x
|
Quarterly
Report Pursuant to Section 13 or 15(d) of the
Securities Exchange
Act of 1934
|
o
|
Transition
Report Pursuant to Section 13 or 15(d) of the
Securities Exchange
Act of 1934
|
|
Delaware
|
|
75-2193593
|
|
|
(State
or other jurisdiction of incorporation or organization)
|
|
(I.R.S.
Employer Identification No.)
|
|
|
|
|
|
|
|
2900
Wilcrest Drive, Suite 105
|
|
|
|
|
Houston,
Texas
|
|
77042
|
|
|
(Address
of principal executive offices)
|
|
(Zip
Code)
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|
Page
|
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|
PART
I. FINANCIAL INFORMATION
|
|
3
|
|
3
|
|
4
|
|
5
|
|
6
|
|
7
|
|
13
|
|
18
|
|
18
|
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PART
II. OTHER INFORMATION
|
|
19
|
|
19
|
|
19
|
|
20
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20
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21
|
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Certification
Pursuant to Section 302
|
|
Certification
Pursuant to Section 906
|
|
March
31,
2007
|
September
30,
2006
|
||||||
(unaudited)
|
|||||||
ASSETS
|
|||||||
Current
Assets:
|
|||||||
Cash
and cash equivalents
|
$
|
5,293,958
|
$
|
1,264,463
|
|||
Certificate
of deposit
|
7,000,000
|
—
|
|||||
Restricted
cash
|
—
|
5,400,000
|
|||||
Marketable
securities held-to-maturity
|
—
|
4,899,249
|
|||||
Marketable
securities available-for-sale
|
748,140
|
851,939
|
|||||
Other
receivables
|
161,867
|
220,689
|
|||||
Prepaid
expenses and other
|
99,357
|
132,036
|
|||||
Assets
held for sale, net of accumulated depreciation of $0 and $1,353,463,
respectively
|
—
|
6,312,663
|
|||||
Total
current assets
|
13,303,322
|
19,081,039
|
|||||
|
|||||||
Other
assets
|
6,500
|
4,000
|
|||||
Total
assets
|
$
|
13,309,822
|
$
|
19,085,039
|
|||
|
|||||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
|||||||
Current
Liabilities:
|
|||||||
Accounts
payable
|
$
|
27,589
|
$
|
221,295
|
|||
Accrued
interest payable
|
—
|
2,000,000
|
|||||
Shares
subject to redemption
|
—
|
5,400,000
|
|||||
Other
accrued liabilities
|
69,277
|
61,610
|
|||||
Income
tax payable
|
266,934
|
88,584
|
|||||
Liabilities
held for sale
|
—
|
3,636,369
|
|||||
Total
current liabilities
|
363,800
|
11,407,858
|
|||||
|
|||||||
Commitments
and contingencies
|
|||||||
Shareholders’
Equity:
|
|||||||
Common
stock, $.01 par value, authorized 100,000,000 shares; issued and
outstanding 19,441,524 shares and 38,677,210 shares,
respectively
|
194,415
|
386,772
|
|||||
Additional
paid-in capital
|
29,878,727
|
30,782,187
|
|||||
Accumulated
deficit
|
(17,575,260
|
)
|
(24,043,717
|
)
|
|||
Accumulated
other comprehensive income
|
448,140
|
551,939
|
|||||
Total
shareholders’ equity
|
12,946,022
|
7,677,181
|
|||||
Total
liabilities and shareholders’ equity
|
$
|
13,309,822
|
$
|
19,085,039
|
Three
Months Ended
March
31,
|
Six
Months Ended
March
31,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Revenues
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||
Selling,
general and administrative
|
244,850
|
618,893
|
620,921
|
1,992,917
|
|||||||||
Depreciation
and amortization
|
—
|
1,312
|
—
|
2,678
|
|||||||||
Operating
loss
|
(244,850
|
)
|
(620,205
|
)
|
(620,921
|
)
|
(1,995,595
|
)
|
|||||
Other
income (expense):
|
|||||||||||||
Reorganization
fee paid to Laurus
|
—
|
—
|
(6,508,963
|
)
|
—
|
||||||||
Interest
income
|
148,646
|
—
|
317,225
|
—
|
|||||||||
Interest
expense
|
—
|
(3,033,161
|
)
|
—
|
(4,195,572
|
)
|
|||||||
Gain
on collection of receivable
|
—
|
598,496
|
—
|
598,496
|
|||||||||
Gain
(loss) on CCC bankruptcy settlement
|
—
|
(75,000
|
)
|
—
|
105,000
|
||||||||
Other
|
—
|
(7,455
|
)
|
—
|
(7,455
|
)
|
|||||||
Total
other income (expense)
|
148,646
|
(2,517,120
|
)
|
(6,191,738
|
)
|
(3,499,531
|
)
|
||||||
Loss
from continuing operations
|
(96,204
|
)
|
(3,137,325
|
)
|
(6,812,659
|
)
|
(5,495,126
|
)
|
|||||
Discontinued
operations:
|
|||||||||||||
Income
(loss) from discontinued operations
|
—
|
(38,714
|
)
|
—
|
1,150,292
|
||||||||
Gain
on sale of ATM business
|
—
|
3,612,509
|
—
|
3,612,509
|
|||||||||
Gain
on sale of Cash Security business, net of taxes of
$271,340
|
—
|
—
|
13,281,116
|
—
|
|||||||||
Total
discontinued operations
|
—
|
3,573,795
|
13,281,116
|
4,762,801
|
|||||||||
Net
income (loss)
|
$
|
(96,204
|
)
|
$
|
436,470
|
$
|
6,468,457
|
$
|
(732,325
|
)
|
|||
Basic
earnings (loss) per share:
|
|||||||||||||
Loss
from continuing operations
|
$
|
(0.01
|
)
|
$
|
(0.09
|
)
|
$
|
(0.35
|
)
|
$
|
(0.19
|
)
|
|
Income
from discontinued operations
|
—
|
0.10
|
0.67
|
0.17
|
|||||||||
Net
income (loss)
|
$
|
(0.01
|
)
|
$
|
0.01
|
$
|
0.32
|
$
|
(0.02
|
)
|
|||
Weighted
average common shares outstanding
|
19,521,042
|
36,077,210
|
19,686,040
|
28,292,595
|
|||||||||
Diluted
earnings (loss) per share:
|
|||||||||||||
Loss
from continuing operations
|
$
|
(0.01
|
)
|
$
|
(0.09
|
)
|
$
|
(0.35
|
)
|
$
|
(0.19
|
)
|
|
Income
from discontinued operations
|
—
|
0.10
|
0.67
|
0.17
|
|||||||||
Net
income (loss)
|
$
|
(0.01
|
)
|
$
|
0.01
|
$
|
0.32
|
$
|
(0.02
|
)
|
|||
Weighted
average common and dilutive shares outstanding
|
19,521,042
|
36,137,192
|
19,726,445
|
28,292,595
|
Three
Months Ended March 31,
|
Six
Months Ended March 31,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Net
Income (loss)
|
$
|
(96,204
|
)
|
$
|
436,470
|
$
|
6,468,457
|
$
|
(732,325
|
)
|
|||
Other
comprehensive income (loss):
|
|||||||||||||
Unrealized
loss
on marketable securities available-for-sale
|
(311,508
|
)
|
—
|
(103,799
|
)
|
—
|
|||||||
Unrealized
gain (loss)
on investment in 3CI
|
—
|
(48,922
|
)
|
—
|
90,855
|
||||||||
Comprehensive
income (loss)
|
$
|
(407,712
|
)
|
$
|
387,548
|
$
|
6,364,658
|
$
|
(641,470
|
)
|
Six
Months Ended March 31,
|
|||||||
2007
|
2006
|
||||||
Cash
flows from operating activities:
|
|||||||
Net
income (loss)
|
$
|
6,468,457
|
$
|
(732,325
|
)
|
||
Amortization
of stock options issued to officers
|
10,210
|
—
|
|||||
Expense
related to issuance of stock pursuant to consulting
agreement
|
10,000
|
—
|
|||||
Adjustments
to reconcile net income (loss) to net cash used in operating
activities:
|
|||||||
Depreciation
and amortization
|
—
|
2,678
|
|||||
Amortization
of debt discount and financing costs
|
—
|
4,078,738
|
|||||
Gain
on sale of ATM business
|
—
|
(3,612,509
|
)
|
||||
Loss
on disposal of fixed assets
|
—
|
7,455
|
|||||
Changes
in assets and liabilities:
|
|||||||
Trade
accounts receivable, net
|
—
|
250,000
|
|||||
Notes
and other receivables
|
58,822
|
(4,548
|
)
|
||||
Prepaid
expenses and other assets
|
30,179
|
(216,625
|
)
|
||||
Income
taxes payable
|
178,350
|
—
|
|||||
Accounts
payable and accrued liabilities
|
(2,186,039
|
)
|
(449,672
|
)
|
|||
Net
cash flows used in discontinued operations
|
(13,552,456
|
)
|
(746,337
|
)
|
|||
Net
cash used in operating activities
|
(8,982,477
|
)
|
(1,423,145
|
)
|
|||
|
|||||||
Cash
flows from continuing investing activities:
|
|||||||
Increase
in time deposits
|
(7,000,000
|
)
|
—
|
||||
Decrease
in marketable securities held-to-maturity
|
4,899,249
|
—
|
|||||
Proceeds
from sale of ATM business
|
—
|
10,440,000
|
|||||
Net
cash flows provided by discontinued investing activities
|
16,228,750
|
—
|
|||||
Net
cash provided by investing activities
|
14,127,999
|
10,440,000
|
|||||
Cash
flows from continuing financing activities:
|
|||||||
Redemption
of shares held by Laurus
|
(6,545,340
|
)
|
—
|
||||
Proceeds
from exercise of warrants and options
|
29,313
|
—
|
|||||
Repayments
of notes payable
|
—
|
(2,767,988
|
)
|
||||
Borrowings
on revolver
|
—
|
1,204,391
|
|||||
Payments
on revolver
|
—
|
(1,204,391
|
)
|
||||
Change
in
restricted cash
|
5,400,000
|
(5,400,000
|
)
|
||||
Net
cash flows provided by discontinued financing activities
|
—
|
—
|
|||||
Net
cash used in financing activities
|
(1,116,027
|
)
|
(8,167,988
|
)
|
|||
Net
increase in cash and cash equivalents
|
4,029,495
|
848,867
|
|||||
|
|||||||
Cash
and cash equivalents at beginning of period
|
1,264,463
|
1,003,663
|
|||||
Cash
and cash equivalents at end of period
|
$
|
5,293,958
|
$
|
1,852,530
|
|||
|
|||||||
Supplemental
disclosure of cash flow information:
|
|||||||
Cash
paid for interest
|
—
|
$
|
371,492
|
||||
Cash
paid for taxes
|
$
|
90,000
|
$
|
—
|
|||
Supplemental
disclosure of non-cash investing activities:
|
|||||||
Conversion
of debt into common stock held for redemption
|
$
|
—
|
$
|
5,400,000
|
|||
Unrealized
loss on marketable securities available-for-sale
|
$
|
(103,799
|
)
|
$
|
—
|
||
Unrealized
gain on 3CI investment
|
$
|
—
|
$
|
90,855
|
(1)
|
Organization
and Summary of Significant Accounting
Policies
|
(2)
|
Discontinued
Operations
|
Three
Months Ended
March
31,
|
Six
Months Ended
March
31,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Net
Sales
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
3,847,874
|
|||||
Cost
of sales
|
—
|
—
|
—
|
2,592,268
|
|||||||||
Gross
Profit
|
—
|
—
|
—
|
1,255,606
|
|||||||||
Selling,
general and administrative
|
—
|
—
|
—
|
880,941
|
|||||||||
Depreciation
and amortization
|
—
|
—
|
—
|
46,048
|
|||||||||
Operating
income
|
—
|
—
|
—
|
328,617
|
|||||||||
Non-operating
income
|
—
|
—
|
—
|
—
|
|||||||||
Net
income
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
328,617
|
March
31, 2007
|
September
30, 2006
|
||||||
ASSETS
|
|||||||
Current
Assets:
|
|||||||
Cash
and cash equivalents
|
$
|
—
|
$
|
2,048,275
|
|||
Trade
accounts receivable, net of allowance of approximately $0 and $45,000,
respectively
|
—
|
1,591,522
|
|||||
Inventories
|
—
|
2,051,764
|
|||||
Prepaid
expenses and other
|
—
|
73,089
|
|||||
Total
current assets
|
—
|
5,764,650
|
|||||
Property,
plant and equipment, at cost
|
—
|
316,608
|
|||||
Accumulated
depreciation
|
—
|
(18,595
|
) | ||||
Net
property, plant and equipment
|
—
|
298,013
|
|||||
Other
assets
|
—
|
250,000
|
|||||
Total
assets
|
$
|
—
|
$
|
6,312,663
|
|||
LIABILITIES
|
|||||||
Current
Liabilities:
|
|||||||
Current
maturities
|
$
|
—
|
$
|
1,981
|
|||
Accounts
payable
|
—
|
1,514,731
|
|||||
Other
accrued expenses
|
—
|
2,098,675
|
|||||
Total
current liabilities
|
—
|
3,615,387
|
|||||
Long-term
debt, net of current maturities
|
—
|
20,982
|
|||||
Total
liabilities
|
$
|
—
|
$
|
3,636,369
|
Three
Months Ended
March
31,
|
Six
Months Ended
March
31,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Net
Sales
|
$
|
—
|
$
|
2,983,867
|
$
|
—
|
$
|
7,729,743
|
|||||
Cost
of sales
|
—
|
1,939,014
|
—
|
4,827,473
|
|||||||||
Gross
Profit
|
—
|
1,044,853
|
—
|
2,902,270
|
|||||||||
Selling,
general and administrative
|
—
|
1,070,305
|
—
|
2,074,765
|
|||||||||
Depreciation
and amortization
|
—
|
12,239
|
—
|
4,713
|
|||||||||
Operating
income
|
—
|
(37,691
|
)
|
—
|
822,792
|
||||||||
Non-operating
income (expense)
|
—
|
(1,023
|
)
|
—
|
(1,117
|
)
|
|||||||
Net
income (loss)
|
$
|
—
|
$
|
(38,714
|
)
|
$
|
—
|
$
|
821,675
|
(3)
|
Accounting
policies related to Discontinued Operations which are Classified
as Assets
Held for Sale and discontinued
operations
|
(4)
|
Earnings
Per Share
|
Three
Months Ended
March
31,
|
Six
Months Ended
March
31,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Net
income (loss) from continuing operations
|
$
|
(96,204
|
)
|
$
|
(3,137,325
|
)
|
$
|
(6,812,659
|
)
|
$
|
(5,495,126
|
)
|
|
Net
income (loss) from discontinued operations
|
—
|
3,573,795
|
13,281,116
|
4,762,801
|
|||||||||
Net
income (loss)
|
$
|
(96,204
|
)
|
$
|
436,470
|
$
|
6,468,457
|
$
|
(732,325
|
)
|
|||
Weighted
average common shares outstanding (denominator for basic earnings
per
share)
|
19,521,042
|
36,077,210
|
19,686,040
|
28,292,595
|
|||||||||
Dilutive
shares outstanding
|
—
|
59,982
|
40,405
|
—
|
|||||||||
Weighted
average common and dilutive shares outstanding
|
19,521,042
|
36,137,192
|
19,726,445
|
28,292,595
|
|||||||||
Basic
earnings per share :
|
|||||||||||||
From
continuing operations
|
$
|
(0.01
|
)
|
$
|
(0.09
|
)
|
$
|
(0.35
|
)
|
$
|
(0.19
|
)
|
|
From
discontinued operations
|
$
|
—
|
$
|
0.10
|
$
|
0.67
|
$
|
0.17
|
|||||
Diluted
earnings per share:
|
|||||||||||||
From
continuing operations
|
$
|
(0.01
|
)
|
$
|
(0.09
|
)
|
$
|
(0.35
|
)
|
$
|
(0.19
|
)
|
|
From
discontinued operations
|
$
|
—
|
$
|
0.10
|
$
|
0.67
|
$
|
0.17
|
(5)
|
Marketable
Securities Available- for-
Sale
|
(6)
|
Stock-Based
Compensation
|
§
|
The
modified prospective method, which results in the recognition
of
compensation expense using SFAS 123(R) for all share-based awards
granted
after the effective date and the recognition of compensation
expense using
SFAS 123 for all previously granted share-based awards that remain
unvested at the effective date;
or
|
§
|
The
modified retrospective method, which results in applying the
modified
prospective method and restating prior periods by recognizing
the
financial statement impact of share-based payments in a manner
consistent
with the pro forma disclosure requirements of SFAS No. 123. The
modified
retrospective method may be applied to all prior periods presented
or
previously reported interim periods of the year of
adoption.
|
Options
|
Expiration
Date
|
Exercise
Price
|
Relative
Fair
Value
(1)
|
||||||||||
Jerrell
G. Clay (1)
|
950,000
|
03/21/2017
|
0.62
|
$ |
543,472
|
||||||||
Stephen
P. Griggs (1)
|
950,000
|
03/21/2017
|
0.62
|
543,472
|
|||||||||
Outstanding
options as of March 31, 2007
|
1,900,000
|
$
|
1,086,944
|
Stock
Price
At
Issuance
|
Expected
Term
|
Volatility
|
Risk
Free Rate
|
||||||||||
(1)
Variables
|
$
|
0.62
|
3
years
|
198
|
%
|
7.5
|
%
|
Number
of
Shares
|
Weighted
Average
Exercise
Price
|
||||||
Balance
at September 30, 2006
|
648,150
|
$ |
1.24
|
||||
Granted
|
—
|
—
|
|||||
Exercised
|
—
|
—
|
|||||
Canceled
|
—
|
—
|
|||||
Balance
at December 31, 2006
|
648,150
|
1.24
|
|||||
Granted
|
1,900,000
|
0.62
|
|||||
Exercised
|
(27,250
|
)
|
0.25
|
||||
Canceled
|
(620,900
|
)
|
1.28
|
||||
Balance
at March 31, 2007
|
1,900,000
|
0.62
|
(7)
|
Status
of Company
|
Three
Months Ended
March
31,
|
Six
Months Ended
March
31,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
ATM
Business
|
$
|
—
|
$
|
—
|
—
|
$
|
3,847,874
|
||||||
Cash
Security Business:
|
|||||||||||||
TACC
|
—
|
979,589
|
—
|
1,880,693
|
|||||||||
Sentinel
|
—
|
1,639,283
|
—
|
5,000,998
|
|||||||||
Parts
& Other
|
—
|
364,995
|
—
|
848,052
|
|||||||||
Total
Cash Security Business
|
$
|
—
|
$
|
2,983,867
|
—
|
$
|
7,729,743
|
March
31,
2007
|
September
30,
2006
|
||||||
ASSETS
|
|||||||
Current
Assets:
|
|||||||
Cash
and cash equivalents
|
$
|
5,293,958
|
$
|
1,264,463
|
|||
Certificate
of deposit
|
7,000,000
|
—
|
|||||
Restricted
cash
|
—
|
5,400,000
|
|||||
Marketable
securities held-to-maturity
|
—
|
4,899,249
|
|||||
Marketable
securities available-for-sale
|
748,140
|
851,939
|
|||||
Other
receivables
|
161,867
|
220,689
|
|||||
Prepaid
expenses and other
|
99,357
|
132,036
|
|||||
Total
current assets
|
13,303,322
|
12,768,376
|
|||||
Other
assets
|
6,500
|
4,000
|
|||||
Total
assets
|
$
|
13,309,822
|
$
|
12,772,376
|
|||
|
|||||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
|||||||
Current
Liabilities:
|
|||||||
Accounts
payable
|
$
|
27,589
|
221,295
|
||||
Accrued
interest payable
|
—
|
2,000,000
|
|||||
Shares
subject to redemption
|
—
|
5,400,000
|
|||||
Income
tax payable
|
266,934
|
88,584
|
|||||
Other
accrued liabilities
|
69,277
|
61,610
|
|||||
Total
current liabilities
|
$
|
363,800
|
$
|
7,771,489
|
Three
Months Ended
March
31,
|
Six
Months Ended
March
31,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Revenues
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||
Selling,
general and administrative
|
244,850
|
618,893
|
620,921
|
1,992,917
|
|||||||||
Depreciation
and amortization
|
—
|
1,312
|
—
|
2,678
|
|||||||||
Operating
loss
|
(244,850
|
)
|
(620,205
|
)
|
(620,921
|
)
|
(1,995,595
|
)
|
|||||
Other
income (expense):
|
|||||||||||||
Reorganization
fee paid to Laurus
|
—
|
—
|
(6,508,963
|
)
|
—
|
||||||||
Interest
income
|
148,646
|
—
|
317,225
|
—
|
|||||||||
Interest
expense, net
|
—
|
(3,033,161
|
)
|
—
|
(4,195,572
|
)
|
|||||||
Gain
on collection of receivable
|
—
|
598,496
|
—
|
598,496
|
|||||||||
Gain
(loss) on CCC bankruptcy settlement
|
—
|
(75,000
|
)
|
—
|
105,000
|
||||||||
Other
|
—
|
(7,455
|
)
|
—
|
(7,455
|
)
|
|||||||
Total
other income (expense)
|
148,646
|
(2,517,120
|
)
|
(6,191,738
|
)
|
(3,499,531
|
)
|
||||||
Loss
from continuing operations
|
(96,204
|
)
|
(3,137,325
|
)
|
(6,812,659
|
)
|
(5,495,126
|
)
|
|||||
Income
tax expense
|
—
|
—
|
—
|
—
|
|||||||||
Income
(loss) from continuing operations
|
$
|
(96,204
|
)
|
$
|
(3,137,325
|
)
|
$
|
(6,812,659
|
)
|
$
|
(5,495,126
|
)
|
Three
Months Ended
March
31,
|
Six
Months Ended
March
31,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Net
Sales
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
3,847,874
|
|||||
Cost
of sales
|
—
|
—
|
—
|
2,592,268
|
|||||||||
Gross
Profit
|
—
|
—
|
—
|
1,255,606
|
|||||||||
Selling,
general and administrative
|
—
|
—
|
—
|
880,941
|
|||||||||
Depreciation
and amortization
|
—
|
—
|
—
|
46,048
|
|||||||||
Operating
income
|
—
|
—
|
—
|
328,617
|
|||||||||
Non-operating
income
|
—
|
—
|
—
|
—
|
|||||||||
Net
income
|
$
|
—
|
—
|
$
|
—
|
$
|
328,617
|
March
31,
2007
|
September
30,
2006
|
||||||
ASSETS
|
|||||||
Current
Assets
|
|||||||
Cash
and cash equivalents
|
$
|
—
|
$
|
2,048,275
|
|||
Trade
accounts receivable, net of allowance of approximately $0 and $45,000,
respectively
|
—
|
1,591,522
|
|||||
Inventories
|
—
|
2,051,764
|
|||||
Prepaid
expenses and other
|
—
|
73,089
|
|||||
Total
current assets
|
—
|
5,764,650
|
|||||
Property,
plant and equipment, at cost
|
—
|
316,608
|
|||||
Accumulated
depreciation
|
—
|
(18,595
|
)
|
||||
Net
property, plant and equipment
|
—
|
298,013
|
|||||
Other
assets
|
—
|
250,000
|
|||||
Total
assets
|
$
|
—
|
$
|
6,312,663
|
|||
LIABILITIES
|
|||||||
Current
Liabilities:
|
|||||||
Current
maturities
|
$
|
—
|
$
|
1,981
|
|||
Accounts
payable
|
—
|
1,514,731
|
|||||
Other
accrued expenses
|
—
|
2,098,675
|
|||||
Total
current liabilities
|
—
|
3,615,387
|
|||||
Long-term
debt, net of current maturities
|
—
|
20,982
|
|||||
Total
liabilities
|
$
|
—
|
$
|
3,636,369
|
Three
Months Ended
March
31,
|
Six
Months Ended
March
31,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Net
Sales
|
$
|
—
|
$
|
2,983,867
|
$
|
—
|
$
|
7,729,743
|
|||||
Cost
of sales
|
—
|
1,939,014
|
—
|
4,827,473
|
|||||||||
Gross
Profit
|
—
|
1,044,853
|
—
|
2,902,270
|
|||||||||
Selling,
general and administrative
|
—
|
1,070,305
|
—
|
2,074,765
|
|||||||||
Depreciation
and amortization
|
—
|
12,239
|
—
|
4,713
|
|||||||||
Operating
income
|
—
|
(37,691
|
)
|
—
|
822,792
|
||||||||
Non-operating
income (expense)
|
—
|
(1,023
|
)
|
—
|
(1,117
|
)
|
|||||||
Net
income (loss)
|
$
|
—
|
$
|
(38,714
|
)
|
$
|
—
|
$
|
821,675
|
(a)
|
Evaluation
of Disclosure Controls and
Procedures
|
(b)
|
Changes
in internal control over financial
reporting
|
Certification
of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
|
|
|
|
Certification
of Principal Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
|
|
|
Certification
of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
|
|
Certification
of Principal Financial Officer pursuant to 18 U.S.C. Section 1350
adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
SECURE
ALLIANCE HOLDINGS CORPORATION
|
|
(Company)
|
|
|
May
21, 2007
|
/s/
JERRELL G. CLAY
|
|
Jerrell
G. Clay
|
|
Chief
Executive Officer
|
|
|
May
21, 2007
|
/s/
STEPHEN P. GRIGGS
|
|
Stephen
P. Griggs
|
|
Principal
Financial Officer
|