UNITED
STATES
 SECURITIES AND
EXCHANGE COMMISSION
 Washington, D.C.
20549
 
 FORM
10-Q
 
 (Mark
One)
 x QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
 For the quarterly
      period ended:
                June 30,
  2008
 or
 o TRANSITION REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
 For the transition
      period from:
                ______________________
      to __________________________________
 Commission File
      Number:
              000-28739
  
 MOBICOM
CORPORATION
 (Exact
name of registrant as specified in its charter)
 
 
 Nevada
              
              91-1903590(State
      or other jurisdiction of incorporation or organization)
              
              (I.R.S.
      Employer Identification No.)3328
      Granada Ave, San Diego, California
              
              92104(Address
      of principal executive offices)
              
              (Zip
      Code)
 
 (619)
977-1515
 (Registrant’s
telephone number, including area code)
 
 Satellite
Security Corporation
 (Former
name, former address and former fiscal year, if changed since last
report)
 
 
 Indicate
by check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes  x  No o
 
 Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting
company.  See the definitions of "large accelerated filer,"
"accelerated filer," and "smaller reporting company" in Rule 12b-2 of the
Exchange Act. (Check one):
 
 Large
      accelerated filer o
              Accelerated
      filer oNon-
      accelerated filer o
              Smaller
      reporting company x
  Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). Yes  o No x
 
 State the
number of shares outstanding of each of the issuer’s classes of common equity,
as of the latest practicable date:
  Class
              
              Outstanding
      at August 15, 2008Common
      Stock
              
              52,222,034
      shares
  
  TABLE OF CONTENTS
 
 Part
      I — Financial InformationItem 1.
              Financial Statements (unaudited)
              3Item 2.
              Managements Discussion and Analysis of Financial Condition
      and Results of Operations
              10Item 3.
              Quantitative and Qualitative Disclosures About Market
      Risk
              12Item 4.
              Controls and Procedures
              12Part
      II — Other InformationItem 1.
              Legal Proceedings
              14Item 1A.
              Risk Factors
              14Item 2.
              Unregistered Sales of Equity Securities and Use of
      Proceeds
              14Item 3.
              Defaults Upon Senior Securities
              14Item 4.
              Submission of Matters to a Vote of Security
      Holders
              14Item 5.
              Other Information
              14Item 6.
              Exhibits
              14
  2
 Table of Contents
  PART
I — FINANCIAL INFORMATION
  ITEM
1.                      FINANCIAL
STATEMENTS
 
 
 Mobicom
Corporation
 and
its sole subsidiary
 Mobicom
Korea
 Consolidated
Balance Sheet
 
 
 Six
      Months Ended June 30, 2008
              
              
              Year
      Ended December 31, 2007(unaudited)
              
              
              (audited)United States
              
              
              South Korean
              
              
              United States
              
              
              South KoreanDollars
              
              
              Won
              
              
              Dollars
              
              
              WonAssetsCurrent
      assetsCash
      and cash equivalents
              
              $
              10,211
              
              
              $
              10,690,344
              
              
              $
              41,303
              
              
              $
              38,959,764Accounts
      receivable
              
              
              2,362,433
              
              
              
              2,473,444,051
              
              
              
              29,462
              
              
              
              27,790,666Prepayments
              
              
              61,763
              
              
              
              64,665,018
              
              
              
              10,320
              
              
              
              9,734,822Loan
      to related party
              
              
              15,282
              
              
              
              16,000,000
              
              
              
              11,026
              
              
              
              10,400,000Other
      current assets
              
              
              1,144
              
              
              
              1,198,217
              
              
              
              178
              
              
              
              167,967Total
      current assets
              
              
              2,450,833
              
              
              
              2,565,997,630
              
              
              
              92,289
              
              
              
              87,053,219Property
      and equipment, net
              
              
              642,496
              
              
              
              672,686,643
              
              
              
              752,321
              
              
              
              709,638,488Deposits
              
              
              217,356
              
              
              
              227,569,592
              
              
              
              39,829
              
              
              
              37,569,592Total
      assets
              
              $
              3,310,685
              
              
              $
              3,466,253,865
              
              
              $
              884,440
              
              
              $
              834,261,299Liabilities
      and Stockholders' DeficitCurrent
      liabilitiesAccounts
      payable and accrued expenses
              
              $
              1,794,275
              
              
              $
              1,878,587,546
              
              
              $
              70,460
              
              
              $
              66,462,904Advances
      from related parties
              
              
              339,066
              
              
              
              354,999,000
              
              
              
              221,570
              
              
              
              208,999,000Other
      current liabilities
              
              
              3,820
              
              
              
              4,000,000
              
              
              
              -
              
              
              
              -Total
      current liabilities
              
              
              2,137,161
              
              
              
              2,237,586,546
              
              
              
              292,030
              
              
              
              275,461,904Total
      liabilities
              
              
              2,137,161
              
              
              
              2,237,586,546
              
              
              
              292,030
              
              
              
              275,461,904Stockholders'
      equityCommon
      stock, 250,000,000 shares authorized, par value $.001, 52,222,034
      shares issued and outstanding
              
              
              50
              
              
              
              52,222
              
              
              
              55
              
              
              
              52,222Additional
      paid in capital
              
              
              889,166
              
              
              
              930,947,778
              
              
              
              986,942
              
              
              
              930,947,778Other
      comprehensive loss
              
              
              (3,033
              )
              
              
              -
              
              
              
              -
              
              
              
              -Accumulated
      earnings
              
              
              287,341
              
              
              
              297,667,319
              
              
              
              (394,587
              )
              
              
              (372,200,605
              )Total
      stockholders' equity
              
              
              1,173,524
              
              
              
              1,228,667,319
              
              
              
              592,410
              
              
              
              558,799,395Total
      liabilities and stockholders' equity
              
              $
              3,310,685
              
              
              $
              3,466,253,865
              
              
              $
              884,440
              
              
              $
              834,261,299
  3
 Table of Contents
  Mobicom
Corporation
 and
its sole subsidiary
 Mobicom
Korea
 Consolidated
Statements of Operations
 (Unaudited)
 
 
 Three
      Months Ended
              
              
              Three
      Months Ended
              
              
              Six
      Months Ended
              
              
              Six
      Months EndedJune 30, 2008
              
              
              June 30, 2007
              
              
              June 30, 2008
              
              
              June 30, 2007United States
              
              
              South Korean
              
              
              United States
              
              
              South Korean
              
              
              United States
              
              
              South Korean
              
              
              United States
              
              
              South KoreanDollars
              
              
              Won
              
              
              Dollars
              
              
              Won
              
              
              Dollars
              
              
              Won
              
              
              Dollars
              
              
              WonRevenues
              
              $
              1,659,430
              
              
              $
              1,737,406,124
              
              
              $
              11,491
              
              
              $
              10,596,874
              
              
              $
              2,861,058
              
              
              $
              2,995,498,788
              
              
              $
              65,709
              
              
              $
              60,596,874ExpensesDepreciation
      and amortization
              
              
              38,360
              
              
              
              40,162,497
              
              
              
              -
              
              
              
              -
              
              
              
              75,781
              
              
              
              79,341,845
              
              
              
              -
              
              
              
              -Salaries,
      wages and benefits
              
              
              189,801
              
              
              
              198,720,203
              
              
              
              48,970
              
              
              
              45,159,700
              
              
              
              331,657
              
              
              
              347,241,503
              
              
              
              49,855
              
              
              
              45,976,440Commissions
      and fees
              
              
              891,571
              
              
              
              933,466,223
              
              
              
              70,664
              
              
              
              65,165,617
              
              
              
              1,636,000
              
              
              
              1,712,875,876
              
              
              
              72,983
              
              
              
              67,304,736Occupancy
      expenses
              
              
              39,560
              
              
              
              41,419,057
              
              
              
              18,993
              
              
              
              17,515,400
              
              
              
              64,452
              
              
              
              67,480,471
              
              
              
              25,233
              
              
              
              23,270,169Interest
      expense
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Supplies
      and server maintenance
              
              
              14,444
              
              
              
              15,122,790
              
              
              
              3,102
              
              
              
              2,861,084
              
              
              
              32,149
              
              
              
              33,659,280
              
              
              
              3,482
              
              
              
              3,210,749Research
      and development
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              5,422
              
              
              
              5,000,000Taxes
      and dues
              
              
              5,465
              
              
              
              5,722,140
              
              
              
              760
              
              
              
              700,800
              
              
              
              7,603
              
              
              
              7,960,760
              
              
              
              4,280
              
              
              
              3,947,400Freight
      expense
              
              
              407
              
              
              
              426,070
              
              
              
              -
              
              
              
              121,500.00
              
              
              
              2,420
              
              
              
              2,534,070
              
              
              
              999
              
              
              
              921,500.00Other
      expenses
              
              
              48,524
              
              
              
              50,804,578
              
              
              
              3,616
              
              
              
              3,334,208
              
              
              
              70,133
              
              
              
              73,428,313
              
              
              
              5,035
              
              
              
              4,642,902Total
      expenses
              
              
              1,228,134
              
              
              
              1,285,843,558
              
              
              
              146,104
              
              
              
              134,858,309
              
              
              
              2,220,195
              
              
              
              2,324,522,118
              
              
              
              167,290
              
              
              
              154,273,896Operating
      profit
              
              
              431,296
              
              
              
              451,562,566
              
              
              
              (134,614
              )
              
              
              (124,261,435
              )
              
              
              640,863
              
              
              
              670,976,670
              
              
              
              (101,580
              )
              
              
              (93,677,022
              )Other
      expenese, net of other income
              
              
              (961
              )
              
              
              (1,006,010
              )
              
              
              1.42
              
              
              
              1,310.00
              
              
              
              (1,059
              )
              
              
              (1,108,746
              )
              
              
              1.42
              
              
              
              1,310.00Net
      profit
              
              $
              430,335
              
              
              $
              450,556,556
              
              
              $
              (134,612
              )
              
              $
              (124,260,125
              )
              
              $
              639,804
              
              
              $
              669,867,924
              
              
              $
              (101,579
              )
              
              $
              (93,675,712
              )Basic
      and diluted loss per common share
              
              
              0.008
              
              
              
              8.628
              
              
              
              (0.072
              )
              
              
              (66.735
              )
              
              
              0.012
              
              
              
              12.827
              
              
              
              (0.055
              )
              
              
              (50.309
              )Weighted
      average number of common shares used in per share
    calculations
              
              
              52,222,034
              
              
              
              52,222,034
              
              
              
              1,862,000
              
              
              
              1,862,000
              
              
              
              52,222,034
              
              
              
              52,222,034
              
              
              
              1,862,000
              
              
              
              1,862,000
  4
 Table of Contents
  Mobicom
Corporation
 and
its sole subsidiary
 Mobicom
Korea
 Consolidated
Statements of Cash Flows
 (Unaudited)
 
 
 Six
      Months Ended
              
              
              Six
      Months EndedJune 30, 2008
              
              
              June 30, 2007United States
              
              
              South Korean
              
              
              United States
              
              
              South KoreanDollars
              
              
              Won
              
              
              Dollars
              
              
              WonCash
      flows used for operating activitiesNet
      profit/(loss)
              
              $
              639,804
              
              
              $
              669,867,924
              
              
              $
              (101,579
              )
              
              $
              (93,675,712
              )Adjustments
      to reconcile net loss to net cash provided by operating
      activities:Depreciation
      and amortization
              
              
              75,781
              
              
              
              79,341,845
              
              
              
              -
              
              
              
              -Changes
      in operating assets and liabilities
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Increase
      in accounts receivable
              
              
              (2,335,890
              )
              
              
              (2,445,653,385
              )
              
              
              (7,947
              )
              
              
              (7,328,280
              )Increase
      in prepayments
              
              
              (52,304
              )
              
              
              (54,762,229
              )
              
              
              (4,165
              )
              
              
              (3,841,108
              )Increase
      in other current assets
              
              
              (1,144
              )
              
              
              (1,198,217
              )
              
              
              -
              
              
              
              -Increase
      in other current liabilities
              
              
              3,820
              
              
              
              4,000,000
              
              
              
              1,623
              
              
              
              1,497,020Increase
      in accounts payable and accrued expenses
              
              
              1,730,795
              
              
              
              1,812,124,642
              
              
              
              9,174
              
              
              
              8,460,298Cash
      flows used for operating activities
              
              
              60,861
              
              
              
              63,720,580
              
              
              
              (102,893
              )
              
              
              (94,887,782
              )Cash
      flows from financing activitiesAdvances
      from related parties
              
              
              139,447
              
              
              
              146,000,000
              
              
              
              43,375
              
              
              
              40,000,000Proceeds
      from issuance of common stock
              
              
              -
              
              
              
              -
              
              
              
              216,874
              
              
              
              200,000,000Cash
      flows from financing activities
              
              
              139,447
              
              
              
              146,000,000
              
              
              
              260,249
              
              
              
              240,000,000Cash
      flows from investing activitiesPurchase
      of property and equipment
              
              
              (40,487
              )
              
              
              (42,390,000
              )
              
              
              (30,963
              )
              
              
              (28,553,637
              )Increase
      in deposits
              
              
              (181,473
              )
              
              
              (190,000,000
              )
              
              
              (33,182
              )
              
              
              (30,600,000
              )Loan
      to related party
              
              
              (5,349
              )
              
              
              (5,600,000
              )
              
              
              -
              
              
              
              -Cash
      flows from investing activities
              
              
              (227,309
              )
              
              
              (237,990,000
              )
              
              
              (64,144
              )
              
              
              (59,153,637
              )Increase/(decrease)
      in cash and cash equivalents
              
              
              (27,001
              )
              
              
              (28,269,420
              )
              
              
              93,211
              
              
              
              85,958,581Cash
      and cash equivalents - Beginning of period
              
              
              37,211
              
              
              
              38,959,764
              
              
              
              -
              
              
              
              -Cash
      and cash equivalents - End of period
              
              $
              10,211
              
              
              $
              10,690,344
              
              
              $
              93,211
              
              
              $
              85,958,581
  5
 Table of Contents
  MOBICOM
CORPORATION
 CONDENSED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
 Note
1- Basis of Presentation
  The
accompanying consolidated financial statements of Mobicom Corporation, a Nevada
corporation, and its wholly-owned subsidiary, Mobicom Korea, a Korean
corporation (together, the "Company," "us," "we," or "our"), as of June 30, 2008
and for the three and six months ended June 30, 2008 and 2007, respectively, are
unaudited.  The official accounting records of the Company are
expressed in Korean won and are maintained in accordance with the relevant laws
and regulations of the Republic of Korea.  The accounting principles
and reporting practices followed by the Company and generally accepted in Korea
("Korean GAAP") may differ in certain respects from accounting principles and
reporting practices generally accepted in the United States ("US
GAAP").  To conform more closely to presentations customary in filings
with the Securities and Exchange Commission of the United States of America
("SEC"), the accompanying financial statements have been restructured and
translated into English for the convenience of the readers of financial
statements.  The conversion into U.S. dollars was made at the rate of
W1046.9901 to US$1 effective as of the last business day of the period ended
June 30, 2008.  Such conversion into U.S. dollars should not be
construed as representations that the Korean won amounts could be converted into
U.S. dollars at the above or any other rate.
  In the
opinion of management, the consolidated financial statements reflect all
adjustments, consisting only of normal recurring adjustments, necessary for a
fair presentation of the consolidated financial position, operating results and
cash flows for the periods presented.  Certain prior year amounts may
have been reclassified to conform to current period presentation.
  The
information contained in the following condensed notes to the consolidated
financial statements is condensed from that which would appear in the annual
consolidated financial statements; accordingly, the consolidated financial
statements should be reviewed in conjunction with the consolidated financial
statements and related notes thereto contained in the Annual Report on Form
10-KSB for the year ended December 31, 2007 of the Company. It should be
understood that the accounting measurements at an interim date inherently
involve greater reliance on estimates than at year-end.  The results
of operations for interim periods presented are not necessarily indicative of
operating results for the entire year.
  Note
2-Going Concern
  The
accompanying financial statements have been prepared on a going concern basis,
which contemplates the realization of assets and the satisfaction of liabilities
in the normal course of business.  As shown in the financial
statements, although the Company had increased revenues and a net profit of
$639,804 for the six months ended June 30, 2008; during the period from February
17, 2007 through December 31, 2007 the Company incurred losses from operations
of $393,972.  The financial statements do not include any adjustments
relating to the recoverability and classification of liabilities that might be
necessary should the Company be unable to continue as a going
concern.
  Note
3-Summary of Significant Accounting Policies
  Use
of Estimates
  In
preparing consolidated financial statements in conformity with US GAAP,
management is required to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities at the date of the financial statements and revenues and
expenses during the reported periods.  Actual results could differ
from those estimates.
  Cash
and Cash Equivalents
  The
Company considers all highly liquid investments with original maturities of
three months or less at the time of purchase to be cash equivalents. As of June
30, 2008, the Company did not have any cash equivalents.
  Property
and Equipment
  Property
and equipment are stated at cost. Major renewals and betterments, which prolong
the useful life or enhance the value of assets, are capitalized; expenditures
for maintenance and repairs are charged to expenses as incurred.
  Depreciation
is provided principally by use of the straight-line method over the useful lives
of the related assets, except for leasehold properties, which are depreciated
over the terms of their related leases or their estimated useful lives,
whichever is less.
  The
estimated useful lives are as follows:
  Office
      equipment
              5
      yearsComputer
      equipment
              5
      years
  6
 Table of Contents
  The gain
or loss on disposal of property, plant and equipment is the difference between
the net sales proceeds and the carrying amount of the relevant assets, and, if
any, is recognized in the statement of operations.
  Intangible
Assets
  Intangible
assets are stated at cost less amortization computed using the straight-line
method over useful lives.
  Impairment
of Assets
  In
accordance with Statement of Financial Accounting Standards ("SFAS") No. 144,
"Accounting for Impairment or Disposal of Long-Lived Assets", the Company
evaluates its long-lived assets to determine whether later events and
circumstances warrant revised estimates of useful lives or a reduction in
carrying value due to impairment. If indicators of impairment exist and if the
value of the assets is impaired, an impairment loss would be
recognized.  As of June 30, 2008, no impairment loss has been
recognized.
  Income
Taxes
  Income
tax expense is determined by adding or deducting the total income tax and
surtaxes to be paid for the current period and the changes in deferred income
tax assets and liabilities.
  Deferred
tax is recognized on differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in
the computation of taxable profits.  Deferred tax liabilities are
generally recognized for all taxable temporary differences with some exceptions
and deferred tax assets are recognized to the extent that it is probable that
taxable profits will be available against which the deductible temporary
differences can be utilized.  The carrying amount of deferred tax
assets is reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the assets to be
recovered.  Deferred income tax assets and liabilities are classified
into current and non-current based on the classification of related assets or
liabilities for financial reporting purposes.
  Revenue
Recognition
  Revenue
is recognized in accordance with SEC Staff Accounting Bulletin No. 101, "Revenue
Recognition in Financial Statements".  The Company recognizes revenue
when the significant risks and rewards of ownership have been transferred to the
customer pursuant to applicable laws and regulations, including factors such as
when there has  been evidence of a sales arrangement, the performance
has occurred, or service have been rendered, the price to the buyer is fixed or
determinable, and collectability is reasonably assured.
  Foreign
Currency Transactions
  The
Company's functional currency is the Korean won and its reporting currency is
U.S. dollars. The Company's consolidated, balance sheet accounts are translated
into U.S. dollars at the year-end exchange rates and all revenue and expenses
are translated into U.S. dollars at the average exchange rates prevailing during
the periods in which these items arise.  Translation gains and losses
are deferred and accumulated as a component of other comprehensive income in
stockholders' equity.  Transaction gains and losses that arise from
exchange rate fluctuations from transactions denominated in a currency other
than the functional currency are included in the statement of operations as
incurred.
  Fair
Value of Financial Instruments
  SFAS No.
107, "Disclosures about Fair Values of Financial Instruments", requires
disclosing fair value to the extent practicable for financial instruments that
are recognized or unrecognized in the balance sheet.  The fair value
of the financial instruments disclosed herein is not necessarily representative
of the amount that could be realized or settled, nor does the fair value amount
consider the tax consequences of realization or settlement.
  For
certain financial instruments, including cash, accounts and other receivables,
accounts payable, accruals and other payables, it was assumed that the carrying
amounts approximate fair value because of the near term maturities of such
obligations. The carrying amounts of long-term loans approximate fair value as
the interest on these loans is minimal.
  Earnings/(Losses)
Per Share
  Basic
earnings (loss) per share is computed by dividing the earnings for the year by
the weighted average number of common shares outstanding for the period. Diluted
earnings per share reflects the potential dilution of securities by including
other potential common stock, including stock options and warrants, in the
weighted average number of common shares outstanding for a period, if
dilutive.
  7
 Table of Contents
  Accumulated
Other Comprehensive Income
  Accumulated
other comprehensive income represents the change in equity of the Company during
the periods presented from foreign currency translation
adjustments.
  Research
and Development Costs
  The
Company charges substantially all research and development costs to expense as
incurred.
  Stock-Based
Compensation
  In
December 2004, the Financial Accounting Standards Board ("FASB") issued SFAS No.
123(R), Share-Based Payment, which is a revision of SFAS No. 123. Generally, the
approach in SFAS No. 123(R) is similar to the approach described in SFAS No.
123. However, SFAS No. 123(R) requires all share-based payments to employees,
including grants of employee stock options, to be recognized in the income
statement based on their grant-date fair values. Pro forma disclosure is no
longer an alternative.
  The
Company has adopted SFAS No. 123(R)'s fair value method of accounting for share
based payments. Accordingly, the adoption of SFAS No. 123(R)'s fair value method
may have a significant impact on the Company's results of operations as we are
required to recognize the cost of employee services received in exchange for
awards of equity instruments based on the grant-date fair value of those awards.
SFAS No. 123(R) permits public companies to adopt its requirements using either
the "modified prospective" method or the "modified retrospective"
method.
  The
impact of the adoption of SFAS No. 123(R) cannot be predicted at this time
because it will depend on levels of share-based payments granted in the
future.
  New
Accounting Pronouncements
  In
February 2008, FASB issued FASB Staff Position ("FSP") No. FAS 157-2, "Effective
Date of FASB Statement No. 157" ("FSP FAS 157-2"), which delays the effective
date SFAS No. 157, "Fair Value Measurements" for all non-financial assets and
non-financial liabilities, except those that are recognized or disclosed at fair
value in the financial statements on a recurring basis (at least annually) for
fiscal years beginning after November 15, 2008, and interim periods within those
fiscal years for items within the scope of this FSP. We are currently evaluating
the impact of adopting FSP FAS 157-2 for non-financial assets and non-financial
liabilities on our financial position, cash flows, and results of
operations.
  We have
considered all other recently issued accounting pronouncements and do not
believe the adoption of such pronouncements will have a material impact on our
consolidated financial statements.
  Provisions,
Contingent Liabilities and Contingent Assets
  The
Company recognizes a provision when 1) it has a present obligation as a result
of a past event, 2) it is probable that a disbursement of economic resources
will be required to settle the obligation, and 3) a reliable estimate can be
made of the amount of the obligation.  When a possible range of loss
in connection with a probable loss contingency as of the balance sheet date is
estimable with reasonable certainty, and some amount within that range appears
at the time to be a better estimate than any other amount within the range, the
Company accrues such amount.  When no amount within the range appears
to be a better estimate than any other amount, the minimum amount in that range
is recorded.
  The
Company does not recognize the following contingent obligations as
liabilities:
  ·
              Possible
      obligations related to past events, for which the existence of a liability
      can only be confirmed upon occurrence of uncertain future event or events
      outside the control of the Company.
 ·
              Present
      obligations arising out of past events or transactions, for which 1) a
      disbursement of economic resources to fulfill such obligations is not
      probable or 2) a disbursement of economic resources is probable, but the
      related amount cannot be reasonably
estimated.
 
 In
addition, the Company does not recognize potential assets related to past events
or transactions, for which the existence of an asset or future benefit can only
be confirmed upon occurrence of uncertain future event or events outside the
control of the Company.
  8
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  Note
4- Plant and Equipment, net
  June
      30, 2008US$CostOffice
      equipment
              
              
              55,031Computer
      equipment
              
              
              713,852768,884Accumulated
      depreciationOffice
      equipment
              
              
              7,432Computer
      equipment
              
              
              118,956126,388Carrying
      valueOffice
      equipment
              
              
              47,599Computer
      equipment
              
              
              594,897$
              642,496
 
 Depreciation
expense for the six months ended June 30, 2008 was approximately
$75,781.
  Note
6-Loans to Related Party
  The
Company has a short term loan receivable from two employees of the
Company.  From September 2007 through June 30, 2008, the Company
loaned $15,282 to these two employees.  These loans are secured by the
employees' salary.
  Note
7-Related Party Transactions
  As of
June 30, 2008, the Company has the following transactions and balances with
related parties.
  The
Company purchased computer hardware in 2007 from its major shareholder totaling
$774,968 in exchange for 1,462,000 shares of its common stock.
  An
officer of the Company advanced $339,066 from September 2007 through June 30,
2008 for operating expenses.
  Note
8-Subsequent Events
  None.
  9
 Table of Contents
  ITEM
2.                      MANAGEMENT'S
DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
 
 SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
  This
report contains forward-looking statements.  These forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from historical results or anticipated
results, including those set forth under "ITEM 1A. RISK FACTORS," below, and
elsewhere in this report.  In some cases, you can identify forward
looking statements by terms such as "may," "intend," "might," "should," "could,"
"would," "expect," "believe," "anticipate," "estimate," "predict," "potential,"
or the negative of these terms, and similar expressions are intended to identify
forward-looking statements.  Such statements are subject to certain
risks and uncertainties, which could cause actual results to differ materially
from those projected.  Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
hereof.  We undertake no obligation to publicly release the result of
any revisions to these forward-looking statements, which may be made to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.  The forward-looking statements in this report
are based upon management's current expectations and beliefs, which management
believes are reasonable.
  In this
report, unless the context indicates otherwise, the terms "Company," "we," "us,"
and "our" refer to Mobicom Corporation, a Nevada corporation, and its
subsidiary, Mobicom Korea, a Korean corporation.
  The
following discussion and analysis of the consolidated financial condition and
results of operations should be read with our consolidated financial statements
and related notes appearing elsewhere in this report.
  Overview
  Mobicom
Corporation acquired all of the outstanding shares of Mobicom Korea in a share
exchange transaction that closed on December 31, 2007.  Prior to this
acquisition and since March 7, 2007, Mobicom Corporation did not have any
business operations. Since the share exchange transaction, our primary business
has been the operations conducted by Mobicom Korea in the development and sale
of proprietary, interactive applications and services for the mobile telephone
industry that generate transaction based revenue and aggregate end user data.
Specifically, Mobicom Korea provides mobile membership marketing services,
customized data base services, data indexed services and online marketing and
promotional services to its customers.
  Mobicom
Korea established its current business on February 17, 2007.  At June
30, 2008, Mobicom Korea was generating monthly cash flow from operations
sufficient to meet its operating expenses.
  Management
believes that there are significant opportunities to cross sell the products and
services offered by Mobicom Korea into other markets and to sell new products
and services into the Korean market. Management also believes that critical mass
is a significant factor in the growth and sustainability of service providers in
the mobile phone and Internet markets and to be successful we must clearly
define strategies to achieve critical mass and to reach installed user
bases.  From time to time, we evaluate opportunities to consolidate
and aggregate marketing activities and databases in the mobile phone and
Internet markets, particularly by offering brand owners tangible and measurable
channels to market.
  Management
also believes that in order to grow our business, both merger and or acquisition
opportunities need to be identified and explored. In this regard, management
continues to evaluate prospects for acquisitions and subject to availability of
resources, management intends pursuing such prospects in the near
future.
  RESULTS
OF OPERATIONS
  Mobicom
Korea did not establish its current business until February 17,
2007.  Therefore, the comparison of our results of operations for the
three and six month periods ended June 30, 2007 with our results of operations
for the three and six month periods ended June 30, 2008, are generally not
meaningful.
  Revenues
  Revenues
were $1,659,430 for the three months ended June 30, 2008, compared to $11,491
for the same period in 2007.  Revenues were $2,861,058 for the six
months ended June 30, 2007 compared to $65,709 for the same period in
2007.  Revenues increased $2,795,348 or 4,254% for the six months
ended June 30, 2008, compared to the same period in 2007.  The
increases in revenue were due to the successful launch of full scale operations
after the initial period which began February 17, 2007.
  Revenues
were derived primarily from the Consulting Division of Mobicom Korea which
provides clients with strategic marketing services, such as Decision Support
Systems, which are designed to assist clients in the development of their mobile
marketing campaigns. The Decision Support System is then used to analyze the
client's position in the market place and in turn to design predictive modeling
and consumer purchase programs which are then implemented by our
clients.
  10
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  We have
submitted several proposals to potential customers that, if obtained, may
increase our revenues.  Initial indications are that these proposals
have been well received; however we have no agreements or understandings related
to these proposals in place at this time and we cannot assure you that we will
be successful in securing these projects.
  General
and Administrative
  General
and administrative expenses include payroll and related employee benefits, and
other headcount-related costs associated with finance, sales, marketing,
facilities, and legal and other administrative fees.  General and
administrative costs were $1,228,134 for the three months ended June 30, 2008
compared with $146,104 for the same period in 2007.  General and
administrative costs were $2,220,195 for the six months ended June 30, 2008
compared with $161,868 for the same period in 2007.  General and
administrative expenses increased $2,047,484 or 1,265%, for the six months ended
June 30, 2008 compared to the same period a year ago.  The increases
in general and administrative expenses were primarily due to the launch of full
scale operations after the initial period which began February 17,
2007.
  Research
and Development
  Research
and development expenses include payroll and other costs associated with
software development, product design and outsourcing.  Research and
development expenses were $0 for the three months ended June 30, 2008, compared
to $0 for the same period in 2007.  Research and development expenses
were $0 for the six months ended June 30, 2008, compared to $5,422 for the same
period in 2007.  The decrease was due to the completion of research
and development projects in 2007 and no such projects during the same period in
2008.
  Other
Income (Expense)
  Other
expense was $961 for the three months ended June 30, 2008 compared to $1 in
other income for the same period in 2007.  Other expense was $1,059
for the six months ended June 30, 2008 compared to $1 in other income for the
same period in 2007.  Other expense increased $1,060 for the six
months ended June 30, 2008 compared to the same period a year ago.
  Net
Income
  Net
income includes income from operations and other expense.  We recorded
net income of $430,335 for the three months ended June 30, 2008 compared to net
loss of $134,612 for the same period in 2007.  We recorded net income
of $639,804 for the six months ended June 30, 2008 compared to net loss of
$101,579 for the same period in 2007.  The increase in net profit for
the six months ended June 30, 2008 as compared to the same period of 2007 was
due to an increase in revenue of $2,795.348 offset by an increase in operating
costs of $2,052,905.
  Liquidity
and Capital Resources
  On June
30, 2008, we had cash of $10,211 and accounts receivable, net of allowance for
doubtful accounts, of $2,362,433.  Our working capital as of June 30,
2008 was $313,672 compared to a working capital deficit of $199,741 at December
31, 2007.
  Net cash
used in operating activities during the six months ended June 30, 2008 was
$60,861.  The primary source of cash from operating activities was our
net income of $639,804 and the increase in accounts payable of $1,730,795. The
primary use of cash from operating activities was an increase in accounts
receivable of $2,335,890.
  There was
$139,447 net cash from financing activities during the six months ended June 30,
2008.  The source of cash from financing activities was an advance
from a related party.
  Net cash
used in investing activities during the six months ended June 30, 2008 was
$227,309.  The primary uses of cash from investing activities were
$40,487 for the purchase of property and equipment; $181,473 in new deposits,
primarily related to a new facility lease; and $5,349 in loans to an
employee.  There are no significant capital expenditures planned by
the Company within the foreseeable future.
  Our
current source of liquidity is cash flows from operations.  We have no
other credit facilities or other sources of liquidity available to us at this
time.
  11
 Table of Contents
  At June
30, 2008 our operations were generating nominal positive cash flow on a monthly
basis.  Based on the current budget forecasts, management believes
that Mobicom Korea will not require substantial outside funding in the near
future.  We intend to manage our expenses and cover our monthly costs
from operations on an ongoing basis.  As the scope of our activities
expands, new personnel will be hired. Because the mobile phone and Internet
markets are primarily service and not fixed asset based, people will play an
increasingly important role in our operations. Nonetheless, we will endeavor to
manage operating expenses so they are commensurate with the growth of our
business.
  However,
we do not have the capital resources to sustain a significant disruption in our
revenues or overcome a substantial unexpected operating
expense.  There are no agreements or arrangements for a financing in
place at this time, and no assurances can be given concerning whether we will
receive additional financing or as to the terms of any financing.
  ITEM
3.                      QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  Intentionally
omitted pursuant to Item 305(e) of Regulation S-K.
  ITEM
4.                      CONTROLS AND
PROCEDURES
  Disclosure
controls and procedures are designed to ensure (i) that information we are
required to disclose in the reports we file or submit under the Exchange Act are
recorded, processed, summarized, and reported within the time periods specified
in the SEC's rules and forms; and (ii) that information we are required to
disclose in the reports we file or submit under the Exchange Act is accumulated
and communicated to our management, including our principal executive and
principal financial officer, or persons performing similar functions, as
appropriate to allow timely decisions regarding required
disclosure.
  Under the
supervision of our chief executive officer, we evaluated the effectiveness of
the design and operation of our disclosure controls and procedures as of the end
of the period covered by this report.  Based upon that evaluation, our
chief executive officer concluded that as of June 30, 2008, the design and
operation of such disclosure controls and procedures were not effective at the
reasonable assurance level because of material weaknesses in our internal
controls and procedures.
  Material
Weaknesses.
  A
material weakness is a deficiency, or a combination of deficiencies, in internal
control over financial reporting, such that there is a reasonable possibility
that a material misstatement of the Company’s annual or interim financial
statements will not be prevented or detected on a timely basis.
  Because
we did not have any material operations from the period of March 3, 2007 until
our acquisition of Mobicom Korea on December 31, 2007, we did not have material
financial operations and our requirements for internal controls were limited
during our fiscal year ended December 31, 2007.  In connection with
our acquisition of Mobicom Korea, we acquired substantial new operations,
including international operations, new accounting systems, new financial
personnel, and new financial procedures for which we had not fully implemented
our internal controls as of June 30, 2008.  Accordingly, our chief
executive officer identified the following internal control deficiencies during
his assessment of our internal control over financial reporting as of June 30,
2008: (i) we have not instituted all elements of an effective program to help
prevent and detect fraud by Company employees; (ii) we did not maintain adequate
segregation of duties for staff members responsible for recording revenue; and
(iii) we have not completed a comprehensive test of material high risk internal
controls to confirm these controls are effective.
  If the
identified material weaknesses are not remediated, one or more of those material
weaknesses could result in a material misstatement in our reported financial
statements in a future interim or annual period.  We are in the
process of attempting to remediate the above noted weaknesses, but that
remediation was not complete as of June 30, 2008.  We anticipate that
we will complete the implementation of our internal controls and testing against
a standardized framework over the next few fiscal quarters.   We
will assess the need to take additional actions including, but not limited, to
the following: evaluate accounting and control systems to identify opportunities
for enhanced controls;  recruit and hire additional staff to provide
greater segregation of duty;  evaluate the need for other employee
changes; expand executive management's ongoing communications regarding the
importance of adherence to internal controls and company
policies;  implement an internal auditing function at the Company and
its subsidiaries; and evaluate such other actions as our advisors may
recommend.
  Management
does not believe any of its financial statements contain a material error as a
result of any material weakness in internal controls.
  12
 Table of Contents
  Changes In Internal Controls
Over Financial Reporting.
  No
changes were made in our internal control over financial reporting (as defined
in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during our most recent
fiscal quarter that has materially affected, or is likely to materially affect,
our internal control over financial reporting.
  Limitations On Disclosure
Controls And Procedures.
  Our
management does not expect that our disclosure controls or internal controls
over financial reporting will prevent all errors or all instances of fraud. A
control system, no matter how well designed and operated, can provide only
reasonable, not absolute, assurance that the control system's objectives will be
met. Further, the design of a control system must reflect the fact that there
are resource constraints, and the benefits of controls must be considered
relative to their costs. Because of the inherent limitations in all control
systems, no evaluation of controls can provide absolute assurance that all
control issues and instances of fraud, if any, within our company have been
detected. These inherent limitations include the realities that judgments in
decision-making can be faulty, and that breakdowns can occur because of simple
error or mistake. Controls can also be circumvented by the individual acts of
some persons, by collusion of two or more people, or by management override of
the controls. The design of any system of controls is based in part upon certain
assumptions about the likelihood of future events, and any design may not
succeed in achieving its stated goals under all potential future conditions.
Over time, controls may become inadequate because of changes in conditions or
deterioration in the degree of compliance with policies or procedures. Because
of the inherent limitation of a cost-effective control system, misstatements due
to error or fraud may occur and not be detected.
  13
 Table of Contents
  PART
II — OTHER INFORMATION
 
 ITEM
1.                      LEGAL
PROCEEDINGS
  In the
course of business, we have been, and may continue to be, involved in various
claims seeking monetary damages and other relief.  The amount of the
ultimate liability, if any, from such claims cannot be determined. However, in
the opinion of our management, the ultimate liability for any legal claims
currently pending against us will not have a material adverse affect on our
financial position, results of operations or cash flows.
  ITEM
1A.                      RISK
FACTORS
  There
have not been any material changes to the risk factors previously disclosed in
our Annual Report on Form 10-KSB.
  ITEM
2.                      UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
  None.
  ITEM
3.                      DEFAULTS
UPON SENIOR SECURITIES
  None.
  ITEM
4.                      SUBMISSION
OF MATTERS TO A VOTE OF SECURITY HOLDERS
  On April
28, 2008, the Company mailed a consent solicitation statement to each of the
holders of record of the Company’s common stock as of the close of business on
April 25, 2008.  The consent solicitation statement solicited the
consent of the Company's stockholders to (i) elect each of Kyung Hoon Ahn, Young
Jae Lee, Michael Levinsohn and Sung Hwan Park to the board of directors; and
(ii) change the Company's name from "Satellite Security Corporation" to "Mobicom
Corporation."  On May 6, 2008, the Company received consents from its
stockholders representing the requisite number of shares of the Company’s
outstanding common stock as of the record date to approve both
actions.  Accordingly, on May 7, 2008, the Company filed a certificate
of amendment to its article of incorporation with the Secretary of State of
Nevada to change the name of the corporation to Mobicom
Corporation.  For more information regarding the consent solicitation
statement, please see the Definitive Schedule 14A filed by the Company with the
Securities and Exchange Commission on April 28, 2008.
  ITEM
5.                      OTHER
INFORMATION
  None.
  ITEM
6.                      EXHIBITS
  Exhibit No.
              
              Description31.1*
              
              Certification
      of Periodic Report by the Chief Executive Officer, Pursuant to Section 302
      of the Sarbanes-Oxley Act of 2002.31.2*
              
              Certification
      of Periodic Report by the Chief Financial Officer, Pursuant to Section 302
      of the Sarbanes-Oxley Act of 2002.32.1*
              
              Certification of
      Chief Executive Officer pursuant to 18 U.S.C, Section 1350, adopted
      pursuant to Section 906 of the Sarbanes-Oxley Act of
  2002.32.2*
              
              Certification of
      Chief Financial Officer pursuant to 18 U.S.C, Section 1350,
      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
      2002.*  Filed
      as an exhibit to this report
  14
 Table of Contents
  SIGNATURES
  In
accordance with the requirements of the Exchange Act, the registrant caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
  
 Mobicom
      CorporationDated:
      August 19, 2008
              By:
              /s/ Michael
      LevinsohnMichael
      LevinsohnChief
      Executive Officer(Principal
      Executive and Principal Financial
Officer)
   15