----

----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

| ý | Quarterly                Report Pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | For                the quarterly period ended June 30,                2008 |
|--------|----------------------------------------------------------------------------|

|   |  or |
|--------|----------|

| ð | Transition                Report Pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|

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

**Commission      File Number: 001**
**-33354**

**Alpha      Security Group Corporation**

|                                                                                        |   |                                                              |
|---------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|
| **Delaware**                                                                                |   | **03-0561397**                                                    |
| (State                or Other Jurisdiction ofIncorporation                or Organization) |   | (I.R.S.                EmployerIdentification                No.) |

**328      West 77**
**th**

**      Street**

**New      York, New York 10024**

**212-877-1588**

----

----

----

**TABLE      OF CONTENTS**

|                        |                                                                                                                                                                                                                                                   | **Page                No.** |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|
| **Part                I.**  | **Financial                Information**                                                                                                                                                                                                               |  F-1                   |
| Item                1.      | Financial                Statements                                                                                                                                                                                                                    |  F-1                   |
|                        | Condensed                Balance Sheets as of June 30, 2008 (unaudited) and December 31,                2007                                                                                                                                           |  F-1                   |
|                        | Condensed                Statements of Income for the three and six months ended June 30,                2008 and                June 30, 2007, and for the period from April 20, 2005 (date of inception)                to June 30, 2008 (unaudited) |  F-2                   |
|                        | Condensed                Statement of Stockholders’ Equity for the period from April 20, 2005 (date                of inception) to June 30, 2008                                                                                                |  F-3                   |
|                        | Condensed                Statements of Cash Flows for the three and six months ended June                30, 2008                and June 30, 2007, and from April 20, 2005 (date of inception) to                June 30,                2008         |  F-4                   |
|                        | Notes                to Condensed Financial Statements                                                                                                                                                                                                 |  F-5                   |
| Item                2.      | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations                                                                                                                              |  2                     |
| Item                3.      | Quantitative                and Qualitative Disclosures About Market Risk                                                                                                                                                                              |  4                     |
| Item                4T.     | Controls                and Procedures                                                                                                                                                                                                                 |  4                     |
| **Part                II.** | **Other                Information**                                                                                                                                                                                                                   |  5                     |
| Item                1.      | Legal                Proceedings                                                                                                                                                                                                                       |  5                     |
| Item                1A.     | Risk                Factors                                                                                                                                                                                                                            |  5                     |
| Item                2.      | Unregistered                Sales of Equity Securities and Use of Proceeds                                                                                                                                                                             |  5                     |
| Item                3.      | Default                Upon Senior Securities                                                                                                                                                                                                          |  5                     |
| Item                4.      | Submission                of Matters to a Vote of Security Holders                                                                                                                                                                                     |  5                     |
| Item                5.      | Other                Information                                                                                                                                                                                                                       |  5                     |
| Item                6.      | Exhibits                                                                                                                                                                                                                                               |  5                     |
|                        | **Signatures**                                                                                                                                                                                                                                         |  6                     |

----

**PART      I FINANCIAL INFORMATION**

**ITEM      1. FINANCIAL STATEMENTS**

|                                                                                                                                                                                                                                                                                 |   |                         |       |                             |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|------------|----------------------------------|--------|
|                                                                                                                                                                                                                                                                                 |   |                         |       |                             |   |
|                                                                                                                                                                                                                                                                                 |   | June                30, 2008 |       | December                31, 2007 |   |
|                                                                                                                                                                                                                                                                                 |   | (unaudited)                  |       |                             |   |
| **ASSETS**                                                                                                                                                                                                                                                                           |   |                         |       |                             |   |
|                                                                                                                                                                                                                                                                                 |   |                         |       |                             |   |
| Current                Assets                                                                                                                                                                                                                                                        |   |                         |       |                             |   |
| Cash                                                                                                                                                                                                                                                                                 |   | $                            | 14,558     |                             | $      | 8,726 |   |
| Investment                in trust account                                                                                                                                                                                                                                           |   |                         | 60,735,326 |                             |   | 60,578,630 |   |
| Prepaid                expenses & taxes                                                                                                                                                                                                                                          |   |                         | 29,671     |                             |   | 17,342 |   |
| Total                current assets                                                                                                                                                                                                                                                  |   |                         | 60,779,555 |                             |   | 60,604,698 |   |
| Deferred                tax asset                                                                                                                                                                                                                                                    |   |                         | 282,775    |                             |   | 150,220 |   |
| Property                & equipment, net of depreciation                                                                                                                                                                                                                         |   |                         | 7,259      |                             |   | 6,099 |   |
| Total                assets                                                                                                                                                                                                                                                          |   | $                            | 61,069,589 |                             | $      | 60,761,017 |   |
|                                                                                                                                                                                                                                                                                 |   |                         |       |                             |   |   |   |
|                                                                                                                                                                                                                                                                                 |   |                         |       |                             |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                                                              |   |                         |       |                             |   |   |   |
|                                                                                                                                                                                                                                                                                 |   |                         |       |                             |   |   |   |
| Current                Liabilities                                                                                                                                                                                                                                                   |   |                         |       |                             |   |   |   |
| Accounts                payable and accrued expenses                                                                                                                                                                                                                                 |   | $                            | 125,074    |                             | $      | 75,235 |   |
| Income                taxes payable                                                                                                                                                                                                                                                  |   |                         | 61,054     |                             |   | - |   |
| Deferred                underwriting fees                                                                                                                                                                                                                                            |   |                         | 1,800,000  |                             |   | 1,800,000 |   |
| Notes                payable - stockholders                                                                                                                                                                                                                                          |   |                         | 250,000    |                             |   | 250,000 |   |
| Total                liabilities                                                                                                                                                                                                                                                     |   |                         | 2,236,128  |                             |   | 2,125,235 |   |
|                                                                                                                                                                                                                                                                                 |   |                         |       |                             |   |   |   |
|                                                                                                                                                                                                                                                                                 |   |                         |       |                             |   |   |   |
| Common                  stock, subject to possible redemption, 2,099,400                  shares, at redemption value of $9.70 per share                                                                                                                                             |   |                         | 20,364,180 |                             |   | 20,364,180 |   |
|                                                                                                                                                                                                                                                                                 |   |                         |       |                             |   |   |   |
| Commitments                                                                                                                                                                                                                                                                          |   |                         |       |                             |   |   |   |
|                                                                                                                                                                                                                                                                                 |   |                         |       |                             |   |   |   |
| Stockholders'                equity                                                                                                                                                                                                                                                  |   |                         |       |                             |   |   |   |
| Preferred                stock, $.0001 par value, authorized1,000,000                shares, none issued                                                                                                                                                                             |   |                         |       |                             |   |   |   |
| Common                stock, $.0001 par value, authorized30,000,000                shares; issued and outstanding7,580,000                shares, inclusive of 2,099,400 shares subject to                possible redemption, at June 30, 2008 and December 31,                2007 |   |                         | 758        |                             |   | 758 |   |
| Additional                paid-in capital                                                                                                                                                                                                                                            |   |                         | 37,488,281 |                             |   | 37,488,281 |   |
| Earnings                accumulated during the development stage                                                                                                                                                                                                                     |   |                         | 980,242    |                             |   | 782,563 |   |
| Total                stockholders' equity                                                                                                                                                                                                                                            |   |                         | 38,469,281 |                             |   | 38,271,602 |   |
|                                                                                                                                                                                                                                                                                 |   |                         |       |                             |   |   |   |
|                                                                                                                                                                                                                                                                                 |   | $                            | 61,069,589 |                             | $      | 60,761,017 |   |
| Total                liabilities and stockholders' equity                                                                                                                                                                                                                            |   |                         |       |                             |   |   |   |

----

|                                                          |   | For                  the            |      | For                  the period from |   |
|---------------------------------------------------------------|--------|-------------------------------------|-----------|--------------------------------------|--------|
|                                                          |   |                                |      |                                 |   |   |   |   |   | April                  20, 2005 |   |
|                                                          |   | Three                  months ended |      | Six                  months ended    |   | (inception)                  to |   |
|                                                          |   | June                  30, 2008      |      | June                  30, 2007       |   | June                  30, 2008 |   | June                  30, 2007 |   | June                  30, 2008 |   |
|                                                          |   | (unaudited)                         |      | (unaudited)                          |   | (unaudited) |   | (unaudited) |   | (unaudited) |   |
|                                                          |   |                                |      |                                 |   |   |   |   |   |   |   |
|                                                          |   |                                |      |                                 |   |   |   |   |   |   |   |
| Interest                  and dividend income                 |   | $                                   | 329,060   |                                 | $      | 720,902 |   | $ | 869,634 |   | $ | 771,125 |   | $ | 2,964,163 |   |
|                                                          |   |                                |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Formation                  and operating costs                |   |                                | (266,539  | )                                    |   | (193,394 | ) |   | (424,890 | ) |   | (219,116 | ) |   | (964,192 | ) |
|                                                          |   |                                |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income before provision for income taxes |   |                                | 62,521    |                                 |   | 527,508 |   |   | 444,744 |   |   | 552,009 |   |   | 1,999,971 |   |
|                                                          |   |                                |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision                  for income taxes                   |   |                                | (57,260   | )                                    |   | (272,880 | ) |   | (247,065 | ) |   | (272,880 | ) |   | (1,019,729 | ) |
|                                                          |   |                                |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                   |   | $                                   | 5,261     |                                 | $      | 254,628 |   | $ | 197,679 |   | $ | 279,129 |   | $ | 980,242 |   |
|                                                          |   |                                |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   |                                |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   |                                |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   |                                |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                  average shares outstanding          |   |                                | 7,580,000 |                                 |   | 7,580,000 |   |   | 7,580,000 |   |   | 4,729,171 |   |   | 3,956,815 |   |
|                                                          |   |                                |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income per share-basic and diluted       |   | $                                   | 0.00      |                                 | $      | 0.03 |   | $ | 0.03 |   | $ | 0.06 |   | $ | 0.25 |   |

----

|                                                                                       |   | For                    the period from April 20, 2005 (inception) to June 30,                    2008 |      |
|--------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|-----------|
|                                                                                       |   |                                                                                                  |      |   |   |   |   |   |   |   |   |
|                                                                                       |   | Common                    stock                                                                       |      |   |   |   |   |   |   |
|                                                                                       |   |                                                                                                  |      |   |   |   |   | Earnings                    (deficit) |   |   |   |
|                                                                                       |   |                                                                                                  |      |   |   | Additional                    paid-in |   | accumulated                    during                    the |   | Stockholders' |   |
|                                                                                       |   | Shares                                                                                                |      | Amount |   | capital |   | development                    stage |   | equity                    (deficiency) |   |
|                                                                                       |   |                                                                                                  |      |   |   |   |   |   |   |   |   |
|                                                                                       |   |                                                                                                  |      |   |   |   |   |   |   |   |   |
| Common                      shares issued July                      18, 2005 at $.0156     |   |                                                                                                  | 1,600,000 |   | $ | 160 |   | $ | 24,840 |   | $ | - |   | $ | 25,000 |   |
|                                                                                       |   |                                                                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    loss - 2005                                                         |   |                                                                                                  |      |   |   |   |   |   |   |   |   | (11,140 | ) |   | (11,140 | ) |
|                                                                                       |   |                                                                                                  |      |   |   |   |   |   |   |   |   |   |   |   |  |   |
|                                                                                       |   |                                                                                                  |           |   |   |   |   |   |   |   |   |   |   |   | - |   |
| Balance                    - December 31, 2005                                             |   |                                                                                                  | 1,600,000 |   |   | 160 |   |   | 24,840 |   |   | (11,140 | ) |   | 13,860 |   |
|                                                                                       |   |                                                                                                  |           |   |   |   |   |   |   |   |   |   |   |   | - |   |
|                                                                                       |   |                                                                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    loss - 2006                                                         |   |                                                                                                  |      |   |   |   |   |   |   |   |   | (23,905 | ) |   | (23,905 | ) |
| Redemption                    - September 15, 2006                                         |   |                                                                                                  | (20,000   | ) |   | (2 | ) |   | (310 | ) |   |   |   |   | (312 | ) |
|                                                                                       |   |                                                                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    - December 31, 2006                                             |   |                                                                                                  | 1,580,000 |   |   | 158 |   |   | 24,530 |   |   | (35,045 | ) |   | (10,357 | ) |
|                                                                                       |   |                                                                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |                                                                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds                      of private placement - March                      21, 2007   |   |                                                                                                  |      |   |   |  |   |   | 3,200,000 |   |   |   |   |   | 3,200,000 |   |
|                                                                                       |   |                                                                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    shares issued March                    28, 2007 at $10 per share |   |                                                                                                  | 6,000,000 |   |   | 600 |   |   | 59,999,400 |   |   |   |   |   | 60,000,000 |   |
|                                                                                       |   |                                                                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds                    subject to possibleredemption                                  |   |                                                                                                  |      |   |   |   |   |   | (20,364,180 | ) |   |   |   |   | (20,364,180 | ) |
|                                                                                       |   |                                                                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                    of the Offering                                                |   |                                                                                                  |      |   |   |   |   |   | (5,371,569 | ) |   |   |   |   | (5,371,569 | ) |
|                                                                                       |   |                                                                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    income - 2007                                                       |   |                                                                                                  |      |   |   |   |   |   |   |   |   | 817,608 |   |   | 817,608 |   |
| Proceeds                    of options sold                                                |   |                                                                                                  |      |   |   |   |   |   | 100 |   |   |   |   |   | 100 |   |
|                                                                                       |   |                                                                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    - December 31, 2007                                             |   |                                                                                                  | 7,580,000 |   |   | 758 |   |   | 37,488,281 |   |   | 782,563 |   |   | 38,271,602 |   |
|                                                                                       |   |                                                                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (unaudited)                                                                                |   |                                                                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    income-for the period                                               |   |                                                                                                  |      |   |   |   |   |   |   |   |   | 197,679 |   |   | 197,679 |   |
|                                                                                       |   |                                                                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    - June 30, 2008                                                 |   |                                                                                                  | 7,580,000 |   | $ | 758 |   | $ | 37,488,281 |   | $ | 980,242 |   | $ | 38,469,281 |   |

----

|                                                                                                                        |   | For                      the period from |        |
|-----------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|-------------|
|                                                                                                                        |   | April                      20, 2005      |        | January                      1, 2008 |   | January                      1, 2007 |   |
|                                                                                                                        |   | (Inception)                      to      |        | to |   | to |   |
|                                                                                                                        |   | June                      30, 2008       |        | June                      30, 2008 |   | June                      30, 2007 |   |
|                                                                                                                        |   | (unaudited)                              |        | (unaudited) |   | (unaudited) |   |
|                                                                                                                        |   |                                     |        |   |   |   |   |
| Cash                      flows from operating activities:                                                                  |   |                                     |        |   |   |   |   |
| Net                      income                                                                                             |   | $                                        | 980,242     |   | $ | 197,679 |   | $ | 279,129 |   |
|                                                                                                                        |   |                                     |        |   |   |   |   |   |   |   |
| Adjustments                        to reconcile net income to net                        cash used in operating activities: |   |                                     |        |   |   |   |   |   |   |   |
|                                                                                                                        |   |                                     |        |   |   |   |   |   |   |   |
| Depreciation                                                                                                                |   |                                     | 1,139       |   |   | 840 |   |   | - |   |
|                                                                                                                        |   |                                     |        |   |   |   |   |   |   |   |
| Increase                      in investment in Trust Account                                                                |   |                                     | (2,956,467  | ) |   | (869,633 | ) |   | (763,429 | ) |
| Increase                      in deferred tax asset                                                                         |   |                                     | (282,775    | ) |   | (132,555 | ) |   | (64,891 | ) |
| Increase                      in prepaid expenses/other receivables                                                         |   |                                     | (29,671     | ) |   | (12,858 | ) |   | (66,713 | ) |
| Increase                      in income taxes payable                                                                       |   |                                     | 61,054      |   |   | 61,584 |   |   | - |   |
| Increase                        in accounts payable and accrued                        expenses                             |   |                                     | 125,074     |   |   | 49,838 |   |   | 38,912 |   |
|                                                                                                                        |   |                                     |             |   |   |   |   |   |   |   |
| Net                      cash used in operating activities                                                                  |   |                                     | (2,101,404  | ) |   | (705,105 | ) |   | (576,992 | ) |
|                                                                                                                        |   |                                     |        |   |   |   |   |   |   |   |
| Cash                      flows from investing activities                                                                   |   |                                     |        |   |   |   |   |   |   |   |
| Payment                      to trust account                                                                               |   |                                     | (60,002,831 | ) |   | - |   |   | (60,002,831 | ) |
| Withdrawals                      from trust account                                                                         |   |                                     | 2,223,972   |   |   | 712,937 |   |   | 621,759 |   |
| Purchase                      of equipment                                                                                  |   |                                     | (8,398      | ) |   | (2,000 | ) |   | - |   |
|                                                                                                                        |   |                                     |        |   |   |   |   |   |   |   |
| Net                      cash provided by (used in) investing activities                                                    |   |                                     | (57,787,257 | ) |   | 710,937 |   |   | (59,381,072 | ) |
|                                                                                                                        |   |                                     |             |   |   |   |   |   |   |   |
|                                                                                                                        |   |                                     |             |   |   |   |   |   |   |   |
| Cash                      flows from financing activities:                                                                  |   |                                     |        |   |   |   |   |   |   |   |
| Payment                      of expenses of offering                                                                        |   |                                     | (3,571,569  | ) |   | - |   |   | (3,310,009 | ) |
| Proceeds                      from sale of common stock                                                                     |   |                                     | 25,000      |   |   | - |   |   | - |   |
| Proceeds                      from notes payable - stockholder(s)                                                           |   |                                     | 250,000     |   |   | - |   |   | 250,000 |   |
| Proceeds                      from initial public offering                                                                  |   |                                     | 60,000,000  |   |   | - |   |   | 60,000,000 |   |
| Proceeds                      from private placement                                                                        |   |                                     | 3,200,000   |   |   | - |   |   | 3,200,000 |   |
| Proceeds                      from sale of option                                                                           |   |                                     | 100         |   |   | - |   |   | 100 |   |
| Repayment                      of notes payable - stockholders                                                              |   |                                     | -           |   |   | - |   |   | (187,802 | ) |
| Redemption                      of stock                                                                                    |   |                                     | (312        | ) |   | - |   |   | - |   |
|                                                                                                                        |   |                                     |             |   |   |   |   |   |   |   |
| Net                        cash provided by financing activities                                                            |   |                                     | 59,903,219  |   |   | - |   |   | 59,952,289 |   |
|                                                                                                                        |   |                                     |             |   |   |   |   |   |   |   |
| Net                      increase (decrease) in cash                                                                        |   |                                     | 14,558      |   |   | 5,832 |   |   | (5,775 | ) |
|                                                                                                                        |   |                                     |             |   |   |   |   |   |   |   |
| Cash                      - beginning of period                                                                             |   |                                     | -           |   |   | 8,726 |   |   | 7,119 |   |
|                                                                                                                        |   |                                     |             |   |   |   |   |   |   |   |
| Cash                      - end of period                                                                                   |   | $                                        | 14,558      |   | $ | 14,558 |   | $ | 1,344 |   |
|                                                                                                                        |   |                                     |        |   |   |   |   |   |   |   |
|                                                                                                                        |   |                                     |        |   |   |   |   |   |   |   |
| Supplemental                      disclosure of cash flow information                                                       |   |                                     |        |   |   |   |   |   |   |   |
|                                                                                                                        |   |                                     |        |   |   |   |   |   |   |   |
| Cash                      paid for income taxes                                                                             |   | $                                        | 1,241,075   |   | $ | 318,037 |   | $ | 346,556 |   |
|                                                                                                                        |   |                                     |        |   |   |   |   |   |   |   |
| Supplemental                        disclosure of non-cash financing                        activities:                     |   |                                     |        |   |   |   |   |   |   |   |
|                                                                                                                        |   |                                     |        |   |   |   |   |   |   |   |
| Accrual                      of deferred offering costs                                                                     |   | $                                        | 1,800,000   |   | $ | - |   | $ | 1,890,000 |   |

----

**1.      **
**Organization,      Proposed Business Operations and Summary of Significant Accounting Policies      **

----

**1.      Organization, Proposed Business Operations and Summary of Significant Accounting      Policies (continued)**

----

**1.      Organization, Proposed Business Operations and Summary of Significant Accounting      Policies (continued)**

*Cash      and Cash Equivalents*

*Income      Taxes*

*Share-Based      Payments*

*Recently      Issued Accounting Pronouncements*

----

**1.      Organization, Proposed Business Operations and Summary of Significant Accounting      Policies (continued)**

*Income      (Loss) Per Common Share*

*Use      of Estimates*

**2.      Public Offering and Private Placement**

*.*

----

**3.**
** **
**Note      payable, stockholder**

**4.**
**Commitments**

----

**4.      Commitments (continued)**

|   | · | the                market price of the underlying shares of common stock is lower than                the                exercise price; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                holder of the warrants has not confirmed in writing that the                representative solicited the                exercise; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                warrants are held in a discretionary                account; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | the                warrants are exercised in an unsolicited transaction;                or |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | the                arrangement to pay the commission is not disclosed in the prospectus                provided to warrant holders at the time of exercise. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

**5.      Income Taxes**

|                               |   | **6                months ended** |         | **Year                ended**   |   |
|------------------------------------|--------|-----------------------------------|--------------|---------------------------------|--------|
|                               |   | **June                30, 2008**  |         | **December 31, 2007** |   |
| **Current:**                       |   |                              |         |                            |   |
| Federal                            |   | $                                 | 236,396      |                            | $      | 574,837 |   |
|                               |   |                              |         |                            |   |   |   |
| State                              |   |                              | 143,224      |                            |   | 348,047 |   |
|                               |   |                              |         |                            |   |   |   |
| Total                Current       |   | **$**                             | **379,620**  |                            | **$**  | **922,884** |   |
|                               |   |                              |         |                            |   |  |   |
|                               |   |                              |         |                            |   |   |   |
| **Deferred:**                      |   |                              |         |                            |   |   |   |
| Federal                            |   | $                                 | (86,036      | )                               | $      | (93,658 | ) |
|                               |   |                              |         |                            |   |   |   |
| State                              |   |                              | (46,519      | )                               |   | (56,562 | ) |
|                               |   |                              |         |                            |   |   |   |
| Total                Deferred      |   | **$**                             | **(132,555** | **)**                           | **$**  | **(150,220** | **)** |
|                               |   |                              |         |                            |   |   |   |
| **Total                provision** |   | **$**                             | **247,065**  |                            | **$**  | **772,664** |   |
|                               |   |                              |         |                            |   |   |   |

----

|                                                     |   | **June                30, 2008** |        | **December 31, 2007** |   |
|----------------------------------------------------------|--------|----------------------------------|-------------|---------------------------------|--------|
|                                                     |   |                             |        |                            |   |
| Expenses                deferred for income tax purposes |   | $                                | 831,691     |                            | $      | 441,823 |   |
|                                                     |   |                             |        |                            |   |   |   |
| Adjusted                deferred tax asset               |   |                             | 415,330     |                            |   | 193,878 |   |
|                                                     |   |                             |        |                            |   |   |   |
| Valuation                allowance                       |   |                             | (132,555    | )                               |   | (43,658 | ) |
|                                                     |   |                             |             |                            |   |  |   |
| **Total                deferred tax asset**              |   | **$**                            | **282,775** |                            | **$**  | **150,220** |   |
|                                                     |   |                             |             |                            |   |   |   |

|                                      |   | **June                30, 2008** |   | **December 31, 2007** |   |
|-------------------------------------------|--------|----------------------------------|--------|---------------------------------|--------|
|                                      |   |                             |   |                            |   |
| Federal                income tax rate    |   |                             | 34.00  | %                               |   | 34.00 | % |
|                                      |   |                             |        |                            |   |  |   |
| State                & local tax rate |   |                             | 10.90  | %                               |   | 10.90 | % |
|                                      |   |                             |        |                            |   |  |   |
| Valuation                Allowance        |   |                             | 3.70   | %                               |   | 3.70 | % |
|                                      |   |                             |        |                            |   |  |   |
| **Effective                Tax Rate**     |   |                             | 48.60  | %                               |   | 48.60 | % |
|                                      |   |                             |        |                            |   |  |   |

----

**6.      Preferred Stock**

**7**
**Stockholders’      Equity**

----

**ITEM      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS**

**Forward      Looking Statements**

**Overview      **

**Results      of Operations for The Three-Month Periods Ended March 31, 2008 and March 31,      2007**

**Results      of operations for the six-month periods ended June 30, 2008 and June 30,      2007**

----

**Liquidity      and Capital Resources**

|   | · | payment of taxes on trust account interest              income; |
|--------|--------|-----------------------------------------------------------------|

|   | · | payment of State of Delaware franchise              taxes; |
|--------|--------|------------------------------------------------------------|

|   | · | repayment                of up to $250,000 of an additional officer loan made prior to the                closing                of this offering by Steven M. Wasserman; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                working capital requirements before we complete a business combination                and, if necessary, funding the costs of our potential dissolution                and                liquidation; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | solely if we complete a business combination, interest              on              the amount of deferred underwriters’ compensation payable              to the underwriters; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                balance, if any, to us if we complete a business combination or to                our                public stockholders if we do not complete a business                combination. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Off-Balance      Sheet Arrangements**

**Contractual      Obligations**

**ITEM      3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK**

**ITEM      4T. CONTROLS AND PROCEDURES**

----

**PART      II OTHER INFORMATION**

**ITEM      1. LEGAL PROCEEDINGS**

**ITEM      1A. RISK FACTORS**

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

**ITEM      3. DEFAULTS UPON SENIOR SECURITIES**

**ITEM      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS **

**ITEM      5. OTHER INFORMATION**

**ITEM      6. EXHIBITS**

|                       |   |                                                                                                                                                                                                                                                                               |
|----------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit                No. |   | Description                                                                                                                                                                                                                                                                        |
| 31.1                       |   | Certification                of the Chief Executive Officer and Chief Financial Officer (Principal                Executive and Financial Officer) pursuant to Rule 13a-14(a) of the                Securities Exchange Act, as amended.                                           |
| 32.1                       |   | Certification                of the Chief Executive Officer and Chief Financial Officer (Principal                Executive and Financial Officer) pursuant to 18 U.S.C. 1350, as adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002. |

----

**SIGNATURES**

|                             |                                                                                                                              |                                     |   |
|----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|--------|
|                             | ALPHA                  SECURITY GROUP CORPORATION                                                                                 |
|                             |                                                                                                                              |                                     |   |
| August                  14, 2008 | By:                                                                                                                               | /s/                  Steven M. Wasserman |   |
|                             | Steven                  M. Wasserman                                                                                              |
|                             | Chief                  Executive Officer and Chief Financial Officer (Principal                  Executive and Financial Officer) |

----