8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 11, 2007 (April 9, 2007)

                                  CATUITY INC.
             (Exact name of registrant as specified in its charter)

                                                       
          DELAWARE                      000-30045                 38-3518829
(State or other jurisdiction     (Commission File Number)       (IRS Employer
      of incorporation)                                      Identification No.)



                                              
300 PRESTON AVE., SUITE 302
 CHARLOTTESVILLE, VA 22902                               (434) 979-0724
   (Address of principal                         (Registrant's telephone number,
    executive offices)                                including area code)



                                 NOT APPLICABLE
          (Former name or former address, if changed since last report)

     Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions.

[ ]  Written communications pursuant to Rule 425 under the Securities Act (17
     CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
     240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b), under the
     Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c), under the
     Exchange Act (17 CFR 240.13e-4(c))



ITEM 8.01 OTHER EVENTS

On April 9, 2007 the Company issued a press release (a copy of which is attached
as Exhibit 99.1) entitled: "Catuity Updates Sales Progress; Company Plans
Capital Raise, Auditors Give Company Going Concern Opinion".

                                    SIGNATURE

Pursuant to the requirements 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.

                                        CATUITY INC.
                                        (Registrant)


                                        By /s/ Debra Hoopes
                                           -------------------------------------
                                           Debra Hoopes
                                           Senior Vice President and
                                           Chief Financial Officer

Date: April 11, 2007



                                  EXHIBIT INDEX



EX. NO.   DESCRIPTION
- -------   -----------
       
99.1      Press Release dated April 9, 2007

EX-99.1

                                                                    EXHIBIT 99.1

CATUITY UPDATES SALES PROGRESS
Company Plans Capital Raise, Auditors Give Company Going Concern Opinion

CHARLOTTESVILLE, VA. and MELBOURNE, Australia (Monday, April 9, 2007 - Catuity
Inc. (Nasdaq: CTTY; ASX: CAT, CATN)), a loyalty and gift card processor, today
issued a high-level update to the market on sales progress to ensure that all
investors have equal access to the information.

"We have continued to make progress in signing new accounts; developing
successful sales partnerships and building our business so far in 2007," said
John Racine, President and CEO of Catuity Inc. "Additionally, we are focused on
closing a new capital raise in the second quarter to fund our strategy." Mr.
Racine also noted:

- -    Catuity signed a new reseller and is now taking orders from its largest
     reseller to-date. This relationship is larger than the reseller
     relationship announced in January. "Our progress in the reseller market
     continues, even as some of our direct competitors withdraw or are acquired
     by larger processors," he said.

- -    Catuity has begun deploying a national health and fitness chain that has
     sold the rights to at least 400 club locations nationally. The company is
     launching both a loyalty card and gift card program. We hope to announce
     more specific details after the first wave of deployments are finished.

- -    Catuity has executed an agreement with a leading bank in the Australian
     market to integrate its loyalty and gift card to the bank's payments
     processing platform in the second quarter. Catuity believes that the win
     will give it the greatest penetration of the Australian point-of-sale
     market of any closed-loop processor.

- -    Catuity will shortly complete integration of its application to PC Charge,
     the leading PC-based payments software in the U.S. market. This investment
     will increase our access to middle market chain retailers while reducing
     our deployment timelines.

- -    Catuity anticipates closing a capital raise in the second quarter of
     approximately $1.7M to $2.0M to fund operations. Management is in active
     discussions with institutional investors about providing interim capital by
     the end of the second quarter and financing to fund acquisitions. The
     Company is actively engaged in discussions or various stages of due
     diligence with the senior management or key shareholders of over 10
     companies, which meet our criteria of strategic fit and profitability.



In its recently filed financial statements for the year ended December 31, 2006
and included in its Annual Report on Form 10-KSB filed on April 2, 2007, Catuity
said it had received a going concern qualification from its independent
auditors, BDO Seidman, LLP. This announcement is being made to comply with
Nasdaq Marketplace Rule 4350(b)(1)(B), which requires separate disclosure of
receipt of an audit opinion that contains a going concern qualification. This
announcement does not represent any change or amendment to Catuity's 2006
financial statements or to its Annual Report on Form 10-KSB. Further information
regarding the going concern qualification is contained in Catuity's Annual
Report on Form 10-KSB for the year ended December 31, 2006.

ABOUT CATUITY INC.

Catuity Inc. makes the point of sale more profitable for its customers by
delivering products and services which reduce costs and generate new revenues.
Our retailer clients have more than four million cardholders participating in
Catuity-powered loyalty and gift card programs. For more information on Catuity,
please visit our website at www.catuity.com.

Contact: Debra Hoopes
         CFO
         Catuity Inc.
         434-979-0724
         debrah@catuity.com

This press release includes statements that constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding market share growth, market acceptance of
services, sales, revenues and profits. These forward-looking statements are
based on management's current expectations and beliefs and are subject to risks
and uncertainties that could cause actual results to differ materially from
those described in the forward-looking statements. In particular, factors that
could cause actual results to differ materially from those in forward-looking
statements include the ability to win new customers and new businesses;
industry, competitive and technological changes; the loss of, and failure to
replace any significant customers; market acceptance of new services; the
performance of suppliers and subcontractors; risks associated with international
operations and foreign currency fluctuations; the state of the U.S. and global
economies in general and other risks detailed in our filings with the Securities
and Exchange Commission, including the Company's most recent 10-KSB and
subsequent 10-QSBs. Forward-looking statements speak only as of the date made
and are not guarantees of future performance. We undertake no obligation to
publicly update or revise any forward-looking statements.