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        <div>&#160;</div><br>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman;"><strong>UNITED
          STATES</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman;"><strong>SECURITIES
          AND EXCHANGE COMMISSION</strong></font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>WASHINGTON,
          D.C.&#160;&#160;20549</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div>
            <div>
              <hr style="COLOR: black" align="center" noshade size="1" width="30%">
            </div><br></div>
        </div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman;"><strong>FORM
          8-K</strong></font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>CURRENT
          REPORT</strong></font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Pursuant
          to Section 13 or 15(d) of the</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Securities
          Exchange Act of 1934</font></div>
        <div><br></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Date
          of
          Report (Date of earliest event reported): October 23, 2007</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div>
            <hr style="COLOR: black" align="center" noshade size="1" width="80%">
          </div>
        </div><br>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman;"><strong>NESTOR,
          INC.</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
            <hr style="COLOR: black" align="center" noshade size="1" width="80%">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(Exact
            name of registrant as specified in its charter)</font></div>
        </div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Delaware</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
            <hr style="COLOR: black" align="center" noshade size="1" width="80%">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(State
            or
            other jurisdiction of incorporation)</font></div>
        </div>
        <div><br></div>
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>0-12965</strong></font></div>
                </td>
                <td valign="top" width="37%" style="BORDER-BOTTOM: black 2px solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>13-3163744</strong></font></div>
                </td>
              </tr>
              <tr>
                <td valign="top" width="37%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">(Commission
                    File Number)</font></div>
                </td>
                <td valign="top" width="37%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">(IRS
                    Employer Identification Number)</font></div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>42
          Oriental Street; Third Floor, Providence, Rhode Island</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
          <hr style="COLOR: black" align="center" noshade size="1" width="80%">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(Address
          of principal executive offices)</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>(401)
          274-5658</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
          <hr style="COLOR: black" align="center" noshade size="1" width="80%">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(Registrant&#8217;s
          telephone number, including area code)</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Not
          Applicable</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
          <hr style="COLOR: black" align="center" noshade size="1" width="80%">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(Former
          name or former address, if changed since last report)</font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">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:</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline;" face="Wingdings">&#168;</font></font></div>
                </td>
                <td>
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Written
                    communications pursuant to Rule 425 under the Securities Act (17
                    CFR
                    230.425)</font></div>
                </td>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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                </td>
                <td>
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Soliciting
                    material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                    240.14a-12)</font></div>
                </td>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div>
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                </td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline;" face="Wingdings">&#168;</font></font></div>
                </td>
                <td>
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Pre-commencement
                    communications pursuant to Rule 14d-2(b) under the Exchange Act
                    (17 CFR
                    240.14d-2(b))</font></div>
                </td>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
  
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                </td>
                <td style="WIDTH: 27pt">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline;" face="Wingdings">&#168;</font></font></div>
                </td>
                <td>
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Pre-commencement
                    communications pursuant to Rule 13e-4(c) under the Exchange Act
                    (17 CFR
                    240.13e-4(c))</font></div>
                </td>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
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            </div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div><br>
        <div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Item&#160;8.01.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Other
            Events</strong></font></div>
          <div><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Nestor,
            Inc. (the &#8220;Company&#8221;) announced today that it received notice from the Nasdaq
            Stock Market (&#8220;Nasdaq&#8221;) that the Company had qualified for an additional 180
            days to meet Nasdaq&#8217;s continued listing requirements.&#160;&#160;On April 23,
            2007, Nasdaq had notified the Company that the bid price of the Company&#8217;s common
            stock had closed at less than $1.00 per share for more than 30 consecutive
            business days.&#160;&#160;As a result, the Company did not comply with
            Marketplace Rule 4310(c)(4) (the &#8220;Rule&#8221;).&#160;&#160;In accordance with
            Marketplace Rule 4310(c)(8)(D), the Company had 180 calendar days, or until
            October 22, 2007, to regain compliance with the Rule.&#160;&#160;As of October
            22, 2007, the Company had not achieved compliance with the Rule.</font></div>
          <div><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">In
            the
            notice received by the Company on October 23, 2007, Nasdaq advised the
            Company
            that because the Company met all initial inclusion criteria for the Nasdaq
            Capital Market set forth in Marketplace Rule 4310(c) (except for bid price),
            the
            Company will now be provided an additional 180 calendar day compliance
            period,
            or until April 21, 2008, to regain listing compliance.&#160;&#160;This 180 day
            extension is in accordance with Marketplace Rule 4310(c)(8)(D).&#160;&#160;If,
            at anytime before April 21, 2008, the bid price of the Company&#8217;s common stock
            closes at $1.00 per share or more for a minimum of 10 consecutive business
            days,
            Nasdaq will provide written notification that it complies with the
            Rule.</font></div>
          <div><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">If
            the
            Company cannot demonstrate compliance with the Rule by April 21, 2008,
            Nasdaq
            will provide written notification that the Company&#8217;s securities will be delisted
            from the Nasdaq Capital Market.&#160;&#160;At that time, the Company may appeal
            Staff&#8217;s determination to a Listing Qualification Panel (the
  &#8220;Panel&#8221;).&#160;&#160;Please note that if the Company appeals it will be asked to
            provide a plan to regain compliance to the Panel, and that historically
            Panels
            have generally viewed a near-term reverse stock split as the only definitive
            plan acceptable to resolve a bid price deficiency. A delisting of the Company&#8217;s
            stock for more than five consecutive days or for more than an aggregate
            of 10
            days in any 365-day period would constitute an event of default under the
            terms
            of the Company&#8217;s 7% Senior Secured Convertible Notes dated May 25,
            2006.&#160;&#160;A default under the 7% Notes would in turn be a default under
            the Company&#8217;s 5% Senior Convertible Notes due October 31,
            2007.&#160;</font></div>
          <div><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Because
            the Company can effect a reverse stock split to cure its non-compliance
            with the
            Rule, the Company does not believe that delisting is likely.</font></div>
          <div><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Item&#160;9.01.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Financial
            Statements and Exhibits</strong></font></div>
          <div><br></div>
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>(d)&#160;&#160;</strong></font></div>
                  </td>
                  <td>
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Exhibits</strong></font></div>
                  </td>
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          </div>
          <div><br></div>
          <div><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><u>Exhibit
            No.</u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>Description</u></strong></font></div>
          <div><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">99.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;NASDAQ
            correspondence dated October 23, 2007</font></div>
          <div><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">99.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Press
            Release dated October 25, 2007 regarding private placement.</font></div><br>
          <div><br></div>
        </div><br>
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            <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt;">-2-</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>SIGNATURES</strong></font></div>
        <div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Pursuant
          to the requirements of the Securities Exchange Act of 1934, as amended, the
          Registrant has duly caused this report to be signed on its behalf by the
          undersigned hereunto duly authorized.</font></div>
        <div><br></div>
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                <td valign="top" width="25%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
                <td valign="top" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
                <td align="left" valign="top" width="40%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">NESTOR,
                    INC.</font></div>
                </td>
              </tr>
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                <td valign="top" width="25%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
                <td valign="top" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
                <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
              </tr>
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                <td valign="top" width="25%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
                <td valign="top" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
                <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
              </tr>
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                <td valign="top" width="25%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
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                    Brian R. Haskell</font></div>
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                    R. Haskell</font></div>
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                    President and General Counsel</font></div>
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                    25, 2007</font></div>
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text: form8k_nasdaq.htm
  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): October 23, 2007
  NESTOR,
          INC.
  (Exact
            name of registrant as specified in its charter)
  Delaware
  (State
            or
            other jurisdiction of incorporation)
  0-12965
  13-3163744
  (Commission
                    File Number)
  (IRS
                    Employer Identification Number)
  42
          Oriental Street; Third Floor, Providence, Rhode Island
  (Address
          of principal executive offices)
  (401)
          274-5658
  (Registrant's
          telephone number, 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
  Nestor,
            Inc. (the "Company") announced today that it received notice from the Nasdaq
            Stock Market ("Nasdaq") that the Company had qualified for an additional 180
            days to meet Nasdaq's continued listing requirements.  On April 23,
            2007, Nasdaq had notified the Company that the bid price of the Company's common
            stock had closed at less than $1.00 per share for more than 30 consecutive
            business days.  As a result, the Company did not comply with
            Marketplace Rule 4310(c)(4) (the "Rule").  In accordance with
            Marketplace Rule 4310(c)(8)(D), the Company had 180 calendar days, or until
            October 22, 2007, to regain compliance with the Rule.  As of October
            22, 2007, the Company had not achieved compliance with the Rule.
  In
            the
            notice received by the Company on October 23, 2007, Nasdaq advised the
            Company
            that because the Company met all initial inclusion criteria for the Nasdaq
            Capital Market set forth in Marketplace Rule 4310(c) (except for bid price),
            the
            Company will now be provided an additional 180 calendar day compliance
            period,
            or until April 21, 2008, to regain listing compliance.  This 180 day
            extension is in accordance with Marketplace Rule 4310(c)(8)(D).  If,
            at anytime before April 21, 2008, the bid price of the Company's common stock
            closes at $1.00 per share or more for a minimum of 10 consecutive business
            days,
            Nasdaq will provide written notification that it complies with the
            Rule.
  If
            the
            Company cannot demonstrate compliance with the Rule by April 21, 2008,
            Nasdaq
            will provide written notification that the Company's securities will be delisted
            from the Nasdaq Capital Market.  At that time, the Company may appeal
            Staff's determination to a Listing Qualification Panel (the
  "Panel").  Please note that if the Company appeals it will be asked to
            provide a plan to regain compliance to the Panel, and that historically
            Panels
            have generally viewed a near-term reverse stock split as the only definitive
            plan acceptable to resolve a bid price deficiency. A delisting of the Company's
            stock for more than five consecutive days or for more than an aggregate
            of 10
            days in any 365-day period would constitute an event of default under the
            terms
            of the Company's 7% Senior Secured Convertible Notes dated May 25,
            2006.  A default under the 7% Notes would in turn be a default under
            the Company's 5% Senior Convertible Notes due October 31,
            2007.
  Because
            the Company can effect a reverse stock split to cure its non-compliance
            with the
            Rule, the Company does not believe that delisting is likely.
  Item 9.01.                      Financial
            Statements and Exhibits
  (d)
  Exhibits
  Exhibit
            No.
  Description
  99.1                      NASDAQ
            correspondence dated October 23, 2007
  99.2                      Press
            Release dated October 25, 2007 regarding private placement.
  -2-
  SIGNATURES
  Pursuant
          to the requirements of the Securities Exchange Act of 1934, as amended, the
          Registrant has duly caused this report to be signed on its behalf by the
          undersigned hereunto duly authorized.
  NESTOR,
                    INC.
  By:
  /s/
                    Brian R. Haskell
  Brian
                    R. Haskell
  Vice
                    President and General Counsel
  Date:October
                    25, 2007
  -3-