000. This payable
accrues interest at 1% monthly due on the first day of each month.

NOTE 7 - FOREIGN OPERATIONS

The company currently operates out of the United States, Costa Rica and the
Dominican Republic. The future plans of the company involve the slowing growth
at the Dominican Republic facility while focusing on the potential and
available growth in Costa Rica. Management does not feel there is a currency
risk or need to assess a foreign currency translation adjustment or other
comprehensive income item as income and expense items are negotiated in the US
dollar. The Company maintains their accountings records in U.S. dollars and
all payments are made in US dollars. All debts and assets on the books of the
company are valued based on US dollars and are not translated from a foreign
currency amount. The Company currently coordinates all foreign operations, and
supervision activities using part time employees, consultants and contract
labor. Approximately 95% of the company's workforce is outside of the United
States. Currently 100% of the company's clients are US based companies. Any
resulting foreign exchange fluctuations do not affect the payment of employees,
contract labor or off shore operations.

NOTE 8 - OTHER

LITIGATION:

INTERNATIONAL DATA COLLECTION, INC. V. DATASCENSION, ET AL.

San Diego Superior Court, Case No. GIC 865902

On May 12, 2006, International Data Collection, Inc. ("Plaintiff"), filed a
complaint in the Superior Court of California, County of San Diego, Case No.
GIC 865902, against DSEN as well as Joey Harman (officer), Heather Pomeroy
(employee) and a non-related individual, Gustavo Mendoza. Plaintiff asserts
causes of action for unfair business practices, misappropriation of trade
secrets, interference with contract and prospective economic advantage,
conversion and breach of contract.

IDC is a competitor of DSEN. Plaintiff contends that its former employee, Ms.
Pomeroy, obtained trade secrets which she is now divulging in the course of her
employment with Datascension. IDC has not specified its damages as of this
time.

DSEN, Mr. Harmon and Ms. Pomeroy have each fully cooperated with litigation
counsel's investigation. Although discovery has not been completed, it is
litigation counsel's opinion that IDC's claims lack any factual and/or legal
merit. As such, DSEN and its officer and employee intend to continue with
vigorous defense against the claims asserted. A trial date has not yet been set
in this case.

DATASCENSION V. MEDIRECT LATINO, INC.

Case No. 32 103 00458 06

On June 13, 2006, DSEN filed a claim against MEDirect Latino, Inc. ("MLTO")
through the American Arbitration Association, Case No. 32 103 00458 06, in
order to collect $212,061.28 of outstanding invoices for services rendered.
Thereafter, on or about September 19, 2006, MLTO filed a counter-claim against
DSEN, contending that DSEN negligently performed its services. MLTO seeks
$1,000,000.00 in damages against DSEN although it has not specifically
identified the basis of such.

DSEN has fully cooperated with litigation counsel's investigation. Without
compromising DSEN's litigation strategy, it is litigation counsel's opinion
that (i) DSEN is a legitimate collection claim against MLTO, and (ii) MLTO's
claims lack any factual and/or legal merit. The arbitration hearing has been
set to commence on February 13, 2007.

F-7

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

The following is a discussion of certain factors affecting DSEN's results
of operations, liquidity and capital resources. You should read the following
discussion and analysis in conjunction with the Registrant's consolidated
financial statements and related notes that are included herein under Item 1
above.

Overview

Datascension Inc, ("DSEN") through its sole subsidiary Datascension
International, Inc, is engaged in data gathering and conducting outsourced
market research. Its expertise is in the collection, storage, and processing of
data. Datascension International's management team has over 30 years of
experience in working with clients to gather the information they need to make
changes or advancements to their operations. Datascension International
services a variety of industries and customers (including the hospitality,
entertainment, and automotive sectors) with emphasis and commitment to customer
service, quality assurance and on-time project management.

Critical Accounting Policies and Estimates

Our discussion and analysis of financial condition and results of
operations is based upon our financial statements, which have been prepared in
accordance with accounting principles generally accepted in the United States
of America. The preparation of these financial statements requires us to make
estimates and judgments that affect the reported amounts of assets,
liabilities, revenue and expenses, and related disclosure of contingent assets
and liabilities. On an ongoing basis, we evaluate our estimates. We base our
estimates on historical experience and on various other assumptions that we
believe to be reasonable under the circumstances. These estimates and
assumptions provide a basis for making judgments about the carrying values of
assets and liabilities that are not readily apparent from other sources. Actual
results may differ from these estimates under different assumptions or
conditions, and these differences may be material.

We believe the following critical accounting policies affect its more
significant judgments and estimates used in the preparation of its consolidated
financial statements.

Foreign Currency

DSEN maintains its accounting records in U.S. dollars and all payments
are made in US dollars. Any resulting foreign exchange fluctuations do not
affect the payment of employees, contract labor or off shore operations.

Revenue Recognition.

We recognize revenues as the survey data is collected for the client in
accordance with the terms of our agreements. Research products are delivered
within a short period, generally ranging from a few days to approximately eight
weeks. Billings rendered in advance of services being performed, as well as
customer deposits received in advance, are recorded as a current liability
included in deferred revenue. We are required to estimate contract losses, if
any, and provide for such losses in the period they are determined and
estimable. We do not believe that there are realistic alternatives to our
revenue recognition policy given the short period of service delivery and the
requirement to deliver completed surveys to our customers. We do not believe
there is significant risk of recognizing revenue prematurely since our
contracts are standardized, the earnings process is short and no single project
accounts for a significant portion of our revenue.

DSEN's website address is http://www.datascension.com.

Results of Operations

Analysis of the nine months ended September 30, 2006 compared to the nine
months ended September 30, 2005.

For the nine-months, ended September 30, 2006, DSEN has generated $10,827,468
in revenues compared to $6,864,011 in revenues for the nine-months ended
September 30, 2005, for an increase of $3,963,457. The increase in revenue is
a result of an increase in new clients, along with an increase in our hourly
billing rates.

Cost of goods sold for the nine-months ended September 30, 2006 was $8,042,058
compared to $5,718,341 for the nine-months ended September 30, 2005 or an
increase of 2,323,717. This increase was a result of the increased clients and
service contracts completed.

Total general and administrative expenses increased to $2,003,370 for the nine-
months ended September 30, 2006 from $1,409,080 for the nine-months ended
September 30, 2005, a net increase of $594,290. The increase related to the
increase in cost associated with expansion of our Costa Rica operation and
training of personnel to meet the increased demand of the new clients.

Depreciation expense for the nine-months ended September 30, 2006 was $167,242
compared to $131,885 for the nine-months ended September 30, 2005, an increase
of $35,357. The increase resulted from the purchase of additional assets in
the last twelve months.

Interest expense for the nine-months ended September 30, 2006 was $321,986
compared to $263,125 for the nine-months ended September 30, 2005 an increase
of $58,861. This increase relates to the debt funding increase in the last
twelve months.

Datascension generated net income of $861,728 for the nine months ended
September 30, 2006, versus net income of $1,732,336 for the same period in
2005. The decrease in profit of $870,608 is a result of the increase in
expenses (and decrease in income) related to the derivative and warrant
liabilities, along with a write down of the Century Innovations investment of
$108,469. For the nine months ended September 30, 2006, DSEN has increased its
working capital position by a net amount of $1,411,846 from negative $1,898,111
as of December 31, 2005 to negative $486,265 as of September 30, 2006. This is
due largely to an increase in warrant liability of $226,066 and an increase of
$2,120,494 in convertible debt, while there was also a decrease in derivative
liability of $813,765, offset by an increase in cash of $608,732, an additional
increase in accounts receivable of $61,272, an increase in prepaid expenses of
$161,472 and an increase in construction in progress of $1,696,400.

Significant Subsequent Events occurring after September 30, 2006:

None.

Capital Resources and Liquidity

On September 30, 2006 DSEN had total assets of $7,915,359 compared to
$4,563,623 on September 30, 2005, an increase of $3,351,736. The reason for
the increase in assets is a result of the increase in cash, construction in
progress and accounts receivable. DSEN had a total stockholders' equity of
$2,257,104 on September 30, 2006 compared to $558,993 on September 30, 2005, an
increase in equity of $1,698,111, which is in part due to the increase in gross
profit during the past 12 months.

All assets are booked at historical purchase price and there is no
variance between book value and the purchase price.

On September 30, 2006 DSEN had Property and Equipment of $1,005,857
compared to $995,543 on September 30, 2005, or an increase of $10,314 which is
a result of the purchase of additional software for the call center operations
and the depreciation during the last twelve months. The company has begun
construction of a new facility in Costa Rica and has approximately $1,696,400
in construction in progress as of September 30, 2006.

As discussed above DSEN intends to meet its financial needs for
operations through the collection of accounts receivable and servicing of
current contracts.

DSEN's capital resources are comprised primarily of private investors,
who are either existing contacts of the Registrant's management or who come to
the attention of the Registrant through brokers, financial institutions and
other intermediaries. The Registrant's access to capital is always dependent
upon general financial market conditions. The Registrant's capital resources
are not anticipated to change materially in 2006.

DSEN has financed operations through the collections of accounts
receivable, servicing of existing contracts and the sale of common stock and
through financing from financial institutions. In order to sustain operations
in the near term, it is anticipated that DSEN has sufficient working capital
due to the fact that as of September 30, 2006, the company had $884,019 of cash
and $2,315,350 of accounts receivable on hand.

DSEN's future capital requirements will depend on numerous factors,
including the profitability of our research projects and our ability to control
costs. We believe that our current assets will be sufficient to meet our
operating expenses and capital expenditures. However, we cannot predict when
and if any additional capital contributions may be needed and we may need to
seek one or more substantial new investors. New investors could cause
substantial dilution to existing stockholders.

There can be no assurances that DSEN will be successful in raising
additional capital via debt or equity funding, or that any such transactions,
if consummated, will be on terms favorable to DSEN. In the event that
additional capital is not obtained from other sources, it may become necessary
to alter development plans or otherwise abandon certain ventures.

If DSEN needs to raise additional funds in order to fund expansion,
develop new or enhanced services or products, respond to competitive pressures
or acquire complementary products, businesses or technologies, any additional
funds raised through the issuance of equity or convertible debt securities, the
percentage ownership of the stockholders of DSEN will be reduced, stockholders
may experience additional dilution and such securities may have rights,
preferences or privileges senior to those of DSEN's Common Stock. DSEN does
not currently have any contractual restrictions on its ability to incur debt
and, accordingly, DSEN could incur significant amounts of indebtedness to
finance its operations. Any such indebtedness could contain covenants, which
would restrict DSEN's operations.

Off-Balance Sheet Arrangements.

DSEN currently does not have any off-balance sheet arrangements.

Forward-Looking Information

This quarterly report contains forward-looking statements. The forward-
looking statements include all statements that are not statements of historical
fact. The forward-looking statements are often identifiable by their use of
words such as "may," "expect," "believe," "anticipate," "intend," "could,"
"estimate," or "continue," "Plans" or the negative or other variations of those
or comparable terms. Our actual results could differ materially from the
anticipated results described in the forward-looking statements. Factors that
could affect our results include, but are not limited to, those discussed in
Item 2, "Management's Discussion and Analysis or Plan of Operation" and
included elsewhere in this report. DSEN makes no commitment to update any
forward-looking statement or to disclose any facts, events, or circumstances
after the date hereof that may affect the accuracy of any forward-looking
statement.

Item 3. Controls and Procedures.

(a) Our Chief Executive Officer (CEO) and Principal Financial Officer
evaluated the effectiveness of our disclosure controls and procedures (as
defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of
1934, as amended) as of the end of the period covered by this report. Based
upon the evaluation, concluded that the disclosure controls and procedures are
effective in ensuring all required information relating to DSEN is included in
this quarterly report.

We also maintain a system of internal control over financial reporting (as
defined in Rules 13a-15(f) and 15d-15(f)) designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with accounting
principles generally accepted in the United States of America.

(b) Changes in internal controls. During our most recent fiscal
quarter, there have been no changes in our internal control over financial
reporting that occurred that have materially affected or are reasonably likely
to materially affect our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

INTERNATIONAL DATA COLLECTION, INC. V. DATASCENSION, ET AL.

San Diego Superior Court, Case No. GIC 865902

DATASCENSION V. MEDIRECT LATINO, INC.

Case No. 32 103 00458 06

Item 2. Unregistered Sales of Equity Security and Use of Proceeds.

[None during the three months ended September 30, 2006].

Item 3. Defaults Upon Senior Securities

None.

Item 4. Submission of Matters to a Vote of Security Holders

None.

Item 5. Other Information

None.

Item 6. Exhibits and Reports on Form 8-K

Exhibits

(a) Exhibit 31. Certifications required by Rule 13a-14(a) or Rule 15d-
14(a)

31.1 Certification of Chief Executive Officer and Principal Financial Officer
pursuant to 18 U.S.C.ss.1850 as adopted pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.

(b) Exhibit 32. Certifications required by Rule 13a-14(b) or Rule 15d-
14(b) and section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350

32.1 Certification of Chief Executive Officer and Principal Financial Officer
pursuant to 18 U.S.C.ss.1850 as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.

Reports on Form 8-K

None.

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

Datascension, Inc.

/s/ D. Scott Kincer
----------------------
D. Scott Kincer
President, Chairman and Director
(Principal Executive Officer)

/s/ D. Scott Kincer
-------------------
D. Scott Kincer
(Principal Financial Officer)

Date: November 13, 2006

Pursuant to the requirements of Section 12 of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.

/s/ D. Scott Kincer
----------------------
D. Scott Kincer
President, Chairman and Director
(Principal Executive Officer)

/s/ D. Scott Kincer
-------------------
D. Scott Kincer
(Principal Financial Officer)

Date: November 13, 2006