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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

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**(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, 2007**

**OR**

**o TRANSITION      REPORT      PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES**

**EXCHANGE      ACT OF 1934**
** **

**For      the Transition Period From **
**___________**
**      to ___________**
**.**

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**Commission      File Number: 000-25781**

**STAMFORD      INDUSTRIAL GROUP, INC.**

| **Delaware**                                                                                |   | **41-1844584**                                                       |
|---------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|
| (State                or other jurisdiction ofincorporation                or organization) |   | (I.R.S.                EmployerIdentification                Number) |

**One      Landmark Square**

**Stamford,      Connecticut 06901**

**(203)      428-2040**

**As      of August 8, 2007, there were outstanding 41,550,161 shares of the registrant’s      Common Stock, $0.0001 par value.**

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**STAMFORD      INDUSTRIAL GROUP, INC.**

**TABLE      OF CONTENTS**

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|                             |                                                                                                                                                                                        | ** ****Page** |
|----------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|
|                             |                                                                                                                                                                                        |               |
| **PART                I.**       | **FINANCIAL              INFORMATION**                                                                                                                                                      |               |
|                             |                                                                                                                                                                                        |               |
| Item                1.           | Financial                Statements (unaudited)                                                                                                                                             |               |
|                             |                                                                                                                                                                                        |               |
|                             | Consolidated                Balance Sheets as of June 30, 2007 and December 31, 2006                                                                                                        | 1                  |
|                             |                                                                                                                                                                                        |               |
|                             | Consolidated                Statements of Operations for the three months ended June 30, 2007                and 2006                and the three months ended June 30, 2006 (Predecessor) | 2                  |
|                             |                                                                                                                                                                                        |               |
|                             | Consolidated                Statements of Operations for the six months ended June 30, 2007 and                2006                and the six months ended June 30, 2006 (Predecessor)     | 3                  |
|                             |                                                                                                                                                                                        |               |
|                             | Consolidated                Statements of Cash Flows for the six months ended June 30, 2007                and 2006 and the six months ended June 30, 2006                (Predecessor)     | 4                  |
|                             |                                                                                                                                                                                        |               |
|                             | Notes                to the Consolidated Financial Statements                                                                                                                               | 5                  |
|                             |                                                                                                                                                                                        |               |
| Item                2.           | Management’s                Discussion and Analysis of Financial Condition and                Results of Operations                                                                   | 16                 |
|                             |                                                                                                                                                                                        |               |
| Item                3.           | Quantitative                and Qualitative Disclosures about Market                Risk                                                                                                    | 22                 |
|                             |                                                                                                                                                                                        |               |
| Item                4.           | Controls                and Procedures                                                                                                                                                      | 23                 |
|                             |                                                                                                                                                                                        |               |
| **PART                II.**      | **OTHER              INFORMATION**                                                                                                                                                          |               |
|                             |                                                                                                                                                                                        |               |
| Item                1A.          | Risk Factors                                                                                                                                                                                | 24                 |
|                             |                                                                                                                                                                                        |               |
| Item                4.           | Submission                of Matters to a Vote of Security Holders                                                                                                                          | 24                 |
|                             |                                                                                                                                                                                        |               |
| Item                6.           | Exhibits                                                                                                                                                                                    | 25                 |
|                             |                                                                                                                                                                                        |               |
| **SIGNATURES**                   | 26                                                                                                                                                                                          |
|                             |                                                                                                                                                                                        |               |
| **EXHIBIT                INDEX** | 27                                                                                                                                                                                          |

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**PART      I.**
**FINANCIAL      INFORMATION**

**Item      1. **
**Financial      Statements**

| **STAMFORD                  INDUSTRIAL GROUP, INC.**                                                                                                                                                           |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  BALANCE SHEETS**                                                                                                                                                               |
| **(in                  thousands, except per share amounts)**                                                                                                                                                  |
|                                                                                                                                                                                                           |   |   |   |   |   |
|                                                                                                                                                                                                           |   | **June                  30,****2007****(unaudited)** |   | **December                  31,****2006** |   |
| **ASSETS**                                                                                                                                                                                                     |   |   |   |   |   |
| Current                  assets:                                                                                                                                                                               |   |   |   |   |   |
| Cash                  and cash equivalents                                                                                                                                                                     |   | $ | 108 |   | $ | 3,703 |   |
| Accounts                  receivable, net                                                                                                                                                                      |   |   | 12,177 |   |   | 9,276 |   |
| Inventory                                                                                                                                                                                                      |   |   | 15,487 |   |   | 14,094 |   |
| Deferred                  tax asset                                                                                                                                                                            |   |   | 2,684 |   |   | 2,684 |   |
| Prepaid                  expenses and other current assets                                                                                                                                                     |   |   | 217 |   |   | 561 |   |
| Total                  current assets                                                                                                                                                                          |   |   | 30,673 |   |   | 30,318 |   |
|                                                                                                                                                                                                           |   |   |   |   |   |   |   |
| Property,                  plant and equipment, net                                                                                                                                                            |   |   | 6,322 |   |   | 3,773 |   |
|                                                                                                                                                                                                           |   |   |   |   |   |   |   |
| Deferred                  financing costs, net                                                                                                                                                                 |   |   | 721 |   |   | 797 |   |
| Intangible                  assets, net                                                                                                                                                                        |   |   | 20,617 |   |   | 21,572 |   |
| Deferred                  tax asset                                                                                                                                                                            |   |   | 5,368 |   |   | 5,368 |   |
| Other                  assets                                                                                                                                                                                  |   |   | 283 |   |   | 297 |   |
| Total                  assets                                                                                                                                                                                  |   | $ | 63,984 |   | $ | 62,125 |   |
|                                                                                                                                                                                                           |   |   |   |   |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS’ EQUITY**                                                                                                                                                |   |   |   |   |   |   |   |
| Current                  liabilities:                                                                                                                                                                          |   |   |   |   |   |   |   |
| Notes                  payable                                                                                                                                                                                 |   | $ | 3,286 |   | $ | 3,286 |   |
| Current                  portion of long-term debt                                                                                                                                                             |   |   | 4,000 |   |   | 3,500 |   |
| Accounts                  payable                                                                                                                                                                              |   |   | 10,848 |   |   | 9,596 |   |
| Accrued                  expenses and other liabilities                                                                                                                                                        |   |   | 2,324 |   |   | 3,205 |   |
| Total                  current liabilities                                                                                                                                                                     |   |   | 20,458 |   |   | 19,587 |   |
|                                                                                                                                                                                                           |   |   |   |   |   |   |   |
| Long-term                  debt, less current portion                                                                                                                                                          |   |   | 24,533 |   |   | 27,033 |   |
| Total                  liabilities                                                                                                                                                                             |   |   | 44,991 |   |   | 46,620 |   |
|                                                                                                                                                                                                           |   |   |   |   |   |   |   |
| Commitments                  and contingencies (Note 11)                                                                                                                                                       |   |   |   |   |   |   |   |
|                                                                                                                                                                                                           |   |   |   |   |   |   |   |
| Stockholders’                  equity:                                                                                                                                                                   |   |   |   |   |   |   |   |
| Preferred                  stock — $.0001 par value; 5,000 shares authorized; no shares issued or                  outstanding                                                                           |   |   | — |   |   | — |   |
| Common                  stock — $.0001 par value; 100,000 shares authorized; 41,676 shares issued                  and outstanding at June 30, 2007 and December 31, 2006,                  respectively |   |   | 3 |   |   | 3 |   |
| Additional                  paid-in capital                                                                                                                                                                    |   |   | 246,663 |   |   | 245,237 |   |
| Accumulated                  deficit                                                                                                                                                                           |   |   | (227,673 | ) |   | (229,735 | ) |
| Total                  stockholders’ equity                                                                                                                                                              |   |   | 18,993 |   |   | 15,505 |   |
| Total                  liabilities and stockholders’ equity                                                                                                                                              |   | $ | 63,984 |   | $ | 62,125 |   |
|                                                                                                                                                                                                           |   |   |   |   |   |   |   |
| See                  accompanying notes to the consolidated financial                  statements.                                                                                                             |

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| **STAMFORD                  INDUSTRIAL GROUP, INC.**                                                                                                                                                                                                                                                                                                                                                                        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF OPERATIONS (UNAUDITED)**                                                                                                                                                                                                                                                                                                                                                      |
| **(in                  thousands, except per share amounts)**                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   | **Three                  Months Ended** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   | **June                  30,****2007** |   | **June                  30,****2006** |   | **Predecessor                  Company (1)****June                  30, 2006** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| Revenues:                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |
| Product                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $ | 28,281 |   | $ | — |   | $ | 20,475 |   |
| Service,                  maintenance and royalty                                                                                                                                                                                                                                                                                                                                                                           |   |   | — |   |   | 1 |   |   | — |   |
| Total                  revenues                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 28,281 |   |   | 1 |   |   | 20,475 |   |
| Cost                  of revenues:                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |
| Product                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 23,872 |   |   | — |   |   | 15,427 |   |
| Total                  cost of revenues                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 23,872 |   |   | — |   |   | 15,427 |   |
| Gross                  margin                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 4,409 |   |   | 1 |   |   | 5,048 |   |
| Operating                  expenses:                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Sales                  and marketing                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 303 |   |   | — |   |   | 319 |   |
| General                  and administrative                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 2,500 |   |   | 261 |   |   | 458 |   |
| Total                  operating expenses                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 2,803 |   |   | 261 |   |   | 777 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Income                  (loss) from operations                                                                                                                                                                                                                                                                                                                                                                              |   |   | 1,606 |   |   | (260 | ) |   | 4,271 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Other                  income (expense):                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |
| Interest                  income                                                                                                                                                                                                                                                                                                                                                                                            |   |   | — |   |   | 176 |   |   | — |   |
| Interest                  expense                                                                                                                                                                                                                                                                                                                                                                                           |   |   | (544 | ) |   | (13 | ) |   | (158 | ) |
| Other                  expense                                                                                                                                                                                                                                                                                                                                                                                              |   |   | (17 | ) |   | (67 | ) |   | (157 | ) |
| Total                  other income (expense), net                                                                                                                                                                                                                                                                                                                                                                          |   |   | (561 | ) |   | 96 |   |   | (315 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Income                  (loss) before taxes                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 1,045 |   |   | (164 | ) |   | 3,956 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| (Benefit)                  provision for income taxes                                                                                                                                                                                                                                                                                                                                                                       |   |   | (265 | )  |   | — |   |   | 114 |   |
| Net                  income (loss)                                                                                                                                                                                                                                                                                                                                                                                          |   | $ | 1,310 |   | $ | (164 | ) | $ | 3,842 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Basic                  net income (loss) per share                                                                                                                                                                                                                                                                                                                                                                          |   | $ | 0.03 |   | $ | (0.01 | ) |   |   |   |
| Shares                  used in basic calculation                                                                                                                                                                                                                                                                                                                                                                           |   |   | 41,676 |   |   | 29,060 |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Diluted                  net income (loss) per share                                                                                                                                                                                                                                                                                                                                                                        |   | $ | 0.03 |   | $ | (0.01 | ) |   |   |   |
| Shares                  used in diluted calculation                                                                                                                                                                                                                                                                                                                                                                         |   |   | 49,566 |   |   | 29,060 |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| (1)                  Because the Company had no operations at the time of the Concord                  acquisition (see Notes 1 and 13), Concord is considered to be the                  “Predecessor” of the Company for accounting purposes and, therefore                  relevant prior year financial information regarding the Predecessor                  has                  been presented herein. |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| See                  accompanying notes to the consolidated financial                  statements.                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |

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| **STAMFORD                  INDUSTRIAL GROUP, INC.**                                                                                                                                                                                                                                                                                                                                                                        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF OPERATIONS (UNAUDITED)**                                                                                                                                                                                                                                                                                                                                                      |
| **(in                  thousands, except per share amounts)**                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   | **Six                  Months Ended** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   | **June                  30,****2007** |   | **June                  30,****2006** |   | **Predecessor                  Company (1)****June                  30, 2006** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| Revenues:                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |
| Product                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $ | 56,185 |   | $ | — |   | $ | 38,643 |   |
| Service,                  maintenance and royalty                                                                                                                                                                                                                                                                                                                                                                           |   |   | — |   |   | 20 |   |   | — |   |
| Total                  revenues                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 56,185 |   |   | 20 |   |   | 38,643 |   |
| Cost                  of revenues:                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |
| Product                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 46,438 |   |   | — |   |   | 29,795 |   |
| Total                  cost of revenues                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 46,438 |   |   | — |   |   | 29,795 |   |
| Gross                  margin                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 9,747 |   |   | 20 |   |   | 8,848 |   |
| Operating                  expenses:                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Sales                  and marketing                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 675 |   |   | — |   |   | 567 |   |
| General                  and administrative                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 5,357 |   |   | 349 |   |   | 924 |   |
| Total                  operating expenses                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 6,032 |   |   | 349 |   |   | 1,491 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Income                  (loss) from operations                                                                                                                                                                                                                                                                                                                                                                              |   |   | 3,715 |   |   | (329 | ) |   | 7,357 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Other                  income (expense):                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |
| Interest                  income                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 6 |   |   | 335 |   |   | — |   |
| Interest                  expense                                                                                                                                                                                                                                                                                                                                                                                           |   |   | (1,215 | ) |   | (26 | ) |   | (313 | ) |
| Other                  expense                                                                                                                                                                                                                                                                                                                                                                                              |   |   | (139 | ) |   | (83 | ) |   | (248 | ) |
| Total                  other income (expense), net                                                                                                                                                                                                                                                                                                                                                                          |   |   | (1,348 | ) |   | 226 |   |   | (561 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Income                  (loss) before taxes                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 2,367 |   |   | (103 | ) |   | 6,796 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Provision                  for income taxes                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 305 |   |   | — |   |   | 176 |   |
| Net                  income (loss)                                                                                                                                                                                                                                                                                                                                                                                          |   | $ | 2,062 |   | $ | (103 | ) | $ | 6,620 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Basic                  net income (loss) per share                                                                                                                                                                                                                                                                                                                                                                          |   | $ | 0.05 |   | $ | (0.00 | ) |   |   |   |
| Shares                  used in basic calculation                                                                                                                                                                                                                                                                                                                                                                           |   |   | 41,676 |   |   | 29,026 |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Diluted                  net income (loss) per share                                                                                                                                                                                                                                                                                                                                                                        |   | $ | 0.04 |   | $ | (0.00 | ) |   |   |   |
| Shares                  used in diluted calculation                                                                                                                                                                                                                                                                                                                                                                         |   |   | 49,560 |   |   | 29,026 |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| (1)                  Because the Company had no operations at the time of the Concord                  acquisition (see Notes 1 and 13), Concord is considered to be the                  “Predecessor” of the Company for accounting purposes and, therefore                  relevant prior year financial information regarding the Predecessor                  has                  been presented herein. |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| See                  accompanying notes to the consolidated financial                  statements.                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |

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| **STAMFORD                  INDUSTRIAL GROUP, INC.**                                                                                                                                                                                                                                                                                                                                                                        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF CASH FLOWS (UNAUDITED)**                                                                                                                                                                                                                                                                                                                                                      |
| **(in                  thousands)**                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   | **Six                  Months Ended** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   | **June                  30,****2007** |   | **June                  30,****2006** |   | **Predecessor                  Company (1)****June                  30, 2006** |   |
| Cash                  flows from operating activities:                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
| Net                  income (loss)                                                                                                                                                                                                                                                                                                                                                                                          |   | $ | 2,062 |   | $ | (103 | ) | $ | 6,620 |   |
| Reconciliation                  of net income to net cash provided by (used in) operating                  activities:                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Depreciation                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 166 |   |   | — |   |   | 271 |   |
| Amortization                  of intangibles                                                                                                                                                                                                                                                                                                                                                                                |   |   | 955 |   |   | — |   |   | — |   |
| Amortization                  of discount on investments, net                                                                                                                                                                                                                                                                                                                                                               |   |   | — |   |   | (260 | ) |   | — |   |
| Amortization                  of debt issuance costs                                                                                                                                                                                                                                                                                                                                                                        |   |   | 76 |   |   | 15 |   |   | 1 |   |
| Provision                  for doubtful accounts                                                                                                                                                                                                                                                                                                                                                                            |   |   | 9 |   |   | — |   |   | — |   |
| Stock-based                  compensation                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 1,426 |   |   | 52 |   |   | — |   |
| Changes                  in assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |
| Accounts                  receivable                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (2,910 | ) |   | — |   |   | (4,790 | ) |
| Inventory                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | (1,393 | ) |   | — |   |   | 1,167 |   |
| Prepaid                  expenses and other current assets                                                                                                                                                                                                                                                                                                                                                                  |   |   | 344 |   |   | (9 | ) |   | 3 |   |
| Other                  assets                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 14 |   |   | (30 | ) |   | — |   |
| Accounts                  payable                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 1,117 |   |   | — |   |   | 2,354 |   |
| Accrued                  expenses and other liabilities                                                                                                                                                                                                                                                                                                                                                                     |   |   | (1,137 | ) |   | (199 | ) |   | (428 | ) |
| Net                  cash provided by (used in) operating activities                                                                                                                                                                                                                                                                                                                                                        |   |   | 729 |   |   | (534 | ) |   | 5,198 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Cash                  flows from investing activities:                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Purchase                  of marketable securities                                                                                                                                                                                                                                                                                                                                                                          |   |   | — |   |   | (14,415 | ) |   | — |   |
| Proceeds                  from sale of marketable securities                                                                                                                                                                                                                                                                                                                                                                |   |   | — |   |   | 17,550 |   |   | — |   |
| Capital                  expenditures for property and equipment                                                                                                                                                                                                                                                                                                                                                            |   |   | (2,324 | ) |   | — |   |   | (303 | ) |
| Net                  cash (used in) provided by investing activities                                                                                                                                                                                                                                                                                                                                                        |   |   | (2,324 | ) |   | 3,135 |   |   | (303 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Cash                  flows from financing activities:                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Proceeds                  from line of credit                                                                                                                                                                                                                                                                                                                                                                               |   |   | — |   |   | — |   |   | 3,450 |   |
| Principal                  payments on long-term debt                                                                                                                                                                                                                                                                                                                                                                       |   |   | (2,000 | ) |   | — |   |   | (138 | ) |
| Distributions                  to members                                                                                                                                                                                                                                                                                                                                                                                   |   |   | — |   |   | — |   |   | (9,133 | ) |
| Net                  cash used in financing activities                                                                                                                                                                                                                                                                                                                                                                      |   |   | (2,000 | ) |   | — |   |   | (5,821 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Net                  (decrease) increase in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                       |   |   | (3,595 | ) |   | 2,601 |   |   | (926 | ) |
| Cash                  and cash equivalents at beginning of year                                                                                                                                                                                                                                                                                                                                                             |   |   | 3,703 |   |   | 203 |   |   | 1,003 |   |
| Cash                  and cash equivalents at end of year                                                                                                                                                                                                                                                                                                                                                                   |   | $ | 108 |   | $ | 2,804 |   | $ | 77 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Supplemental                  cash flow disclosure:                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Interest                  paid                                                                                                                                                                                                                                                                                                                                                                                              |   | $ | 1,303 |   | $ | — |   | $ | 286 |   |
| Taxes                  paid                                                                                                                                                                                                                                                                                                                                                                                                 |   | $ | 326 |   | $ | 64 |   | $ | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| (1)                  Because the Company had no operations at the time of the Concord                  acquisition (see Notes 1 and 13), Concord is considered to be the                  “Predecessor” of the Company for accounting purposes and, therefore                  relevant prior year financial information regarding the Predecessor                  has                  been presented herein. |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| See                  accompanying notes to the consolidated financial                  statements                                                                                                                                                                                                                                                                                                                           |

----

**Note      1. Overview and Basis of Presentation**

***Overview***

***Basis      of Presentation***

----

***Critical      Accounting Policies***

*Use      of estimates.*

*Revenue      Recognition. *

*Allowance      for doubtful accounts. *

*Litigation.      *

*Income      taxes. *

*Derivatives      and hedging activities. *

----

***Recent      Accounting Pronouncements***

**Note      2. Inventories **

|                            |   | **June                  30,****2007** |   | **December                  31,****2006** |   |
|---------------------------------|--------|---------------------------------------|--------|-------------------------------------------|--------|
|                            |   |                                  |   |                                      |   |
| Finished                  goods |   | $                                     | 45     |                                      | $      | 89 |   |
| Work-in-process                 |   |                                  | 835    |                                      |   | 613 |   |
| Raw                  materials  |   |                                  | 14,607 |                                      |   | 13,392 |   |
|                            |   | $                                     | 15,487 |                                      | $      | 14,094 |   |

**Note      3. Property, Plant and Equipment**

|                                                |   | **June                  30,****2007** |   | **December                  31,****2006** |   |
|-----------------------------------------------------|--------|---------------------------------------|--------|-------------------------------------------|--------|
| Land                                                |   | $                                     | 350    |                                      | $      | 350 |   |
| Building                  and improvements          |   |                                  | 1,063  |                                      |   | 883 |   |
| Machinery                  and equipment            |   |                                  | 2,907  |                                      |   | 1,514 |   |
| Office                  equipment                   |   |                                  | 235    |                                      |   | 196 |   |
| Transportation                  equipment           |   |                                  | 513    |                                      |   | 364 |   |
| Construction                  in progress           |   |                                  | 1,491  |                                      |   | 537 |   |
|                                                |   |                                  | 6,559  |                                      |   | 3,844 |   |
|                                                |   |                                  |   |                                      |   |   |   |
| Less:                  Accumulated depreciation     |   |                                  | (237   | )                                         |   | (71 | ) |
| Property,                  plant and equipment, net |   | $                                     | 6,322  |                                      | $      | 3,773 |   |

----

**Note      4. Intangible assets**

|                                                      |   | **June                  30, 2007** |   |
|-----------------------------------------------------------|--------|------------------------------------|--------|
|                                                      |   | **Gross**                          |   | **Other****Adjustments(1)** |   | **Accumulated****Amortization** |   | **Net** |   | **Life** |   |
| Intangibles                  subject to amortization:     |   |                               |   |   |   |   |   |   |   |   |   |
| Customer                  relationships                   |   | $                                  | 12,399 |   | $ | (52 | ) | $ | (777 | ) | $ | 11,570 |   |   | 12                  yrs |   |
| Non-compete                  agreements                   |   |                               | 37     |   |   | — |   |   | (9 | ) |   | 28 |   |   | 3                  yrs |   |
|                                                      |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intangibles                  not subject to amortization: |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trade                  name                               |   |                               | 9,397  |   |   | (378 | ) |   | — |   |   | 9,019 |   |   | — |   |
|                                                      |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intangibles,                  net                         |   | $                                  | 21,833 |   | $ | (430 | ) | $ | (786 | ) | $ | 20,617 |   |   |   |   |
|                                                      |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                      |   | **December                  31, 2006** |   |
|-----------------------------------------------------------|--------|----------------------------------------|--------|
|                                                      |   | **Gross**                              |   | **Other                  Adjustments** |   | **Accumulated****Amortization** |   | **Net** |   | **Life** |   |
| Intangibles                  subject to amortization:     |   |                                   |   |   |   |   |   |   |   |   |   |
| Customer                  relationships                   |   | $                                      | 12,399 |   | $ | — |   | $ | (258 | ) | $ | 12,141 |   |   | 12                  yrs |   |
| Non-compete                  agreements                   |   |                                   | 37     |   |   | — |   |   | (3 | ) |   | 34 |   |   | 3                  yrs |   |
|                                                      |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intangibles                  not subject to amortization: |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trade                  name                               |   |                                   | 9,397  |   |   | — |   |   | — |   |   | 9,397 |   |   | — |   |
|                                                      |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intangibles,                  net                         |   | $                                      | 21,833 |   | $ | — |   | $ | (261 | ) | $ | 21,572 |   |   |   |   |
|                                                      |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

**Note      5. Accrued expenses and other liabilities**

|                                                            |   | **June                  30,****2007** |   | **December                  31,****2006** |   |
|-----------------------------------------------------------------|--------|---------------------------------------|--------|-------------------------------------------|--------|
|                                                            |   |                                  |   |                                      |   |
| Accrued                  compensation, benefits and commissions |   | $                                     | 608    |                                      | $      | 706 |   |
| Accrued                  interest payable                       |   |                                  | 690    |                                      |   | 840 |   |
| Accrued                  professional services                  |   |                                  | 216    |                                      |   | 25 |   |
| Accrued                  insurance                              |   |                                  | 90     |                                      |   | 216 |   |
| Accrued                  property taxes                         |   |                                  | 52     |                                      |   | 41 |   |
| Accrued                  other liabilities                      |   |                                  | 668    |                                      |   | 1,377 |   |
|                                                            |   | $                                     | 2,324  |                                      | $      | 3,205 |   |

**Note      6. Long-term Debt and Notes Payable**

----

----

**Note      7. Per Share Data **

|                                                              |   | **Three                  Months Ended****June                  30,** |   | **Six                  Months Ended****June                  30,** |   |
|-------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
|                                                              |   | **2007**                                                             |   | **2006**                                                           |   | **2007** |   | **2006** |   |
| **Basic                  income (loss) per share calculation:**   |   |                                                                 |   |                                                               |   |   |   |   |   |
|                                                              |   |                                                                 |   |                                                               |   |   |   |   |   |
| Net                  income (loss)                                |   | $                                                                    | 1,310  |                                                               | $      | (164 | ) | $ | 2,062 |   | $ | (103 | ) |
|                                                              |   |                                                                 |   |                                                               |   |   |   |   |   |   |   |   |   |
| Weighted                  average common shares - basic           |   |                                                                 | 41,676 |                                                               |   | 29,060 |   |   | 41,676 |   |   | 29,026 |   |
| **Basic                  net income (loss) per share**            |   | $                                                                    | 0.03   |                                                               | $      | (0.01 | ) | $ | 0.05 |   | $ | (0.00 | ) |
|                                                              |   |                                                                 |   |                                                               |   |   |   |   |   |   |   |   |   |
| **Diluted                  income (loss) per share calculation:** |   |                                                                 |   |                                                               |   |   |   |   |   |   |   |   |   |
|                                                              |   |                                                                 |   |                                                               |   |   |   |   |   |   |   |   |   |
| Net                  income (loss)                                |   | $                                                                    | 1,310  |                                                               | $      | (164 | ) | $ | 2,062 |   | $ | (103 | ) |
|                                                              |   |                                                                 |   |                                                               |   |   |   |   |   |   |   |   |   |
| Weighted                  average common shares - basic           |   |                                                                 | 41,676 |                                                               |   | 29,060 |   |   | 41,676 |   |   | 29,026 |   |
| Effect                  of dilutive stock options                 |   |                                                                 | 2,035  |                                                               |   | — |   |   | 2,026 |   |   | — |   |
| Effect                  of restricted stock awards                |   |                                                                 | 81     |                                                               |   | — |   |   | 110 |   |   | — |   |
| Effect                  of convertible note                       |   |                                                                 | 5,628  |                                                               |   | — |   |   | 5,628 |   |   | — |   |
| Effect                  of stock fee                              |   |                                                                 | 146    |                                                               |   | — |   |   | 120 |   |   | — |   |
| Weighted                  average common shares - diluted         |   |                                                                 | 49,566 |                                                               |   | 29,060 |   |   | 49,560 |   |   | 29,026 |   |
|                                                              |   |                                                                 |   |                                                               |   |   |   |   |   |   |   |   |   |
| **Diluted                  net income (loss) per share**          |   | $                                                                    | 0.03   |                                                               | $      | (0.01 | ) | $ | 0.04 |   | $ | (0.00 | ) |
|                                                              |   |                                                                 |   |                                                               |   |   |   |   |   |   |   |   |   |

**Note      8. Income Taxes**

----

| **Expiration                  Dates****December                  31,** |   | **Net                  Operating Loss****Amount** |    |
|------------------------------------------------------------------------|--------|---------------------------------------------------|---------|
| 2007                  to 2016                                          |   | $                                                 | — |   |
| 2017                                                                   |   |                                              | 5,403   |   |
| 2018                                                                   |   |                                              | 8,018   |   |
| 2019                                                                   |   |                                              | 15,734  |   |
| 2020                                                                   |   |                                              | 29,263  |   |
| 2021                                                                   |   |                                              | 31,015  |   |
| 2022                                                                   |   |                                              | 11,987  |   |
| 2023                                                                   |   |                                              | 14,394  |   |
| 2024                                                                   |   |                                              | 2,020   |   |
| 2025                                                                   |   |                                              | — |   |
| 2026                                                                   |   |                                              | 4,476   |   |
| Total                                                                  |   | $                                                 | 122,310 |   |
| Section                  382 Limitation                                |   |                                              | — |   |
| After                  Limitations                                     |   | $                                                 | 122,310 |   |

**Note      9. Employee Benefit Plan**

** **

**Note      10. Stockholders’ equity **

*Share-Based      Payment *
* *

----

| **Options**                                                |   | **Shares****(000)** |   | **Weighted-Average                Exercise Price** |   | **Weighted-Average                Remaining Contractual Term** |   | **Aggregate                Intrinsic Value****(000)** |   |
|------------------------------------------------------------|--------|---------------------|--------|----------------------------------------------------|--------|----------------------------------------------------------------|--------|-------------------------------------------------------|--------|
| Outstanding                at January 1, 2007              |   |                | 1,591  |                                               | $      | 0.80                                                           |   |                                                  |   |   |   |   |   |
| Granted                                                    |   |                | 63     |                                               | $      | 2.33                                                           |   |                                                  |   |   |   |   |   |
| Exercised                                                  |   |                | -      |                                               |   | -                                                              |   |                                                  |   |   |   |   |   |
| Forfeited                or expired                        |   |                | -      |                                               |   | -                                                              |   |                                                  |   |   |   |   |   |
| Outstanding                at June 30, 2007                |   |                | 1,654  |                                               | $      | 0.85                                                           |   |                                                  | 7.8    |   | $ | 3,063 |   |
| Vested                or expected to vest at June 30, 2007 |   |                | 1,654  |                                               | $      | 0.85                                                           |   |                                                  | 7.8    |   | $ | 3,063 |   |
| Exercisable                at June 30, 2007                |   |                | 410    |                                               | $      | 0.63                                                           |   |                                                  | 7.2    |   | $ | 850 |   |
|                                                       |   |                |   |                                               |   |                                                           |   |                                                  |   |   |   |   |   |

| **Performance                  Options**                     |   | **Shares****(000)** |   | **Average                  Exercise Price** |   | **Remaining                  Contractual Term** |   | **Intrinsic                  Value ($000)** |   |
|--------------------------------------------------------------|--------|---------------------|--------|---------------------------------------------|--------|-------------------------------------------------|--------|---------------------------------------------|--------|
| Outstanding                  at January 1, 2007              |   |                | 1,371  |                                        | $      | 0.81                                            |   |                                        |   |   |   |   |   |
| Granted                                                      |   |                | 62     |                                        | $      | 2.33                                            |   |                                        |   |   |   |   |   |
| Exercised                                                    |   |                | -      |                                        |   |                                            |   |                                        |   |   |   |   |   |
| Forfeited                  or expired                        |   |                | -      |                                        |   |                                            |   |                                        |   |   |   |   |   |
| Outstanding                  at June 30, 2007                |   |                | 1,433  |                                        | $      | 0.88                                            |   |                                        | 9.43   |   | $ | 2,609 |   |
| Vested                  or expected to vest at June 30, 2007 |   |                | 1,433  |                                        | $      | 0.88                                            |   |                                        | 9.43   |   | $ | 2,609 |   |
| Exercisable                  at June 30, 2007                |   |                | -      |                                        | $      | -                                               |   |                                        | -      |   | $ | - |   |

----

**Note      11. Commitments and Contingencies**

*In      re      Net Perceptions, Inc. Initial Public Offering Securities*
*Litigation,      *
*In      re      Initial Public Offering Securities Litigation*

**Note      12. Related Party Transactions**

----

----

**Note      13. Acquisition**

----

**Item      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations**

**Forward-Looking      Statements**

**OVERVIEW**

----

**Consolidated      Operating Results for the Three Months Ended June 30, 2007 Compared to the      Combined Three Months Ended June 30, 2006**

| **STAMFORD                  INDUSTRIAL GROUP, INC.**                   |
|------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF OPERATIONS (UNAUDITED)** |
| **(in                  thousands, except per share amounts)**          |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   | **Stamford                  Industrial Group****Three                  Months****Ended****June                  30, 2007** |   | **Stamford                  Industrial Group****Three                  Months****Ended****June                  30, 2006** |   | **Predecessor                  Company****Three                  Months****Ended****June                  30, 2006** |   | **Combined** |   | **Variance****(1)** |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues:                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Product                                                                |   | $ | 28,281 |   | $ | — |   | $ | 20,475 |   | $ | 20,475 |   | $ | 7,806 |   |
| Service,                  maintenance and royalty                      |   |   | — |   |   | 1 |   |   | — |   |   | 1 |   |   | (1 | ) |
| Total                  revenues                                        |   |   | 28,281 |   |   | 1 |   |   | 20,475 |   |   | 20,476 |   |   | 7,805 |   |
| Cost                  of revenues:                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Product                                                                |   |   | 23,872 |   |   | — |   |   | 15,427 |   |   | 15,427 |   |   | 8,445 |   |
| Total                  cost of revenues                                |   |   | 23,872 |   |   | — |   |   | 15,427 |   |   | 15,427 |   |   | 8,445 |   |
| Gross                  margin                                          |   |   | 4,409 |   |   | 1 |   |   | 5,048 |   |   | 5,049 |   |   | (640 | ) |
| Operating                  expenses:                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales                  and marketing                                   |   |   | 303 |   |   | — |   |   | 319 |   |   | 319 |   |   | (16 | ) |
| General                  and administrative                            |   |   | 2,500 |   |   | 261 |   |   | 458 |   |   | 719 |   |   | 1,781 |   |
| Total                  operating expenses                              |   |   | 2,803 |   |   | 261 |   |   | 777 |   |   | 1,038 |   |   | 1,765 |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  (loss) from operations                         |   |   | 1,606 |   |   | (260 | ) |   | 4,271 |   |   | 4,011 |   |   | (2,405 | ) |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                  income (expense):                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  income                                       |   |   | — |   |   | 176 |   |   | — |   |   | 176 |   |   | (176 | ) |
| Interest                  expense                                      |   |   | (544 | ) |   | (13 | ) |   | (158 | ) |   | (171 | ) |   | (373 | ) |
| Other                  income (expense)                                |   |   | (17 | ) |   | (67 | ) |   | (157 | ) |   | (224 | ) |   | 207 |   |
| Total                  other income (expense), net                     |   |   | (561 | ) |   | 96 |   |   | (315 | ) |   | (219 | ) |   | (342 | ) |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  (loss) before taxes                            |   |   | 1,045 |   |   | (164 | ) |   | 3,956 |   |   | 3,792 |   |   | (2,747 | ) |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Benefit)                  provision for income taxes                  |   |   | (265 | ) |   | — |   |   | 114 |   |   | 114 |   |   | (379 | ) |
| Net                  income (loss)                                     |   | $ | 1,310 |   | $ | (164 | ) | $ | 3,842 |   | $ | 3,678 |   | $ | (2,368 | ) |

----

*Sales      and marketing*

*General      and administrative*
*.      *

*Interest      income.*

*Interest      expense. *

----

**Consolidated      Operating Results for the Six Months Ended June 30, 2007 Compared to Combined      Six Months Ended June 30, 2006**

| **STAMFORD                  INDUSTRIAL GROUP, INC.**                   |
|------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF OPERATIONS (UNAUDITED)** |
| **(in                  thousands, except per share amounts)**          |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   | **Stamford                  Industrial Group****Six                  Months****Ended****June                  30, 2007** |   | **Stamford                  Industrial Group****Six                  Months****Ended****June                  30, 2006** |   | **Predecessor                  Company****Six                  Months Ended****June                  30, 2006** |   | **Combined** |   | **Variance****(1)** |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues:                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Product                                                                |   | $ | 56,185 |   | $ | — |   | $ | 38,643 |   | $ | 38,643 |   | $ | 17,542 |   |
| Service,                  maintenance and royalty                      |   |   | — |   |   | 20 |   |   | — |   |   | 20 |   |   | (20 | ) |
| Total                  revenues                                        |   |   | 56,185 |   |   | 20 |   |   | 38,643 |   |   | 38,663 |   |   | 17,522 |   |
| Cost                  of revenues:                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Product                                                                |   |   | 46,438 |   |   | — |   |   | 29,795 |   |   | 29,795 |   |   | 16,643 |   |
| Total                  cost of revenues                                |   |   | 46,438 |   |   | — |   |   | 29,795 |   |   | 29,795 |   |   | 16,643 |   |
| Gross                  margin                                          |   |   | 9,747 |   |   | 20 |   |   | 8,848 |   |   | 8,868 |   |   | 879 |   |
| Operating                  expenses:                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales                  and marketing                                   |   |   | 675 |   |   | — |   |   | 567 |   |   | 567 |   |   | 108 |   |
| General                  and administrative                            |   |   | 5,357 |   |   | 349 |   |   | 924 |   |   | 1,273 |   |   | 4,084 |   |
| Total                  operating expenses                              |   |   | 6,032 |   |   | 349 |   |   | 1,491 |   |   | 1,840 |   |   | 4,192 |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  (loss) from operations                         |   |   | 3,715 |   |   | (329 | ) |   | 7,357 |   |   | 7,028 |   |   | (3,313 | ) |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                  income (expense):                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  income                                       |   |   | 6 |   |   | 335 |   |   | — |   |   | 335 |   |   | (329 | ) |
| Interest                  expense                                      |   |   | (1,215 | ) |   | (26 | ) |   | (313 | ) |   | (339 | ) |   | (876 | ) |
| Other                  income (expense)                                |   |   | (139 | ) |   | (83 | ) |   | (248 | ) |   | (331 | ) |   | 192 |   |
| Total                  other income (expense), net                     |   |   | (1,348 | ) |   | 226 |   |   | (561 | ) |   | (335 | ) |   | (1,013 | ) |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  (loss) before taxes                            |   |   | 2,367 |   |   | (103 | ) |   | 6,796 |   |   | 6,693 |   |   | (4,326 | ) |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision                  for income taxes                            |   |   | 305 |   |   | — |   |   | 176 |   |   | 176 |   |   | 129 |   |
| Net                  income (loss)                                     |   | $ | 2,062 |   | $ | (103 | ) | $ | 6,620 |   | $ | 6,517 |   | $ | (4,455 | ) |

----

*Sales      and marketing*

*General      and administrative*
*.      *

*Interest      income.*

*Interest      expense. *

**Liquidity**

----

**Operating      Activities**

----

**Investing      Activities**

**Financing      Activities**

**Capital      Expenditures**

**Item      3. Quantitative and Qualitative Disclosures about Market      Risk**

----

**Item      4. Controls and Procedures **

**Evaluation      of Disclosure Controls and Procedures**

**Changes      in Internal Control over Financial Reporting**

----

**PART      II. OTHER INFORMATION**

**Item      1A. **
**Risk      Factors**

**Item      4. Submission of Matters to a Vote of Security Holders**

|                               |   | **Number                  of Shares Voted For** |       | **Number                  of Shares Withheld** |   |
|------------------------------------|--------|-------------------------------------------------|------------|------------------------------------------------|--------|
| Warren                  B. Kanders |   |                                            | 39,192,363 |                                           |   | 171,532 |   |
| Nicholas                  Sokolow  |   |                                            | 39,190,622 |                                           |   | 173,272 |   |
| David                  A. Jones    |   |                                            | 39,241,663 |                                           |   | 122,232 |   |

| **FOR**    |   | **AGAINST** |   | **ABSTAIN** |
|------------|--------|-------------|--------|-------------|
| 39,314,482 |   | 45,974      |   | 3,438       |

| **FOR**    |   | **AGAINST** |   | **ABSTAIN** |
|------------|--------|-------------|--------|-------------|
| 21,776,664 |   | 7,401,129   |   | 8,816       |

| **FOR**    |   | **AGAINST** |   | **ABSTAIN** |
|------------|--------|-------------|--------|-------------|
| 34,874,239 |   | 4,414,751   |   | 74,904      |

----

**Item      6. **
**Exhibits**

| **Exhibit****Number** |   | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                   |   | Certificate                  of Amendment to the Company’s                  Amended                  and Restated Certificate of Incorporation (incorporated herein                  by                  reference to Appendix A of the Company’s                  Definitive                  Proxy Statement filed with the Securities and Exchange Commission                  on May                  11, 2007). |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.1                  |   | 2007                  Stock Incentive Plan (incorporated herein by reference to Appendix                  B of                  the Company’s                  Definitive                  Proxy Statement filed with the Securities and Exchange Commission                  on May                  11, 2007).                                                                                                           |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.2                  |   | 2007                  Annual Incentive Plan (incorporated herein by reference to Appendix                  C of                  the Company’s                  Definitive                  Proxy Statement filed with the Securities and Exchange Commission                  on May                  11, 2007).                                                                                                          |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 31.1                  |   | Certification                  of Principal Executive Officer pursuant to Section 302 of the                  Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                         |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 31.2                  |   | Certification                  of Principal Executive Officer pursuant to Section 302 of the                  Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                         |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 32.1                  |   | Certification                  of Principal Executive Officer pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                         |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 32.2                  |   | Certification                  of Principal Executive Officer pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                         |

----

**SIGNATURES**

|                                                |                                                   |                                    |
|-----------------------------------------------------|--------------------------------------------------------|-----------------------------------------|
|                                                | Stamford                Industrial Group, Inc.    |
|                                           |                                              |                               |
| Date:                August 14,                2007 | By:                                          | /s/              Albert W. Weggeman Jr. |
|                                                | Albert                W. Weggeman, Jr.                 |
|                                                | *President                and Chief Executive Officer* |

|   |                                                                             |                                    |
|--------|----------------------------------------------------------------------------------|-----------------------------------------|
|        | By:                                                                    | /s/              Jonathan LaBarre  |
|   | Jonathan                LaBarre                                                  |
|   | *Chief                Financial Officer, Secretary and                Treasurer* |

----

**EXHIBIT      INDEX**

| **Exhibit****Number** |   | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                   |   | Certificate                  of Amendment to the Company’s                  Amended                  and Restated Certificate of Incorporation (incorporated herein                  by                  reference to Appendix A of the Company’s                  Definitive                  Proxy Statement filed with the Securities and Exchange Commission                  on May                  11, 2007). |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.1                  |   | 2007                  Stock Incentive Plan (incorporated herein by reference to Appendix                  B of                  the Company’s                  Definitive                  Proxy Statement filed with the Securities and Exchange Commission                  on May                  11, 2007).                                                                                                           |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.2                  |   | 2007                  Annual Incentive Plan (incorporated herein by reference to Appendix                  C of                  the Company’s                  Definitive                  Proxy Statement filed with the Securities and Exchange Commission                  on May                  11, 2007).                                                                                                          |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 31.1                  |   | Certification                  of Principal Executive Officer pursuant to Section 302 of the                  Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                         |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 31.2                  |   | Certification                  of Principal Executive Officer pursuant to Section 302 of the                  Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                         |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 32.1                  |   | Certification                  of Principal Executive Officer pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                         |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 32.2                  |   | Certification                  of Principal Executive Officer pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                         |

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