**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**WASHINGTON,        D.C. 20549**

**FORM        10-QSB**

| x | Quarterly                  report under Section 13 or 15(d) of the Securities Exchange Act                  of                  1934 |
|---|--------------------------------------------------------------------------------------------------------------------------------------|

|   | For                  the quarterly period ended September                  30, 2005 |
|--------|-------------------------------------------------------------------------------------|

| o | Transition                  report under Section 13 or 15(d) of the Exchange                  Act |
|---|---------------------------------------------------------------------------------------------------|

|   | For                  the transition period from _____________ to                  _____________ |
|--------|-------------------------------------------------------------------------------------------------|

| Fortress                  America Acquisition Corporation                                           |
|-----------------------------------------------------------------------------------------------------|
| (Exact                  Name of Small Business Issuer as Specified in Its                  Charter) |
|                                                                                                |
| Delaware                                                                                            |   | 20-2027651 |
| (State                  or other Jurisdiction ofIncorporation                  or Organization)     |   | (I.R.S.                  EmployerIdentification                  No.) |
|                                                                                                |
| 4100                  North Fairfax Drive, Suite 1150                                               |
| Arlington,                  Virginia 22203-1664                                                     |
| (Address                  of Principal Executive Office)                                            |
|                                                                                                |
| (703)                  528-7073                                                                     |
| (Issuer's                  Telephone Number, Including Area                  Code)                  |

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**PART        I. FINANCIAL INFORMATION**

**Page**

| Item                  1 - Financial Statements                                                         |   |
|--------------------------------------------------------------------------------------------------------|--------|
|                                                                                                   |   |
| Balance                  Sheet                                                                         | 3      |
|                                                                                                   |   |
| Statements                  of Operations                                                              | 4      |
|                                                                                                   |   |
| Statements                  of Stockholders' Equity                                                    | 5      |
|                                                                                                   |   |
| Statements                  of Cash Flows                                                              | 6      |
|                                                                                                   |   |
| Notes                  to Financial Statements                                                         | 7      |
|                                                                                                   |   |
| Item                  2 - Management's Discussion and Analysis or Plan of                  Operation   | 11     |
|                                                                                                   |   |
| Item                  3 - Controls and Procedures                                                      | 12     |
|                                                                                                   |   |
| **PART                  II. OTHER INFORMATION**                                                        | 13     |
|                                                                                                   |   |
| Item                  2 - Unregistered Sales of Equity Securities and Use of                  Proceeds | 13     |
|                                                                                                   |   |
| Item                  6 - Exhibits                                                                     | 13     |
|                                                                                                   |   |
| Signatures                                                                                             | 14     |

----

**Fortress        America Acquisition Corporation**

**(a        corporation in the development stage)**

**Balance        Sheet**

|                                                                                                                                                                                   |   | **September                  30, 2005 (unaudited)** |       | **December                  31, 2004** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|------------|----------------------------------------|--------|
|                                                                                                                                                                                   |   |                                                |       |                                   |   |
| **Assets**                                                                                                                                                                             |   |                                                |       |                                   |   |
| Current                  assets:                                                                                                                                                       |   |                                                |       |                                   |   |
| Cash                                                                                                                                                                                   |   | $                                                   | 1,140,101  |                                   | $      | 25,000 |   |
| Investments                  held in Trust Fund                                                                                                                                        |   |                                                | 42,223,569 |                                   |   | - |   |
| Prepaid                  expenses                                                                                                                                                      |   |                                                | 54,166     |                                   |   | - |   |
| Total                  current assets                                                                                                                                                  |   |                                                | 43,417,836 |                                   |   | 25,000 |   |
| Deferred                  offering costs                                                                                                                                               |   |                                                | -          |                                   |   | 12,500 |   |
| Total                  assets                                                                                                                                                          |   | $                                                   | 43,417,836 |                                   | $      | 37,500 |   |
|                                                                                                                                                                                   |   |                                                |       |                                   |   |   |   |
| **Liabilities                  and Stockholders’ Equity**                                                                                                                        |   |                                                |       |                                   |   |   |   |
|                                                                                                                                                                                   |   |                                                |       |                                   |   |   |   |
| Current                  liabilities:                                                                                                                                                  |   |                                                |       |                                   |   |   |   |
| Accounts                  payable and accrued expenses                                                                                                                                 |   | $                                                   | 73,743     |                                   | $      | 1,056 |   |
| Income                  taxes payable                                                                                                                                                  |   |                                                | 31,613     |                                   |   | - |   |
| Notes                  payable, stockholders                                                                                                                                           |   |                                                | -          |                                   |   | 12,500 |   |
| Advances                  from stockholder                                                                                                                                             |   |                                                | 10,600     |                                   |   | - |   |
| Deferred                  interest on investments                                                                                                                                      |   |                                                | 51,896     |                                   |   | - |   |
| Total                  current liabilities                                                                                                                                             |   |                                                | 167,852    |                                   |   | 13,556 |   |
|                                                                                                                                                                                   |   |                                                |       |                                   |   |   |   |
| Common                  stock, subject to possible conversion, 1,559,220 shares at conversion                  value                                                                   |   |                                                | 8,388,604  |                                   |   | - |   |
|                                                                                                                                                                                   |   |                                                |       |                                   |   |   |   |
| **Commitment**                                                                                                                                                                         |   |                                                |       |                                   |   |   |   |
|                                                                                                                                                                                   |   |                                                |       |                                   |   |   |   |
| **Stockholders'                  equity**                                                                                                                                              |   |                                                |       |                                   |   |   |   |
| Preferred                  stock, $.0001 par value, Authorized 1,000,000 shares; none                  issued                                                                          |   |                                                | -          |                                   |   | - |   |
| Common                  stock, $.0001 par value                                                                                                                                        |   |                                                |       |                                   |   |   |   |
| Authorized                  50,000,000 shares                                                                                                                                          |   |                                                |       |                                   |   |   |   |
| Issued                  and outstanding 9,550,000 shares (which includes 1,559,220 subject                  to                  possible conversion) and 1,250,000 shares respectively |   |                                                | 955        |                                   |   | 125 |   |
| Additional                  paid-in capital                                                                                                                                            |   |                                                | 34,814,062 |                                   |   | 24,875 |   |
| Income                  (deficit) accumulated during the development stage                                                                                                             |   |                                                | 46,363     |                                   |   | (1,056 | ) |
| **Total                  stockholders' equity**                                                                                                                                        |   |                                                | 34,861,380 |                                   |   | 23,944 |   |
| **Total                  liabilities and stockholders' equity**                                                                                                                        |   | $                                                   | 43,417,836 |                                   | $      | 37,500 |   |

*See        Notes to Unaudited Financial Statements.*

----

**Fortress        America Acquisition Corporation**

**(a        corporation in the development stage)**

**Statement        of Operations**

**(unaudited)**

|                                                                                                      |   | **For                  the Three****Months                  Ended****September                  30, 2005** |      | **For                  the Nine****Months                  Ended****September                  30, 2005** |   | **For                  the Period December 20, 2004****(inception)                  to****September                  30, 2005** |   |
|-----------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------|-----------|-----------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|--------|
| Income:                                                                                                   |   |                                                                                                       |      |                                                                                                      |   |                                                                                                                            |   |
| Net                  interest income                                                                      |   | $                                                                                                          | 213,897   |                                                                                                      | $      | 213,897                                                                                                                         |   | $ | 213,897 |   |
| Total                  income                                                                             |   |                                                                                                       | 213,897   |                                                                                                      |   | 213,897                                                                                                                         |   |   | 213,897 |   |
| Expenses:                                                                                                 |   |                                                                                                       |      |                                                                                                      |   |                                                                                                                            |   |   |   |   |
| Formation                  and operating costs                                                            |   |                                                                                                       | 133,219   |                                                                                                      |   | 134,865                                                                                                                         |   |   | 135,921 |   |
|                                                                                                      |   |                                                                                                       |      |                                                                                                      |   |                                                                                                                            |   |   |   |   |
| Net                  income for the period before income taxes                                            |   |                                                                                                       | 80,678    |                                                                                                      |   | 79,032                                                                                                                          |   |   | 77,976 |   |
|                                                                                                      |   |                                                                                                       |      |                                                                                                      |   |                                                                                                                            |   |   |   |   |
| State                  and federal income taxes                                                           |   |                                                                                                       | 31,613    |                                                                                                      |   | 31,613                                                                                                                          |   |   | 31,613 |   |
|                                                                                                      |   |                                                                                                       |      |                                                                                                      |   |                                                                                                                            |   |   |   |   |
| Net                  income for the period                                                                |   | $                                                                                                          | 49,065    |                                                                                                      | $      | 47,419                                                                                                                          |   | $ | 46,363 |   |
|                                                                                                      |   |                                                                                                       |      |                                                                                                      |   |                                                                                                                            |   |   |   |   |
| Weighted                  average number of shares outstanding - basic and                  diluted  |   |                                                                                                       | 7,634,783 |                                                                                                      |   | 3,610,440                                                                                                                       |   |   | 3,519,014 |   |
|                                                                                                      |   |                                                                                                       |      |                                                                                                      |   |                                                                                                                            |   |   |   |   |
| Net                  income per share - basic and diluted                                                 |   | $                                                                                                          | .01       |                                                                                                      | $      | .01                                                                                                                             |   | $ | .01 |   |

*See          Notes to Unaudited Financial Statements.*

----

**Fortress        America Acquisition Corporation**

**(a        corporation in the development stage)**

**Statement        of Stockholders' Equity**

*For        the period from December 20, 2004 (inception) to September 30,        2005*

|                                                                                                                                                                                                        |   |                              |                               |        |   | **Addition**                       |   | **Income****(Deficit)****Accumulated****During                  the** |                               |      |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------------------------------|-------------|--------|------------------------------------|--------|-----------------------------------------------------------------------|------------------------------------|-----------|--------|
|                                                                                                                                                                                                        |   | **Common                  Stock** |                               | **paid-in** |   | **Development**                    |   |                                                                  |                               |
|                                                                                                                                                                                                        |   | **Shares**                        |                               | **Amount**  |   | **capital**                        |   | **Stage**                                                             |                               | **Total** |   |
| Common                  shares issued December 20, 2004 at $.02 per share                                                                                                                                   |   |                              | 1,250,000                          |        | $      | 125                                |   | $                                                                     | 24,875                             |      |   |   |   | $ | 25,000 |   |
|                                                                                                                                                                                                        |   |                              |                               |        |   |                               |   |                                                                  |                               |      |   |   |   |   |   |   |
| Net                  Loss                                                                                                                                                                                   |   |                              |                     |        |   |                     |   |                                                                  |                     |      | $      | (1,056 | ) |   | (1,056 | ) |
| Balance                  at December 31, 2004                                                                                                                                                               |   |                              | 1,250,000                          |        |   | 125                                |   |                                                                  | 24,875                             |      |   | (1,056 | ) |   | 23,944 |   |
| Unaudited:                                                                                                                                                                                                  |   |                              |                               |        |   |                               |   |                                                                  |                               |      |   |   |   |   |   |   |
| Redemption                  of common stock                                                                                                                                                            |   |                              | (1,250,000                         | )           |   | (125                               | )      |                                                                  | (24,875                            | )         |   |   |   |   | (25,000 | ) |
|                                                                                                                                                                                                        |   |                              |                               |        |   |                               |   |                                                                  |                               |      |   |   |   |   |   |   |
| Common                  shares issued March 9, 2005 at $0.01429 per share                                                                                                                              |   |                              | 1,750,000                          |        |   | 175                                |   |                                                                  | 24,825                             |      |   |   |   |   | 25,000 |   |
|                                                                                                                                                                                                        |   |                              |                               |        |   |                               |   |                                                                  |                               |      |   |   |   |   |   |   |
| Common                  shares issued July 20, 2005, net of underwriters’ discount and offering                  expenses (includes 1,399,300 shares subject to possible                  conversion) |   |                              | 7,000,000                          |        |   | 700                                |   |                                                                  | 38,682,329                         |      |   |   |   |   | 38,683,029 |   |
| Common                  shares issued August 24, 2005, net of underwriters’ discount and offering                  expenses (includes 159,920 shares subject to possible                  conversion) |   |                              | 800,000                            |        |   | 80                                 |   |                                                                  | 4,495,412                          |      |   |   |   |   | 4,495,492 |   |
| Proceeds                  subject to possible conversion of 1,559,220 shares                                                                                                                                |   |                              |                               |        |   |                               |   |                                                                  | (8,388,604                         | )         |   |   |   |   | (8,388,604 | ) |
| Proceeds                  from issuance of option                                                                                                                                                           |   |                              |                               |        |   |                               |   |                                                                  | 100                                |      |   |   |   |   | 100 |   |
| Net                  income                                                                                                                                                                                 |   |                              |                     |        |   |                     |   |                                                                  |                     |      |   | 47,419 |   |   | 47,419 |   |
| Balance                  at September 30, 2005                                                                                                                                                              |   |                              | 9,550,000                          |        | $      | 955                                |   | $                                                                     | 34,814,062                         |      | $      | 46,363 |   | $ | 34,861,380 |   |

*See        Notes to Unaudited Financial Statements*

----

**Fortress        America Acquisition Corporation**

**(a        corporation in the development stage)**

**Statement        of Cash Flows**

**(unaudited)**

|                                                                                                            |   | **For                  the Nine****Months                  Ended****September                  30, 2005** |        | **For                  the period December 20, 2004****(inception)                  to****September                  30, 2005** |   |
|-----------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------|-------------|---------------------------------------------------------------------------------------------------------------------------------|--------|
| **Cash                  flow from operating activities**                                                        |   |                                                                                                      |        |                                                                                                                            |   |
| Net                  gain                                                                                       |   | $                                                                                                         | 47,419      |                                                                                                                            | $      | 46,363 |   |
| Adjustments                  to reconcile net loss to net cash used in operating                  activities:   |   |                                                                                                      |        |                                                                                                                            |   |   |   |
| Interest                  income on treasury bills                                                              |   |                                                                                                      | (259,569    | )                                                                                                                               |   | (259,569 | ) |
| Increase                  in prepaid expenses                                                                   |   |                                                                                                      | (54,166     | )                                                                                                                               |   | (54,166 | ) |
| Increase                  in accounts payable and accrued expenses                                              |   |                                                                                                      | 60,687      |                                                                                                                            |   | 61,743 |   |
| Increase                  in income taxes payable                                                               |   |                                                                                                      | 31,613      |                                                                                                                            |   | 31,613 |   |
| Increase                  in deferred interest                                                                  |   |                                                                                                      | 51,896      |                                                                                                                            |   | 51,896 |   |
| **Net                  cash used in operating activities**                                                      |   |                                                                                                      | (122,120    | )                                                                                                                               |   | (122,120 | ) |
|                                                                                                            |   |                                                                                                      |        |                                                                                                                            |   |   |   |
| **Cash                  flows from investing activities**                                                       |   |                                                                                                      |        |                                                                                                                            |   |   |   |
| Investments                  placed in Trust Fund                                                               |   |                                                                                                      | (41,964,000 | )                                                                                                                               |   | (41,964,000 | ) |
| **Net                  cash used in investing activities**                                                      |   |                                                                                                      | (41,964,000 | )                                                                                                                               |   | (41,964,000 | ) |
|                                                                                                            |   |                                                                                                      |        |                                                                                                                            |   |   |   |
| **Cash                  flows from financing activities**                                                       |   |                                                                                                      |        |                                                                                                                            |   |   |   |
| Gross                  proceeds of public offering, including over-allotment option                  exercise   |   |                                                                                                      | 46,800,000  |                                                                                                                            |   | 46,800,000 |   |
| Proceeds                  of issuance of option                                                                 |   |                                                                                                      | 100         |                                                                                                                            |   | 100 |   |
| Proceeds                  from notes payable, stockholders                                                      |   |                                                                                                      | 57,500      |                                                                                                                            |   | 70,000 |   |
| Payment                  of notes payable, stockholders                                                         |   |                                                                                                      | (70,000     | )                                                                                                                               |   | (70,000 | ) |
| Proceeds                  from sale of shares of common stock                                                   |   |                                                                                                      | 25,000      |                                                                                                                            |   | 50,000 |   |
| Redemption                  of common stock                                                                     |   |                                                                                                      | (25,000     | )                                                                                                                               |   | (25,000 | ) |
| Payment                  of costs of public offering, including over-allotment option                  exercise |   |                                                                                                      | (3,596,979  | )                                                                                                                               |   | (3,609,479 | ) |
| Advances                  from stockholder                                                                      |   |                                                                                                      | 10,600      |                                                                                                                            |   | 10,600 |   |
| **Net                  cash (used in) provided by financing activities**                                        |   |                                                                                                      | 43,201,221  |                                                                                                                            |   | 43,226,221 |   |
|                                                                                                            |   |                                                                                                      |        |                                                                                                                            |   |   |   |
| **Net                  (decrease) increase in cash**                                                            |   |                                                                                                      | 1,115,101   |                                                                                                                            |   | 1,                  140,101 |   |
| **Cash                  at beginning of the period**                                                            |   |                                                                                                      | 25,000      |                                                                                                                            |   | - |   |
| **Cash                  at the end of the period**                                                              |   | $                                                                                                         | 1,140,101   |                                                                                                                            | $      | 1,140,101 |   |
|                                                                                                            |   |                                                                                                      |        |                                                                                                                            |   |   |   |
| Non                  cash financing activity:                                                                   |   |                                                                                                      |        |                                                                                                                            |   |   |   |
| Accrual                  of costs of public offering                                                            |   | $                                                                                                         | 12,000      |                                                                                                                            | $      | 12,000 |   |

*See        Notes to Unaudited Financial Statements.*

----

**Fortress        America Acquisition Corporation**

**(a        corporation in the development stage)**

**Notes        to Unaudited Financial Statements**

| **1.** **Organization                  and Proposed Business Operations** |     | Fortress                  America Acquisition Corporation (the “Company”) was incorporated in                  Delaware on December 20, 2004 as a blank check company, the objective                  of                  which is to acquire one or more operating businesses in the homeland                  security industry. The Company has elected December 31 as its fiscal                  year-end.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------------------------------------------------------------------------------|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                           |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                           |               | The                  financial statements at September 30, 2005 and for the periods                  ended                  September 30, 2005 are unaudited. In the opinion of management,                  all                  adjustments (consisting of normal adjustments) have been made that                  are                  necessary to present fairly the financial position of the Company                  as of                  September 30, 2005, the results of its operations for the three                  and nine                  month periods ended September 30, 2005 and for the period from                  December                  20, 2004 (inception) through September 30, 2005, and its cash flows                  for                  the nine month period ended September 30, 2005 and for the period                  from                  December 20, 2004 (inception) through September 30, 2005. Operating                  results for the interim period presented are not necessarily indicative                  of                  the results to be expected for a full year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                           |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                           |               | The                  Company was formed on December 20, 2004 and consummated an initial                  public                  offering (“IPO”) on July 20, 2005. In addition, on August 24, 2005 the                  underwriters for the IPO exercised their over-allotment option                  (the                  “Over-Allotment Option Exercise” and, together with the IPO, the                  “Offering”), generating total net proceeds of $43,178,521. The Company’s                  management has broad discretion with respect to the specific application                  of the net proceeds of this Offering, although substantially all                  the net                  proceeds of this Offering are intended to be generally applied                  toward                  consummating a business combination with (or acquisition of) one                  or more                  operating businesses in the homeland security industry (“Business                  Combination”). Furthermore, there is no assurance that the Company will be                  able to successfully effect a Business Combination. Upon the closing                  of                  the Offering, approximately $41,964,000 of the net proceeds was                  deposited                  in a trust fund account (“Trust Fund”) and has been invested in government                  securities until the earlier of (i) the consummation of its first                  Business                  Combination; or (ii) the liquidation of the Company. The remaining                  proceeds may be used to pay for business, legal and accounting                  due                  diligence on prospective acquisitions and continuing general and                  administrative expenses. The Company, after signing a definitive                  agreement                  for the acquisition of a target business, will submit such transaction                  for                  stockholder approval. All of the Company stockholders prior to                  the                  Offering, including all of the officers and directors of the Company                  (“Initial Stockholders”), have agreed to vote their 1,750,000 founding                  shares of common stock in accordance with the vote of the majority                  in                  interest of all other stockholders of the Company (“Public Stockholders”)                  with respect to any Business Combination. After consummation of                  the                  Company’s first Business Combination, all of these voting safeguards will                  no longer be applicable. |

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**Fortress        America Acquisition Corporation**

**(a        corporation in the development stage) (continued)**

**Notes        to Unaudited Financial Statements**

|   |   | In                  the event (i) the Business Combination is not approved by a majority                  of                  the shares of common stock held by the Public Stockholders or (ii)                  20% or                  more of the shares of common stock held by the Public Stockholders                  vote                  against                  the Business Combination and exercise their conversion rights described                  below, the Business Combination will not be consummated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |   | With                  respect to the first Business Combination which is approved and                  consummated, any Public Stockholder who voted against the Business                  Combination may demand that the Company convert his or her shares.                  The per                  share conversion price will equal the amount in the Trust Fund,                  calculated                  as of two business days prior to the proposed Business Combination,                  divided by the number of shares of common stock held by Public                  Stockholders at the consummation of the Offering. Accordingly,                  Public                  Stockholders holding approximately 19.99% of the aggregate number                  of                  shares owned by all Public Stockholders may seek conversion of                  their                  shares in the event of a Business Combination. Such Public Stockholders                  are entitled to receive their per share interest in the Trust Fund                  computed without regard to the shares held by the Initial                  Stockholders. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |   | The                  Company’s Certificate of Incorporation, as amended, provides for the                  mandatory liquidation of the Company in the event that the Company                  does                  not consummate a Business Combination within 12 months from the                  date of                  the consummation of the Offering, or 18 months from the consummation                  of                  the Offering if certain extension criteria have been satisfied.                  In the                  event of liquidation, it is likely that the per share value of                  the                  residual assets remaining available for distribution (including                  Trust Fund                  assets) will be less than the initial public offering price per                  share in                  the Offering.                                                                                                                                                                                                                                                                                    |

----

**Fortress        America Acquisition Corporation**

**(a        corporation in the development stage) (continued)**

**Notes        to Unaudited Financial Statements**

| **2.** **Deferred                  Offering Costs**                                                          |   | Deferred                  offering costs consist of underwriting fees incurred through the                  balance                  sheet dates that are related to the Offering and that were charged                  to                  capital upon receipt of the capital raised.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| **3.** **Notes                  Payable-****Stockholders                  and Advances from****Stockholder** |   | The                  Company had unsecured promissory notes to the Initial Stockholders,                  who                  are officers and directors of the Company, of $12,500 at December                  31,                  2004. The loans were non-interest bearing and were payable the                  earlier of                  March 9, 2006 or the consummation of the Offering. Due to the short-term                  nature of the notes, the fair value of the notes approximated its                  carrying                  amount. The notes were paid in full subsequent to the consummation                  of the                  Offering.                                                                                                                                                       |
|                                                                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                              |   | In                  addition, one of the Initial Stockholders has made payments on                  behalf of                  the Company which are non-interest bearing and due on demand. Such                  amounts                  have been included in Advances from Stockholder on the accompanying                  September 30, 2005 balance sheet.** **                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| **4.** **Commitment**                                                                                        |   | Commencing                  January 1, 2005, the Company occupied office space from, and had                  certain                  office and secretarial services made available to it by, an unaffiliated                  third party. Rent expense under this agreement for each of the                  periods                  from December 20, 2004 (inception) to September 30, 2005 and from                  January                  1, 2005 to September 30, 2005 amounted to $1,517 and $1,080, respectively.                  The rental agreement expired June 30, 2005.                                                                                                                                                                                                                                         |
|                                                                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                              |   | Commencing                  on the consummation of the Offering, the Company occupies office                  space                  provided by an affiliate of an Initial Stockholder. Such affiliate                  has                  agreed that, until the acquisition or a target business by the                  Company, it                  will make such office space, as well as certain office and secretarial                  services, available to the Company, as may be required by the Company                  from                  time to time. The Company has agreed to pay such affiliate $7,500                  per                  month for such services. Rent expense under this agreement amounted                  to                  $15,000 during the periods ended September 30, 2005. |
|                                                                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| **5.** **Common                  Stock**                                                                     |   | On                  December 20, 2004, the Company issued 1,250,000 shares of Common                  Stock. On                  March 8, 2005, the Company authorized the redemption of the 1,250,000                  shares of common stock at the original subscription price. On March                  9,                  2005, the Company issued 1,750,000 shares of common stock to the                  original                  stockholders along with new stockholders (in the aggregate, these                  stockholders are the Initial Stockholders).                                                                                                                                                                                                                                                           |
|                                                                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                              |   | On                  July 20, 2005, the Company issued 7,000,000 shares of Common Stock                  in                  connection with the IPO. On August 24, 2005, the Company issued                  800,000                  share of Common Stock pursuant to the Over-Allotment Option                  Exercise.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

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**Fortress        America Acquisition Corporation**

**(a        corporation in the development stage) (continued)**

**Notes        to Unaudited Financial Statements**

| **6.** **Preferred                  Stock**  |   | The                  Company is authorized to issue 1,000,000 shares of preferred stock                  with                  such designations, voting and other rights and preferences as may                  be                  determined from time to time by the Board of                  Directors. |
|--------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**ITEM        2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF        OPERATION**

** **

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**ITEM        3. CONTROLS AND PROCEDURES.**

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**PART        II.**

**OTHER        INFORMATION**

**ITEM        2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF        PROCEEDS**

**ITEM        6: EXHIBITS **

|   |      |                                                                                                                                                                                                                                                                                                                                                |
|--------|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (a)  | Exhibits:                                                                                                                                                                                                                                                                                                                                           |
|   |      |                                                                                                                                                                                                                                                                                                                                                |
|   |      | 3.1                  - Amended and restated certificate of incorporation (incorporated                  by                  reference to Exhibit 3.2 to Amendment No. 3 to Registrant’s Registration                  Statement on Form S-1 (File No. 333-123504) filed with the SEC                  on July 5,                  2005). |
|   |      |                                                                                                                                                                                                                                                                                                                                                |
|   |      | 3.2                  - By-laws (incorporated by reference to Exhibit 3.2 to Amendment                  No. 3 to                  Registrant’s Registration Statement on Form S-1 (File No. 333-123504)                  filed with the SEC on March 23, 2005).                                                                                |
|   |      |                                                                                                                                                                                                                                                                                                                                                |
|   |      | 31                  - Section 302 Certification by CEO                                                                                                                                                                                                                                                                                              |
|   |      |                                                                                                                                                                                                                                                                                                                                                |
|   |      | 32                  - Section 906 Certification by CEO                                                                                                                                                                                                                                                                                              |

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**SIGNATURES**

|   | **FORTRESS                  AMERICA ACQUISITION                  CORPORATION** |
|--------|--------------------------------------------------------------------------------|

|   | /s/                  Harvey L. WeissHarvey                  WeissChief                  Executive Officer |
|--------|-----------------------------------------------------------------------------------------------------------|

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**EXHIBIT        INDEX**

| **Exhibit                  Number** | **Description                  of Document**                                                                                                                                                                                                                                                                            |
|-------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                            | Amended                  and restated certificate of incorporation (incorporated by reference                  to                  Exhibit 3.2 to Amendment No. 3 to Registrant’s Registration Statement on                  Form S-1 (File No. 333-123504) filed with the SEC on July 5,                  2005). |
|                                |                                                                                                                                                                                                                                                                                                                    |
| 3.2                            | By-laws                  (incorporated by reference to Exhibit 3.2 to Amendment No. 3 to                  Registrant’s Registration Statement on Form S-1 (File No. 333-123504)                  filed with the SEC on March 23, 2005).                                                                           |
|                                |                                                                                                                                                                                                                                                                                                                    |
| 31                                  | Section                  302 Certification by CEO                                                                                                                                                                                                                                                                       |
|                                |                                                                                                                                                                                                                                                                                                                    |
| 32                                  | Section                  906 Certification by CEO                                                                                                                                                                                                                                                                       |

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