SECURITIESAND EXCHANGE COMMISSION Washington, D.C. 20549Amendment No.1 FORM 10-KSB/A

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| /X/  | Annual Report Pursuant toSection 13 or 15(d) of the Securities Exchange Act of 1934 |

Forthe fiscal year ended: December 31, 2004

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|-----------|----------------------------------------------------------------------------------------|
| / /  | TransitionReport Pursuant to Section 13 or 15(d) of the Securities Exchange Actof 1934 |

For the transition period from______________to______________

Commission File Number 000-50908

RAND ACQUISITIONCORPORATION

(Name of Small BusinessIssuer in Its Charter)

|                                                 |  |                                                   |  |  |  |  |
|-------------------------------------------------|--|---------------------------------------------------|--|--|--|--|
| **Delaware**                                    |  | **20-1195343**                                    |
| (Stateof Incorporation)                         |  | (Small Business IssuerI.R.S. EmployerI.D. Number) |
| **450 ParkAvenue, 10th FloorNew York, NewYork** |  | **10022**                                         |
| (Address of principal executive offices)        |  | (zipcode)                                         |
|                                                 |

212-644-3450

(Issuer's Telephone Number, IncludingArea Code)

Securities registered pursuant to Section 12(b) ofthe Act:

None

Securitiesregistered pursuant to Section 12(g) of the Act:

Units consisting of one share of Common Stock,par value $.0001 per share, and two Warrants Common Stock, $.0001par value per share Warrants to purchase shares of Common Stock

Check whether the Issuer (1) has filed all reports requiredto be filed by Section 13 or 15(d) of the Exchange Act during the past12 months (or for such shorter period that the registrant was requiredto file such reports), and (2) has been subject to such filingrequirement for the past 90 days. Yes      No 

Check if there is no disclosure of delinquent filers inresponse to Item 405 of Regulation S-B contained in this form, and nodisclosure will be contained, to the best of the registrant'sknowledge, in definitive proxy or information statements incorporatedby reference in Part III of this Form 10-KSB or any amendment to thisForm 10-KSB. 

Issuer's revenues for thefiscal year ended December 31, 2004 were $0.

As of March24, 2005, the aggregate market value of the common stock held bynon-affiliates of the Registrant was approximately $22,823,941.

As of March 30, 2005, there were 5,600,000 shares of CommonStock, $.0001 par value per share, outstanding.

Transitional Small Business Disclosure Format (check one):Yes      No 

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Note:Amendment No. 1 to this Annual Report on Form 10-KSB is being filedsolely to amend the financial statements included in this AnnualReport, as well as the related disclosure in Item 6 of Part II,Management's Discussion and Analysis or Plan ofOperation.

1

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PART II

ITEM 6.    MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OFOPERATION

We were formed on June 2, 2004 to serve as a vehicleto effect a merger, capital stock exchange, asset acquisition or othersimilar business combination with an operating business. We intend toutilize cash derived from the proceeds of our recently completed publicoffering, our capital stock, debt or a combination of cash, capitalstock and debt, in effecting a business combination.

Weconsummated our initial public offering on November 2, 2004. Allactivity from June 2, 2004 through November 2, 2004 related to ourformation and our initial public offering.

Net loss of $25,175for the fiscal year ended December 31, 2004 consisted $34,357 forfranchise and capital-based taxes, $16,293 for professional fees,$16,209 for rent and office, $9,500 for officer liability insurance and$5,384 for other formation and operating expenses. Interest income onthe trust fund investment for the fiscal year ended December 31, 2004was $56,568

$23,736,000 of the net proceeds of our initialpublic offering are in trust, with the remaining net proceeds of$869,000 to pay for business, legal and accounting due diligence onprospective acquisitions and continuing general and administrativeexpenses. We will use substantially all of the net proceeds of ourinitial public offering not held in trust to identify and evaluateprospective acquisition candidates, select the target business, andstructure, negotiate and consummate the business combination. We intendto utilize our cash, including the funds held in the trust fund,capital stock, debt or a combination of the foregoing to effect abusiness combination. To the extent that our capital stock or debtsecurities are used in whole or in part as consideration to effect abusiness combination, the proceeds held in the trust fund as well asany other available cash will be used to finance the operations of thetarget business. At December 31, 2004, we had cash of $802,667, prepaidexpenses of $57,750 and total liabilities of $60,002. We had workingcapital of $24,604,676 or $800,415, excluding investments held in trustof $23,804,261. We believe that we have sufficient available fundsoutside of the trust fund to operate through October 27, 2006, assumingthat a business combination is not consummated during that time.However, we may need to raise additional funds through a privateoffering of debt or equity securities if such funds are required toconsummate a business combination that is presented to us. We wouldonly consummate such a financing simultaneously with the consummationof a business combination.

We are obligated to pay to ProChannelManagement LLC a monthly fee of $7,500 for general and administrativeservices. In addition, in June 2004, Laurence S. Levy advanced anaggregate of $70,000 to us, on a non-interest bearing basis, forpayment of offering expenses on our behalf. This amount was repaid inNovember 2004 out of proceeds of our initial public offering.

Inconnection with our initial public offering, we issued to therepresentative of the underwriters, for $100, an option to purchase upto a total of 300,000 units, with each unit consisting of one share ofcommon stock and two warrants. The units issuable upon exercise of theoption are identical to those issued in our initial public offeringexcept that the warrants included in the units underlying the optionhave an exercise price of $6.25 per share. The option will beexercisable by the holder at $9.90 per unit commencing upon ourconsummation of a business combination and will expire on October 26,2009. We accounted for the fair value of the option, inclusive of thereceipt of the $100 cash payment, as an expense of our initial publicoffering resulting in a charge directly to stockholders' equity.We estimate that the fair value of this option is approximately$558,000 ($1.86 per Unit) using a Black-Scholes option-pricing model.The fair value of the option has been estimated as of the date of grantusing the following assumptions: (1) expected volatility of47.79%, (2) risk-free interest rate of 3.34% and (3)expected life of 5 years. The option may be exercised by the holder forcash or on a "cashless" basis, at theholder's option, such that the holder may use the appreciatedvalue of the option (the difference between the exercise prices of theoption and the underlying warrants and the market price of the unitsand underlying securities) to exercise the option without the paymentof any cash.

10

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RandAcquisition Corporation (a corporation in the developmentstage)

|                                                           |  |        |                |        |  |  |
|-----------------------------------------------------------|--|--------|----------------|--------|--|--|
| **Reportof Independent Registered Public AccountingFirm** |  |   | F-2            |   |
| **FinancialStatements**                                   |  |   |           |   |
| BalanceSheet                                              |  |   | F-3            |   |
| Statement ofOperations                                    |  |   | F-4            |   |
| Statement ofStockholders' Equity                          |  |   | F-5            |   |
| Statement of Cash Flows                                   |  |   | F-6            |   |
| **Notes to FinancialStatements**                          |  |   | F-7–F-10 |   |
|                                                           |

F-1

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Report of Independent Registered PublicAccounting Firm

To the Board ofDirectorsRand Acquisition Corporation

We haveaudited the accompanying balance sheet of Rand Acquisition Corporation(a corporation in the development stage) as of December 31, 2004, andthe related statements of operations, stockholders' equity andcash flows for the period from June 2, 2004 (inception) to December 31,2004. These financial statements are the responsibility of theCompany's management. Our responsibility is to express an opinionon these financial statements based on our audit.

We conductedour audit in accordance with the standards of the Public CompanyAccounting Oversight Board (United States). Those standards requirethat we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit alsoincludes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

In our opinion, the financialstatements referred to above present fairly, in all material respects,the financial position of Rand Acquisition Corporation as of December31, 2004, and the results of its operations and its cash flows for theperiod from June 2, 2004 (inception) to December 31, 2004 in conformitywith United States generally accepted accountingprinciples.

Goldstein Golub Kessler LLPNewYork, New York

February 27,2005

F-2

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Rand Acquisition Corporation(acorporation in the development stage)

BalanceSheet

|                                                                                              |  |                |            |         |  |  |
|----------------------------------------------------------------------------------------------|--|----------------|------------|---------|--|--|
|                                                                                         |  | December312004 |
| **Assets**                                                                                   |  |           |       |    |
| Currentassets:                                                                               |  |           |       |    |
| Cash and cashequivalents                                                                     |  | $              | 802,667    |    |
| Investmentsheld in Trust Fund (Note 1)                                                       |  |           | 23,804,261 |    |
| Prepaidexpenses                                                                              |  |           | 57,750     |    |
| Totalassets                                                                                  |  | $              | 24,664,678 |    |
| **Liabilities and Stockholders'Equity**                                                      |  |           |       |    |
| Currentliabilities:                                                                          |  |           |       |    |
| Accruedexpenses                                                                              |  | $              | 12,000     |    |
| Taxes Payable                                                                                |  |           | 34,357     |    |
| Deferred Interest                                                                            |  |           | 13,645     |    |
| Notes payable, stockholder (Note 3)                                                          |  |           | 0          |    |
| Total currentliabilities                                                                     |  |           | 60,002     |    |
| Commonstock, subject to possible redemption, 919,540 shares at redemptionvalue (Note1)       |  |           | 4,744,826  |    |
| Commitment(Note3)                                                                            |  |           |       |    |
| Stockholders'equity (Notes 1, 2, 4 and5)                                                     |  |           |       |    |
| Preferred stock, $.0001 parvalue, Authorized 1,000,000 shares; noneissued                    |  |           |       |    |
| Common stock, $.0001 parvalue                                                                |  |           |       |    |
| Authorized 20,000,000shares                                                                  |  |           |       |    |
| Issued and outstanding5,600,000 shares(which includes 919,540 subject to possibleredemption) |  |           | 560        |    |
| Additional paid-incapital                                                                    |  |           | 19,884,465 |    |
| Deficitaccumulated during development stage                                                  |  |           | (25,175    | )  |
| Totalstockholders' equity                                                                    |  |           | 19,859,850 |    |
| Total liabilities andstockholders' equity                                                    |  | $              | 24,664,678 |    |
|                                                                                              |

See accompanyingnotes to financial statements.

F-3

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Rand Acquisition Corporation(acorporation in the development stage)

Statement ofOperations

|                                     |  |                                                      |           |         |  |  |
|-------------------------------------|--|------------------------------------------------------|-----------|---------|--|--|
|                                |  | PeriodfromJune 2, 2004(inception) toDecember 31,2004 |
| Income:                             |  |                                                 |      |    |
| InterestIncome                      |  | $                                                    | 56,568    |    |
| Expenses:                           |  |                                                 |      |    |
| Franchiseand capital-based taxes    |  |                                                 | 34,357    |    |
| Professional fees                   |  |                                                 | 16,293    |    |
| Rent and office                     |  |                                                 | 16,209    |    |
| Insurance                           |  |                                                 | 9,500     |    |
| Other formation and operatingcosts  |  |                                                 | 5,384     |    |
| TotalExpenses                       |  |                                                 | 81,743    |    |
| Net lossfor the period              |  | $                                                    | (25,175   | )  |
| Net loss per sharebasic and diluted |  | $                                                    | (.01      | )  |
| Weighted average sharesoutstanding  |  |                                                 | 2,584,634 |    |
|                                     |

See accompanyingnotes to financial statements.

F-4

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Rand Acquisition Corporation(acorporation in the development stage)

Statement ofStockholders'Equity

|                                                                                                                                     |  |             |           |                          |  |                                              |         |        |  |        |            |         |  |        |         |         |  |        |            |         |  |  |
|-------------------------------------------------------------------------------------------------------------------------------------|--|-------------|-----------|--------------------------|--|----------------------------------------------|---------|--------|--|--------|------------|---------|--|--------|---------|---------|--|--------|------------|---------|--|--|
|                                                                                                                                |  | CommonStock |           | AdditionalPaid-InCapital |  | Deficitaccumulatedduring thedevelopmentstage |         | Total  |
|                                                                                                                                |  | Shares      |           | Amount                   |
| Sale of 1,000,000 shares of common stock to initialstockholders as of June 2, 2004 at $.025 per share                               |  |        | 1,000,000 |                     |  | $                                            | 100     |   |  | $      | 24,900     |    |  |   | — |    |  | $      | 25,000     |    |
| Sale of 4,000,000units, net of underwriters' discount and offering expenses(includes 799,600 shares subject to possible redemption) |  |        | 4,000,000 |                     |  |                                         | 400     |   |  |   | 21,310,351 |    |  |   | — |    |  |   | 21,310,751 |    |
| Proceedsof exercise of overallotment option by underwriters                                                                         |  |        | 600,000   |                     |  |                                         | 60      |   |  |   | 3,293,940  |    |  |   |    |    |  |   | 3,294,000  |    |
| Proceedssubject to possible redemption of 919,540shares                                                                             |  |        | —   |                     |  |                                         | — |   |  |   | (4,744,826 | )  |  |   | — |    |  |   | (4,744,826 | )  |
| Proceedsfrom issuance ofoption                                                                                                      |  |        | —   |                     |  |                                         | — |   |  |   | 100        |    |  |   | — |    |  |   | 100        |    |
| Netloss for theperiod                                                                                                               |  |        | —   |                     |  |                                         | — |   |  |   | —    |    |  |   | (25,175 | )  |  |   | (25,175    | )  |
| Balance,December 31, 2004                                                                                                           |  |        | 5,600,000 |                     |  | $                                            | 560     |   |  | $      | 19,884,465 |    |  | $      | (25,175 | )  |  | $      | 19,859,850 |    |
|                                                                                                                                     |

See accompanying notes tofinancial statements.

F-5

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Rand Acquisition Corporation(acorporation in the development stage)

Statement of CashFlows

|                                                                         |  |                                            |             |         |  |  |
|-------------------------------------------------------------------------|--|--------------------------------------------|-------------|---------|--|--|
|                                                                    |  | June2, 2004(inception) toDecember 31, 2004 |
| **Cash Flows from OperatingActivities**                                 |  |                                       |        |    |
| NetLoss                                                                 |  | $                                          | (25,175     | )  |
| Adjustments toreconcile net loss to net cash used in operatingexpenses: |  |                                       |        |    |
| Interest accrued onTreasury Bill                                        |  |                                       | (68,261     | )  |
| Increase inprepaid expenses                                             |  |                                       | (57,750     | )  |
| Increasein accrued expenses                                             |  |                                       | 12,000      |    |
| Increasein income tax payable                                           |  |                                       | 34,357      |    |
| Increase in deferredinterest                                            |  |                                       | 13,645      |    |
| Net cashused in operating activities                                    |  |                                       | (91,184     | )  |
| **Cash Flows from InvestingActivities**                                 |  |                                       |        |    |
| Cash held in TrustFund                                                  |  |                                       | (23,736,000 | )  |
| **Cash Flows from FinancingActivities**                                 |  |                                       |        |    |
| Gross proceeds                                                          |  |                                       | 27,600,000  |    |
| Proceeds from notes payable,stockholder                                 |  |                                       | 70,000      |    |
| Payment of notepayable,stockholder                                      |  |                                       | (70,000     | )  |
| Proceeds fromsale of shares of common stock                             |  |                                       | 25,000      |    |
| Proceeds from issuance ofoption                                         |  |                                       | 100         |    |
| Payment of costs ofpublic offering                                      |  |                                       | (2,995,249  | )  |
| Net cash providedby financingactivities                                 |  |                                       | 24,629,851  |    |
| Net increasein cash and cash at end of period                           |  | $                                          | 802,667     |    |
|                                                                         |

See accompanying notes tofinancial statements.

F-6

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RandAcquisition Corporation(a corporation in the developmentstage)    Notes to FinancialStatements

|        |                                         |  |                                                                                                                                                                      |
|--------|-----------------------------------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **1.** | **Organization and BusinessOperations** |  | Rand Acquisition Corporation (the"Company") was incorporated in Delaware onJune 2, 2004 as a blank check company whose objective is to acquire anoperating business. |
|        |                                         |  |

|  |  |                                                                                                                                                                                                                 |
|--|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | All activity from June 2, 2004(inception) through December 31, 2004 relates to the Company'sformation and initial public offering described below. The Company hasselected December  31 as its fiscal year-end. |
|  |  |                                                                                                                                                                                                                 |

|  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | Theregistration statement for the Company's initial public offering("Offering") was declared effective October27, 2004. The Company consummated the offering on November 2, 2004 andreceived net proceeds of approximately $21,311,000 (Note 2). OnNovember 3, 2004, the underwriters exercised their allotment optionresulting in further proceeds to the Company of $3,294,000. TheCompany's management has broad discretion with respect to thespecific application of the net proceeds of this Offering, althoughsubstantially all of the net proceeds of this Offering are intended tobe generally applied toward consummating a business combination with aoperating business ("Business Combination").Furthermore, there is no assurance that the Company will be able tosuccessfully effect a Business Combination. A portion of the netproceeds, originally $23,736,000, was placed in an interest-bearingtrust account ("Trust Fund") until theearlier of (i) the consummation of its first Business Combination or(ii) liquidation of the Company. Under the agreement governing theTrust Fund, funds will only be invested in United States governmentsecurities (Treasury Bills) with a maturity of 180 days or less. Thisamount has been invested in a Treasury Bill. The Treasury Bill has beenaccounted for as a trading security, which is recorded at its marketvalue of approximately $23,804,000 at December 31, 2004. The excess ofmarket value over cost, exclusive of the deferred interest describedfurther below, is included in interest income in the accompanyingstatement of operations. The remaining net proceeds may be used to payfor business, legal and accounting due diligence on prospectiveacquisitions and continuing general and administrativeexpenses. |
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|--|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | The Company, after signing a definitive agreementfor the acquisition of a target business, will submit such transactionfor stockholder approval. In the event that stockholders owning20% or more of the outstanding stock excluding, for thispurpose, those persons who were stockholders prior to the Offering,vote against the Business Combination, the Business Combination willnot be consummated. All of the Company's stockholders prior tothe Offering, including all of the officers and directors of theCompany ("Initial Stockholders"), have agreedto vote their 1,000,000 founding shares of common stock in accordancewith the vote of the majority in interest of all other stockholders ofthe Company ("Public Stockholders") withrespect to any Business Combination. After consummation of theCompany's first Business Combination, all of these votingsafeguards will no longer be applicable. |
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F-7

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RandAcquisition Corporation(a corporation in the developmentstage)    Notes to FinancialStatements

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|--|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | With respect to the first BusinessCombination which is approved and consummated, any Public Stockholderwho voted against the Business Combination may demand that the Companyredeem his shares. The per share redemption price will equal the amountin the Trust Fund as of the record date for determination ofstockholders entitled to vote on the Business Combination divided bythe number of shares of common stock held by Public Stockholders at theconsummation of the Offering. Accordingly, Public Stockholders holding19.99% of the aggregate number of shares owned by all PublicStockholders may seek redemption of their shares in the event of aBusiness Combination. Such Public Stockholders are entitled to receivetheir per share interest in the Trust Fund computed without regard tothe shares held by Initial Stockholders. Accordingly, a portion of thenet proceeds from the offering (19.99% of the amount originallyheld in the Trust Fund) has been classified as common stock subject topossible redemption in the accompanying December 31, 2004 balance sheetand 19.99% of the related interest earned on the Treasury Billhas been recorded as deferred interest. |
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|  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | The Company'sCertificate of Incorporation provides for mandatory liquidation of theCompany, without stockholder approval, in the event that the Companydoes not consummate a Business Combination within 18 months from thedate of the consummation of the Offering, or 24 months from theconsummation of the Offering if certain extension criteria have beensatisfied. In the event of liquidation, it is likely that the per sharevalue of the residual assets remaining available for distribution(including Trust Fund assets) will be less than the initial publicoffering price per share in the Offering due to costs related to theOffering and since no value would be attributed to the Warrantscontained in the Units sold (Note  2). |
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|  |  |                                                                                                                                                                              |
|--|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | For purposesof the statement of cash flows, the Company considers all highly liquiddebt instruments with an original maturity of three months or less tobe cash equivalents. |
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|  |  |                                                                                                                                                                  |
|--|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | The Company maintains cash in bankdeposit accounts which, at times, exceed federally insured limits. TheCompany has not experienced any losses on theseaccounts. |
|  |  |                                                                                                                                                                  |

|  |  |                                                                                                                                                                                                                                                                          |
|--|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | Deferred income taxes are provided for thedifferences between the bases of assets and liabilities for financialreporting and income tax purposes. A valuation allowance is establishedwhen necessary to reduce deferred tax assets to the amount expected tobe realized. |
|  |  |                                                                                                                                                                                                                                                                          |

|  |  |                                                                                                                                                                                        |
|--|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | The Company recorded a deferred income taxasset for the tax effect of net operating loss carryforwards andtemporary differences, aggregating approximately $8,600 at December 31,2004. |
|  |  |                                                                                                                                                                                        |

|  |  |                                                                                                                                                                              |
|--|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | In recognition of the uncertainty regarding theultimate amount of income tax benefits to be derived, the Company hasrecorded a full valuation allowance at December 31,2004. |
|  |  |                                                                                                                                                                              |

F-8

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RandAcquisition Corporation(a corporation in the developmentstage)    Notes to FinancialStatements

|  |  |                                                                                                             |
|--|--|-------------------------------------------------------------------------------------------------------------|
|  |  | The effective tax rate differs from thestatutory rate of 34% due to the increase in the valuationallowance. |
|  |  |                                                                                                             |

|  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | Basic loss per share is computed by dividing netloss by the weighted-average number of shares of common stockoutstanding during the period. Diluted earnings per share gives effectto dilutive options, warrants and other potential common stockoutstanding during the period. Potential common stock, amounting to10,100,000 shares, has not been included in the computation of dilutedloss per share, as the effect would be antidilutive. |
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|  |  |                                                                                                                                                                                                                                                                                                                                                                                                           |
|--|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | Thepreparation of financial statements in conformity with accountingprinciples generally accepted in the United States of America requiresmanagement to make estimates and assumptions that affect the reportedamounts of assets and liabilities at the date of the financialstatements and the reported amounts of expenses during the reportingperiod. Actual results could differ from thoseestimates. |
|  |  |                                                                                                                                                                                                                                                                                                                                                                                                           |

|  |  |                                                                                                                                                                                            |
|--|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | Management does not believe that any recentlyissued, but not yet effective, accounting standards if currentlyadopted would have a material effect on the accompanying financialstatements. |
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|        |                            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|----------------------------|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **2.** | **Initial PublicOffering** |  | On November 2, 2004, the Company sold a totalof 4,600,000 units ("Units") in the Offeringand the underwriters' exercise of their overallotment option.Each Unit consists of one share of the Company's common stock,$.0001 par value, and two Redeemable Common Stock Purchase Warrants("Warrants"). Each Warrant will entitle theholder to purchase from the Company one share of common stock at anexercise price of $5.00 commencing the later of the completion of aBusiness Combination with a target business or one year from theeffective date of the Offering and expiring four years from the date ofthe prospectus. The Warrants will be redeemable, upon prior writtenconsent of EarlyBirdCapital, Inc., the representative of theunderwriters in the Offering("Representative"), at a price of $.01 perWarrant upon 30 days' notice after the Warrants becomeexercisable, only in the event that the last sale price of the commonstock is at least $8.50 per share for any 20 trading days within a 30trading day period ending on the third day prior to the date on whichnotice of redemption is given. In connection with this Offering, theCompany issued an option, for $100, to the Representative to purchase300,000 Units at an exercise price of $9.90 per Unit. Each Unitincluded within this option consists of one share of common stock andtwo warrants. The Units issuable upon exercise of the option areidentical to those issued in the Offering except that the Warrantsincluded in the Units underlying the option have an exercise price of$6.25 per share. The option will be exercisable by the holder at $9.90per Unit commencing upon the consummation of a business combination bythe Company and will expire on October 26, 2009. The Company hasaccounted for the fair value of the option, inclusive of the receipt ofthe $100 cash payment, as an expense of the Offering resulting in acharge directly to stockholders' equity. The |
|        |                            |  |

F-9

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RandAcquisition Corporation(a corporation in the developmentstage)    Notes to FinancialStatements

|  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | Company estimates that the fair value of thisoption is approximately $558,000 ($1.86 per Unit) using a Black-Scholesoption-pricing model. The fair value of the option granted to theRepresentative has been estimated as of the date of grant using thefollowing assumptions: (1) expected volatility of 47.79%, (2)risk-free interest rate of 3.34% and (3) expected life of 5years. The option may be exercised for cash or on a"cashless" basis, at the holder'soption, such that the holder may use the appreciated value of theoption (the difference between the exercise prices of the option andthe underlying Warrants and the market price of the Units andunderlying securities) to exercise the option without the payment ofany cash. |
|  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

|        |                                              |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------|----------------------------------------------|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **3.** | **Commitment and relatedparty transactions** |  | The Company presently occupiesoffice space provided by an affiliate of an Initial Stockholder. Suchaffiliate has agreed that, until the acquisition of a target businessby the Company, it will make such office space, as well as certainoffice and secretarial services, available to the Company, as may berequired by the Company from time to time. The Company has agreed topay such affiliate $7,500 per month for such services commencing on theeffective date of the Offering. The statement of operations for theperiod ended December 31, 2004 includes $16,209 related to thisagreement. |
|        |                                              |  |

|  |  |                                                                                                                                                                                                                                                     |
|--|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | During the period, the Company issued a $70,000promissory note to an Initial Stockholder, who is also an officer. Thisnote was non-interest bearing and was repaid following the consummationof the Offering from the net proceeds of suchOffering. |
|  |  |                                                                                                                                                                                                                                                     |

|        |                    |  |                                                                                                                                                                                                       |
|--------|--------------------|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **4.** | **PreferredStock** |  | The Company is authorized to issue 1,000,000shares of preferred stock with such designations, voting and otherrights and preferences as may be determined from time to time by theBoard of Directors. |
|        |                    |  |

|        |                 |  |                                                                                                                                                                                                                                                                                                                     |
|--------|-----------------|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **5.** | **CommonStock** |  | On October 7, 2004, the Company's Board ofDirectors authorized a stock dividend of 0.1428571 shares of commonstock for each outstanding share of common stock. All references in theaccompanying financial statements to the number of shares of stock havebeen retroactively restated to reflect this transaction. |
|        |                 |  |

|  |  |                                                                                                                                                                 |
|--|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | AtDecember 31, 2004, 10,100,000 shares of common stock were reserved forissuance upon exercise of redeemable warrants and theunderwriters' unit purchaseoption. |
|  |  |                                                                                                                                                                 |

F-10

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SIGNATURES

Pursuant to the requirements of the Section 13 or 15 or 15(d) of theSecurities Exchange Act of 1934, the registrant has duly caused thisreport to be signed on its behalf by the undersigned, thereunto dulyauthorized on the 10th day of January 2006.

|        |  |                                 |  |                                                                                                                           |  |        |        |        |  |  |  |  |  |  |
|--------|--|---------------------------------|--|---------------------------------------------------------------------------------------------------------------------------|--|--------|--------|--------|--|--|--|--|--|--|
|   |  | **RANDACQUISITION CORPORATION** |
|   |  | By:                             |  | /s/Laurence S. Levy                                                                                                       |  |   |   |   |
|   |  |                            |  | Laurence S.Levy Chairman of the Board and Chief ExecutiveOfficer(Principal Executive and Financial and AccountingOfficer) |  |   |   |   |
|        |

In accordance with the SecuritiesExchange Act of 1934, this report has been signed below by thefollowing persons on behalf of the registrant and in the capacities andon the datesindicated.

|                     |  |                                                                                                               |  |                 |
|---------------------|--|---------------------------------------------------------------------------------------------------------------|--|-----------------|
| Name                |  | Title                                                                                                         |  | Date            |
|                     |
| /s/Laurence S. Levy |  | Chairman of the Board andChief  Executive Officer (Principal  Executive andFinancial  and Accounting Officer) |  | January 10,2006 |
|                     |
| Laurence S.Levy     |
|                     |
| /s/ Isaac Kier      |  | Director                                                                                                      |  | January 10,2006 |
|                     |
| IsaacKier           |
|                     |
| /s/ Sandeep D. Alva |  | Director                                                                                                      |  | January 10,2006 |
|                     |
| SandeepD. Alva      |
|                     |

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