**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 June                30, 2005 |
|--------|----------------------------------------------------------------------------|

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

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

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

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| **PART                I. FINANCIAL INFORMATION** **ITEM                1 - FINANCIAL STATEMENTS**                               | **Page** |   |
|--------------------------------------------------------------------------------------------------------------------------------------|----------|--------|
|                                                                                                                                 |     |   |
| Balance                Sheet                                                                                                         | 3        |   |
|                                                                                                                                 |     |   |
| Statements                of Operations                                                                                              | 4        |   |
|                                                                                                                                 |     |   |
| Statement                of Stockholders' Equity                                                                                     | 5        |   |
|                                                                                                                                 |     |   |
| Statements                of Cash Flows                                                                                              | 6        |   |
|                                                                                                                                 |     |   |
| Notes                to Financial Statements                                                                                         | 7        |   |
|                                                                                                                                 |     |   |
| Item                2 - Management's Discussion and Analysis or Plan of                Operation                                     | 11       |   |
|                                                                                                                                 |     |   |
| Item                3 - Controls and Procedures                                                                                      | 12       |   |
|                                                                                                                                 |     |   |
| Part                II. Other Information                                                                                            | 13       |   |
|                                                                                                                                 |     |   |
| Item                2 - Changes in Securities and Small Business Issuer Purchases of                Equity                Securities | 13       |   |
|                                                                                                                                 |     |   |
| Item                6 - Exhibits and Reports on Form 8-K                                                                             | 13       |   |
|                                                                                                                                 |     |   |
| Signatures                                                                                                                           | 14       |   |

----

**Fortress      America Acquisition Corporation**

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

**Balance      Sheet**

|                                                                                                      |   | **June                30, 2005 (unaudited)** |   | **December                31,****2004** |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|-----------------------------------------|--------|
|                                                                                                      |   |                                         |   |                                    |   |
|                                                                                                      |   |                                         |   |                                    |   |
| **Assets**                                                                                                |   |                                         |   |                                    |   |
| Current                assets:                                                                       |   |                                         |   |                                    |   |
| Cash                                                                                                      |   | $                                            | 2,167  |                                    | $      | 25,000 |   |
| Total                current assets                                                                       |   |                                         | 2,167  |                                    |   | 25,000 |   |
| Deferred                offering costs                                                                    |   |                                         | 92,704 |                                    |   | 12,500 |   |
| **Total                assets**                                                                           |   | **$**                                        | 94,871 |                                    | **$**  | 37,500 |   |
|                                                                                                      |   |                                         |   |                                    |   |   |   |
| **Liabilities                and Stockholders’ Equity**                                             |   |                                         |   |                                    |   |   |   |
|                                                                                                      |   |                                         |   |                                    |   |   |   |
| **Current                liabilities:**                                                                   |   |                                         |   |                                    |   |   |   |
| Accounts                payable and accrued expenses                                                      |   | $                                            | 1,056  |                                    | $      | 1,056 |   |
| Notes                payable, stockholders                                                                |   |                                         | 70,000 |                                    |   | 12,500 |   |
| Advances                from stockholder                                                                  |   |                                         | 1,517  |                                    |   | - |   |
| **Total                liabilities**                                                                      |   |                                         | 72,573 |                                    |   | 13,556 |   |
|                                                                                                      |   |                                         |   |                                    |   |   |   |
| **Commitment**                                                                                            |   |                                         |   |                                    |   |   |   |
|                                                                                                      |   |                                         |   |                                    |   |   |   |
| **Stockholders'                equity**                                                                   |   |                                         |   |                                    |   |   |   |
| Preferred                stock, $.0001 par value, Authorized 1,000,000 shares; none                issued |   |                                         | -      |                                    |   | - |   |
| Common                stock, $.0001 par value                                                             |   |                                         |   |                                    |   |   |   |
| Authorized                50,000,000 shares                                                               |   |                                         |   |                                    |   |   |   |
| Issued                and outstanding 1,750,000 and 1,250,000 shares respectively                         |   |                                         | 175    |                                    |   | 125 |   |
| Additional                paid-in capital                                                                 |   |                                         | 24,825 |                                    |   | 24,875 |   |
| Deficit                accumulated during the development stage                                           |   |                                         | (2,702 | )                                       |   | (1,056 | ) |
| **Total                stockholders' equity**                                                             |   |                                         | 22,298 |                                    |   | 23,944 |   |
| **Total                liabilities and stockholders' equity**                                             |   | **$**                                        | 94,871 |                                    | **$**  | 37,500 |   |
|                                                                                                      |   |                                         |   |                                    |   |   |   |

*See      Notes to Unaudited Financial Statements.*

----

**Fortress      America Acquisition Corporation**

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

**Statements      of Operations**

**(unaudited)**

|                                                                                                  |   | **For                the Three****Months                Ended****June                30, 2005** |      | **For                the Six****Months                Ended****June                30, 2005** |   | **For                the Period December 20, 2004****(inception)                to****June                30, 2005** |   |
|-------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|-----------|-----------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                  |   |                                                                                            |      |                                                                                          |   |                                                                                                                 |   |
| Operating                costs                                                                        |   | $                                                                                               | 1,080     |                                                                                          | $      | 1,646                                                                                                                |   | $ | 2,702 |   |
|                                                                                                  |   |                                                                                            |      |                                                                                          |   |                                                                                                                 |   |   |   |   |
| Net                loss for the period                                                                |   | $                                                                                               | (1,080    | )                                                                                             | $      | (1,646                                                                                                               | )      | $ | (2,702 | ) |
|                                                                                                  |   |                                                                                            |      |                                                                                          |   |                                                                                                                 |   |   |   |   |
| Weighted                average number of shares outstanding - basic and                diluted  |   |                                                                                            | 1,750,000 |                                                                                          |   | 1,562,155                                                                                                            |   |   | 1,542,746 |   |
|                                                                                                  |   |                                                                                            |      |                                                                                          |   |                                                                                                                 |   |   |   |   |
| Net                loss per share - basic and diluted                                                 |   | $                                                                                               | (.00      | )                                                                                             | $      | (.00                                                                                                                 | )      | $ | (.00 | ) |
|                                                                                                  |   |                                                                                            |      |                                                                                          |   |                                                                                                                 |   |   |   |   |

*See      Notes to Unaudited Financial Statements.*

----

**Fortress      America Acquisition Corporation**

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

**Statement      of Stockholders' Equity**

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

|                                                                          |   |                            |         |        |   | **Addition**    |   | **Income****(Deficit)****Accumulated****During                the** |         |      |   |
|-------------------------------------------------------------------------------|--------|---------------------------------|--------------|-------------|--------|-----------------|--------|---------------------------------------------------------------------|--------------|-----------|--------|
|                                                                          |   | **Common                Stock** |         | **paid-in** |   | **Development** |   |                                                                |         |
|                                                                          |   | **Shares**                      |         | **Amount**  |   | **capital**     |   | **Stage**                                                           |         | **Total** |   |
| Common                shares issued December 20, 2004 at $.02 per share       |   |                            | 1,250,000    |        | $      | 125             |   | $                                                                   | 24,875       |      |   |   |   | $ | 25,000 |   |
|                                                                          |   |                            |         |        |   |            |   |                                                                |         |      |   |   |   |   |   |   |
| Net                Loss                                                       |   |                            |         |        |   |            |   |                                                                |         |      | $      | (1,056 | ) |   | (1,056 | ) |
| Balance                at December 31, 2004:                                  |   |                            | 1,250,000    |        |   | 125             |   |                                                                | 24,875       |      |   | (1,056 | ) |   | 23,944 |   |
| unaudited:                                                                    |   |                            |         |        |   |            |   |                                                                |         |      |   |   |   |   |   |   |
| Redemption                of common stock                                |   |                            | (1,250,000   | )           |   | (125            | )      |                                                                | (24,875      | )         |   |   |   |   | (25,000 | ) |
|                                                                          |   |                            |         |        |   |            |   |                                                                |         |      |   |   |   |   |   |   |
| Common                shares issued March 9, 2005 at $0.01429 per share  |   |                            | 1,750,000    |        |   | 175             |   |                                                                | 24,825       |      |   |   |   |   | 25,000 |   |
|                                                                          |   |                            |         |        |   |            |   |                                                                |         |      |   |   |   |   |   |   |
| Net                loss                                                       |   |                            |    |        |   |       |   |                                                                |    |      |   | (1,646 | ) |   | (1,646 | ) |
|                                                                          |   |                            |         |        |   |            |   |                                                                |         |      |   |   |   |   |   |   |
| Balance                at June 30, 2005                                       |   | $                               | 1,750,000    |        | $      | 175             |   | $                                                                   | 24,825       |      | $      | (2,702 | ) | $ | 22,298 |   |

*See      Notes to Unaudited Financial Statements.*

----

**Fortress      America Acquisition Corporation**

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

**Statements      of Cash Flows**

**(unaudited)**

|                                                                                                      |   | **For                the Six****Months                Ended****June                30, 2005** |    | **For                the period December 20, 2004****(inception)                to****June                30, 2005** |   |
|-----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------|---------|----------------------------------------------------------------------------------------------------------------------|--------|
| **Cash                flow from operating activities**                                                    |   |                                                                                          |    |                                                                                                                 |   |
| Net                loss                                                                                   |   | $                                                                                             | (1,646  | )                                                                                                                    | $      | (2,702 | ) |
| Adjustments                to reconcile net loss to net cash used in operating                activities: |   |                                                                                          |    |                                                                                                                 |   |   |   |
| Increase                in accounts payable and accrued expenses                                          |   |                                                                                          | -       |                                                                                                                 |   | 1,056 |   |
|                                                                                                      |   |                                                                                          |    |                                                                                                                 |   |   |   |
| **Net                cash used in operating activities**                                                  |   |                                                                                          | (1,646  | )                                                                                                                    |   | (1,646 | ) |
|                                                                                                      |   |                                                                                          |    |                                                                                                                 |   |   |   |
| **Cash                flows from financing activities**                                                   |   |                                                                                          |    |                                                                                                                 |   |   |   |
| Proceeds                from notes payable, stockholders                                                  |   |                                                                                          | 57,500  |                                                                                                                 |   | 70,000 |   |
| Proceeds                from sale of shares of common stock                                               |   |                                                                                          | 25,000  |                                                                                                                 |   | 50,000 |   |
| Redemption                of common stock                                                                 |   |                                                                                          | (25,000 | )                                                                                                                    |   | (25,000 | ) |
| Payment                of deferred offering costs                                                         |   |                                                                                          | (80,204 | )                                                                                                                    |   | (92,704 | ) |
| Advances                from stockholder                                                                  |   |                                                                                          | 1,517   |                                                                                                                 |   | 1,517 |   |
|                                                                                                      |   |                                                                                          |    |                                                                                                                 |   |   |   |
| **Net                cash (used in) provided by financing activities**                                    |   |                                                                                          | (21,187 | )                                                                                                                    |   | 3,813 |   |
|                                                                                                      |   |                                                                                          |    |                                                                                                                 |   |   |   |
| **Net                (decrease) increase in cash**                                                        |   |                                                                                          | (22,833 | )                                                                                                                    |   | 2,167 |   |
| **Cash                at beginning of the period**                                                        |   |                                                                                          | 25,000  |                                                                                                                 |   | - |   |
| **Cash                at the end of the period**                                                          |   | **$**                                                                                         | 2,167   |                                                                                                                 | **$**  | 2,167 |   |
|                                                                                                      |   |                                                                                          |    |                                                                                                                 |   |   |   |

*See      Notes to Unaudited Financial Statements.*

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**Fortress      America Acquisition Corporation**

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

**Notes      to Unaudited Financial Statements**

| **1.** **Organization                and Proposed Business Operations**                                                                                                                                                                                                                                                 |     | Fortress                America Acquisition Corporation (the “Company”) was incorporated in                Delaware on December 20, 2004 as a blank check company, the objective                of                which is to acquire one or more operating businesses in the homeland                security industry.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **                                                    ** |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                         |               | At                June 30, 2005, the Company had not yet commenced any operations.                All                activity through June 30, 2005 relates to the Company’s formation and the                proposed public offering described below. The Company has elected                December                31 as its fiscal year-end.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                         |               |  The                financial statements at June 30, 2005 and for the periods ended June                30,                2005 are unaudited. In the opinion of management, all adjustments                (consisting of normal adjustments) have been made that are necessary                to                present fairly the financial position of the Company as of June 30,                2005,                the results of its operations for the three and six month periods                ended                June 30, 2005 and for the period from December 20, 2004 (inception)                through June 30, 2005, and its cash flows for the six month period                ended                June 30, 2005 and for the period from December 20, 2004 (inception)                through June 30, 2005. Operating results for the interim period presented                are not necessarily indicative of the results to be expected for                a full                year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                         |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                         |               | The                Company’s ability to commence operations was contingent upon obtaining                adequate financial resources through an initial public offering (“IPO”),                which we consummated on July 20, 2005. In addition, on August 24,                2005 the                underwriters for the IPO exercised their over-allotment option (the                “Over-Allotment Option Exercise” and, together with the IPO, the                “Offering”), generating total net proceeds for the Offering of $43,190,521                (Note 7). The Company’s management has broad discretion with respect to                the specific application of the net proceeds of this Offering, although                substantially all the net proceeds of this Offering are intended                to be                generally applied toward consummating a business combination with                (or                acquisition of) one or more operating businesses in the homeland                security                industry (“Business Combination”). Furthermore, there is no assurance that                the Company will be able to successfully effect a Business Combination.                Upon the closing of the Offering, approximately $41,964,000 of the                net                proceeds was deposited in a trust fund account (“Trust Fund”) and has been                or will be invested in government securities until the earlier of                (i) the                consummation of its first Business Combination; or (ii) the liquidation                of                the Company. The remaining proceeds may be used to pay for business,                legal                and accounting due diligence on prospective acquisitions and continuing                general and administrative expenses. The Company, after signing a                definitive agreement for the acquisition of a target business, will                submit                such transaction for stockholder approval. All of the Company stockholders                prior to the Offering, including all of the officers and directors                of the                Company (“Initial Stockholders”), have agreed to vote their 1,750,000                founding shares of common stock in accordance with the vote of the                majority in interest of all other stockholders of the Company (“Public                Stockholders”) with respect to any Business Combination. After                consummation of the Company’s first Business Combination, all of these                voting safeguards will no longer be                applicable. |

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**Fortress      America Acquisition Corporation**

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

**Notes      to Unaudited Financial Statements (continued)**

|   |   | In                the event (i) the Business Combination is not approved by a majority                of                the shares of common stock held by the Public Stockholders or (ii)                20% or                more of the shares of common stock held by the Public Stockholders                vote                against                the Business Combination and exercise their conversion rights described                below, the Business Combination will not be consummated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   | With                respect to the first Business Combination which is approved and                consummated, any Public Stockholder who voted against the Business                Combination may demand that the Company convert his or her shares.                The per                share conversion price will equal the amount in the Trust Fund, calculated                as of two business days prior to the proposed Business Combination,                divided by the number of shares of common stock held by Public                Stockholders at the consummation of the Offering. Accordingly, Public                Stockholders holding approximately 19.99% of the aggregate number                of                shares owned by all Public Stockholders may seek conversion of their                shares in the event of a Business Combination. Such Public Stockholders                are entitled to receive their per share interest in the Trust Fund                computed without regard to the shares held by the Initial                Stockholders. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   | The                Company’s Certificate of Incorporation, as amended, provides for the                mandatory liquidation of the Company in the event that the Company                does                not consummate a Business Combination within 12 months from the date                of                the consummation of the Offering, or 18 months from the consummation                of                the Offering if certain extension criteria have been satisfied. In                the                event of liquidation, it is likely that the per share value of the                residual assets remaining available for distribution (including Trust                Fund                assets) will be less than the initial public offering price per share                in                the Offering (assuming no value is attributed to the Warrants contained                in                the Units to be sold in the Offering discussed in Note                7).                                                                             |

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**Fortress      America Acquisition Corporation**

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

**Notes      to Unaudited Financial Statements (continued)**

| **2.** **Deferred                Offering Costs**                                     |   | Deferred                offering costs consist of underwriting fees incurred through the                balance                sheet dates that are related to the Offering and that were charged                to                capital upon receipt of the capital raised.                                                                                                                                                                                                                                                                                                                                                                                           |
|--------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **3.** **Notes                Payable-Stockholders and Advances from****Stockholder** |   | The                Company has unsecured promissory notes to the Initial Stockholders,                who                are officers and directors of the Company, of $12,500 at December                31, 2004                and $70,000 at June 30, 2005. The loans are non-interest bearing                and are                payable the earlier of March 9, 2006 or the consummation of the Offering.                Due to the short-term nature of the notes, the fair value of the                notes                approximates its carrying amount.                                                                                                 |
|                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                       |   | In                addition, one of the Initial Stockholders has made payments on behalf                of                the Company which are non-interest bearing and due on demand. Such                amounts                have been included in Advances from Stockholder on the accompanying                June                30, 2005 balance sheet.** **                                                                                                                                                                                                                                                                                               |
|                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **4.** **Commitment**                                                            |   | Commencing                January 1, 2005, the Company occupied office space from, and has                certain                office and secretarial services made available to it by, an unaffiliated                third party. Rent expense for each of the periods from December 20,                2004                (inception) to June 30, 2005 and from January 1, 2005 to June 30,                2005                amounted to $1,517 and $1,080, respectively. The rental agreement                expired                March 31, 2005 and was extended through June 30, 3005.                                                                      |
|                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                       |   | 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. |
|                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **5.** **Common                Stock**                                           |   | On                December 20, 2004, the Company issued 1,250,000 shares of Common                Stock. On                March 8, 2005, the Company authorized the redemption of the 1,250,000                shares of common stock at the original subscription price. On March                9,                2005, the Company issued 1,750,000 shares of common stock to the                original                stockholders along with new stockholders (in the aggregate, these                stockholders are the Initial Stockholders).                                                                                                                |
|                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

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**Fortress      America Acquisition Corporation**

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

**Notes      to Unaudited Financial Statements (continued)**

| **6.** **Preferred                Stock**   |   | The                Company is authorized to issue 1,000,000 shares of preferred stock                with                such designations, voting and other rights and preferences as may                be                determined from time to time by the Board of Directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| **7.** **Subsequent                Event**  |   | On                July 20, 2005, the Company sold 7,000,000 units (“Units”) in the IPO.                On August 24, 2005 the Company sold an additional 800,000 Units pursuant                to the Over-Allotment Option Exercise. Each Unit consists of one                share of                the Company’s common stock, $0.0001 par value, and two warrants                (“Warrants”). Each Warrant entitles the holder to purchase from the                Company one share of common stock at an exercise price of $5.00 (which                such Warrant may be exercised on a cashless basis) commencing the                later of                (a) one year from the effective date of the Offering; or (b) the                completion of a Business Combination with a target business and expiring                four years from the date of the prospectus (unless earlier redeemed).                The                Warrant will be redeemable, upon written consent of the representative                of                the underwriters, at a price of $0.01 per Warrant upon 30 days notice                after the Warrant becomes exercisable, only in the event that (a)                the last                sales price of the common stock equals or exceeds $8.50 per share                for any                20 trading days within a 30-trading-day period ending on the third                day                prior to date on which notice of redemption is given and (b) the                weekly                trading volume of our common stock has been at least 200,000 shares                for                each of the two calendar weeks before the Company sends the notice                of                redemption. |
|                                                  |   |  In                addition, the Company sold to Sunrise Securities Corp., for $100,                an                option to purchase up to a total of 700,000 units. The units issuable                upon                exercise of this option are identical to those offered in the Offering,                except that each of the warrants underlying this option entitles                the                holder to purchase one share of our common stock at a price of $6.25.                This                option is exercisable at $7.50 per unit commencing on the later of                the                consummation of a business combination and one year from the date                of the                prospectus and expiring five years from the date of the prospectus.                In                lieu of exercise, the option may be converted into units (i.e., a                “cashless exercise”) to the extent that the market value of the units at                the time of conversion exceeds the exercise price of the option.                The                option may only be exercised or converted by the option                holder.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

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

** **

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**ITEM      3. CONTROLS AND PROCEDURES.**

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**PART      II.**

**OTHER      INFORMATION**

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

**ITEM      6: EXHIBITS **

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

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**SIGNATURES**

|                                |                                                 |                                                        |
|-------------------------------------|------------------------------------------------------|-------------------------------------------------------------|
|                                |                                                 | **FORTRESS                AMERICA ACQUISITION CORPORATION** |
|                           |                                            |                                                   |
| Dated:              August 29, 2005 |                                            | /s/ Harvey              Weiss                          |
|                                | Harvey              Weiss                            |
|                                | Chief                Executive Officer and President |

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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 Registrant’s Registration              Statement on Form S-1 (File No. 333-123504) filed with the SEC March              23,              2005).                                                                                         |
| 31                                | Section                302 Certification by CEO                                                                                                                                                                                                                                                                               |
| 32                                | Section                906 Certification by CEO                                                                                                                                                                                                                                                                               |

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