**UNITED      STATES**

**SECURITIES        AND EXCHANGE COMMISSION **

**WASHINGTON,        D.C. 20549 **

**FORM        10-Q **

| x | **Quarterly                  Report Pursuant to Section 13 or 15(d) of the Securities Exchange                  Act of                  1934****For                  the quarterly period ended September 30,                  2006.** |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o | **Transition                  Report Pursuant to Section 13 or 15(d) of the Securities Exchange                  Act of                  1934****For                  the transition period from _________________to                  ______________.** |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Commission        File Number: 000-51639**

**Argyle        Security Acquisition Corporation**

| **Delaware**                                                                                    |   | **20-3101079**                                                        |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|
| (State                  or Other Jurisdiction ofIncorporation                  or Organization) |   | (I.R.S.                  EmployerIdentification                  No.) |
|                                                                                            |   |                                                                  |

**200        Concord Plaza, Suite 700, San Antonio, TX 78216**

**(210)        828-1700**

| Large                  Accelerated Filer o | Accelerated                  Filer o | Non-Accelerated                  Filer ý |
|--------------------------------------------|--------------------------------------|-----------------------------------------------|

----

**Argyle        Security Acquisition Corporation Index to Form 10-Q**

| **Part                  I.**  | **Financial                  Information**                                                                                            |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|
|                          |                                                                                                                                  |
|                          | Item                  1. Financial Statements (unaudited)                                                                             |
|                          |                                                                                                                                  |
|                          | Item                  2. Management’s Discussion and Analysis of Financial Condition and Results                  of Operations |
|                          |                                                                                                                                  |
|                          | Item                  3. Quantitative and Qualitative Disclosures About Market                  Risk                                  |
|                          |                                                                                                                                  |
|                          | Item                  4. 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                                                                                                     |

| SIGNATURES |
|------------|
|       |

----

**ITEM        1 - FINANCIAL STATEMENTS (UNAUDITED)**

**Argyle        Security Acquisition Corporation**

**Balance        Sheet**

|                                                                                                                                                                                                                                                                                                                                                                               |   | September                  30, 2006(unaudited) |       | December                  31, 2005 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|------------|------------------------------------|--------|
| **ASSETS**                                                                                                                                                                                                                                                                                                                                                                         |   |                                           |       |                               |   |
| **Current                  assets**:                                                                                                                                                                                                                                                                                                                                               |   |                                           |       |                               |   |
| Cash                                                                                                                                                                                                                                                                                                                                                                               |   | $                                              | 920,429    |                               | $      | 9,608 |   |
| Cash                  and cash equivalents, held in trust                                                                                                                                                                                                                                                                                                                          |   |                                           | 29,073,971 |                               |   | - |   |
| Prepaid                  expenses                                                                                                                                                                                                                                                                                                                                                  |   |                                           | 29,333     |                               |   | - |   |
| Other                  assets, deferred offering costs                                                                                                                                                                                                                                                                                                                             |   |                                           | -          |                               |   | 294,745 |   |
| **Total                  current assets**                                                                                                                                                                                                                                                                                                                                          |   |                                           | 30,023,733 |                               |   | 304,353 |   |
| Deferred                  income taxes                                                                                                                                                                                                                                                                                                                                             |   |                                           | 34,442     |                               |   | - |   |
| Property                  and equipment, net of accumulated depreciation of $1,075                                                                                                                                                                                                                                                                                                 |   |                                           | 5,445      |                               |   | - |   |
| **Total                  assets**                                                                                                                                                                                                                                                                                                                                                  |   | $                                              | 30,063,620 |                               | $      | 304,353 |   |
|                                                                                                                                                                                                                                                                                                                                                                               |   |                                           |       |                               |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS’ EQUITY**                                                                                                                                                                                                                                                                                                                    |   |                                           |       |                               |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                               |   |                                           |       |                               |   |   |   |
| **Current                  liabilities:**                                                                                                                                                                                                                                                                                                                                          |   |                                           |       |                               |   |   |   |
| Accrued                  expenses                                                                                                                                                                                                                                                                                                                                                  |   | $                                              | 166,141    |                               | $      | 132,096 |   |
| Notes                  payable - stockholders                                                                                                                                                                                                                                                                                                                                      |   |                                           | -          |                               |   | 155,000 |   |
| Deferred                  underwriting costs                                                                                                                                                                                                                                                                                                                                       |   |                                           | 1,422,740  |                               |   | - |   |
| Accrued                  income taxes                                                                                                                                                                                                                                                                                                                                              |   |                                           | 71,926     |                               |   | - |   |
| **Total                  liabilities**                                                                                                                                                                                                                                                                                                                                             |   |                                           | 1,660,807  |                               |   | 287,096 |   |
|                                                                                                                                                                                                                                                                                                                                                                               |   |                                           |       |                               |   |   |   |
| Common                  stock, subject to possible redemption - 764,627 shares at $7.14                  per                  share                                                                                                                                                                                                                                                |   |                                           | 5,459,435  |                               |   | - |   |
|  Deferred                  interest attributable to common stock subject to possible redemption                  (net                  of taxes of $37,484)                                                                                                                                                                                                                   |   |                                           | 152,941    |                               |   | - |   |
| **Stockholders’                  Equity:**                                                                                                                                                                                                                                                                                                                                   |   |                                           |       |                               |   |   |   |
| Preferred                  stock — $.0001 par value; 1,000,000 shares authorized; 0                  shares issued and outstanding                                                                                                                                                                                                                                           |   |                                           | -          |                               |   | - |   |
| Common                  stock—$.0001 par value; 89,000,000 shares authorized; issued and                  outstanding: 4,781,307                  at September 30, 2006 (including                  764,627 shares                  of common                  stock                  subject to possible redemption) and                  937,500 at December 31, 2005 |   |                                           | 478        |                               |   | 94 |   |
| Additional                  paid-in capital                                                                                                                                                                                                                                                                                                                                        |   |                                           | 22,726,636 |                               |   | 24,906 |   |
| Retained                  earnings/(deficit accumulated) during the development                  stage                                                                                                                                                                                                                                                                             |   |                                           | 63,323     |                               |   | (7,743 | ) |
| **Total                  stockholders’ equity**                                                                                                                                                                                                                                                                                                                              |   |                                           | 22,790,437 |                               |   | 17,257 |   |
|                                                                                                                                                                                                                                                                                                                                                                               |   |                                           |       |                               |   |   |   |
| **Total                  liabilities and stockholders’ equity**                                                                                                                                                                                                                                                                                                              |   | $                                              | 30,063,620 |                               | $      | 304,353 |   |

----

**Argyle        Security Acquisition Corporation**

**Unaudited        Statements of Operations**

|                                                                                                                                                                                         |   |  **Three****months****ended****September                    30,****2006**  |      |  **Three****months**** ended****September                    30,****2****005**  |   |  **Nine****months****ended****September                    30,****2006**  |   |  **Inception****through****September                    30,****2005**  |      |  **Inception****through****September                    30,****2006**  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|-----------|------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------|-----------|----------------------------------------------------------------------------------|--------|
| **Operating                    expenses**                                                                                                                                                    |   | $                                                                                    | 229,829   |                                                                                           | $      | 3,157                                                                               |   | $                                                                                | 809,278   |                                                                             | $      | 3,246 |   |   | 814,310 |   |
| **Other                    income and expense**                                                                                                                                              |   |                                                                                 |      |                                                                                           |   |                                                                                |   |                                                                             |      |                                                                             |   |   |   |   |   |   |
| Bank                    interest income                                                                                                                                                      |   |                                                                                 | 5,173     |                                                                                           |   | -                                                                                   |   |                                                                             | 11,409    |                                                                             |   | - |   |   | 11,409 |   |
| Interest                    on cash and cash equivalents held in trust                                                                                                                       |   |                                                                                 | 382,549   |                                                                                           |   | -                                                                                   |   |                                                                             | 952,609   |                                                                             |   | - |   |   | 952,609 |   |
| Interest                    expense                                                                                                                                                          |   |                                                                                 | (18,362   | )                                                                                              |   | (1,292                                                                              | )      |                                                                             | (46,190   | )                                                                                |   | (1,292 | ) |   | (48,901 | )  |
| Total                    other income and expense                                                                                                                                            |   |                                                                                 | 369,360   |                                                                                           |   | (1,292                                                                              | )      |                                                                             | 917,828   |                                                                             |   | (1,292 | ) |   | 915,117 |   |
|                                                                                                                                                                                         |   |                                                                                 |      |                                                                                           |   |                                                                                |   |                                                                             |      |                                                                             |   |   |   |   |   |   |
| Income/(Loss)                    before provision for income taxes                                                                                                                           |   |                                                                                 | 139,531   |                                                                                           |   | (4,449                                                                              | )      |                                                                             | 108,550   |                                                                             |   | (4,538 | ) |   | 100,807 |   |
| Provision                    for income taxes                                                                                                                                                |   |                                                                                 | 37,484    |                                                                                           |   | -                                                                                   |   |                                                                             | 37,484    |                                                                             |   | - |   |   | 37,484 |   |
|                                                                                                                                                                                         |   |                                                                                 |      |                                                                                           |   |                                                                                |   |                                                                             |      |                                                                             |   |   |   |   |   |   |
| **Net                    income/(loss)**                                                                                                                                                     |   |                                                                                 | 102,047   |                                                                                           |   | (4,449                                                                              | )      |                                                                             | 71,066    |                                                                             |   | (4,538 | ) |   | 63,323 |   |
|                                                                                                                                                                                         |   |                                                                                 |      |                                                                                           |   |                                                                                |   |                                                                             |      |                                                                             |   |   |   |   |   |   |
| Deferred                    interest (net of taxes), attributable to common                    stock subject to possible redemption                                                          |   |                                                                                 | 38,987    |                                                                                           |   | -                                                                                   |   |                                                                             | 152,941   |                                                                             |   | - |   |   | 152,941 |   |
|                                                                                                                                                                                         |   |                                                                                 |      |                                                                                           |   |                                                                                |   |                                                                             |      |                                                                             |   |   |   |   |   |   |
| **Net                    income/(loss) allocable to holders****of                    non-redeemable common stock**                                                                           |   | $                                                                                    | 63,060    |                                                                                           | $      | (4,449                                                                              | )      | $                                                                                | (81,875   | )                                                                                | $      | (4,538 | ) | $ | (89,618 | ) |
|                                                                                                                                                                                         |   |                                                                                 |      |                                                                                           |   |                                                                                |   |                                                                             |      |                                                                             |   |   |   |   |   |   |
| **Net                    income/(loss) per share - - basic and diluted**                                                                                                                     |   | $                                                                                    | 0.02      |                                                                                           | $      | (0.00                                                                               | )      | $                                                                                | 0.02      |                                                                             | $      | (0.00 | ) | $ | 0.02 |   |
| Weighted                    average number of shares outstanding                    - - basic and diluted                                                                                    |   |                                                                                 | 4,781,307 |                                                                                           |   | 937,500                                                                             |   |                                                                             | 4,375,600 |                                                                             |   | 937,500 |   |   | 2,951,666 |   |
| **Net                    income/(loss) per share exclusive of shares****and                    related interest subject to possible****redemption                    - - basic and diluted** |   | $                                                                                    | 0.02      |                                                                                           | $      | (0.00                                                                               | )      | $                                                                                | (0.02     | )                                                                                | $      | (0.00 | ) | $ | (0.04 | ) |
| Weighted                    average number of shares outstanding exclusive                    of shares subject to possible                    redemption - - basic and diluted              |   |                                                                                 | 4,016,680 |                                                                                           |   | 937,500                                                                             |   |                                                                             | 3,692,197 |                                                                             |   | 937,500 |   |   | 2,551,303 |   |

See        notes        to unaudited financial statements 

----

**Unaudited        Statements of Stockholders’ Equity** 

|                                                                                                                               |   |                          |      |                       |   |                    |   | Retained                  Earnings/ |       |   |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|-----------|----------------------------|--------|-------------------------|--------|-------------------------------------|------------|--------|--------|
|                                                                                                                               |   |                          |      |                       |   |                    |   | (Deficit                            |       |   |   |
|                                                                                                                               |   |                          |      |                       |   |  Paid-in           |   | Accumulated)                        |       |   |   |
|                                                                                                                               |   |                          |      |                       |   | Capital                 |   | During                  the    |       | Total  |   |
|                                                                                                                               |   | Common                  Stock |      | in                  Excess |   | Development             |   | Stockholders'                       |       |
|                                                                                                                               |   | Shares                        |      | Amount                     |   | of                  Par |   | Stage                               |       | Equity |   |
|                                                                                                                               |   |                          |      |                       |   |                    |   |                                |       |   |   |
| Stock                  issuance on June 23, 2005 at $.027                                                                          |   |                          | 937,500   |                       | $      | 94                      |   | $                                   | 24,906     |   |   |  |   | $ | 25,000 |   |
| Net                  loss                                                                                                          |   |                          |      |                       |   |                    |   |                                |       |   | $      | (7,743 | )  |   | (                  7,743 | )  |
| **Balances**,                  at December 31, 2005                                                                                |   |                          | 937,500   |                       | $      | 94                      |   | $                                   | 24,906     |   | $      | (7,743 | ) | $ | 17,257 |   |
| Stock                  issuance on January 24, 2006 at $8                                                                          |   |                          | 125,000   |                       |   | 12                      |   |                                | 999,988    |   |   | - |   |   | 1,000,000 |   |
| Stock                  issuance on January 30, 2006 at $8                                                                          |   |                          | 3,625,000 |                       |   | 362                     |   |                                | 28,999,638 |   |   | - |   |   | 29,000,000 |   |
| Stock                  issuance on January 30, 2006 at $8                                                                          |   |                          | 75,046    |                       |   | 8                       |   |                                | 600,360    |   |   | - |   |   | 600,368 |   |
| Proceeds                  from issuance of option to underwriters                                                                  |   |                          | -         |                       |   | -                       |   |                                | 100        |   |   | - |   |   | 100 |   |
| Expenses                  of offerings                                                                                             |   |                          | -         |                       |   | -                       |   |                                | (2,417,117 | )      |   | - |   |   | (2,417,117 | ) |
| Less:                  Proceeds subject to possible redemption of                  764,627 shares and associated deferred interest |   |                          | -         |                       |   | -                       |   |                                | (5,612,376 | )      |   | - |   |   | (5,612,376 | ) |
| Stock                  based compensation                                                                                          |   |                          | -         |                       |   | -                       |   |                                | 130,632    |   |   | - |   |   | 130,632 |   |
| Officer                  and director option exercise                                                                              |   |                          | 18,761    |                       |   | 2                       |   |                                | 505        |   |   | - |   |   | 507 |   |
| Net                  income                                                                                                        |   |                          | -         |                       |   | -                       |   |                                | -          |   |   | 71,066 |   |   | 71,066 |   |
| **Balances**                  at                  September 30, 2006                                                               |   |                          | 4,781,307 |                       | $      | 478                     |   | $                                   | 22,726,636 |   | $      | 63,323 |   | $ | 22,790,437 |   |

----

**Argyle        Security Acquisition Corporation**

**Unaudited        Statement of Cash Flows** 

|                                                                                                                 |   | Nine                  months ended                  September                  30, 2006 |         | Inception                  through                  September                  30, 2005 |   | Inception                  through                  September                  30, 2006 |   |
|----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|--------------|-----------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|--------|
| **Cash                  flows from operating activities**                                                            |   |                                                                                    |         |                                                                                    |   |                                                                                    |   |
| Net                  income/(loss)                                                                                   |   | $                                                                                       | 71,066       |                                                                                    | $      | (4,538                                                                                  | )      | $ | 63,323 |   |
| **Adjustment                  to reconcile net loss to net cash provided by operating                  activities:** |   |                                                                                    |              |                                                                                    |   |                                                                                    |   |   |   |   |
| Stock                  based compensation                                                                       |   |                                                                                    | 130,632      |                                                                                    |   | -                                                                                       |   |   | 130,632 |   |
| Depreciation                  expense                                                                                |   |                                                                                    | 1,075        |                                                                                    |   | -                                                                                       |   |   | 1,075 |   |
| Increase                  in prepaid expenses                                                                        |   |                                                                                    | (29,333      | )                                                                                       |   | -                                                                                       |   |   | (29,333 | ) |
| Increase                  in accrued expenses                                                                        |   |                                                                                    | 162,045      |                                                                                    |   | 2,677                                                                                   |   |   | 166,140 |   |
| Interest                  earned on cash and cash equivalents, held in trust                                         |   |                                                                                    | (952,609     | )                                                                                       |   | -                                                                                       |   |   | (952,609 | ) |
| Accrued                  interest on deferred underwriting costs                                                     |   |                                                                                    | 45,725       |                                                                                    |   | -                                                                                       |   |   | 45,725 |   |
| Increase                  in deferred income tax asset                                                               |   |                                                                                    | (34,442      | )                                                                                       |   | -                                                                                       |   |   | (34,442 | ) |
| Increase                  in accrued income taxes                                                                    |   |                                                                                    | 71,926       |                                                                                    |   | -                                                                                       |   |   | 71,926 |   |
| Interest                  income released from the trust                                                             |   |                                                                                    | 600,000      |                                                                                    |   | -                                                                                       |   |   | 600,000 |   |
| Net                  cash provided by (used in) operating activities                                                 |   |                                                                                    | 66,085       |                                                                                    |   | (1,861                                                                                  | )      |   | 62,437 |   |
|                                                                                                                 |   |                                                                                    |              |                                                                                    |   |                                                                                    |   |   |   |   |
| **Cash                  flows from investing activities:**                                                           |   |                                                                                    |              |                                                                                    |   |                                                                                    |   |   |   |   |
| Purchases                  of investments held in trust                                                              |   |                                                                                    | (249,269,030 | )                                                                                       |   | -                                                                                       |   |   | (249,269,030 | ) |
| Maturity                  of investments held in trust                                                               |   |                                                                                    | 220,547,667  |                                                                                    |   | -                                                                                       |   |   | 220,547,667 |   |
| Purchase                  of property and equipment                                                                  |   |                                                                                    | (6,520       | )                                                                                       |   | -                                                                                       |   |   | (6,520 | ) |
| Net                  cash used in investing activities                                                               |   |                                                                                    | (28,727,883  | )                                                                                       |   | -                                                                                       |   |   | (28,727,883 | ) |
|                                                                                                                 |   |                                                                                    |              |                                                                                    |   |                                                                                    |   |   |   |   |
| **Cash                  flows from financing activities**                                                            |   |                                                                                    |              |                                                                                    |   |                                                                                    |   |   |   |   |
| Gross                  proceeds from public offering and private placement                                           |   |                                                                                    | 30,600,368   |                                                                                    |   | -                                                                                       |   |   | 30,600,368 |   |
| Offering                  costs                                                                                      |   |                                                                                    | (873,356     | )                                                                                       |   | (143,815                                                                                | )      |   | (1,040,100 | ) |
| Proceeds                  from issuance and exercises of options                                                     |   |                                                                                    | 607          |                                                                                    |   | -                                                                                       |   |   | 607 |   |
| Repayment                  of notes payable, stockholders                                                            |   |                                                                                    | (155,000     | )                                                                                       |   | -                                                                                       |   |   | (155,000 | ) |
| Proceeds                  from notes payable, stockholders                                                           |   |                                                                                    | -            |                                                                                    |   | 125,000                                                                                 |   |   | 155,000 |   |
| Proceeds                  from sale of common stock to founding stockholders                                         |   |                                                                                    | -            |                                                                                    |   | 25,000                                                                                  |   |   | 25,000 |   |
| Net                  cash provided by financing activities                                                           |   |                                                                                    | 29,572,619   |                                                                                    |   | 6,185                                                                                   |   |   | 29,585,875 |   |
|                                                                                                                 |   |                                                                                    |              |                                                                                    |   |                                                                                    |   |   |   |   |
| **Net                  increase in cash**                                                                            |   |                                                                                    | 910,821      |                                                                                    |   | 4,324                                                                                   |   |   | 920,429 |   |
| **Cash**,                  beginning of period                                                                       |   |                                                                                    | 9,608        |                                                                                    |   | -                                                                                       |   |   | - |   |
| **Cash**,                  end of period                                                                             |   | $                                                                                       | 920,429      |                                                                                    | $      | 4,324                                                                                   |   | $ | 920,429 |   |
|                                                                                                                 |   |                                                                                    |              |                                                                                    |   |                                                                                    |   |   |   |   |
| Supplemental                  disclosure of cash flow information                                                    |   |                                                                                    |              |                                                                                    |   |                                                                                    |   |   |   |   |
| Cash                  paid for interest                                                                              |   | $                                                                                       | 3,177        |                                                                                    | $      | -                                                                                       |   | $ | 3,177 |   |
| Supplemental                  schedule of non-cash financing activities:                                             |   |                                                                                    |              |                                                                                    |   |                                                                                    |   |   |   |   |
| Accrual                  of deferred underwriting costs                                                              |   | $                                                                                       | 1,377,017    |                                                                                    | $      | -                                                                                       |   | $ | 1,377,017 |   |

----

**Argyle        Security Acquisition Corporation**

**Notes        to Unaudited Financial Statements**

**September 30,        2006**

**Note        1 - Basis of Presentation**

**Note        2 - Organization, business operations and summary of significant accounting        policies**

----

*Cash        and cash equivalents*

*Income        taxes*

*Recently        issued accounting pronouncements*

----

*Use        of estimates*

**Note        3 - Offerings**

*Public        Offering*

*Private        Placement*

**Note        4 - Notes Payable to Stockholders**

**Note        5 - Stockholders' Equity**

----

----

**Note        6 - Common stock reserved for issuance**

**Note        7 - Preferred Stock**

**Note        8 - Income Taxes**

|                                    |   | January                  1, 2006ThroughSeptember                  30, 2006 |    |
|-----------------------------------------|--------|----------------------------------------------------------------------------|---------|
| Current                  tax expense    |   | $                                                                          | 71,926  |   |
| Deferred                  tax (benefit) |   |                                                                       | (34,442 | ) |
|                                    |   | $                                                                          | 37,484  |   |

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

**Forward        Looking Statements **

----

**Critical        Accounting Policies**

**Overview        **

**Results        of Operations for the nine-month period ended September 30,        2006**

**Results        of Operations for the three-month period ended September 30,        2006**

----

**Liquidity        and Capital Resources**

**Off-Balance        Sheet Arrangements**

----

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

**ITEM        4. 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**                                                                                                                                                                                                                   |
| 10.1                             |   | Warrant                  Clarification Agreement between the Company and American Stock                  Transfer                  & Trust Company, dated August 10, 2006                                                     |
| 10.2                             |   | Unit                  Purchase Option Clarification Agreement between the Company and                  I-Bankers,                  Inc., dated August 10, 2006                                                                    |
| 10.3                             |   | Unit                  Purchase Option Clarification Agreement between the Company and                  Rodman                  & Renshaw, LLC, dated August 10, 2006                                                          |
| 31.1                             |   | Certification                  of the Co-Chief Executive Officer (Principal Financial Officer)                  pursuant                  to Rule 13a-14(a) of the Securities Exchange Act, as                  amended |
| 31.2                             |   | Certification                  of the Co-Chief Executive Officer and (Principal Executive Officer)                  pursuant to Rule 13a-14(a) of the Securities Exchange Act, as                  amended              |
| 32.1                             |   | Certification                  of the Co-Chief Executive Officers pursuant to 18 U.S.C. 1350,                  as adopted                  pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                  .      |

----

**SIGNATURES**

|                               |                                                                                                      |                                 |
|------------------------------------|-----------------------------------------------------------------------------------------------------------|--------------------------------------|
|                               | ARGYLE                  SECURITY ACQUISITION CORPORATION                                                  |
|                          |                                                                                                 |                            |
| November                  13, 2006 | By:                                                                                             | /s/ Bob                  Marbut |
|                               | Bob                  Marbut                                                                               |
|                               | Co-Chief                  Executive Officer (Principal Accounting and Financial                  Officer) |

|         |                                                                                       |                                     |
|--------------|--------------------------------------------------------------------------------------------|------------------------------------------|
|    |                                                                                  |                                |
|         | By:                                                                              | /s/ Ron                  Chaimovski |
|         | Ron                  Chaimovski                                                            |
|         | Co-Chief                  Executive Officer (Principal Executive                  Officer) |

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