----

| þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|-----------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

|                                                           |   |                                 |
|----------------------------------------------------------------|--------|--------------------------------------|
| Nevada                                                         |   | 81-0438093                           |
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

|                                |                          |                                                                                       |                                   |
|-------------------------------------|-------------------------------|--------------------------------------------------------------------------------------------|----------------------------------------|
| Large accelerated filer  ̈ | Accelerated filer  ̈ | Non-accelerated filer   ̈ (Do not check if a smaller reporting company) | Smaller reporting company  þ |

----

| PART I: FINANCIAL INFORMATION                                                                            |   |   |
|----------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                     |   |   |
| Item 1. Financial Statements                                                                        |   | 3      |
|                                                                                                     |   |   |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |   | 16     |
|                                                                                                     |   |   |
| Item 4. Controls and Procedures                                                                     |   | 21     |
|                                                                                                     |   |   |
| PART II: OTHER INFORMATION                                                                               |   |   |
|                                                                                                     |   |   |
| Item 1. Legal Proceedings                                                                           |   | 23     |
|                                                                                                     |   |   |
| Item 4. Removed and Reserved                                                                        |   | 23     |
|                                                                                                     |   |   |
| Item 5. Other information                                                                           |   | 23     |
|                                                                                                     |   |   |
| Item 6. Exhibits                                                                                    |   | 23     |
|                                                                                                     |   |   |
| Signatures                                                                                               |   | 24     |
|                                                                                                     |   |   |
| EX-3.1                                                                                                   |   |   |
|                                                                                                     |   |   |
| EX-3.2                                                                                                   |   |   |
|                                                                                                     |   |   |
| EX-31.1                                                                                                  |   |   |
|                                                                                                     |   |   |
| EX-31.2                                                                                                  |   |   |
|                                                                                                     |   |   |
| EX-32.1                                                                                                  |   |   |
|                                                                                                     |   |   |
| EX-32.2                                                                                                  |   |   |

----

|                                                                                                                                                                                                           |   | March 31, |    |   | September 30, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|--------------------|--------|
|                                                                                                                                                                                                           |   | 2011           |    |   | 2010               |   |
|                                                                                                                                                                                                           |   | (unaudited)    |    |   |               |   |
| ASSETS                                                                                                                                                                                                         |   |           |    |   |               |   |
| Current assets:                                                                                                                                                                                                |   |           |    |   |               |   |
| Cash and cash equivalents                                                                                                                                                                                      |   | $              | 646     |   |               | $      | 246 |   |
| Accounts receivable, net                                                                                                                                                                                       |   |           | 3,745   |   |               |   | 4,535 |   |
| Inventory, net                                                                                                                                                                                                 |   |           | 512     |   |               |   | 557 |   |
| Prepaid expenses and other current assets                                                                                                                                                                      |   |           | 958     |   |               |   | 357 |   |
| Current assets of discontinued operations                                                                                                                                                                      |   |           | -       |   |               |   | 133 |   |
| Total current assets                                                                                                                                                                                           |   |           | 5,861   |   |               |   | 5,828 |   |
| Property and equipment, net                                                                                                                                                                                    |   |           | 389     |   |               |   | 420 |   |
| Goodwill                                                                                                                                                                                                       |   |           | 2,792   |   |               |   | 2,792 |   |
| Other intangible assets, net                                                                                                                                                                                   |   |           | 2,882   |   |               |   | 3,011 |   |
| Other assets                                                                                                                                                                                                   |   |           | 28      |   |               |   | 20 |   |
| Total assets                                                                                                                                                                                                   |   | $              | 11,952  |   |               | $      | 12,071 |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)                                                                                                                                                              |   |           |    |   |               |   |   |   |
| Current liabilities:                                                                                                                                                                                           |   |           |    |   |               |   |   |   |
| Bridge note - related party                                                                                                                                                                                    |   | $              | 100     |   |               | $      | 100 |   |
| Current portion of long-term debt                                                                                                                                                                              |   |           | 239     |   |               |   | 379 |   |
| Senior Secured Notes Payable, net of unamortized deferred debt discount of $143                                                                                                                                |   |           | 2,857   |   |               |   | - |   |
| Accounts payable                                                                                                                                                                                               |   |           | 2,401   |   |               |   | 2,971 |   |
| Accrued expenses and other current liabilities                                                                                                                                                                 |   |           | 2,145   |   |               |   | 880 |   |
| Current liabilities of discontinued operations                                                                                                                                                                 |   |           | -       |   |               |   | 8,558 |   |
| Total current liabilities                                                                                                                                                                                      |   |           | 7,742   |   |               |   | 12,888 |   |
| Non-current Line of Credit - related party                                                                                                                                                                     |   |           | -       |   |               |   | 630 |   |
| Long-term debt, less current portion                                                                                                                                                                           |   |           | 94      |   |               |   | 403 |   |
| Deferred tax liability                                                                                                                                                                                         |   |           | 182     |   |               |   | 153 |   |
| Total liabilities                                                                                                                                                                                              |   |           | 8,018   |   |               |   | 14,074 |   |
| Stockholders' equity (deficiency)                                                                                                                                                                              |   |           |    |   |               |   |   |   |
| Preferred Stock: $0.01 par value, 5,000,000 shares authorized, 1,216 and 1,041 shares outstanding in the following classes:                                                                                    |   |           |    |   |               |   |   |   |
| Series A convertible preferred stock, $1,000 stated value, 4,500 shares authorized, 30 shares issued and outstanding at March 31, 2011 and September 30, 2010, respectively, (liquidation preference $95).     |   |           | 30      |   |               |   | 30 |   |
| Series A-1 convertible preferred stock, $1,000 stated value, 1,000 shares authorized, 311 shares issued and outstanding at March 31, 2011 and September 30, 2010, respectively, (liquidation preference $452). |   |           | 311     |   |               |   | 311 |   |
| Series B convertible preferred stock, $1,000 stated value, 4,000 shares authorized, 700 shares issued and outstanding at March 31, 2011 and September 30, 2010, respectively, (liquidation preference $994).   |   |           | 700     |   |               |   | 700 |   |
| Series C-1 convertible preferred stock, $1,500 stated value, 400 shares authorized, 175 issued and outstanding at March 31, 2011 (liquidation preference $341)                                                 |   |           | 263     |   |               |   | - |   |
| Common stock, $0.001 par value 70,000,000 shares authorized 37,376,396 shares issued and outstanding at March 31, 2011 and September 30, 2010, respectively.                                                   |   |           | 37      |   |               |   | 37 |   |
| Additional paid in capital                                                                                                                                                                                     |   |           | 37,881  |   |               |   | 37,137 |   |
| Accumulated deficit                                                                                                                                                                                            |   |           | (35,326 | )      |               |   | (39,711 | ) |
| Accumulated other comprehensive income (loss)                                                                                                                                                                  |   |           | 38      |   |               |   | (507 | ) |
| Total stockholders' equity (deficiency)                                                                                                                                                                        |   |           | 3,934   |   |               |   | (2,003 | ) |
| Total liabilities and stockholders' equity                                                                                                                                                                     |   | $              | 11,952  |   |               | $      | 12,071 |   |

----

|                                                                   |   | For the Three |       |   | For the Three |   |       | For the Six |   |   | For the Six |   |
|------------------------------------------------------------------------|--------|-------------------------|------------|--------|-------------------------|--------|------------|-----------------------|--------|--------|-----------------------|--------|
|                                                                   |   | Months Ended       |       |   | Months Ended       |   |       | Months Ended     |   |   | Months Ended     |   |
|                                                                   |   | March 31           |       |   | March 31           |   |       | March 31         |   |   | March 31         |   |
|                                                                   |   | 2011                    |       |   | 2010                    |   |       | 2011                  |   |   | 2010                  |   |
| Net sales                                                              |   | $                       | 5,003      |   |                    | $      | 3,269      |                  |   | $      | 8,977                 |   |   | $ | 6,142 |   |
| Cost of materials sold                                                 |   |                    | 350        |   |                    |   | 374        |                  |   |   | 626                   |   |   |   | 857 |   |
| Cost of services                                                       |   |                    | 3,253      |   |                    |   | 1,360      |                  |   |   | 5,776                 |   |   |   | 2,636 |   |
| Gross profit                                                           |   |                    | 1,400      |   |                    |   | 1,535      |                  |   |   | 2,575                 |   |   |   | 2,649 |   |
| Operating expenses                                                     |   |                    |       |   |                    |   |       |                  |   |   |                  |   |   |   |   |   |
| Salaries and benefits                                                  |   |                    | 1,863      |   |                    |   | 1,738      |                  |   |   | 3,538                 |   |   |   | 2,779 |   |
| Selling, general and administrative                                    |   |                    | 980        |   |                    |   | 1,682      |                  |   |   | 1,868                 |   |   |   | 2,699 |   |
| Total operating expense                                                |   |                    | 2,843      |   |                    |   | 3,420      |                  |   |   | 5,406                 |   |   |   | 5,478 |   |
| Loss from operations                                                   |   |                    | (1,443     | )      |                    |   | (1,885     | )                     |   |   | (2,831                | )      |   |   | (2,829 | ) |
| Other expenses                                                         |   |                    |       |   |                    |   |       |                  |   |   |                  |   |   |   |   |   |
| Other expenses                                                         |   |                    | (265       | )      |                    |   | (65        | )                     |   |   | (550                  | )      |   |   | (250 | ) |
| Change in fair value of warrants                                       |   |                    | -          |   |                    |   | (4,349     | )                     |   |   | -                     |   |   |   | (4,373 | ) |
| Total other expenses                                                   |   |                    | (265       | )      |                    |   | (4,414     | )                     |   |   | (550                  | )      |   |   | (4,623 | ) |
| Net loss before income taxes                                           |   |                    | (1,708     | )      |                    |   | (6,299     | )                     |   |   | (3,381                | )      |   |   | (7,452 | ) |
| Income tax benefit (expense)                                           |   |                    | (126       | )      |                    |   | 127        |                  |   |   | (88                   | )      |   |   | 88 |   |
| Loss from continuing operations                                        |   |                    | (1,834     | )      |                    |   | (6,172     | )                     |   |   | (3,469                | )      |   |   | (7,364 | ) |
| Net income of discontinued operations                                  |   |                    | -          |   |                    |   | 283        |                  |   |   | 7,892                 |   |   |   | 444 |   |
| Net income (loss)                                                      |   |                    | (1,834     | )      |                    |   | (5,889     | )                     |   |   | 4,423                 |   |   |   | (6,920 | ) |
| Series A, A-1 and B Preferred Stock:                                   |   |                    |       |   |                    |   |       |                  |   |   |                  |   |   |   |   |   |
| Contractual dividends                                                  |   |                    | (19        | )      |                    |   | (79        | )                     |   |   | (38                   | )      |   |   | (127 | ) |
| Deemed dividends related to beneficial conversion feature              |   |                    | -          |   |                    |   | (44        | )                     |   |   | -                     |   |   |   | (69 | ) |
| Net income (loss) available to common stockholders                     |   | $                       | (1,853     | )      |                    | $      | (6,012     | )                     |   | $      | 4,385                 |   |   | $ | (7,116 | ) |
| Net income (loss) per share to common stockholders - basic and diluted |   |                    |       |   |                    |   |       |                  |   |   |                  |   |   |   |   |   |
| Net loss per share from continuing operations                          |   |                    | (0.05      | )      |                    |   | (0.20      | )                     |   |   | (0.09                 | )      |   |   | (0.26 | ) |
| Net income per share from discontinued operations                      |   |                    | -          |   |                    |   | 0.01       |                  |   |   | 0.21                  |   |   |   | 0.02 |   |
|                                                                   |   | $                       | (0.05      | )      |                    | $      | (0.19      | )                     |   | $      | 0.12                  |   |   | $ | (0.24 | ) |
| Weighted average shares outstanding basic and diluted                  |   |                    | 37,376,396 |   |                    |   | 30,258,763 |                  |   |   | 37,376,396            |   |   |   | 28,184,868 |   |
| Other comprehensive loss, net of tax                                   |   |                    |       |   |                    |   |       |                  |   |   |                  |   |   |   |   |   |
| Net income (loss)                                                      |   | $                       | (1,853     | )      |                    | $      | (6,012     | )                     |   | $      | 4,385                 |   |   | $ | (7,116 | ) |
| Foreign currency translations adjustment                               |   |                    | (43        | )      |                    |   | 101        |                  |   |   | 545                   |   |   |   | 86 |   |
| Comprehensive income (loss)                                            |   | $                       | (1,896     | )      |                    | $      | (5,911     | )                     |   | $      | 4,930                 |   |   | $ | (7,030 | ) |

----

|                                                                            |   | Series A Convertible |   |   | Series A-1 Convertible |   |   | Series B Convertible |   |   | Series C-1 Convertible |   |   |              |   |   |               |   |   |   |   |   |               |   |   | Accumulated |   |   |            |   |
|--------------------------------------------------------------------------------------|--------|--------------------------------|--------|--------|----------------------------------|--------|--------|--------------------------------|--------|--------|----------------------------------|--------|--------|-------------------|--------|--------|--------------------|--------|--------|--------|--------|--------|--------------------|--------|--------|-------------|--------|--------|-----------------|--------|
|                                                                                 |   | Preferred Stock           |   |   | Preferred Stock             |   |   | Preferred Stock           |   |   | Preferred Stock             |   |   | Common Stock |   |   | Additional         |   |   |   |   |   | Other              |   |   |        |   |
|                                                                                 |   |                           |   |   | $1,000 Stated               |   |   |                           |   |   | $1,000 Stated               |   |   |              |   |   | $1,000 Stated |   |   |   |   |   | $1,500 Stated |   |   |        |   |   | $0.001 Par |   |   | Paid-In |   |   | Accumulated |   |   | Comprehensive |   |   |   |   |
|                                                                                 |   | Shares                         |   |   | Value                            |   |   | Shares                         |   |   | Value                            |   |   | Shares            |   |   | Value              |   |   | Shares |   |   | Value              |   |   | Shares      |   |   | Value           |   |   | Capital |   |   | Deficit |   |   | Income |   |   | Total |   |
|                                                                                 |   |                           |   |   |                             |   |   |                           |   |   |                             |   |   |              |   |   |               |   |   |   |   |   |               |   |   |        |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2010                                                        |   |                           | 30     |   |                             | $      | 30     |                           |   |   | 311                              |   |   | $                 | 311    |   |               |   | 700    |   |   | $      | 700                |   |   |        | -      |   |            | $      | - |   |   |   | 37,376,396 |   |   | $ | 37 |   |   | $ | 37,137 |   |   | $ | (39,711 | ) |   | $ | (507 | ) |   |   | (2,003 | ) |
|                                                                                 |   |                           |   |   |                             |   |   |                           |   |   |                             |   |   |              |   |   |               |   |   |   |   |   |               |   |   |        |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Vested portion of share based payments to employees for services                     |   |                           |   |   |                             |   |   |                           |   |   |                             |   |   |              |   |   |               |   |   |   |   |   |               |   |   |        |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   | 369 |   |   |   |   |   |   |   |   |   |   |   | 369 |   |
| Warrants issued under consulting agreements                                          |   |                           |   |   |                             |   |   |                           |   |   |                             |   |   |              |   |   |               |   |   |   |   |   |               |   |   |        |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   | 91 |   |   |   |   |   |   |   |   |   |   |   | 91 |   |
| Amortization of market value of common stock vested for investor relations agreement |   |                           |   |   |                             |   |   |                           |   |   |                             |   |   |              |   |   |               |   |   |   |   |   |               |   |   |        |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   | 12 |   |   |   |   |   |   |   |   |   |   |   | 12 |   |
| Amortization of non-employee stock options issued for performance of services        |   |                           |   |   |                             |   |   |                           |   |   |                             |   |   |              |   |   |               |   |   |   |   |   |               |   |   |        |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   | 31 |   |   |   |   |   |   |   |   |   |   |   | 31 |   |
| Warrants issued for credit facility                                                  |   |                           |   |   |                             |   |   |                           |   |   |                             |   |   |              |   |   |               |   |   |   |   |   |               |   |   |        |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   | 61 |   |   |   |   |   |   |   |   |   |   |   | 61 |   |
| Discount on senior secured notes payable                                             |   |                           |   |   |                             |   |   |                           |   |   |                             |   |   |              |   |   |               |   |   |   |   |   |               |   |   |        |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   | 180 |   |   |   |   |   |   |   |   |   |   |   | 180 |   |
| Series C-1 Preferred Stock issued in private placement                               |   |                           |   |   |                             |   |   |                           |   |   |                             |   |   |              |   |   |               |   |   |   |   |   |               |   |   |        | 175    |   |            |   | 263 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 263 |   |
| Series A Preferred Stock contractual dividends                                       |   |                           |   |   |                             |   |   |                           |   |   |                             |   |   |              |   |   |               |   |   |   |   |   |               |   |   |        |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2 | ) |   |   |   |   |   |   | (2 | ) |
| Series A-1 Preferred Stock contractual dividends                                     |   |                           |   |   |                             |   |   |                           |   |   |                             |   |   |              |   |   |               |   |   |   |   |   |               |   |   |        |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (16 | ) |   |   |   |   |   |   | (16 | ) |
| Series B Preferred Stock contractual dividends                                       |   |                           |   |   |                             |   |   |                           |   |   |                             |   |   |              |   |   |               |   |   |   |   |   |               |   |   |        |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (20 | ) |   |   |   |   |   |   | (20 | ) |
| Net income                                                                           |   |                           |   |   |                             |   |   |                           |   |   |                             |   |   |              |   |   |               |   |   |   |   |   |               |   |   |        |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 4,423 |   |   |   |   |   |   |   | 4,423 |   |
| Net change in accumulated other comprehensive income                                 |   |                           |   |   |                             |   |   |                           |   |   |                             |   |   |              |   |   |               |   |   |   |   |   |               |   |   |        |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 545 |   |   |   | 545 |   |
| Balance at December 31, 2010                                                         |   |                           | 30     |   |                             | $      | 30     |                           |   |   | 311                              |   |   | $                 | 311    |   |               |   | 700    |   |   | $      | 700                |   |   |        | 175    |   |            | $      | 263 |   |   |   | 37,376,396 |   |   | $ | 37 |   |   | $ | 37,881 |   |   | $ | (35,326 | ) |   | $ | 38 |   |   | $ | 3,934 |   |

----

|                                                                                                                          |   | For the Six |   |   | For the Six |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|
|                                                                                                                          |   | Months Ended     |   |   | Months Ended     |   |
|                                                                                                                          |   | March 31,        |   |   | March 31,        |   |
|                                                                                                                          |   | 2011                  |   |   | 2010                  |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                                                          |   |                  |   |   |                  |   |
| Net income (loss)                                                                                                             |   | $                     | 4,423  |   |                  | $      | (6,920 | ) |
| Net income from discontinued Operations (including gain on deconsolidation of $7,892 for the six months ended March 31, 2011) |   |                  | (7,892 | )      |                  | $      | (444 | ) |
| Net loss from continuing operations                                                                                           |   |                  | (3,469 | )      |                  |   | (7,364 | ) |
| Adjustments to reconcile net income (loss) to net cash used in continuing operating activities:                               |   |                  |   |   |                  |   |   |   |
| Change in reserve for obsolete inventory                                                                                      |   |                  | 30     |   |                  |   | 23 |   |
| Change in reserve for doubtful accounts                                                                                       |   |                  | 138    |   |                  |   | 68 |   |
| Depreciation and amortization                                                                                                 |   |                  | 258    |   |                  |   | 368 |   |
| Non-cash interest                                                                                                             |   |                  | 156    |   |                  |   | 108 |   |
| Share based payments                                                                                                          |   |                  | 503    |   |                  |   | 639 |   |
| Amortization of deferred finance fees                                                                                         |   |                  | 84     |   |                  |   | - |   |
| Accretion of debt discount                                                                                                    |   |                  | 37     |   |                  |   | - |   |
| Change in fair value of warrants with anti-dilution rights                                                                    |   |                  | -      |   |                  |   | 4,373 |   |
| Change in deferred tax liability                                                                                              |   |                  | 30     |   |                  |   | - |   |
| Changes in operating assets and liabilities:                                                                                  |   |                  |   |   |                  |   |   |   |
| Accounts receivable                                                                                                           |   |                  | 739    |   |                  |   | 926 |   |
| Unbilled accounts receivable                                                                                                  |   |                  | -      |   |                  |   | (1,744 | ) |
| Inventory                                                                                                                     |   |                  | 15     |   |                  |   | 85 |   |
| Prepaid expenses and other assets                                                                                             |   |                  | (360   | )      |                  |   | (32 | ) |
| Accounts payable                                                                                                              |   |                  | (608   | )      |                  |   | 8 |   |
| Accrued expenses                                                                                                              |   |                  | 1,130  |   |                  |   | (939 | ) |
| CASH USED IN CONTINUING OPERATING ACTIVITIES                                                                                  |   |                  | (1,317 | )      |                  |   | (3,481 | ) |
| CASH PROVIDED BY DISCONTINUED OPERATIONS                                                                                      |   |                  | -      |   |                  |   | 3,129 |   |
| NET CASH USED IN OPERATING ACTIVITIES                                                                                         |   |                  | (1,317 | )      |                  |   | (352 | ) |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                                                          |   |                  |   |   |                  |   |   |   |
| Capital expenditures                                                                                                          |   |                  | (95    | )      |                  |   | (268 | ) |
| Capital expenditures of discontinued operations                                                                               |   |                  | -      |   |                  |   | (183 | ) |
| NET CASH USED IN INVESTING ACTIVITIES                                                                                         |   |                  | (95    | )      |                  |   | (451 | ) |
| CASH FLOWS FROM CONTINUING FINANCING ACTIVITIES                                                                               |   |                  |   |   |                  |   |   |   |
| Proceeds from sale of common stock, net of offering costs                                                                     |   |                  | -      |   |                  |   | 2,398 |   |
| Proceeds from warrant exercises, net of offering costs                                                                        |   |                  | -      |   |                  |   | 2,091 |   |
| Proceeds from issuance of notes                                                                                               |   |                  | -      |   |                  |   | 500 |   |
| Proceeds from issuance of senior secured notes payable, net of offering costs                                                 |   |                  | 2,667  |   |                  |   | - |   |
| Proceeds from non-current line of credit - related party                                                                      |   |                  | 310    |   |                  |   | - |   |
| Proceeds from sale of preferred stock                                                                                         |   |                  | 263    |   |                  |   | - |   |
| Payments on non-current line of credit - related party                                                                        |   |                  | (940   | )      |                  |   | - |   |
| Payments on short term debt                                                                                                   |   |                  | -      |   |                  |   | (550 | ) |
| Repayment of convertible notes                                                                                                |   |                  | -      |   |                  |   | (298 | ) |
| Payments of notes payable                                                                                                     |   |                  | (448   | )      |                  |   | (261 | ) |
| NET CASH PROVIDED BY CONTINUING FINANCING ACTIVITIES                                                                          |   |                  | 1,852  |   |                  |   | 3,880 |   |
| Effect of exchange rate changes on cash and cash equivalents                                                                  |   |                  | (40    | )      |                  |   | 89 |   |
| NET INCREASE IN CASH AND CASH EQUIVALENTS                                                                                     |   |                  | 400    |   |                  |   | 3,166 |   |
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD                                                                               |   |                  | 246    |   |                  |   | 264 |   |
| CASH AND CASH EQUIVALENTS - END OF PERIOD                                                                                     |   | $                     | 646    |   |                  | $      | 3,430 |   |
| Supplemental disclosures                                                                                                      |   |                  |   |   |                  |   |   |   |
| Cash paid for:                                                                                                                |   |                  |   |   |                  |   |   |   |
| Interest                                                                                                                      |   | $                     | 91     |   |                  | $      | 85 |   |
| Income taxes                                                                                                                  |   | $                     | -      |   |                  | $      | - |   |

----

| NOTE 2 — | LIQUIDITY AND FINANCIAL CONDITION |
|--------------------------|-----------------------------------|

----

----

|                                                 |   |             |       |   |        |   |      | Total  |   |
|------------------------------------------------------|--------|------------------|------------|--------|-------------|--------|-----------|-------------|--------|
|                                                 |   | Stock            |       |   | Common      |   |      | Common      |   |
|                                                 |   | Options and |       |   | Stock       |   |      | Stock       |   |
|                                                 |   | Warrants         |       |   | Equivalents |   |      | Equivalents |   |
|                                                 |   |             |       |   |        |   |      |        |   |
| Series A Convertible Preferred Stock with Warrants   |   |             | 20,131     |   |        |   | 40,263    |        |   |   | 60,394 |   |
| Series A-1 Convertible Preferred Stock with Warrants |   |             | 207,260    |   |        |   | 414,518   |        |   |   | 621,778 |   |
| Series B Convertible Preferred Stock with Warrants   |   |             | 350,000    |   |        |   | 875,000   |        |   |   | 1,225,000 |   |
| Series C-1 Convertible Preferred Stock with Warrants |   |             | 175,000    |   |        |   | 350,000   |        |   |   | 525,000 |   |
| Common Stock Offering Warrants                       |   |             | 2,807,322  |   |        |   | -         |        |   |   | 2,807,322 |   |
| Placement Agent Warrants                             |   |             | 2,847,497  |   |        |   | -         |        |   |   | 2,847,497 |   |
| Affiliate Warrants                                   |   |             | 55,583     |   |        |   | -         |        |   |   | 55,583 |   |
| Bridge Financing                                     |   |             | 285,500    |   |        |   | 166,667   |        |   |   | 452,167 |   |
| Convertible Notes Payable Warrants                   |   |             | 50,000     |   |        |   | -         |        |   |   | 50,000 |   |
| Senior Secured Notes Payable Warrants                |   |             | 449,999    |   |        |   | -         |        |   |   | 449,999 |   |
| Compensatory Warrants                                |   |             | 300,000    |   |        |   | -         |        |   |   | 300,000 |   |
| Bonding Warrants                                     |   |             | 33,120     |   |        |   | -         |        |   |   | 33,120 |   |
| Equity Financing Arrangements Warrants               |   |             | 836,662    |   |        |   | -         |        |   |   | 836,662 |   |
| Consulting Warrants                                  |   |             | 2,500,000  |   |        |   |      |        |   |   | 2,500,000 |   |
| Employee Stock Options                               |   |             | 3,952,414  |   |        |   | -         |        |   |   | 3,952,414 |   |
| Non-Employee Stock Options                           |   |             | 250,000    |   |        |   | -         |        |   |   | 250,000 |   |
|                                                 |   |             | 15,120,488 |   |        |   | 1,846,448 |        |   |   | 16,966,936 |   |

----

|   | NOTE 5 — | ACCRUED EXPENSES |
|--------|--------------------------|------------------|

|                 |   | As of     |   |   | As of         |   |
|----------------------|--------|----------------|--------|--------|--------------------|--------|
|                 |   | March 31, |   |   | September 30, |   |
|                 |   | 2011           |   |   | 2010               |   |
|                 |   |           |   |   |               |   |
| Compensation related |   | $              | 1,141  |   |               | $      | 483 |   |
| Service delivery     |   |           | 578    |   |               |   | - |   |
| Dividends            |   |           | 191    |   |               |   | 153 |   |
| Interest             |   |           | 38     |   |               |   | 50 |   |
| Other                |   |           | 197    |   |               |   | 194 |   |
|                 |   | $              | 2,145  |   |               | $      | 880 |   |

|   | NOTE 6 — | NOTES PAYABLE AND LINE OF CREDIT – RELATED PARTY |
|--------|--------------------------|-------------------------------------------------------------|

----

| 2011       |   | $      | 131    |   |
|------------|--------|--------|--------|--------|
| 2012       |   |   | 244    |   |
| 2013       |   |   | 236    |   |
| 2014       |   |   | 228    |   |
| 2015       |   |   | 184    |   |
| Thereafter |   |   | 82     |   |
|       |   |   |   |   |
|       |   | $      | 1,105  |   |

----

----

|                    |   |                    |   |   |                  |   |
|-------------------------|--------|-------------------------|--------|--------|-----------------------|--------|
|                    |   | For the Three |   |   | For the Six |   |
|                    |   | Months Ended       |   |   | Months Ended     |   |
|                    |   | March 31,          |   |   | March 31,        |   |
|                    |   | 2011                    |   |   | 2011                  |   |
| Stock Price             |   | $                       | 0.51   |   |                  | $      | 0.51 - $0.63 |   |
| Expected Life           |   |                    | 6.5    |   |                  |   | 5.5 - 7.5 |   |
| Volatility              |   |                    | 171    | %      |                  |   | 171% - 178 | % |
| Risk-free interest rate |   |                    | 2.30   | %      |                  |   | 1.17% - 2.30 | % |
| Dividend Yield          |   |                    | 0      | %      |                  |   | 0 | % |
| Fair value of options   |   | $                       | 0.49   |   |                  | $      | 0.49 - $0.62 |   |

|                                      |   | For the Three |   |   | For the Three |   |   | For the Six |   |   | For the Six |   |
|-------------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|
|                                      |   | Months Ended       |   |   | Months Ended       |   |   | Months Ended     |   |   | Months Ended     |   |
|                                      |   | March 31,          |   |   | March 31,          |   |   | March 31,        |   |   | March 31,        |   |
|                                      |   | 2011                    |   |   | 2010                    |   |   | 2011                  |   |   | 2010                  |   |
| Non-Cash Share-Based Compensation Expense |   |                    |   |   |                    |   |   |                  |   |   |                  |   |
| Restricted Stock                          |   | $                       | -      |   |                    | $      | 10     |                  |   | $      | -                     |   |   | $ | 55 |   |
| Stock Options                             |   |                    | 190    |   |                    |   | 231    |                  |   |   | 369                   |   |   |   | 431 |   |
| Total Stock Compensation Expense          |   | $                       | 190    |   |                    | $      | 241    |                  |   | $      | 369                   |   |   | $ | 486 |   |

----

|                                   |   |            |      |   |                |   |   | Weighted    |   |   |      |   |
|----------------------------------------|--------|-----------------|-----------|--------|---------------------|--------|--------|-------------|--------|--------|-----------|--------|
|                                   |   |            |      |   |                |   |   | Average     |   |   |      |   |
|                                   |   |            |      |   | Weighted            |   |   | Remaining   |   |   | Aggregate |   |
|                                   |   | Number          |      |   | Average             |   |   | Contractual |   |   | Intrinsic |   |
|                                   |   | Of Options |      |   | Exercise Price |   |   | Life        |   |   | Value     |   |
| Options Outstanding at October 1, 2010 |   |            | 3,718,533 |   |                | $      | 1.47   |        |   |   |      |   |   |   |
| Granted                                |   |            | 743,448   |   |                |   | 0.92   |        |   |   |      |   |   |   |
| Forfeited                              |   |            | (259,567  | )      |                |   | (0.80  | )           |   |   |      |   |   |   |
| Options Outstanding at March 31, 2011  |   |            | 4,202,414 |   |                | $      | 1.59   |        |   |   | 8.76      |   |   | $ | - |   |
| Options Exercisable, March 31, 2011    |   |            | 1,226,796 |   |                | $      | 1.19   |        |   |   | 8.36      |   |   | $ | - |   |

|                                         |   | North America |   |   | Europe |   |   | Total  |   |
|----------------------------------------------|--------|--------------------|--------|--------|--------|--------|--------|--------|--------|
| Net sales                                    |   | $                  | 2,468  |   |   | $      | 2,535  |   |   | $ | 5,003 |   |
| (Loss) income from operations                |   |               | (1,805 | )      |   |   | 362    |   |   |   | (1,443 | ) |
| Other (expense) income                       |   |               | (355   | )      |   |   | 90     |   |   |   | (265 | ) |
| Depreciation and amortization                |   |               | (116   | )      |   |   | (10    | )      |   |   | (126 | ) |
| Net (loss) income from continuing operations |   |               | (2,176 | )      |   |   | 342    |   |   |   | (1,834 | ) |
| Assets                                       |   |               | 9,573  |   |   |   | 2,379  |   |   |   | 11,952 |   |
| Capital expenditures                         |   |               | 60     |   |   |   | -      |   |   |   | 60 |   |
| Goodwill                                     |   |               | 2,792  |   |   |   | -      |   |   |   | 2,792 |   |
| Intangible Assets                            |   |               | 2,882  |   |   |   | -      |   |   |   | 2,882 |   |

----

|                                    |   | North America |   |   | Europe |   |   | Total  |   |
|-----------------------------------------|--------|--------------------|--------|--------|--------|--------|--------|--------|--------|
| Net sales                               |   | $                  | 5,177  |   |   | $      | 3,800  |   |   | $ | 8,977 |   |
| Loss from operations                    |   |               | (2,489 | )      |   |   | (342   | )      |   |   | (2,831 | ) |
| Other expense                           |   |               | (539   | )      |   |   | (11    | )      |   |   | (550 | ) |
| Depreciation and amortization           |   |               | (238   | )      |   |   | (20    | )      |   |   | (258 | ) |
| Net loss from continuing operations     |   |               | (3,059 | )      |   |   | (410   | )      |   |   | (3,469 | ) |
| Net income from discontinued operations |   |               | -      |   |   |   | 7,892  |   |   |   | 7,892 |   |
| Capital Expenditures                    |   |               | 95     |   |   |   | -      |   |   |   | 95 |   |

| NOTE 11 — | SUBSEQUENT EVENTS |
|---------------------------|-------------------|

----

|   | • | general economic and business conditions, such as the current global recession, that may affect demand for our services and products and the ability of our customers to pay for such services and products; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | effects of competition in the markets in which the Company operates; |
|--------|---------|----------------------------------------------------------------------|

|   | • | liability and other claims asserted against the Company; |
|--------|---------|----------------------------------------------------------|

|   | • | ability to attract and retain qualified personnel; |
|--------|---------|----------------------------------------------------|

|   | • | availability and terms of capital; |
|--------|---------|------------------------------------|

|   | • | loss of significant contracts or reduction in revenue associated with major customers; |
|--------|---------|----------------------------------------------------------------------------------------|

|   | • | ability of customers to pay for services; |
|--------|---------|-------------------------------------------|

|   | • | business disruption due to natural disasters or terrorist acts; |
|--------|---------|-----------------------------------------------------------------|

|   | • | changes in, or failure to comply with, existing governmental regulations; and |
|--------|---------|-------------------------------------------------------------------------------|

|   | • | changes in estimates and judgments associated with critical accounting policies and estimates. |
|--------|---------|------------------------------------------------------------------------------------------------|

----

|   | · | Strengthening existing customer relationships to ensure we are their partner for all design, implementation and management of ITS infrastructure solutions. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Add additional major account sales resources to facilitate the introduction of Fortune 1000, Global 2000 and qualifying multi-national firms. We refer to these current and future clients as Fortune 10000. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Continued expansion of the a la carte services offered to existing major national, multi-national and global clients who have not already signed an infrastructure managed services agreement. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                               |   | For the three months ended March 31, |   |   | For the six months ended March 31, |   |
|-----------------------------------------|--------|--------------------------------------------------------------------|--------|--------|------------------------------------------------------------------|--------|
|                                    |   | 2011                                                               |   |   |                                                             |   |   | 2010 |   |   |   |   |   |   |   |   | 2011 |   |   |   |   |   | 2010 |   |   |   |   |   |   |   |
|                                    |   | North America                                                 |   |   |                                                             |   |   | North America |   |   |   |   |   | change |   |   | North America |   |   |   |   |   | North America |   |   |   |   |   | change |   |
|                                    |   |                                                               |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Sales                               |   | $                                                                  | 2,468  |   |                                                             |   | 100 | % |   | $ | 2,334 |   |   |   | 100 | % |   | $ | 134 |   |   | $ | 5,177 |   |   |   | 100 | % |   | $ | 4,595 |   |   |   | 100 | % |   | $ | 582 |   |
| Cost of materials sold                  |   |                                                               | 335    |   |                                                             |   | 14 | % |   |   | 246 |   |   |   | 11 | % |   |   | 89 |   |   |   | 611 |   |   |   | 12 | % |   |   | 729 |   |   |   | 16 | % |   |   | (118 | ) |
| Cost of services                        |   |                                                               | 1,663  |   |                                                             |   | 67 | % |   |   | 992 |   |   |   | 43 | % |   |   | 671 |   |   |   | 3,141 |   |   |   | 61 | % |   |   | 1,934 |   |   |   | 42 | % |   |   | 1,207 |   |
| Gross profit                            |   |                                                               | 470    |   |                                                             |   | 19 | % |   |   | 1,096 |   |   |   | 47 | % |   |   | (626 | ) |   |   | 1,425 |   |   |   | 28 | % |   |   | 1,932 |   |   |   | 42 | % |   |   | (507 | ) |
| Operating expense                       |   |                                                               |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and benefits                   |   |                                                               | 1,752  |   |                                                             |   | 71 | % |   |   | 1,198 |   |   |   | 51 | % |   |   | 554 |   |   |   | 3,312 |   |   |   | 64 | % |   |   | 2,239 |   |   |   | 49 | % |   |   | 1,073 |   |
| Selling, general and administrative     |   |                                                               | 751    |   |                                                             |   | 30 | % |   |   | 1,307 |   |   |   | 56 | % |   |   | (556 | ) |   |   | 1,555 |   |   |   | 30 | % |   |   | 2,258 |   |   |   | 49 | % |   |   | (703 | ) |
| Intercompany services                   |   |                                                               | (228   | )      |                                                             |   | -9 | % |   |   | (334 | ) |   |   | -14 | % |   |   | 106 |   |   |   | (953 | ) |   |   | -18 | % |   |   | (558 | ) |   |   | -12 | % |   |   | (395 | ) |
| Loss from operations                    |   |                                                               | (1,805 | )      |                                                             | NM     |   |   |   | (1,075 | ) |   | NM |   |   |   | (730 | ) |   |   | (2,489 | ) |   | NM |   |   |   | (2,007 | ) |   | NM |   |   |   | (482 | ) |
| Other expense                           |   |                                                               | (355   | )      |                                                             |   |   |   |   |   | (7 | ) |   |   |   |   |   |   | (348 | ) |   |   | (539 | ) |   |   |   |   |   |   | (192 | ) |   |   |   |   |   |   | (347 | ) |
| Change in Fair Value of Warrants        |   |                                                               | -      |   |                                                             |   |   |   |   |   | (4,349 | ) |   |   |   |   |   |   | 4,349 |   |   |   | - |   |   |   |   |   |   |   | (4,373 | ) |   |   |   |   |   |   | 4,373 |   |
| Net loss before income taxes            |   |                                                               | (2,160 | )      |                                                             |   |   |   |   |   | (5,431 | ) |   |   |   |   |   |   | 3,271 |   |   |   | (3,028 | ) |   |   |   |   |   |   | (6,572 | ) |   |   |   |   |   |   | 3,544 |   |
| Income tax expense                      |   |                                                               | (16    | )      |                                                             |   |   |   |   |   | (29 | ) |   |   |   |   |   |   | 13 |   |   |   | (31 | ) |   |   |   |   |   |   | (29 | ) |   |   |   |   |   |   | (2 | ) |
| Net loss from continuing operations     |   |                                                               | (2,176 | )      |                                                             |   |   |   |   |   | (5,460 | ) |   |   |   |   |   |   | 3,284 |   |   |   | (3,059 | ) |   |   |   |   |   |   | (6,601 | ) |   |   |   |   |   |   | 3,542 |   |
| Net income from discontinued operations |   |                                                               | -      |   |                                                             |   |   |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | - |   |
| Net loss                                |   | $                                                                  | (2,176 | )      |                                                             |   |   |   |   | $ | (5,460 | ) |   |   |   |   |   | $ | 3,284 |   |   | $ | (3,059 | ) |   |   |   |   |   | $ | (6,601 | ) |   |   |   |   |   | $ | 3,542 |   |

----

|                   |   | For the three months ended March 31 |   |   | For the six months ended March 31 |   |
|------------------------|--------|-------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------|--------|
|                   |   | 2011                                                              |   |   | 2010                                                            |   |   |   |   |   | 2011 |   |   | 2010 |   |   |   |   |
|                   |   | North America                                                |   |   | North America                                              |   |   | Change |   |   | North America |   |   | North America |   |   | Change |   |
| Cost of services       |   |                                                              |   |   |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Direct labor           |   |                                                              | 375    |   |                                                            |   | 544 |   |   |   | (169 | ) |   |   | 829 |   |   |   | 1,113 |   |   |   | (284 | ) |
| Subcontractor          |   |                                                              | 1,110  |   |                                                            |   | 351 |   |   |   | 759 |   |   |   | 2,024 |   |   |   | 582 |   |   |   | 1,442 |   |
| Project expenses       |   |                                                              | 178    |   |                                                            |   | 97 |   |   |   | 81 |   |   |   | 288 |   |   |   | 239 |   |   |   | 49 |   |
| Total cost of services |   |                                                              | 1,663  |   |                                                            |   | 992 |   |   |   | 671 |   |   |   | 3,141 |   |   |   | 1,934 |   |   |   | 1,207 |   |

----

|                                    |   | For the three months ended March 31, |   |   | For the six months ended March 31, |   |
|----------------------------------------------|--------|--------------------------------------------------------------------|--------|--------|------------------------------------------------------------------|--------|
|                                         |   | 2011                                                               |   |   |                                                             |   |   | 2010 |   |   |   |   |   |   |   |   | 2011 |   |   |   |   |   | 2010 |   |   |   |   |   |   |   |
|                                         |   | Europe                                                             |   |   |                                                             |   |   | Europe |   |   |   |   |   | change |   |   | Europe |   |   |   |   |   | Europe |   |   |   |   |   | change |   |
|                                         |   |                                                               |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Sales                                    |   | $                                                                  | 2,535  |   |                                                             |   | 100 | % |   | $ | 935 |   |   |   | 100 | % |   | $ | 1,600 |   |   | $ | 3,800 |   |   |   | 100 | % |   | $ | 1,547 |   |   |   | 100 | % |   | $ | 2,253 |   |
| Cost of materials sold                       |   |                                                               | 15     |   |                                                             |   | 1 | % |   |   | 128 |   |   |   | 14 | % |   |   | (113 | ) |   |   | 15 |   |   |   | 0 | % |   |   | 128 |   |   |   | 8 | % |   |   | (113 | ) |
| Cost of services                             |   |                                                               | 1,590  |   |                                                             |   | 63 | % |   |   | 368 |   |   |   | 39 | % |   |   | 1,222 |   |   |   | 2,635 |   |   |   | 69 | % |   |   | 702 |   |   |   | 45 | % |   |   | 1,933 |   |
| Gross profit                                 |   |                                                               | 930    |   |                                                             |   | 37 | % |   |   | 439 |   |   |   | 47 | % |   |   | 491 |   |   |   | 1,150 |   |   |   | 30 | % |   |   | 717 |   |   |   | 46 | % |   |   | 433 |   |
| Operating expense                            |   |                                                               |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and benefits                        |   |                                                               | 111    |   |                                                             |   | 4 | % |   |   | 540 |   |   |   | 58 | % |   |   | (429 | ) |   |   | 226 |   |   |   | 6 | % |   |   | 540 |   |   |   | 35 | % |   |   | (314 | ) |
| Selling, general and administrative          |   |                                                               | 229    |   |                                                             |   | 9 | % |   |   | 375 |   |   |   | 40 | % |   |   | (146 | ) |   |   | 313 |   |   |   | 8 | % |   |   | 441 |   |   |   | 29 | % |   |   | (128 | ) |
| Intercompany services                        |   |                                                               | 228    |   |                                                             |   | 9 | % |   |   | 334 |   |   |   | 36 | % |   |   | (106 | ) |   |   | 953 |   |   |   | 25 | % |   |   | 558 |   |   |   | 36 | % |   |   | 395 |   |
| Income (loss) from operations                |   |                                                               | 362    |   |                                                             | NM     |   |   |   | (810 | ) |   | NM |   |   |   | 1,172 |   |   |   | (342 | ) |   | NM |   |   |   | (822 | ) |   | NM |   |   |   | 480 |   |
| Other income (expense)                       |   |                                                               | 90     |   |                                                             |   |   |   |   |   | (58 | ) |   |   |   |   |   |   | 148 |   |   |   | (11 | ) |   |   |   |   |   |   | (58 | ) |   |   |   |   |   |   | 47 |   |
| Change in Fair Value of Warrants             |   |                                                               | -      |   |                                                             |   |   |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | - |   |
| Net income (loss) before income taxes        |   |                                                               | 452    |   |                                                             |   |   |   |   |   | (868 | ) |   |   |   |   |   |   | 1,320 |   |   |   | (353 | ) |   |   |   |   |   |   | (880 | ) |   |   |   |   |   |   | 527 |   |
| Income tax (expense) benefit                 |   |                                                               | (110   | )      |                                                             |   |   |   |   |   | 156 |   |   |   |   |   |   |   | (266 | ) |   |   | (57 | ) |   |   |   |   |   |   | 117 |   |   |   |   |   |   |   | (174 | ) |
| Net income (loss) from continuing operations |   |                                                               | 342    |   |                                                             |   |   |   |   |   | (712 | ) |   |   |   |   |   |   | 1,054 |   |   |   | (410 | ) |   |   |   |   |   |   | (763 | ) |   |   |   |   |   |   | 353 |   |
| Net income from discontinued operations      |   |                                                               | -      |   |                                                             |   |   |   |   |   | 283 |   |   |   |   |   |   |   | (283 | )  |   |   | 7,892 |   |   |   |   |   |   |   | 444 |   |   |   |   |   |   |   | 7,448 |   |
| Net loss                                     |   | $                                                                  | 342    |   |                                                             |   |   |   |   | $ | (429 | ) |   |   |   |   |   | $ | 771 |   |   | $ | 7,482 |   |   |   |   |   |   | $ | (319 | ) |   |   |   |   |   | $ | 7,801 |   |

|                   |   | For the three months ended March 31 |   |   | For the six months ended March 31 |   |
|------------------------|--------|-------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------|--------|
|                   |   | 2011                                                              |   |   | 2010                                                            |   |   |   |   |   | 2011 |   |   | 2010 |   |   |   |   |
|                   |   | Europe                                                            |   |   | Europe                                                          |   |   | Change |   |   | Europe |   |   | Europe |   |   | Change |   |
| Cost of services       |   |                                                              |   |   |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subcontractor          |   |                                                              | 1,480  |   |                                                            |   | - |   |   |   | 1,480 |   |   |   | 2,457 |   |   |   | - |   |   |   | 2,457 |   |
| Project expenses       |   |                                                              | 110    |   |                                                            |   | 368 |   |   |   | (258 | ) |   |   | 178 |   |   |   | 702 |   |   |   | (524 | ) |
| Total cost of services |   |                                                              | 1,590  |   |                                                            |   | 368 |   |   |   | 1,222 |   |   |   | 2,635 |   |   |   | 702 |   |   |   | 1,933 |   |

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| Contractual Obligations    |   | Total  |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | 2014   |   |   | 2015   |   |   | Thereafter |   |
|---------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
| Long-term debt obligations      |   | $      | 3,433  |   |   | $      | 3,339  |   |   | $      | 94     |   |   | $      | -      |   |   | $      | -      |       |   | $ | - |   |   | $ | - |   |
| Interest obligations (1)        |   |   | 290    |   |   |   | 287    |   |   |   | 3      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   |   |   |
| Operating lease obligations (2) |   |   | 1,105  |   |   |   | 131    |   |   |   | 244    |   |   |   | 236    |   |   |   | 228    |       |   |   | 184 |   |   |   | 82 |   |
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
|                            |   | $      | 4,828  |   |   | $      | 3,757  |   |   | $      | 341    |   |   | $      | 236    |   |   | $      | 228    |       |   | $ | 184 |   |   | $ | 82 |   |

| (1) | Interest obligations assume Prime Rate of 3.25% at March 31, 2011. Interest rate obligations are presented through the maturity dates of each component of long-term debt. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Operating lease obligations represent payment obligations under non-cancelable lease agreements classified as operating leases and disclosed pursuant to ASC 840 “Accounting for Leases,” as may be modified or supplemented. These amounts are not recorded as liabilities as of the current balance sheet date. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 31.1  | Certification of Principal Executive Officer, pursuant to Rules 13a-14(a) of the Sarbanes-Oxley Act of 2002. |
|------------|-------------------------------------------------------------------------------------------------------------------|

| 31.2  | Certification of Principal Financial Officer, pursuant to Rules 13a-14(a) of the Sarbanes-Oxley Act of 2002. |
|------------|-------------------------------------------------------------------------------------------------------------------|

| 32.1  | Certification of Principal Executive Officer, pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.2  | Certification of Principal Financial Officer, pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | This certification shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934 |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Date: May 16, 2011  | Beacon Enterprise Solutions Group, Inc. |                                                           |
|--------------------------|-----------------------------------------|----------------------------------------------------------------|
|                     |                                    |                                                           |
|                     | By:                           | /s/ Bruce Widener                                              |   |
|                     |                                    | Bruce Widener                                             |   |
|                     |                                    | Chief Executive Officer and Chairman of the Board of Directors |   |
|                     |                                    |                                                           |   |
|                     |                                    | and                                                       |   |
|                     |                                    |                                                           |
| Date: May 16, 2011  | By:                           | /s/ Michael Grendi                                             |   |
|                     |                                    | Michael Grendi                                            |   |
|                     |                                    | Principal Financial Officer                               |   |

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