CORRESP 1 filename1.txt Power2Ship, Inc. 903 Clint Moore Road Boca Raton, FL 33496 Tel (866) 998-7557 Fax (561) 998-7821 March 31, 2006 United States Securities and Exchange Commission 100 F Street, N.E. Washington, D.C. 20549 Attention: Linda Cvrkel Jean Yu RE: Response Letter from Power2Ship, Inc. (the "Company") dated March 31, 2006 Dear Ms. Cvrkel and Ms. Yu: The Company is providing herein supplemental information to enable the Staff to evaluate its previously filed responses to the Staff's comment letter dated March 2, 2006. The supplemental information appears in the same numerical order as the Staff's letter. Form 10-KSB for the Year Ended June 30, 2005 9. The Company will revise the pro forma information presented to give effect to amortization of intangible assets acquired in the acquisitions of Commodity Express Transportation and GFC as attached hererto. We trust the foregoing provides sufficient additional information to enable the Staff to evaluate the Company's response to the Staff's comments. Sincerely yours, s/s Richard Hersh Richard Hersh Chairman and Chief Executive Officer Pro Forma Combined Statement of Operations For The Year Ended June 30, 2004:

PromForma Power2Ship Express GFC Adjustments Pro Forma Revenue: Freight transportation $ 1,778,027 $ 15,914,189 $ 3,943,549 $ - $ 21,635,765 Access services 290,013 - - - 290,013 Implementation services 23,925 - - - 23,925 --------------------------------------------------------------------------- - - - - Total revenue 2,091,965 15,914,189 3,943,549 - 21,949,703 Operating expenses: Freight transportation 1,581,119 10,144,750 3,130,570 - 14,856,439 Selling, general and administrative: Salaries, benefits and consulting fees 2,788,192 1,994,895 386,700 - 5,169,787 Other selling, general and administrative 1,153,158 3,460,936 345,246 82,404 5,041,744 --------------------------------------------------------------------------- Total operating expenses 5,522,469 15,600,581 3,862,516 82,404 25,067,970 --------------------------------------------------------------------------- Loss from operations (3,430,504) 313,608 81,033 (82,404) (3,118,267) --------------------------------------------------------------------------- Other income (expense): Interest income 854 - - - 854 Interest expense (463,079) (286,773) (65,196) - (815,048) --------------------------------------------------------------------------- Total other expense (462,225) (286,773) (65,196) - (814,194) --------------------------------------------------------------------------- Loss available to common shareholders $ (3,892,729) $ 26,835 $ 15,837 $ (82,404) $ (3,932,461) ===========================================================================

POWER2SHIP, INC. AND SUBSIDIARIES The following Pro Forma Combined Financial Statements of Power2Ship, Commodity Express and GFC gives effect to the acquisition of certain assets of Commodity Express and GFC, under the purchase method of accounting prescribed by Accounting Principles Board Opinion No. 16, Business Combinations as if it had occurred on July 1, 2004. These pro forma statements are presented fro illustrative purposes only. The pro forma adjustments are based upon available information and assumptions that management believes are reasonable. Pro Forma Combined Statement of Operations For The Six Months Ended December 31, 2004:

PromForma Power2Ship Express GFC Adjustments Pro Forma Revenue: Freight transportation $ 1,467,643 $ 7,789,673 $ 3,013,396 $ - $ 12,270,712 Implementation services 180 - - - 180 --------------------------------------------------------------------------- - - - - Total revenue 1,467,823 7,789,673 3,013,396 - 12,270,892 Operating expenses: Freight transportation 1,310,054 6,864,111 2,484,357 - 10,658,522 Selling, general and administrative: Salaries, benefits and consulting fees 1,134,049 543,372 180,956 - 1,858,377 Other selling, general and administrative 829,075 318,961 309,711 41,202 1,498,949 --------------------------------------------------------------------------- Total operating expenses 3,273,178 7,726,444 2,975,024 41,202 14,015,848 --------------------------------------------------------------------------- Loss from operations (1,805,355) 63,229 38,372 (41,202) (1,744,956) --------------------------------------------------------------------------- Other income (expense): Forgiveness of debt - - - - - Interest expense, net (419,668) (115,021) (57,034) - (591,723) Other income 571 - - - 571 --------------------------------------------------------------------------- Total other expense (419,097) (115,021) (57,034) - (591,152) --------------------------------------------------------------------------- Net loss $ (2,224,452) $ (51,792) $ (18,662) $ (41,202) $ (2,336,108) ===========================================================================

POWER2SHIP, INC. AND SUBSIDIARIES The following Pro Forma Combined Financial Statements of Power2Ship, Commodity Express and GFC gives effect to the acquisition of certain assets of Commodity Express and GFC, under the purchase method of accounting prescribed by Accounting Principles Board Opinion No. 16, Business Combinations as if it had occurred on July 1, 2003. These pro forma statements are presented for illustrative purposes only. The pro forma adjustments are based upon available information and assumptions that management believes are reasonable. Pro Forma Combined Statement of Operations For The Year Ended June 30, 2005:

PromForma Power2Ship Express GFC Adjustments Pro Forma Revenue: Freight transportation $ 9,247,453 $ 11,245,098 $ 4,117,692 $ - $ 24,610,243 Access services 180 - - - 180 Implementation services - - - - - --------------------------------------------------------------------------- - - - - Total revenue 9,247,633 11,245,098 4,117,692 - 24,610,423 Operating expenses: Freight transportation 8,272,985 6,949,303 3,441,909 - 18,664,197 Selling, general and administrative: Salaries, benefits and consulting fees 4,466,360 1,656,301 201,705 - 6,324,366 Other selling, general and administrative 1,813,565 2,490,441 403,501 164,808 4,872,315 --------------------------------------------------------------------------- Total operating expenses 14,552,910 11,096,045 4,047,115 164,808 29,860,878 --------------------------------------------------------------------------- Loss from operations (5,305,277) 149,053 70,577 (164,808) (5,250,455) --------------------------------------------------------------------------- Other income (expense): Forgiveness of debt 18,111 - - - 18,111 Interest income 1,560 - - - 1,560 Interest expense (1,277,369) (182,550) (73,805) - (1,533,724) Other income 1,755 - - - 1,755 --------------------------------------------------------------------------- Total other expense (1,255,943) (182,550) (73,805) - (1,512,298) --------------------------------------------------------------------------- Loss available to common shareholders $ (6,561,220) $ (33,497) $ (3,228) $ (164,808) $ (6,762,753) ===========================================================================