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| R      | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|--------|------------------------------------------------------------------------------------------|
|   |                                                                                     |
|   | For the quarterly period ended March 31, 2010                                            |
|   |                                                                                     |
| OR     |
|   |                                                                                     |
| £ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

| Delaware                 |   | 76-0515249                              |
|--------------------------|--------|-----------------------------------------|
| (State of incorporation) |   | (I.R.S. Employer Identification Number) |

| Large accelerated filer £ | Accelerated filer £ | Non-accelerated filer £                  | Smaller reporting company R |
|--------------------------------|--------------------------|-----------------------------------------------|-----------------------------|
|                           |                     | (Do not check if a smaller reporting company) |                        |

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|                                                                                                     | Page   |
|----------------------------------------------------------------------------------------------------------|--------|
|                                                                                                     |   |
| Explanatory Note                                                                                         | 3      |
| Part I. Financial Information                                                                            |   |
| Item 1. Financial Statements (Unaudited):                                                                |   |
| Condensed Consolidated Balance Sheets at March 31, 2010 and December 31, 2009                            | 5      |
| Condensed Consolidated Statements of Operations for the three months ended March 31, 2010 and 2009       | 6      |
| Condensed Consolidated Statement of Stockholders’ Equity for the three months ended March 31, 2010 | 7      |
| Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2010 and 2009       | 8      |
| Notes to Condensed Consolidated Financial Statements                                                     | 9      |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations      | 19     |
| Item 4. Controls and Procedures                                                                          | 23     |
| Part II. Other Information                                                                               |   |
| Item 1. Legal Proceedings                                                                                | 27     |
| Item 6. Exhibits                                                                                         | 27     |
| Signature                                                                                                | 27     |

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|   | 1. | Restates its Condensed Consolidated Balance Sheet as of March 31, 2009, and |
|--------|----|-----------------------------------------------------------------------------|

|   | 2. | Restates its Condensed Consolidated Statement of Operations and Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2009, and the related disclosures in Notes to Condensed Consolidated Financial Statements. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.     | Application of EITF 00-21, affecting the timing and presentation of revenue recognized (“00-21 Adjustments”) for the:                                                                                                                                                                                     |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | a.                                                                                                                                                                                                                                                                                                                    |   | Proper determination of contracts to which EITF 00-21 was applicable and the related units of accounting for such contracts, |
|   | b.                                                                                                                                                                                                                                                                                                                    |   | Proper determination of linkage between contracts, reflecting aggregation of single contracts into multiple element arrangements since they were negotiated as a package, and |
|   | c.                                                                                                                                                                                                                                                                                                                    |   | Proper assessment of whether or not the Company had vendor specific objective evidence (“VSOE”) of the fair value of the various deliverables within arrangements containing multiple deliverables, as well as (i) the timing of revenue recognition based upon the relative fair value of the deliverables within the arrangement for deliverables for which we are able to establish the fair value. (ii) the allocation of the total arrangement consideration between the various elements of the arrangement based upon the relative fair value of the deliverables within the arrangement for multi-element arrangements, and, (iii) the deferral of revenue for the entire arrangement in situations where the arrangement contained remaining undelivered deliverables for which we are not able to establish the fair value. |
| 2.     | Identification of customer contracts with special customer acceptance terms which require deferral of revenues and related costs of revenues and commissions until customer acceptance was obtained (“Special Acceptance Terms”),                                                                         |
| 3.     | Identification of contract shipping terms resulting in the incorrect timing of recognition of revenues and related costs of sales and commissions (“Shipping Terms”), and                                                                                                                                 |
| 4.     | Identification of products that are maintenance, support, and installation services provided by third parties as the primary obligor of the service, which requires presentation of the revenue reported by the Company net of the cost of the services provided by the third party (“Net Presentation”). |

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|                                                                                                                                                                                                      |   | March 31,2010 |    |   | December 31,2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|------------------|--------|
|                                                                                                                                                                                                      |   |          |    |   |             |   |
|  ASSETS                                                                                                                                                                                              |   |          |    |   |             |   |
| Current assets:                                                                                                                                                                                           |   |          |    |   |             |   |
|     Cash and cash equivalents                                                                                                                                                         |   | $             | 11,088  |   |             | $      | 13,247 |   |
|     Accounts receivable, net of allowance of $165 and $295, respectively                                                                                                              |   |          | 50,617  |   |             |   | 52,269 |   |
|     Inventory, net                                                                                                                                                                    |   |          | 2,930   |   |             |   | 7,527 |   |
|     Deferred costs                                                                                                                                                                    |   |          | 1,884   |   |             |   | 1,497 |   |
|     Other current assets                                                                                                                                                              |   |          | 1,188   |   |             |   | 1,106 |   |
|         Total current assets                                                                                                                                      |   |          | 67,707  |   |             |   | 75,646 |   |
| Property and equipment, net of accumulated depreciation of $6,345 and $5,825, respectively                                                                                                                |   |          | 4,984   |   |             |   | 4,833 |   |
| Goodwill                                                                                                                                                                                                  |   |          | 13,870  |   |             |   | 13,870 |   |
| Intangible assets, net of accumulated amortization of $1,388 and $1,201, respectively                                                                                                                     |   |          | 1,573   |   |             |   | 1,760 |   |
| Other assets                                                                                                                                                                                              |   |          | 232     |   |             |   | 257 |   |
|        Total assets                                                                                                                                                    |   | $             | 88,366  |   |             | $      | 96,366 |   |
|                                                                                                                                                                                                      |   |          |    |   |             |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                |   |          |    |   |             |   |   |   |
| Current liabilities:                                                                                                                                                                                      |   |          |    |   |             |   |   |   |
|  Current portion of capital lease obligations                                                                                                                                                        |   | $             | 185     |   |             | $      | 192 |   |
|     Accounts payable floor plan                                                                                                                                                            |   |          | 35,507  |   |             |   | 44,561 |   |
|     Accounts payable                                                                                                                                                                       |   |          | 5,653   |   |             |   | 5,682 |   |
|     Accrued payroll and related costs                                                                                                                                                      |   |          | 5,761   |   |             |   | 4,679 |   |
|     Accrued expenses                                                                                                                                                                       |   |          | 4,589   |   |             |   | 4,838 |   |
|     Deferred revenue                                                                                                                                                                       |   |          | 2,455   |   |             |   | 2,402 |   |
|     Other current liabilities                                                                                                                                                              |   |          | 246     |   |             |   | 282 |   |
|         Total current liabilities                                                                                                                                      |   |          | 54,396  |   |             |   | 62,636 |   |
| Non-current liabilities:                                                                                                                                                                                  |   |          |    |   |             |   |   |   |
|     Non-current portion of capital lease obligations                                                                                                                                       |   |          | 171     |   |             |   | 216 |   |
|     Other liabilities                                                                                                                                                                      |   |          | 1,693   |   |             |   | 1,535 |   |
|         Total liabilities                                                                                                                                              |   |          | 56,260  |   |             |   | 64,387 |   |
|                                                                                                                                                                                                      |   |          |    |   |             |   |   |   |
| Commitments and contingencies                                                                                                                                                                             |   |          |    |   |             |   |   |   |
|                                                                                                                                                                                                      |   |          |    |   |             |   |   |   |
| Stockholders’ equity:                                                                                                                                                                               |   |          |    |   |             |   |   |   |
|     Preferred stock, $.01 par value, 5,000,000 shares authorized, no shares issued                                                                                               |   |          | — |   |             |   | — |   |
|     Common stock, $.01 par value, 15,000,000 shares authorized, 9,180,413 and        9,103,253 issued and outstanding, respectively |   |          | 91      |   |             |   | 91 |   |
|     Additional paid-in capital                                                                                                                                                             |   |          | 54,943  |   |             |   | 54,269 |   |
|     Accumulated deficit                                                                                                                                                                    |   |          | (22,928 | )      |             |   | (22,381 | ) |
|       Total stockholders’ equity                                                                                                                                           |   |          | 32,106  |   |             |   | 31,979 |   |
|          Total liabilities and stockholders’ equity                                                                                                         |   | $             | 88,366  |   |             | $      | 96,366 |   |

----

|                                                                                |   | Three Months Ended March 31, |      |
|-------------------------------------------------------------------------------------|--------|------------------------------|-----------|
|                                                                                |   | 2010                         |      |   | 2009 |   |
|                                                                                |   |                         |      |   | (As Restated, Note 3) |   |
| Revenue:                                                                            |   |                         |      |   |   |   |
|     Products                                                    |   | $                            | 60,901    |   |   | $ | 43,332 |   |
|     Services                                                    |   |                         | 9,147     |   |   |   | 12,605 |   |
| Total revenue                                                                       |   |                         | 70,048    |   |   |   | 55,937 |   |
| Cost of products and services:                                                      |   |                         |      |   |   |   |   |   |
|     Products                                                    |   |                         | 49,947    |   |   |   | 35,258 |   |
|     Services                                                    |   |                         | 7,568     |   |   |   | 8,752 |   |
| Total cost of products and services                                                 |   |                         | 57,515    |   |   |   | 44,010 |   |
|         Gross profit                        |   |                         | 12,533    |   |   |   | 11,927 |   |
| Selling, general and administrative expenses                                        |   |                         | 13,171    |   |   |   | 12,702 |   |
|         Operating loss                      |   |                         | (638      | ) |   |   | (775 | ) |
| Interest and other income, net                                                      |   |                         | 91        |   |   |   | 12 |   |
|         Loss before income taxes            |   |                         | (547      | ) |   |   | (763 | ) |
| Income tax expense                                                                  |   |                         | —   |   |   |   | — |   |
|         Net loss from continuing operations |   |                         | (547      | ) |   |   | (763 | ) |
| Loss from discontinued operations, net of taxes                                     |   |                         | —   |   |   |   | (39 | ) |
|         Net loss                            |   | $                            | (547      | ) |   | $ | (802 | ) |
|                                                                                |   |                         |      |   |   |   |   |   |
| Basic net loss per share:                                                           |   |                         |      |   |   |   |   |   |
|     Net loss from continuing operations                         |   | $                            | (0.06     | ) |   | $ | (0.09 | ) |
|     Loss from discontinued operations, net of taxes             |   |                         | —   |   |   |   | — |   |
|     Net loss per share – basic                            |   | $                            | (0.06     | ) |   | $ | (0.09 | ) |
| Diluted net loss per share:                                                         |   |                         |      |   |   |   |   |   |
|     Net loss from continuing operations                         |   | $                            | (0.06     | ) |   | $ | (0.09 | ) |
|     Loss from discontinued operations, net of taxes             |   |                         | —   |   |   |   | — |   |
|     Net loss per share – diluted                          |   | $                            | (0.06     | ) |   | $ | (0.09 | ) |
|                                                                                |   |                         |      |   |   |   |   |   |
| Weighted average shares – basic                                               |   |                         | 9,109,924 |   |   |   | 8,706,210 |   |
| Weighted average shares – diluted                                             |   |                         | 9,109,924 |   |   |   | 8,706,210 |   |

----

|                                                                                                                                                                                                                          |   |         |      |   | Additional |   |    |        |   |   |    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-----------|--------|------------|--------|---------|-------------|--------|--------|---------|--------|
|                                                                                                                                                                                                                          |   | Common Stock |      |   | Paid-In    |   |    | Accumulated |   |   |    |
|                                                                                                                                                                                                                          |   | Shares       |      |   | Amount     |   |    | Capital     |   |   | Deficit |   |   | Total |   |
|                                                                                                                                                                                                                          |   |         |      |   |       |   |    |        |   |   |    |   |   |   |   |
| Balance at December 31, 2009                                                                                                                                                                                             |   |         | 9,103,253 |   |       | $      | 91      |        |   | $      | 54,269  |   |   | $ | (22,381 | ) |   | $ | 31,979 |   |
|     Issuance of vested restricted common        stock                                                                                                             |   |         | 43,918    |   |       |   | — |        |   |   | — |   |   |   | — |   |   |   | — |   |
|     Share-based compensation expense        related to employee stock options        and employee restricted stock grants |   |         | —   |   |       |   | — |        |   |   | 452     |   |   |   | — |   |   |   | 452 |   |
|     Share-based compensation expense        related to Employee Stock Purchase        Plan                                |   |         | —   |   |       |   | — |        |   |   | 88      |   |   |   | — |   |   |   | 88 |   |
|     Issuance of common stock under the        Employee Stock Purchase Plan                                                                                        |   |         | 43,705    |   |       |   | — |        |   |   | 178     |   |   |   | — |   |   |   | 178 |   |
|     Issuance of common stock grant                                                                                                                                                                        |   |         | 5,000     |   |       |   | — |        |   |   | 28      |   |   |   | — |   |   |   | 28 |   |
|     Purchase and retirement of stock resulting from grantee election to fund payroll taxes out of restricted stock grant                                                                                  |   |         | (15,463   | )      |       |   | — |        |   |   | (72     | )      |   |   | — |   |   |   | (72 | ) |
|     Net loss                                                                                                                                                                                              |   |         | —   |   |       |   | — |        |   |   | — |   |   |   | (547 | ) |   |   | (547 | ) |
| Balance at March 31, 2010                                                                                                                                                                                                     |   |         | 9,180,413 |   |       | $      | 91      |        |   | $      | 54,943  |   |   | $ |    (22,928 | ) |   | $ | 32,106 |   |

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|                                                                                                             |   | Three Months Ended March 31, |    |
|------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                                                             |   | 2010                         |    |   | 2009 |   |
|                                                                                                             |   |                         |    |   | (As Restated,Note 3) |   |
| Cash flows from operating activities:                                                                            |   |                         |    |   |   |   |
| Net loss                                                                                                         |   | $                            | (547    | ) |   | $ | (802 | ) |
| Adjustments to reconcile net loss to net cash provided by (used in)    operating activities: |   |                         |    |   |   |   |   |   |
|     Loss from discontinued operations                                                        |   |                         | — |   |   |   | 39 |   |
|     Depreciation and amortization                                                            |   |                         | 713     |   |   |   | 727 |   |
|     Share-based compensation expense                                                         |   |                         | 568     |   |   |   | 593 |   |
|     Adjustment to estimated acquisition contingent consideration                             |   |                         | (254    | ) |   |   | — |   |
|     Provision for doubtful accounts                                                          |   |                         | (48     | )  |   |   | (5 | ) |
|     Loss on disposal of property and equipment                                               |   |                         | 1       |   |   |   | 22 |   |
| Changes in assets and liabilities that provided (used) cash:                                                     |   |                         |    |   |   |   |   |   |
|     Accounts receivable, net                                                                 |   |                         | 1,700   |   |   |   | 5,628 |   |
|     Inventory                                                                                |   |                         | 4,597   |   |   |   | 454 |   |
|     Accounts payable                                                                         |   |                         | (29     | )  |   |   | (62 | )  |
|     Other assets and liabilities                                                             |   |                         | 817     |   |   |   | (287 | )  |
|         Net cash provided by operating activities                        |   |                         | 7,518   |   |   |   | 6,307 |   |
| Cash flows from investing activities:                                                                            |   |                         |    |   |   |   |   |   |
|     Purchases of property and equipment                                                      |   |                         | (679    | ) |   |   | (125 | ) |
|     Proceeds from sale of property and equipment                                             |   |                         | 1       |   |   |   | — |   |
|         Net cash used in investing activities                            |   |                         | (678    | ) |   |   | (125 | ) |
| Cash flows from financing activities:                                                                            |   |                         |    |   |   |   |   |   |
|     Borrowings under non-interest bearing floor plan financing, net                          |   |                         | (9,054  | ) |   |   | (8,490 | )  |
|     Proceeds from shares issued under Employee Stock Purchase Plan                           |   |                         | 178     |   |   |   | 167 |   |
|     Payments on other borrowings                                                             |   |                         | (51     | ) |   |   | (27 | ) |
|     Purchase of stock resulting from grantee election                                        |   |                         | (72     | ) |   |   | (22 | ) |
|     Purchases of common stock                                                                |   |                         | — |   |   |   | (66 | ) |
|         Net cash used in financing activities                            |   |                         | (8,999  | ) |   |   | (8,438 | )  |
| Net decrease in cash and cash equivalents                                                                        |   |                         | (2,159  | ) |   |   | (2,256 | )  |
| Cash and cash equivalents at beginning of period                                                                 |   |                         | 13,247  |   |   |   | 10,937 |   |
| Cash and cash equivalents at end of period                                                                       |   | $                            | 11,088  |   |   | $ | 8,681 |   |
|                                                                                                             |   |                         |    |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                                                                |   |                         |    |   |   |   |   |   |
|                                                                                                             |   |                         |    |   |   |   |   |   |
|    Issuance of vested restricted common stock                                                     |   | $                            | 159     |   |   | $ | 99 |   |

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| 1.     | Application of EITF 00-21, affecting the timing and presentation of revenue recognized (“00-21 Adjustments”) for the: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|
|   | a.                                                                                                                                |   | Proper determination of contracts to which EITF 00-21 was applicable and the related units of accounting for such contracts, |
|   | b.                                                                                                                                |   | Proper determination of linkage between contracts, reflecting aggregation of single contracts into multiple element arrangements since they were negotiated as a package, and |
|   | c.                                                                                                                                |   | Proper assessment of whether or not the Company had vendor specific objective evidence (“VSOE”) of the fair value of the various deliverables within arrangements containing multiple deliverables, as well as (i) the timing of revenue recognition based upon the relative fair value of the deliverables within the arrangement for deliverables for which we are able to establish the fair value. (ii) the allocation of the total arrangement consideration between the various elements of the arrangement based upon the relative fair value of the deliverables within the arrangement for multi-element arrangements, and, (iii) the deferral of revenue for the entire arrangement in situations where the arrangement contained remaining undelivered deliverables for which we are not able to establish the fair value. |

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| 2. |  Identification of customer contracts with special customer acceptance terms which require deferral of revenues and related costs of revenues and commissions until customer acceptance was obtained (“Special Acceptance Terms”),                                                                         |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3. |  Identification of contract shipping terms resulting in the incorrect timing of recognition of revenues and related costs of sales and commissions (“Shipping Terms”), and                                                                                                                                 |
| 4. |  Identification of products that are maintenance, support, and installation services provided by third parties as the primary obligor of the service, which requires presentation of the revenue reported by the Company net of the cost of the services provided by the third party (“Net Presentation”). |

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|                                                                                |   |  As Previously Reported |                                                                               | 00-21 Adjustments |   |    | Special Acceptance Terms |   |   | Shipping Terms |    |   | Net Presentation |    |   | AsRestated |   |
|-------------------------------------------------------------------------------------|--------|----------------------------------------|------------------------------------------------------------------------------------|------------------------|--------|---------|--------------------------|--------|--------|----------------|---------|--------|-----------------------|---------|--------|------------|--------|
| Revenue:                                                                            |   |                                   |                                                                               |                   |   |    |                     |   |   |           |    |   |                  |    |   |       |   |
|     Products                                                    |   | $                                      |         44,566                             |                   | $      | (1,229  | )                        |   | $      | (480           | )       |   | $                     | 906     |   |       | $      | (431 | ) |   | $ | 43,332 |   |
|     Services                                                    |   |                                   |         12,767                             |                   |   | (23     | )                        |   |   | (139           | )       |   |                  | — |   |       |   | — |   |   |   | 12,605 |   |
| Total revenue                                                                       |   |                                   |         57,333                             |                   |   | (1,252  | )                        |   |   | (619           | )       |   |                  | 906     |   |       |   | (431 | ) |   |   | 55,937 |   |
| Cost of products and services:                                                      |   |                                   |                                                                               |                   |   |    |                     |   |   |           |    |   |                  |    |   |       |   |   |   |   |   |   |   |
|     Products                                                    |   |                                   |         36,122                             |                   |   | (868    | )                   |   |   | (349           | )  |   |                  | 784     |   |       |   | (431 | ) |   |   | 35,258 |   |
|     Services                                                    |   |                                   |           8,908                  |                   |   | (9      | )                   |   |   | (148           | )  |   |                  | 1       |   |       |   | — |   |   |   | 8,752 |   |
| Total cost of products and services                                                 |   |                                   |         45,030                             |                   |   | (877    | )                   |   |   | (497           | )  |   |                  | 785     |   |       |   | (431 | ) |   |   | 44,010 |   |
| Gross profit                                                                        |   |                                   |         12,303                             |                   |   | (375    | )                        |   |   | (122           | )       |   |                  | 121     |   |       |   | — |   |   |   | 11,927 |   |
| Selling, general and administrative expenses                                   |   |                                   | 12,728                                                                             |                   |   | (33     | )                        |   |   | 2              |    |   |                  | 5       |   |       |   | — |   |   |   | 12,702 |   |
|     Operating income (loss)                                     |   |                                   | (425                                                                               | )                 |   | (342    | )                        |   |   | (124           | )       |   |                  | 116     |   |       |   | — |   |   |   | (775 | ) |
| Interest and other income (expense), net                                  |   |                                   | 12                                                                                 |                   |   | — |                     |   |   | —        |    |   |                  | — |   |       |   | — |   |   |   | 12 |   |
|     Income (loss) before income taxes                 |   |                                   | (413                                                                               | )                      |   | (342    | )                        |   |   | (124           | )       |   |                  | 116     |   |       |   | — |   |   |   | (763 | ) |
| Income tax expense (benefit)                                                   |   |                                   |            50               |                   |   | (49     | )                   |   |   | (18            | )  |   |                  | 17      |   |       |   | — |   |   |   | — |   |
|     Net income (loss) from continuing operations |   |                                   |              (463 | )                      |   | (293    | )                        |   |   | (106           | )       |   |                  | 99      |   |       |   | — |   |   |   | (763 | ) |
| Income (loss) from discontinued operations, net of taxes                            |   |                                   | (39                                                                                | )                      |   | — |                     |   |   | —        |    |   |                  | — |   |       |   | — |   |   |   | (39 | ) |
|     Net income (loss)                                           |   | $                                      |            (502             | )                      | $      | (293    | )                        |   | $      | (106           | )       |   | $                     | 99      |   |       | $      | — |   |   | $ | (802 | ) |
| Basic net loss per share:                                                           |   |                                   |                                                                               |                   |   |    |                     |   |   |           |    |   |                  |    |   |       |   |   |   |   |   |   |   |
|     Net loss from continuing operations                         |   | $                                      | (0.05                                                                              | )                      |   |    |                     |   |   |           |    |   |                  |    |   |       |   |   |   |   | $ | (0.09 | ) |
|     Loss from discontinued operations, net of taxes             |   |                                   | (0.01                                                                              | )                      |   |    |                     |   |   |           |    |   |                  |    |   |       |   |   |   |   |   | — |   |
|     Net loss per share – basic                            |   | $                                      | (0.06                                                                              | )                      |   |    |                     |   |   |           |    |   |                  |    |   |       |   |   |   |   | $ | (0.09 | ) |
| Diluted net loss per share:                                                         |   |                                   |                                                                               |                   |   |    |                     |   |   |           |    |   |                  |    |   |       |   |   |   |   |   |   |   |
|     Net loss from continuing operations                         |   | $                                      | (0.05                                                                              | )                      |   |    |                     |   |   |           |    |   |                  |    |   |       |   |   |   |   | $ | (0.09 | ) |
|     Loss from discontinued operations, net of taxes             |   |                                   | (0.01                                                                              | )                      |   |    |                     |   |   |           |    |   |                  |    |   |       |   |   |   |   |   | — |   |
|     Net loss per share – diluted                          |   | $                                      | (0.06                                                                              | )                      |   |    |                     |   |   |           |    |   |                  |    |   |       |   |   |   |   | $ | (0.09 | ) |
|                                                                                |   |                                   |                                                                               |                   |   |    |                     |   |   |           |    |   |                  |    |   |       |   |   |   |   |   |   |   |
| Weighted average shares outstanding -basic                                          |   |                                   | 8,706,210                                                                          |                   |   |    |                     |   |   |           |    |   |                  |    |   |       |   |   |   |   |   | 8,706,210 |   |
| Weighted average shares outstanding - diluted                                       |   |                                   | 8,706,210                                                                          |                   |   |    |                     |   |   |           |    |   |                  |    |   |       |   |   |   |   |   | 8,706,210 |   |

----

|                                                                                                                     | As PreviouslyReported |                                                                                         | RevenueCorrections |   |    | GoodwillCorrection |   |    | As Restated   |   |
|--------------------------------------------------------------------------------------------------------------------------|-----------------------|----------------------------------------------------------------------------------------------|--------------------|--------|---------|--------------------|--------|---------|---------------|--------|
|  Current assets:                                                                                                    |                  |                                                                                         |               |   |    |               |   |    |          |   |   |   |   |   |
|     Cash and cash equivalents                                                                        | $                     |      8,681                                                          |               | $      | — |               |   | $  | —  |   |   | $ | 8,681 |   |
|     Accounts receivable, net                                                                         |                  |         46,502                                       |               |   | (431    | )                  |   |    | —       |   |   |   | 46,071 |   |
|     Inventory, net                                                                                   |                  |           2,745                            |               |   | 411     |               |   |    | —       |   |   |   | 3,156 |   |
|     Deferred costs                                                                                   |                  |              333            |               |   | 1,016   |               |   |    | —       |   |   |   | 1,349 |   |
|     Other current assets                                                                             |                  |           1,229                            |               |   | — |               |   |    | —       |   |   |   | 1,229 |   |
|         Total current assets                                                     |                  |         59,490                                       |               |   | 996     |               |   |    | —       |   |   |   | 60,486 |   |
|                                                                                                                     |                  |                                                                                         |               |   |    |               |   |    |          |   |   |   |   |   |
| Property and equipment, net                                                                                              |                  |           4,998                            |               |   | — |               |   |    | —       |   |   |   | 4,998 |   |
| Goodwill                                                                                                                 |                  |         12,882                                       |               |   | — |               |   |    | —       |   |   |   | 12,882 |   |
| Intangible and other assets, net                                                                                         |                  |           1,536                            |               |   | — |               |   |    | —       |   |   |   | 1,536 |   |
|             Total assets                                     | $                     |         78,906                                       |               | $      | 996     |               |   | $       | —       |   |   | $ | 79,902 |   |
|                                                                                                                     |                  |                                                                                         |               |   |    |               |   |    |          |   |   |   |   |   |
| Current liabilities:                                                                                                     |                  |                                                                                         |               |   |    |               |   |    |          |   |   |   |   |   |
|     Current portion of capital lease obligations                                                     | $                     |              191            |               | $      | — |               |   | $       | —       |   |   | $ | 191 |   |
|     Accounts payable floor plan                                                                      |                  |         31,512                                       |               |   | — |               |   |    | —       |   |   |   | 31,512 |   |
|     Accounts payable                                                                                 |                  |           5,108                            |               |   | — |               |   |    | —       |   |   |   | 5,108 |   |
|     Accrued payroll and related costs                                                                |                  |          4,782                                  |               |   | (18     | )                  |   |    | —       |   |   |   | 4,764 |   |
|     Accrued expenses                                                                                 |                  | 2,082                                                                                        |               |   | — |               |   |    | —       |   |   |   | 2,082 |   |
|     Deferred revenue                                                                                 |                  |  597                                                                                    |               |   | 1,484   |               |   |    | —       |   |   |   | 2,081 |   |
|     Other current liabilities                                                                        |                  | 269                                                                                          |               |   | (50     | )                  |   |    | —       |   |   |   | 219 |   |
|         Total current liabilities                                                |                  |         44,541                                       |               |   | 1,416   |               |   |    | —       |   |   |   | 45,957 |   |
| Non-current liabilities:                                                                                                 |                  |                                                                                         |               |   |    |               |   |    |          |   |   |   |   |   |
|     Non-current portion of capital lease obligations                                                 |                  |              308            |               |   | — |               |   |    | —       |   |   |   | 308 |   |
|     Other liabilities                                                                                |                  |              317            |               |   | — |               |   |    | —       |   |   |   | 317 |   |
|         Total liabilities                                                        |                  |           45,166                           |               |   | 1,416   |               |   |    | —       |   |   |   | 46,582 |   |
| Stockholders’ equity:                                                                                              |                  |                                                                                         |               |   |    |               |   |    |          |   |   |   |   |   |
|     Common stock                                                                                     |                  |                88 |               |   | — |               |   |    | —       |   |   |   | 88 |   |
|     Additional paid-in capital                                                                       |                  |         51,413                                       |               |   | (55     | )                  |   |    | 672           |   |   |   | 52,030 |   |
|     Accumulated deficit                                                                              |                  |      (17,761                                                        | )                  |   | (365    | )                  |   |    | (672          | )      |   |   | (18,798 | ) |
|         Total stockholders’ equity                                         |                  |         33,740                                       |               |   | (420    | )                  |   |    | —       |   |   |   | 33,320 |   |
|             Total liabilities and stockholders’ equity | $                     |         78,906                                       |               | $      | 996     |               |   | $       | —       |   |   | $ | 79,902 |   |

----

|                                                                                                             |   | AsPreviously Reported                               |   |   | RevenueCorrections |    |   | As Restated |   |
|------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|--------|--------|--------------------|---------|--------|-------------|--------|
| Cash flows from operating activities:                                                                            |   |                                                     |   |   |               |    |   |        |   |
| Net loss                                                                                                         | $      |      (502                       | )      |   | $                  | (300    | )      |        | $      | (802 | ) |
| Adjustments to reconcile net loss to net cash provided by    (used in) operating activities: |   |                                                     |   |   |               |    |   |        |   |   |   |
|     Loss from discontinued operations                                                        |   |          39 |   |   |               | — |   |        |   | 39 |   |
|     Depreciation and amortization                                                            |   |        727            |   |   |               | — |   |        |   | 727 |   |
|     Share-based compensation expense                                                         |   |        593            |   |   |               | — |   |        |   | 593 |   |
|     Provision for doubtful accounts                                                          |   |          (5 | )      |   |               | — |   |        |   | (5 | ) |
|     Loss on disposal of property and equipment                                               |   | 22                                                       |   |   |               | — |   |        |   | 22 |   |
| Changes in assets and liabilities that provided (used) cash:                                                     |   |                                                     |   |   |               |    |   |        |   |   |   |
|     Accounts receivable, net                                                                 |   |     6,369                            |   |   |               | (741    | )      |        |   | 5,628 |   |
|     Inventory                                                                                |   |      (339                       | )      |   |               | 793     |   |        |   | 454 |   |
|     Accounts payable                                                                         |   |        (62            | )      |   |               | — |   |        |   | (62 | ) |
|     Other assets and liabilities                                                             |   |      (535                       | )      |   |               | 248     |   |        |   | (287 | ) |
|         Net cash provided by operating activities                        |   |      6,307                      |   |   |               | — |   |        |   | 6,307 |   |
| Cash flows from investing activities:                                                                            |   |                                                     |   |   |               |    |   |        |   |   |   |
|     Purchases of property and equipment                                                      |   | (125                                                     | )      |   |               | — |   |        |   | (125 | ) |
|         Net cash used in investing activities                            |   | (125                                                     | )      |   |               | — |   |        |   | (125 | ) |
| Cash flows from financing activities:                                                                            |   |                                                     |   |   |               |    |   |        |   |   |   |
|     Borrowings under non-interest bearing floor plan financing, net                          |   | (8,490                                                   | )      |   |               | — |   |        |   | (8,490 | ) |
|     Proceeds from shares issued under Employee Stock Purchase Plan                           |   | 167                                                      |   |   |               | — |   |        |   | 167 |   |
|     Payments on other borrowings                                                             |   |  (27                                                | )      |   |               | — |   |        |   |  (27 | ) |
|     Purchase of stock resulting from grantee election                                        |   | (22                                                      | )      |   |               | — |   |        |   | (22 | ) |
|     Purchases of common stock                                                                |   | (66                                                      | )      |   |               | — |   |        |   | (66 | ) |
|         Net cash used in financing activities                            |   | (8,438                                                   | )      |   |               | — |   |        |   | (8,438 | ) |
| Net decrease in cash and cash equivalents                                                                        |   | (2,256                                                   | )      |   |               | — |   |        |   | (2,256 | ) |
| Cash and cash equivalents at beginning of period                                                                 |   | 10,937                                                   |   |   |               | — |   |        |   | 10,937 |   |
| Cash and cash equivalents at end of period                                                                       | $      | 8,681                                                    |   |   | $                  | — |   |        | $      | 8,681 |   |

----

| (a) | Marketware Inc. |
|-----|-----------------|

----

| (b) | AdvancedNetworX, Inc. |
|-----|-----------------------|

| (c) | Acquisitions Summary |
|-----|----------------------|

|                                                                                      |   | Marketware |    |   | ANX    |   |
|-------------------------------------------------------------------------------------------|--------|------------|---------|--------|--------|--------|
| Allocated acquisition cost:                                                               |   |       |    |   |   |   |
|    Intangible assets                                                       |   | $          | 491     |   |   | $      | 299 |   |
|    Inventory                                                               |   |       | 9       |   |   |   | — |   |
|    Property and equipment                                                  |   |       | 79      |   |   |   | 59 |   |
|    Other assets                                                            |   |       | 50      |   |   |   | — |   |
|    Goodwill                                                                |   |       | 665     |   |   |   | 784 |   |
|    Current portion of capital lease obligations                            |   |       | — |   |   |   | (15 | ) |
|    Accrued expenses                                                        |   |       | (7      | )      |   |   | — |   |
|    Deferred revenue                                                        |   |       | (5      | )      |   |   | (156 | ) |
|    Other current liabilities                                               |   |       | (17     | )      |   |   | — |   |
|    Non-current portion of capital lease obligations                        |   |       | — |   |   |   | (19 | ) |
|    Other liabilities                                                       |   |       | (831    | )      |   |   | (477 | ) |
|  Net assets acquired                                                                 |   | $          | 434     |   |   | $      | 475 |   |
|                                                                                      |   |       |    |   |   |   |   |   |
| Amount of goodwill deductible for U.S.    Federal income tax purposes |   | $          | — |   |   | $      | 39 |   |

| (d) | Pro Forma Summary (Unaudited) |
|-----|-------------------------------|

----

|                                         |   | Three MonthsEnded March 31, 2009 |      |
|----------------------------------------------|--------|----------------------------------|-----------|
|                                         |   | (As restated)                    |      |
| Revenues                                     |   | $                                | 58,156    |   |
| Net loss                                     |   | $                                | (1,197    | ) |
| Net loss per share :                         |   |                             |      |   |
| Basic                                        |   | $                                | (0.14     | ) |
| Diluted                                      |   | $                                | (0.14     | ) |
| Weighted average shares used in calculation: |   |                             |      |   |
| Basic                                        |   |                             | 8,708,210 |   |
| Diluted                                      |   |                             | 8,708,210 |   |

|                                                                                                                                  |   | Three Months Ended March 31, |      |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|-----------|
|                                                                                                                                  |   | 2010                         |      |   | 2009 (As restated) |   |
| Numerator for basic and diluted earnings per share:                                                                                   |   |                         |      |   |   |   |
| Net loss from continuing operations                                                                                                   |   | $                            | (547      | ) |   | $ | (763 | ) |
| Loss on disposal of discontinued operations, net of income taxes                                                                      |   |                         | —   |   |   |   | (39 | ) |
| Net loss                                                                                                                              |   | $                            | (547      | ) |   | $ | (802 | ) |
| Denominator for basic earnings per share — weighted-average shares outstanding                                                  |   |                         | 9,109,924 |   |   |   | 8,706,210 |   |
| Effect of dilutive securities — shares issuable from assumed conversion of common stock options, restricted stock, and warrants |   |                         | —   |   |   |   | — |   |
| Denominator for diluted earnings per share — weighted-average shares outstanding                                                |   |                         | 9,109,924 |   |   |   | 8,706,210 |   |

|                                            |   | Three Months Ended March 31, |      |
|-------------------------------------------------|--------|------------------------------|-----------|
|                                            |   | 2010                         |      |   | 2009 |   |
|                                            |   |                         |      |   |   |   |
| Warrants                                        |   |                         | 40,000    |   |   |   | — |   |
| Stock options                                   |   |                         | 555,818   |   |   |   | 386,635 |   |
| Contingent Shares                               |   |                         | —   |   |   |   | — |   |
| Restricted stock                                |   |                         | 514,397   |   |   |   | — |   |
| Weighted-average shares considered antidilutive |   |                         | 1,110,215 |   |   |   | 386,635 |   |

----

----

|                                                                         |   | Level 1 |    |   | Level 2 |   |    | Level 3 |   |   | Total Fair Value |   |
|------------------------------------------------------------------------------|--------|---------|---------|--------|---------|--------|---------|---------|--------|--------|------------------|--------|
| Estimated Contingent Consideration:                                          |   |    |    |   |    |   |    |    |   |   |             |   |
|     Balance at December 31, 2009                         |   | $       | — |   |    | $      | — |    |   | $      | 1,411            |   |   | $ | 1,411 |   |
|          Adjustment of estimate |   |    | — |   |    |   | — |    |   |   | (254             | )      |   |   | (254 | ) |
|     Balance at March 31, 2010                            |   | $       | — |   |    | $      | — |    |   | $      | 1,157            |   |   | $ | 1,157 |   |

|                                                                         |   | Level 1 |    |   | Level 2 |   |    | Level 3 |   |   | Total Fair Value |   |
|------------------------------------------------------------------------------|--------|---------|---------|--------|---------|--------|---------|---------|--------|--------|------------------|--------|
| Estimated Contingent Consideration:                                          |   |    |    |   |    |   |    |    |   |   |             |   |
|     Balance at December 31, 2008                         |   | $       | — |   |    | $      | — |    |   | $      | —          |   |   | $ | — |   |
|          Adjustment of estimate |   |    | — |   |    |   | — |    |   |   | —          |   |   |   | — |   |
|     Balance at March 31, 2009                            |   | $       | — |   |    | $      | — |    |   | $      | —          |   |   | $ | — |   |

----

| 1.     | Application of EITF 00-21, affecting the timing and presentation of revenue recognized (“00-21 Adjustments”) for the: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|
|   | a.                                                                                                                                |   | Proper determination of contracts to which EITF 00-21 was applicable and the related units of accounting for such contracts, |
|   | b.                                                                                                                                |   | Proper determination of linkage between contracts, reflecting aggregation of single contracts into multiple element arrangements since they were negotiated as a package, and |
|   | c.                                                                                                                                |   | Proper assessment of whether or not the Company had vendor specific objective evidence (“VSOE”) of the fair value of the various deliverables within arrangements containing multiple deliverables, as well as (i) the timing of revenue recognition based upon the relative fair value of the deliverables within the arrangement for deliverables for which we are able to establish the fair value. (ii) the allocation of the total arrangement consideration between the various elements of the arrangement based upon the relative fair value of the deliverables within the arrangement for multi-element arrangements, and, (iii) the deferral of revenue for the entire arrangement in situations where the arrangement contained remaining undelivered deliverables for which we are not able to establish the fair value. |
| 2.     |                                                                                                                              |   | Identification of customer contracts with special customer acceptance terms which require deferral of revenues and related costs of revenues and commissions until customer acceptance was obtained (“Special Acceptance Terms”), |
| 3.     |                                                                                                                              |   | Identification of contract shipping terms resulting in the incorrect timing of recognition of revenues and related costs of sales and commissions (“Shipping Terms”), and |
| 4.     |                                                                                                                              |   | Identification of products that are maintenance, support, and installation services provided by third parties as the primary obligor of the service, which requires presentation of the revenue reported by the Company net of the cost of the services provided by the third party (“Net Presentation”). |

----

|                                                |   | 00-21 Adjustments |          |   | Special Acceptance Terms |   |          | Shipping Terms |   |   | Net Presentation |   |   | TotalRestatement |          |
|-----------------------------------------------------|--------|-------------------|---------------|--------|--------------------------|--------|---------------|----------------|--------|--------|------------------|--------|--------|------------------|---------------|
| Revenue:                                            |   |              |          |   |                     |   |          |           |   |   |             |   |   |             |          |
|    Products                          |   | $                 | (1,229        | )      |                     | $      | (480          | )              |   | $      | 906              |   |   | $                | (431          | ) |   | $ | (1,234 | ) |
|    Services                          |   |              | (23           | )      |                     |   | (139          | )              |   |   | —          |   |   |             | —       |   |   |   | (162 | ) |
| Total revenue                                       |   |              | (1,252        | )      |                     |   | (619          | )              |   |   | 906              |   |   |             | (431          | ) |   |   | (1,396 | ) |
| Cost of products and services:                      |   |              |          |   |                     |   |          |           |   |   |             |   |   |             |          |   |   |   |   |   |
|    Products                          |   |              | (868          | )      |                     |   | (349          | )              |   |   | 784              |   |   |             | (431          | )  |   |   | (864 | )  |
|    Services                          |   |              | (9            | )      |                     |   | (148          | )              |   |   | 1                |   |   |             | —       |   |   |   | (156 | ) |
| Total cost of products and services                 |   |              | (877          | )      |                     |   | (497          | )              |   |   | 785              |   |   |             | (431          | )  |   |   | (1,020 | ) |
| Gross Profit:                                       |   |              |          |   |                     |   |          |           |   |   |             |   |   |             |          |   |   |   |   |   |
|    Products                          |   |              | (361          | )      |                     |   | (131          | )              |   |   | 122              |   |   |             | —       |   |   |   | (370 | ) |
|    Services                          |   |              | (14           | )      |                     |   | 9             |           |   |   | (1               | )      |   |             | —       |   |   |   | (6 | ) |
| Total gross profit                                  |   |              | (375          | )      |                     |   | (122          | )              |   |   | 121              |   |   |             | —       |   |   |   | (376 | ) |
| Selling, general andadministrative expenses         |   |              | (33           | )      |                     |   | 2             |           |   |   | 5                |   |   |             | —       |   |   |   | (26 | ) |
| Operating income (loss)                             |   |              | (342          | )      |                     |   | (124          | )              |   |   | 116              |   |   |             | —       |   |   |   | (350 | ) |
| Income tax expense (benefit)                        |   |              | (49           | )      |                     |   | (18           | )              |   |   | 17               |   |   |             | —       |   |   |   | (50 | )  |
| Net income (loss) fromcontinuing operations         |   |              | (293          | )      |                     |   | (106          | )              |   |   | 99               |   |   |             | —       |   |   |   | (300 | ) |
| Loss from discontinued    operations |   |              |  — |   |                     |   |  — |           |   |   |  —    |   |   |             |  — |   |   |   |  — |   |
| Net income (loss)                                   |   | $                 | (293          | )      |                     | $      | (106          | )              |   | $      | 99               |   |   | $                | —       |   |   | $ | (300 | ) |

----

|                                            |   | Three Months Ended March 31, |    |
|-------------------------------------------------|--------|------------------------------|---------|
|                                            |   | 2010                         |    |   | 2009 (As Restated) |   |   | 2009 (As Previously Reported) |   |
|                                            |   | Amount                       |    |   | % |   |   | Amount |   |   | % |   |   | Amount |   |   | % |   |
| Revenue:                                        |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Products                                        |   | $                            | 60,901  |   |   |   | 86.9 |   |   | $ | 43,332 |   |   |   | 77.5 |   |   | $ | 44,566 |   |   |   | 77.7 |   |
| Services                                        |   |                         | 9,147   |   |   |   | 13.1 |   |   |   | 12,605 |   |   |   | 22.5 |   |   |   | 12,767 |   |   |   | 22.3 |   |
| Total revenue                                   |   |                         | 70,048  |   |   |   | 100.0 |   |   |   | 55,937 |   |   |   | 100.0 |   |   |   | 57,333 |   |   |   | 100.0 |   |
| Gross profit:                                   |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Products                                        |   |                         | 10,954  |   |   |   | 18.0 |   |   |   | 8,074 |   |   |   | 18.6 |   |   |   | 8,444 |   |   |   | 18.9 |   |
| Services                                        |   |                         | 1,579   |   |   |   | 17.3 |   |   |   | 3,853 |   |   |   | 30.6 |   |   |   | 3,859 |   |   |   | 30.2 |   |
| Total gross profit                              |   |                         | 12,533  |   |   |   | 17.9 |   |   |   | 11,927 |   |   |   | 21.3 |   |   |   | 12,303 |   |   |   | 21.5 |   |
| Selling, general and administrative expenses    |   |                         | 13,171  |   |   |   | 18.8 |   |   |   | 12,702 |   |   |   | 22.7 |   |   |   | 12,728 |   |   |   | 22.2 |   |
| Operating loss                                  |   |                         | (638    | ) |   |   | (0.9 | ) |   |   | (775 | ) |   |   | (1.4 | ) |   |   | (425 | ) |   |   | (0.7 | ) |
| Interest and other income, net                  |   |                         | 91      |   |   |   | 0.1 |   |   |   | 12 |   |   |   | — |   |   |   | 12 |   |   |   | — |   |
| Income tax expense                              |   |                         | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 50 |   |   |   | 0.1 |   |
| Net loss from continuing operations             |   |                         | (547    | ) |   |   | (0.8 | ) |   |   | (763 | ) |   |   | (1.4 | ) |   |   | (463 | ) |   |   | (0.8 | ) |
| Loss from discontinued operations, net of taxes |   |                         | — |   |   |   | — |   |   |   | (39 | ) |   |   | — |   |   |   | (39 | ) |   |   | (0.1 | ) |
| Net loss                                        |   | $                            | (547    | ) |   |   | (0.8 | ) |   | $ | (802 | ) |   |   | (1.4 | ) |   | $ | (502 | ) |   |   | (0.9 | ) |

----

| Total Credit Facility              |   | $      | 70,000  |   |
|------------------------------------|--------|--------|---------|--------|
| Borrowing base limitation          |   |   | (30,260 | )      |
| Total borrowing capacity           |   |   | 39,740  |   |
| Less interest-bearing borrowings   |   |   | — |   |
| Less non-interest bearing advances |   |   | (35,507 | )      |
| Total unused availability          |   | $      | 4,233   |   |

----

| 1. | We have been over reliant on a few select employees, and have not developed and implemented sufficient management training programs to educate our key managers on matters related to the Exchange Act reporting and disclosure requirements. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | We did not have in place information and communication structures that were sufficient to ensure that reportable events regarding our business operations were communicated completely, accurately and timely as required by the Exchange Act. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 1. | We did not employ sufficiently qualified staff, and did not design sufficient documentation and review procedures to appropriately apply EITF 00-21, Revenue Arrangements with Multiple Deliverables, now referred to as ASC 605-25 Revenue Recognition, Multiple-Element Arrangements. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | We did not have sufficient procedures with respect to contract reviews to appropriately assess the impact of customer acceptance provisions when determining if delivery had occurred in order to recognize revenue. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | We did not have sufficient procedures to identify and assess product sales that should be accounted for on a net presentation basis in accordance with EITF 99-19, now ASC 605-45.  In addition, we lacked sufficient controls over our products database to monitor the appropriateness of any changes related to net/gross presentation. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | We did not have sufficient policies, procedures, training, or staffing criteria, with respect to our sales order entry process to correctly capture the applicable shipping terms for our sales transactions. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | We did not have sufficient policies and procedures, training, or staffing criteria, with respect to linking customer orders into arrangements when negotiated as a package and requiring, collecting and maintaining sufficient written documentation when consummating a customer order and proceeding with the sales order entry process. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | We did not effectively operate our control associated with the review of the service revenue accrual, resulting in computational errors. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | We did not have sufficient procedures to test the software code developed to perform certain revenue recognition calculations. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | We did not have sufficient procedures to control the accuracy and completeness of data uploaded into our database for revenue recognition calculation purposes. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | We did not sufficiently assess and apply certain aspects of ASC 605-25 Revenue Recognition, Multiple-Element Arrangements to the particular facts and circumstances of our revenue arrangements. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 1. | We did not adequately document the assumptions used for our internal projections. |
|--------|----|-----------------------------------------------------------------------------------|

|   | 2. | Our internal financial model was not reviewed in detail by someone other than the preparer. |
|--------|----|---------------------------------------------------------------------------------------------|

|   | 3. | We did not establish review procedures to adequately supervise and review the work of the outside valuation firm we hired to prepare the valuations. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | We did not establish a procedure to determine if the outside valuation firm retained by us had adequate controls and review procedures to assess the quality and accuracy of their own work prior to delivering their reports to us. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | We will include a provision in our future business combination agreements requiring selling shareholders to timely inform us if any contingent consideration is redistributed to our employees, including a certification document to be executed at the time contingent consideration is disbursed. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | We will enhance our accounting capabilities and knowledge with respect to accounting for contingent consideration as required by GAAP. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | In future employment agreements with individuals that become employees as a result of business acquisitions, we will include a provision requiring disclosure to us with respect to their receipt of any redistributed acquisition related payments. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 1. | We will develop and implement a comprehensive set of documentation requirements regarding our forecast assumptions. |
|--------|----|---------------------------------------------------------------------------------------------------------------------|

|   | 2. | We will develop and implement a detailed financial model review and approval process. |
|--------|----|---------------------------------------------------------------------------------------|

|   | 3. | We will develop and implement a detailed set of review procedures to assess the work product provided by our external valuation services firm. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | We will develop and implement procedures to assess the quality and completeness of the internal controls performed by our external valuation services firm prior to their delivery of work product to us. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|               | INX Inc. |                      |
|--------------------|----------|---------------------------|
|               |     |                      |   |
|               |     |                      |   |
| Date: June 3, 2011 | By:      | /s/ PHILIP RYDZEWSKI |   |
|               |     | Philip Rydzewski          |   |
|               |     | Chief Financial Officer   |   |
|               |     |                      |   |

----

| ExhibitNo.    |   | Description                                                           |   | Filed Herewith orIncorporated byReference From:  |
|------------------------------|--------|-----------------------------------------------------------------------|--------|-------------------------------------------------------|
| 31.1                         |   | Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer |   | Filed herewith.                                       |
| 31.2                         |   | Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer |   | Filed herewith.                                       |
| 32.1                         |   | Section 1350 Certification of Principal Executive Officer             |   | Filed herewith.                                       |
| 32.2                         |   | Section 1350 Certification of Principal Financial Officer             |   | Filed herewith.                                       |