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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      STATES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION </strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>FORM
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>TO
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      EXCHANGE ACT OF 1934</strong></font></div>
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      of Report (Date of Earliest Event Reported) </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">March
      22,
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      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
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      the
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      satisfy the filing obligation of the registrant under any of the following
      provisions:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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Written
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font face="Wingdings">o</font>&#160;
Soliciting
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font face="Wingdings">o</font>&#160;
Pre-commencement
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Pre-commencement
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      Report or Completed Interim Review.</strong></font></div>
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      statements for the three months ended October 31, 2005 should not be relied
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      because they do not reflect a net gain or benefit from certain embedded
      derivative securities issued by ATSI. The board of directors has reviewed the
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      independent accountants and intends to promptly amend and restate any affected
      financial statements previously filed with the Securities and Exchange
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      registrant has duly caused this report to be signed on its behalf by the
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              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">ATSI
                Communications, Inc. </font></div>
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            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;Antonio
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                Controller</font></div>
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{"company-data": {"conformed-name": "ATSI COMMUNICATIONS INC/DE", "cik": "0001014052", "assigned-sic": "4813", "irs-number": "742849995", "state-of-incorporation": "NV", "fiscal-year-end": "0731"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-15687", "film-number": "06704913"}, "business-address": {"street1": "8600 WURZBACH", "street2": "SUITE 700 WEST", "city": "SAN ANTONIO", "state": "TX", "zip": "78240", "phone": "210-614-7240"}, "mail-address": {"street1": "8600 WURZBACH", "street2": "SUITE 700 WEST", "city": "SAN ANTONIO", "state": "TX", "zip": "78240"}, "former-company": {"former-conformed-name": "AMERICAN TELESOURCE INTERNATIONAL INC", "date-changed": "19960511"}}
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)
March
      22,
      2006
ATSI
      Communications, Inc.
(Exact
      Name of Registrant as Specified in Its Charter)
Nevada
(State
      or
      Other Jurisdiction of Incorporation
1-15687
(Commission
                File Number)
74-2849995
(I.R.S.
                Employer Identification No.)
8600
                Wurzbach, Suite 700W
San
                Antonio, Texas
(Address
                of Principal Executive Offices)
78240
(Zip
                Code)
(210)
      614-7240
(Registrant's
      Telephone Number, Including Area Code)
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:
o
Written
      communications pursuant to Rule 425 under the Securities Act.
o
Soliciting
      material pursuant to Rule 14a-12 under
      the Exchange Act
o
Pre-commencement
      communications pursuant to Rule
      14d-2(b) under the Exchange Act
o
Pre-commencement
      communications pursuant to Rule
      13e-4(c) under the Exchange Act
Item
      4.02. Non-reliance on Previously Issued Financial Statements or a Related Audit
      Report or Completed Interim Review.
On
      March
      22, 2006, our board of directors determined that the previously-issued audited
      financial statements for the year ended July 31, 2005 and interim financial
      statements for the three months ended October 31, 2005 should not be relied
      upon
      because they do not reflect a net gain or benefit from certain embedded
      derivative securities issued by ATSI. The board of directors has reviewed the
      accounting treatment of the Company's convertible securities with the Company's
      independent accountants and intends to promptly amend and restate any affected
      financial statements previously filed with the Securities and Exchange
      Commission.
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.
ATSI
                Communications, Inc.
Dated:
                  March 22, 2006
By:
/s/ Antonio
              Estrada
Antonio
              Estrada
Corporate
                Controller