**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 March                31, 2006 |
|--------|-----------------------------------------------------------------------------|

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

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

| Delaware                                       |   | 20-2027651                         |
|------------------------------------------------|--------|------------------------------------|
| (State                or other Jurisdiction of |   | (I.R.S.                Employer    |
| Incorporation                or Organization)  |   | Identification                No.) |

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| **PART                I. FINANCIAL INFORMATION**                                                 | **Page** |
|--------------------------------------------------------------------------------------------------|----------|
|                                                                                             |     |
| Item                1 - Financial Statements                                                |     |
|                                                                                             |     |
| Condensed                Balance Sheet                                                           | 3        |
|                                                                                             |     |
| Condensed                Statements of Operations                                                | 4        |
|                                                                                             |     |
| Condensed                Statements of Stockholders' Equity                                      | 5        |
|                                                                                             |     |
| Condensed                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                6 - Exhibits                                                                 | 13       |
| Signatures                                                                                       | 14       |

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**Fortress      America Acquisition Corporation**

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

**Condensed      Balance Sheet**

|                                                                                                                                                                             |   | **March                31, 2006 (unaudited)** |       | **December                31, 2005** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|------------|--------------------------------------|--------|
|                                                                                                                                                                             |   |                                          |       |                                 |   |
| **Assets**                                                                                                                                                                       |   |                                          |       |                                 |   |
| Current                assets:                                                                                                                                                   |   |                                          |       |                                 |   |
| Cash                                                                                                                                                                             |   | $                                             | 871,760    |                                 | $      | 992,547 |   |
| Investments                held in Trust Fund                                                                                                                                    |   |                                          | 43,047,747 |                                 |   | 42,603,801 |   |
| Prepaid                expenses                                                                                                                                                  |   |                                          | 26,164     |                                 |   | 50,165 |   |
| Total                current assets                                                                                                                                              |   |                                          | 43,945,671 |                                 |   | 43,646,513 |   |
| Deferred                tax asset                                                                                                                                                |   |                                          | 217,070    |                                 |   | 132,000 |   |
| Total                assets                                                                                                                                                      |   | $                                             | 44,162,741 |                                 | $      | 43,778,513 |   |
|                                                                                                                                                                             |   |                                          |       |                                 |   |   |   |
| **Liabilities                and Stockholders’ Equity**                                                                                                                    |   |                                          |       |                                 |   |   |   |
|                                                                                                                                                                             |   |                                          |       |                                 |   |   |   |
| Current                liabilities:                                                                                                                                              |   |                                          |       |                                 |   |   |   |
| Accounts                payable and accrued expenses                                                                                                                             |   | $                                             | 130,362    |                                 | $      | 105,308 |   |
| Income                taxes payable                                                                                                                                              |   |                                          | 354,286    |                                 |   | 206,194 |   |
| Deferred                interest on investments                                                                                                                                  |   |                                          | 216,649    |                                 |   | 127,904 |   |
| Total                current liabilities                                                                                                                                         |   |                                          | 701,297    |                                 |   | 439,406 |   |
|                                                                                                                                                                             |   |                                          |       |                                 |   |   |   |
| Common                stock, subject to possible conversion, 1,559,220 shares at conversion                value                                                                 |   |                                          | 8,388,604  |                                 |   | 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        |                                 |   | 955 |   |
| Additional                paid-in capital                                                                                                                                        |   |                                          | 34,819,062 |                                 |   | 34,819,062 |   |
| Income                accumulated during the development stage                                                                                                                   |   |                                          | 252,823    |                                 |   | 130,486 |   |
| **Total                stockholders' equity**                                                                                                                                    |   |                                          | 35,072,840 |                                 |   | 34,950,503 |   |
| **Total                liabilities and stockholders' equity**                                                                                                                    |   | $                                             | 44,162,741 |                                 | $      | 43,778,513 |   |
|                                                                                                                                                                             |   |                                          |       |                                 |   |   |   |

*See      Notes to Unaudited Condensed Financial Statements.*

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**Fortress      America Acquisition Corporation**

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

**Condensed      Statement of Operations**

**(unaudited)**

|                                                                                                  |   | **For                the Three****Months                Ended****March                31, 2006** |      | **For                the Three****Months                Ended****March                31, 2005** |   | **For                the Period December 20, 2004****(inception)                to****March                31, 2006** |   |
|-------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|-----------|--------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------|--------|
|     Income:                                                                       |   |                                                                                             |      |                                                                                             |   |                                                                                                                  |   |
|     Net                interest income                                            |   | $                                                                                                | 361,561   |                                                                                             | $      | -                                                                                                                     |   | $ | 886,991 |   |
| Total                income                                                                           |   |                                                                                             | 361,561   |                                                                                             |   | -                                                                                                                     |   |   | 886,991 |   |
| Expenses:                                                                                             |   |                                                                                             |      |                                                                                             |   |                                                                                                                  |   |   |   |   |
| Formation                and operating costs                                                          |   |                                                                                             | 176,202   |                                                                                             |   | 566                                                                                                                   |   |   | 496,952 |   |
|                                                                                                  |   |                                                                                             |      |                                                                                             |   |                                                                                                                  |   |   |   |   |
| Net                income (loss) for the period before income taxes                                   |   |                                                                                             | 185,359   |                                                                                             |   | (566                                                                                                                  | )      |   | 390,039 |   |
|                                                                                                  |   |                                                                                             |      |                                                                                             |   |                                                                                                                  |   |   |   |   |
|     State                and federal income taxes                                 |   |                                                                                             | 63,022    |                                                                                             |   | -                                                                                                                     |   |   | 137,216 |   |
|                                                                                                  |   |                                                                                             |      |                                                                                             |   |                                                                                                                  |   |   |   |   |
| Net                income (loss) for the period                                                       |   | $                                                                                                | 122,337   |                                                                                             | $      | (566                                                                                                                  | )      | $ | 252,823 |   |
|                                                                                                  |   |                                                                                             |      |                                                                                             |   |                                                                                                                  |   |   |   |   |
| Weighted                average number of shares outstanding - basic and                diluted  |   |                                                                                             | 9,550,000 |                                                                                             |   | 1,372,222                                                                                                             |   |   | 5,874,464 |   |
|                                                                                                  |   |                                                                                             |      |                                                                                             |   |                                                                                                                  |   |   |   |   |
|     Net                income (loss) per share - basic and diluted                |   | $                                                                                                | .01       |                                                                                             | $      | (.00                                                                                                                  | )      | $ | .04 |   |

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*See      Notes to Unaudited Condensed Financial Statements.*

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**Fortress      America Acquisition Corporation**

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

**Condensed      Statement of Stockholders' Equity**

*For      the period from December 20, 2004 (inception) to March 31,      2006*

|                                                                                                                                                                                                  |   |                            |                           |        |   | **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 |   |
|                                                                                                                                                                                                  |   |                            |                           |        |   |                           |   |                                                                |                                             |      |   |   |   |   |   |   |
| 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                            |   |                                                                | 38,687,329                                       |      |   |   |   |   | 38,688,029 |   |
| 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                                                                                                                                                                             |   |                            |                 |        |   |       |   |                                                                |                         |      |   | 131,542 |   |   | 131,542 |   |
| Balance                at December 31, 2005                                                                                                                                                           |   |                            | 9,550,000                      |        |   | 955                            |   |                                                                | 34,819,062                                       |      |   | 130,486 |   |   | 34,950,503 |   |
|                                                                                                                                                                                                  |   |                            |                           |        |   |                           |   |                                                                |                                             |      |   |   |   |   |   |   |
| Unaudited:                                                                                                                                                                                            |   |                            |                           |        |   |                           |   |                                                                |                                             |      |   |   |   |   |   |   |
| Net                income                                                                                                                                                                             |   |                            |       |        |   |       |   |                                                                |          |      |   | 122,337 |   |   | 122,337 |   |
| Balance                at March 31, 2006                                                                                                                                                              |   |                            | 9,550,000                      |        | $      | 955                            |   | $                                                                   | 34,819,062                                       |      | $      | 252,823 |   | $ | 35,072,840 |   |

*See      Notes to Unaudited Condensed Financial Statements*

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**Fortress      America Acquisition Corporation**

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

**Condensed      Statement of Cash Flows**

**(unaudited)**

|                                                                                                               |   | **For                the Three****Months                Ended****March                31, 2006** |     | **For                the Three****Months                Ended****March                31, 2005** |   | **For                the period December 20, 2004****(inception)                to****March                31, 2006** |   |
|--------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|----------|--------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------|--------|
| **Cash                flow from operating activities**                                                             |   |                                                                                             |     |                                                                                             |   |                                                                                                                  |   |
| Net                income (loss)                                                                                   |   | $                                                                                                | 122,337  |                                                                                             | $      | (566                                                                                                                  | )      | $ | 252,823 |   |
| Adjustments                to reconcile net income (loss) to net cash used in operating                activities: |   |                                                                                             |     |                                                                                             |   |                                                                                                                  |   |   |   |   |
| Deferred                income taxes                                                                               |   |                                                                                             | (85,070  | )                                                                                                |   | -                                                                                                                     |   |   | (217,070 | ) |
| Interest                income on treasury bills                                                                   |   |                                                                                             | (443,946 | )                                                                                                |   | -                                                                                                                     |   |   | (1,083,747 | ) |
| Decrease                (Increase) in prepaid expenses                                                             |   |                                                                                             | 24,001   |                                                                                             |   | -                                                                                                                     |   |   | (26,164 | ) |
| Increase                in accounts payable and accrued expenses                                                   |   |                                                                                             | 25,054   |                                                                                             |   | -                                                                                                                     |   |   | 130,362 |   |
| Increase                in income taxes payable                                                                    |   |                                                                                             | 148,092  |                                                                                             |   | -                                                                                                                     |   |   | 354,286 |   |
| Increase                in deferred interest                                                                       |   |                                                                                             | 88,745   |                                                                                             |   | -                                                                                                                     |   |   | 216,649 |   |
| **Net                cash used in operating activities**                                                           |   |                                                                                             | (120,787 | )                                                                                                |   | (566                                                                                                                  | )      |   | (372,861 | ) |
|                                                                                                               |   |                                                                                             |     |                                                                                             |   |                                                                                                                  |   |   |   |   |
| **Cash                flows from investing activities**                                                            |   |                                                                                             |     |                                                                                             |   |                                                                                                                  |   |   |   |   |
|    Investments                placed in Trust Fund                                                  |   |                                                                                             | -        |                                                                                             |   | -                                                                                                                     |   |   | (41,964,000 | ) |
| **Net                cash used in investing activities**                                                           |   |                                                                                             | -        |                                                                                             |   | -                                                                                                                     |   |   | (41,964,000 | ) |
|                                                                                                               |   |                                                                                             |     |                                                                                             |   |                                                                                                                  |   |   |   |   |
| **Cash                flows from financing activities**                                                            |   |                                                                                             |     |                                                                                             |   |                                                                                                                  |   |   |   |   |
| Gross                proceeds of public offering, including over-allotment option                exercise          |   |                                                                                             | -        |                                                                                             |   | -                                                                                                                     |   |   | 46,800,000 |   |
| Proceeds                of issuance of option                                                                      |   |                                                                                             | -        |                                                                                             |   | -                                                                                                                     |   |   | 100 |   |
| Proceeds                from notes payable, stockholders                                                           |   |                                                                                             | -        |                                                                                             |   | 47,500                                                                                                                |   |   | 70,000 |   |
| Payment                of notes payable, stockholders                                                              |   |                                                                                             | -        |                                                                                             |   | -                                                                                                                     |   |   | (70,000 | ) |
| Proceeds                from sale of shares of common stock                                                        |   |                                                                                             | -        |                                                                                             |   | -                                                                                                                     |   |   | 50,000 |   |
| Redemption                of common stock                                                                          |   |                                                                                             | -        |                                                                                             |   | -                                                                                                                     |   |   | (25,000 | ) |
| Payment                of costs of public offering, including over-allotment option                exercise        |   |                                                                                             | -        |                                                                                             |   | -                                                                                                                     |   |   | (3,616,479 | ) |
| Payment                of deferred offering costs                                                                  |   |                                                                                             |     |                                                                                             |   | (61,304                                                                                                               | )      |   | - |   |
| Advances                from stockholder                                                                           |   |                                                                                             | -        |                                                                                             |   | 437                                                                                                                   |   |   | - |   |
| **Net                cash (used in) provided by financing activities**                                             |   |                                                                                             | -        |                                                                                             |   | (13,367                                                                                                               | )      |   | 43,208,621 |   |
|                                                                                                               |   |                                                                                             |     |                                                                                             |   |                                                                                                                  |   |   |   |   |
| **Net                (decrease) increase in cash**                                                                 |   |                                                                                             | (120,787 | )                                                                                                |   | (13,933                                                                                                               | )      |   | 871,760 |   |
| **Cash                at beginning of the period**                                                                 |   |                                                                                             | 992,547  |                                                                                             |   | 25,000                                                                                                                |   |   | - |   |
| **Cash                at the end of the period**                                                                   |   | $                                                                                                | 871,760  |                                                                                             | $      | 11,067                                                                                                                |   | $ | 871,760 |   |

*See      Notes to Unaudited Condensed Financial Statements.*

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**Fortress      America Acquisition Corporation**

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

**Notes      to Unaudited Condensed 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------------------------------------------------------------------------|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
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|                                                                      |               | The                financial statements at March 31, 2006 and for the periods from inception                to March 31, 2006 and the three months ended March 31, 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 March 31, 2006, the results                of its                operations for the three month period ended March 31, 2006 and 2005                and                for the period from December 20, 2004 (inception) through March 31,                2006,                and its cash flows for the three month period ended March 31, 2006                and for                the period from December 20, 2004 (inception) through March 31, 2006.                Operating results for the interim period presented are not necessarily                indicative of the results to be expected for a full year. The condensed                balance sheet at December 31, 2005 has been derived from the audited                financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                      |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                      |               | 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”). The Offering generated total net proceeds of $43,183,521. The                Company’s management has broad discretion with respect to the specific                application of the net proceeds of the Offering, although substantially                all the net proceeds of the 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 Treasury                Bills until the earlier of (i) the consummation of its first Business                Combination; or (ii) the liquidation of the Company. The Treasury                Bills                have been accounted for as trading securities and are recorded at                their                market value of approximately $43,048,000 at March 31, 2006. The                excess of                market value over cost, exclusive of the deferred interest described                further below, is included in interest income in the accompanying                statement of operations. The proceeds not deposited into the Trust                Fund                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                into                cash. 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.                Accordingly, a portion of the net proceeds of the Offering (19.99%                of the                amount originally held in the Trust Fund) has been classified as                common                stock subject to possible conversion in the accompanying balance                sheets                and 19.99% of the related interest earned has been recorded as deferred                interest. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   | The                Company’s Amended and Restated Certificate of Incorporation 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. There                is                no assurance that the Company will be able to successfully effect                a                Business Combination during this period. This factor raises substantial                doubt about the Company’s ability to continue as a going concern. The                accompanying financial statements are prepared assuming the Company                will                continue as a going concern. The financial statements do not include                any                adjustments that might result from the outcome of this uncertainty.                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.                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

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**Fortress      America Acquisition Corporation**

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

**Notes      to Unaudited Financial Statements**

|                               |   | In                December 2004, the Financial Accounting Standards Board issued Statement                of Financial Accounting Standards No. 123 (revised 2004) (“SFAS 123(R)”),                “Share Based Payment”. SFAS 123(R) requires all share-based payments to                employees, including grants of employee stock options, to be recognized                in                the financial statements based on their fair values. The Company                is                required to adopt SFAS 123(R) effective January 1, 2006.  The Company                does not believe that the adoption of SFAS No. 123(R) will have a                significant impact on its financial condition or results of                operations.                                                                                                                                                               |
|------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                               |   | Management                does not believe that any other recently issued, but not yet effective,                accounting standards if currently adopted would have a material effect                on                the accompanying financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| **2.                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 March 31, 2006 and from January                1,                2006 to March 31, 2006 amounted to $1,362 and $0, 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 for each                of the                periods from December 20, 2004 (inception) to March 31, 2006 and                from                January 1, 2006 to March 31, 2006 amounted to $60,000 and $22,500,                respectively. |
|                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| **3.                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**

| **4.                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**

*This      Quarterly Report on Form 10-Q and the documents incorporated by reference into      the Quarterly Report on Form 10-Q include forward-looking statements within      the      meaning of Section 27A of the Securities Act of 1933 and Section 21E of the      Securities Exchange Act of 1934. These forward-looking statements can be      identified by the use of forward-looking terminology, including the words“believes,” “estimates,” “anticipates,” “expects,” “intends,” “may,” “will” or“should,” or, in each case, their negative or other variations or comparable      terminology. Such statements include, but are not limited to, any statements      relating to our ability to consummate any acquisition or other business      combination and any other statements that are not historical facts. These      statements are based on management’s current expectations, but actual results      may differ materially due to various factors, including, but not limited to:      *

|   | · | our                dependence on key personnel, some of whom may or may not join us                following                a business combination;                  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | · | our                personnel allocating their time to other businesses and potentially                having                conflicts of interest with our business; |
|   | · | our                potentially being unable to timely complete a business                combination;                                                                |
|   | · | the                ownership of our securities being concentrated;                                                                                                   |
|   | · | risks                associated with the homeland security industry; and                                                                                             |
|   | · | those                other risks and uncertainties detailed in the Company’s filings with the                Securities and Exchange Commission.               |

*By      their nature, forward-looking statements involve risks and uncertainties because      they relate to events and depend on circumstances that may or may not occur      in      the future. We caution you that forward-looking statements are not guarantees      of      future performance and that our actual results of operations, financial      condition and liquidity, and developments in the industry in which we operate,      may differ materially from those made in or suggested by the forward-looking      statements contained in this Quarterly Report on Form 10-Q. In addition, even      if      our results of operations, financial condition and liquidity, and developments      in the industry in which we operate, are consistent with the forward-looking      statements contained in this Quarterly Report on Form 10-Q, those results or      developments may not be indicative of results or developments in subsequent      periods. *

**Introduction**

**Three      month period ended March 31, 2006 compared to three month period ended March      31,      2005**

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**Period      from December 20, 2004 (inception) through March 31, 2006**

**General**

**ITEM      3. CONTROLS AND PROCEDURES.**

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**PART      II.**

**OTHER      INFORMATION**

**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).                                                                       |
|   |      |                                                                                                                                                                                                                                                                                                          |
|   | 4.1       | Specimen                Unit Certificate (incorporated by reference to Exhibit 4.1 of the                Company’s Registration Statement No. 333-123504, effective July 13,                2005).                                                                                                      |
|   |      |                                                                                                                                                                                                                                                                                                          |
|   | 4.2       | Specimen                Common Stock Certificate (incorporated by reference to Exhibit 4.2                of the                Company’s Registration Statement No. 333-123504, effective July 13,                2005).                                                                               |
|   |      |                                                                                                                                                                                                                                                                                                          |
|   | 4.3       | Specimen                Warrant Certificate (incorporated by reference to Exhibit 4.3 of                the                Company’s Registration Statement No. 333-123504, effective July 13,                2005).                                                                                    |
|   |      |                                                                                                                                                                                                                                                                                                          |
|   | 4.4       | Warrant                Agreement between Continental Stock Transfer & Trust Company and                the Company.                                                                                                                                                                                  |
|   |      |                                                                                                                                                                                                                                                                                                          |
|   | 31        | Section                302 Certification by Principal Executive and Financial                Officer                                                                                                                                                                                                          |
|   |      |                                                                                                                                                                                                                                                                                                          |
|   | 32        | Section                906 Certification by Principal Executive and Financial                Officer                                                                                                                                                                                                          |

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**SIGNATURES**

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

|   |  /s/                Harvey L. Weiss                                   Harvey                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).                                                                       |
| 4.1                               |   | Specimen                Unit Certificate (incorporated by reference to Exhibit 4.1 of the                Company’s Registration Statement No. 333-123504, effective July 13,                2005).                                                                                                      |
| 4.2                               |   | Specimen                Common Stock Certificate (incorporated by reference to Exhibit 4.2                of the                Company’s Registration Statement No. 333-123504, effective July 13,                2005).                                                                               |
| 4.3                               |   | Specimen                Warrant Certificate (incorporated by reference to Exhibit 4.3 of                the                Company’s Registration Statement No. 333-123504, effective July 13,                2005).                                                                                    |
| 4.4                               |   | Warrant                Agreement between Continental Stock Transfer & Trust Company and                the Company (incorporated by reference to Exhibit 4.4 of the Company’s                Annual Report on Form 10-K filed with the SEC on March 31,                2006).                  |
| 31                                |   | Section                302 Certification by Principal Executive and Financial                Officer                                                                                                                                                                                                          |
| 32                                |   | Section                906 Certification by Principal Executive and Financial                Officer                                                                                                                                                                                                          |

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