**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 June 30, 2008.**                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|  ̈ | **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: 000-52247**

**VECTOR      INTERSECT SECURITY ACQUISITION CORP.**

| **Delaware**                                   | **20-3200738**                     |
|------------------------------------------------|------------------------------------|
| (State                or Other Jurisdiction of | (I.R.S.                Employer    |
| Incorporation                or Organization)  | Identification                No.) |

**65      Challenger Road, Ridgefield Park, NJ**

**(201)      708-9801**

| Large                  Accelerated Filer  ̈                                                                   | Accelerated                  Filer  ̈    |
|-------------------------------------------------------------------------------------------------------------------|----------------------------------------------|
|                                                                                                              |                                         |
| Non-Accelerated                  Filer  ̈ (Do                  not check if a smaller reporting company) | Smaller                  Reporting Company x |

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**Vector      Intersect Security Acquisition Corp.**

| PART                  I — FINANCIAL INFORMATION |                                                                                                                          | 1      |
|-------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|--------|
| ITEM                  1                               | —                  FINANCIAL STATEMENTS (UNAUDITED)                                                                     |   | 1 |
|                                                  | Balance                  Sheets                                                                                               |   | 1 |
|                                                  | As                  of June 30, 2008 and December 31, 2007                                                                    |   | 1 |
|                                                  | Statements                  of Income                                                                                         |   | 2 |
|                                                  | Statement                  of Stockholders Equity (deficit)                                                                   |   | 3 |
|                                                  | Statements                  of Cash Flows                                                                                     |   | 4 |
|                                                  | Notes                  to Financial Statements                                                                                |   | 5 |
| ITEM                  2                               | MANAGEMENT’S                  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF                  OPERATIONS |   | 13 |
| ITEM                  3                               | QUANTITATIVE                  AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                   |   | 16 |
| ITEM                  4                               | CONTROLS                  AND PROCEDURES                                                                                      |   | 16 |
| ITEM                  4T                              | CONTROLS                  AND PROCEDURES                                                                                      |   | 16 |
|                                                  |                                                                                                                          |   |
| PART                  II — OTHER INFORMATION    |                                                                                                                          | 17     |
| ITEM                  1                               | LEGAL                  PROCEEDINGS                                                                                            |   | 17 |
| ITEM                  1A                              | RISK                  FACTORS                                                                                                 |   | 17 |
| ITEM                  2                               | UNREGISTERED                  SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                                  |   | 17 |
| ITEM                  3                               | DEFAULTS                  UPON SENIOR SECURITIES                                                                              |   | 17 |
| ITEM                  4                               | SUBMISSION                  OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                          |   | 17 |
| ITEM                  5                               | OTHER                  INFORMATION                                                                                            |   | 18 |
| ITEM                  6                               | EXHIBITS                                                                                                                      |   | 18 |
|                                                  |                                                                                                                          |   |
| SIGNATURES                                            |                                                                                                                          | 19     |

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**PART      I — FINANCIAL INFORMATION**

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

**Vector      Intersect Security Acquisition Corp.**

**(a      corporation in the development stage)**

**Balance      Sheet**
**s**

**As      of June 30, 2008 and December 31, 2007**

|                                                                                                                                      |   | **June 30, ****2008** |       | **December 31, ****2007** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|------------|-------------------------------------|--------|
|                                                                                                                                      |   | **(Unaudited)**                 |       | **(Audited)**                       |   |
|                                                                                                                                      |   |                            |       |                                |   |
| **ASSETS**                                                                                                                                |   |                            |       |                                |   |   |   |
| **Current                assets:**                                                                                                        |   |                            |       |                                |   |   |   |
| Cash                                                                                                                                      |   | $                               | 374,675    |                                | $      | 569,723 |   |
| Investment                in trust account                                                                                                |   |                            | 58,489,506 |                                |   | 58,309,161 |   |
| Prepaid                Expenses                                                                                                           |   |                            | 39,334     |                                |   | 94,444 |   |
| **Total                current assets**                                                                                                   |   |                            | 58,903,515 |                                |   | 58,973,328 |   |
| Deferred                Acquisition Cost                                                                                                  |   |                            | 176,644    |                                |   | - |   |
| **Total                assets**                                                                                                           |   | $                               | 59,080,159 |                                | $      | 58,973,328 |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                             |   |                            |       |                                |   |   |   |
| **Current                liabilities:**                                                                                                   |   |                            |       |                                |   |   |   |
| Deferred                underwriting fees                                                                                                 |   | $                               | 2,340,000  |                                | $      | 2,340,000 |   |
| Accounts                payable and accrued expenses                                                                                      |   |                            | 75,406     |                                |   | 79,024 |   |
| Accrued                interest on notes payable, stockholders                                                                            |   |                            | 22,312     |                                |   | 9,481 |   |
| Income                taxes payable                                                                                                       |   |                            | 64,762     |                                |   | 85,000 |   |
| Due                to stockholders                                                                                                        |   |                            | 8,820      |                                |   | 8,820 |   |
| Notes                payable, stockholders                                                                                                |   |                            | 105,000    |                                |   | 205,000 |   |
| **Total                current liabilities**                                                                                              |   |                            | 2,616,300  |                                |   | 2,727,325 |   |
| Common                Stock, subject to possible redemption, 1,462,499 shares                                                             |   |                            | 11,290,492 |                                |   | 11,144,242 |   |
| **Commitments                and Contingencies**                                                                                          |   |                            |       |                                |   |   |   |
| **STOCKHOLDERS’                EQUITY**                                                                                             |   |                            |       |                                |   |   |   |
| Preferred                stock, $0.001 par value                                                                                          |   |                            |       |                                |   |   |   |
| Authorized                1,000,000 shares; none issued                                                                                   |   |                            | –    |                                |   | – |   |
| Common                stock, $0.001 par value                                                                                             |   |                            |       |                                |   |   |   |
| Authorized                50,000,000 shares                                                                                               |   |                            |       |                                |   |   |   |
| Issued                and outstanding 1,875,000 shares and 9,375,000 at December 31, 2006                and                June 30, 2007 |   |                            | 9,375      |                                |   | 9,375 |   |
| Additional                paid-in-capital                                                                                                 |   |                            | 44,293,484 |                                |   | 44,439,734 |   |
| Earnings                accumulated during the development stage                                                                          |   |                            | 870,508    |                                |   | 652,652 |   |
| **Total                stockholders’ equity**                                                                                       |   |                            | 45,173,367 |                                |   | 45,101,761 |   |
| **Total                liabilities and stockholders’ equity**                                                                       |   | $                               | 59,080,159 |                                | $      | 58,973,328 |   |

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**Vector      Intersect Security Acquisition Corp.**

**(a      corporation in the development stage)**

**Statement**
**s      of Income**

**(Unaudited)**

|                                                                  |   | **Six Months Ended June 30,** |       | **Three Months Ended June 30,** |   | **For the period from****July 19, 2005****(inception) to** |   |
|-----------------------------------------------------------------------|--------|---------------------------------------------------|------------|-----------------------------------------------------|--------|------------------------------------------------------------------------------------------|--------|
|                                                                  |   | **2008**                                          |       | **2007**                                            |   | **2008**                                                                                 |   | **2007** |   | **June 30, 2008** |   |
| Interest                  Income                                      |   | $                                                 | 612,584    |                                                | $      | 342,434                                                                                  |   | $ | 248,846 |   | $ | 342,434 |   | $ | 1,959,506 |   |
| Operating                  expenses                                   |   |                                              | 412,135    |                                                |   | 124,275                                                                                  |   |   | 156,452 |   |   | 100,169 |   |   | 991,825 |   |
| Income                  before interest expense and income taxes |   |                                              | 200,449    |                                                |   | 218,159                                                                                  |   |   | 92,394 |   |   | 242,265 |   |   | 967,681 |   |
| Interest                  expense-related party                       |   |                                              | 2,831      |                                                |   | 11,079                                                                                   |   |   | 1,061 |   |   | 8,243 |   |   | 31,049 |   |
| Income                  before provision for income taxes             |   |                                              | 197,618    |                                                |   | 207,080                                                                                  |   |   | 91,333 |   |   | 234,022 |   |   | 936,632 |   |
| Provision                  for income taxes                           |   |                                              | (20,238    | )                                                   |   | 30,400                                                                                   |   |   | 84,497 |   |   | 30,400 |   |   | 66,124 |   |
| Net                  income for the period                            |   | $                                                 | 217,856    |                                                | $      | 176,680                                                                                  |   | $ | 6,836 |   | $ | 203,622 |   | $ | 870,508 |   |
| Weighted                  average shares outstanding -                |   |                                              |            |                                                |   |                                                                                          |   |   |  |   |   |  |   |   |  |   |
| Basic                                                                 |   |                                              | 9,375,000  |                                                |   | 4,381,250                                                                                |   |   | 9,375,000 |   |   | 6,887,500 |   |   | 4,849,582 |   |
| Diluted                                                               |   |                                              | 11,871,317 |                                                |   | 5,315,901                                                                                |   |   | 11,880,099 |   |   | 8,746,532 |   |   | 10,357,506 |   |
| Net                  income per share - Basic                         |   | $                                                 | 0.02       |                                                | $      | 0.04                                                                                     |   | $ | — |   | $ | 0.03 |   | $ | 0.18 |   |
| Net                  income per share - Diluted                       |   | $                                                 | 0.02       |                                                | $      | 0.03                                                                                     |   | $ | — |   | $ | 0.02 |   | $ | 0.08 |   |

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**Vector      Intersect Security Acquisition Corp.**

**(a      corporation in the development stage)**

**Statement      of Stockholders Equity (deficit)**

|                                                                          |   | **Common Stock** |                           | **Additional** |   | **Deficiency****Accumulated****During the****Development** |   | **Total****Stockholders’****Equity** |                           |
|-------------------------------------------------------------------------------|--------|-----------------------|--------------------------------|----------------|--------|-----------------------------------------------------------------|--------|--------------------------------------------|--------------------------------|
|                                                                          |   | **Shares**            |                           | **Amount**     |   | **Paid-in capital**                                        |   | **Stage**                                  |                           | **(Deficit)** |   |
| Common                  shares issued                                         |   |                  |                                |           |   |                                                                 |   |                                       |                                |   |   |  |   |   |  |   |
| July                  19, 2005 at (inception) at $0.0133                      |   |                  | 1,875,000                      |           | $      | 1,875                                                           |   | $                                          | 23,125                         |   | $ | – |   | $ | 25,000 |   |
| Net                  loss for the period                                      |   |                  | –                        |           |   | –                                                         |   |                                       | –                        |   |   | (67,116 | ) |   | (67,116 | ) |
| Balances                  at December 31, 2005                                |   |                  | 1,875,000                      |           | $      | 1,875                                                           |   | $                                          | 23,125                         |   | $ | (67,116 | ) | $ | (42,116 | ) |
| Net                  loss for the period                                      |   |                  | –                        |           |   | –                                                         |   |                                       | –                        |   |   | (77,534 | ) |   | (77,534 | ) |
| Balances                  at December 31, 2006                                |   |                  | 1,875,000                      |           |   | 1,875                                                           |   |                                       | 23,125                         |   |   | (144,650 | ) |   | (119,650 | ) |
| Proceeds                  of private placement- April 25, 2007                |   |                  | 187,500                        |           |   | 187                                                             |   |                                       | 1,499,813                      |   |   | – |   |   | 1,500,000 |   |
| Common                  shares issued June 30, 2007   @$8 per share      |   |                  | 7,312,500                      |           |   | 7,313                                                           |   |                                       | 58,492,687                     |   |   | – |   |   | 58,500,000 |   |
| Expenses                  of the Offering                                     |   |                  | –                        |           |   | –                                                         |   |                                       | (4,431,649                     | ) |   | – |   |   | (4,431,649 | ) |
| Proceeds                  subject to possible redemption of 1,462,499 shares  |   |                  | –                        |           |   | –                                                         |   |                                       | (11,144,242                    | ) |   | – |   |   | (11,144,242 | ) |
| Net                  income for the period                                    |   |                  | –                        |           |   | –                                                         |   |                                       | –                        |   |   | 797,302 |   |   | 797,302 |   |
| Balances                  at December 31, 2007                                |   |                  | 9,375,000                      |           |   | 9,375                                                           |   |                                       | 44,439,734                     |   |   | 652,652 |   |   | 45,101,761 |   |
| Adjustment                  to value of shares subject to possible redemption |   |                  |                                |           |   |                                                                 |   |                                       | (146,250                       | ) |   |  |   |   | (146,250 | ) |
| Net                  income for the period                                    |   |                  |                      |           |   |                                                       |   |                                       |                      |   |   | 217,856 |   |   | 217,856 |   |
| Balances                  at June 30, 2008                                    |   |                  | 9,375,000                      |           | $      | 9,375                                                           |   | $                                          | 44,293,484                     |   | $ | 870,508 |   | $ | 45,173,367 |   |

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**Vector      Intersect Security Acquisition Corp.**

**(a      corporation in the development stage)**

**Statement**
**s      of Cash Flows**

**(Unaudited)**

|                                                                                                           |   | **Six Months Ended June 30,** |     | **For the Period From July 19, 2005****(Inception) to** |   |
|----------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|----------|--------------------------------------------------------------------------------------------|--------|
|                                                                                                           |   | **2008**                                          |     | **2007**                                                                                   |   | **June                30, 2008** |   |
| **Cash                flows from operating activities**                                                        |   |                                              |     |                                                                                       |   |   |   |   |   |   |
| Net                income                                                                                      |   | $                                                 | 217,856  |                                                                                       | $      | 176,680 |   | $ | 870,508 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities |   |                                              |     |                                                                                       |   |   |   |   |   |   |
| Deferred                Acquisition Cost                                                                       |   |                                              | (176,644 | )                                                                                          |   | – |   |   | (176,644 | ) |
| Prepaid                Expenses                                                                                |   |                                              | 55,110   |                                                                                       |   | (151,111 | ) |   | (39,334 | ) |
| Accounts                payable and accrued expenses                                                           |   |                                              | (3,618   | )                                                                                          |   | (66,128 | ) |   | 75,406 |   |
| Income                tax payable                                                                              |   |                                              | (20,238  | )                                                                                          |   | 30,400 |   |   | 64,762 |   |
| Accrued                interest on notes payable, stockholders                                                 |   |                                              | 12,831   |                                                                                       |   | 10,079 |   |   | 22,312 |   |
|                                                                                                           |   |                                              |     |                                                                                       |   |   |   |   |   |   |
| **Net                cash provided by (used in) operating activities**                                         |   |                                              | 85,297   |                                                                                       |   | (80 | ) |   | 817,010 |   |
| **Cash                flows from investing activities:**                                                       |   |                                              |     |                                                                                       |   |   |   |   |   |   |
| Payment                to trust account                                                                        |   |                                              | (180,345 | )                                                                                          |   | (58,213,919 | ) |   | (58,489,506 | ) |
|                                                                                                           |   |                                              |     |                                                                                       |   |   |   |   |   |   |
| **Net                cash used in investing activities**                                                       |   |                                              | (180,345 | )                                                                                          |   | (58,213,919 | ) |   | (58,489,506 | ) |
|                                                                                                           |   |                                              |     |                                                                                       |   |   |   |   |   |   |
| **Cash                flows from financing activities**                                                        |   |                                              |     |                                                                                       |   |   |   |   |   |   |
| Proceeds                from advances from stockholder                                                         |   |                                              | –  |                                                                                       |   | – |   |   | 8,820 |   |
| Proceeds                from sale of shares of common stock                                                    |   |                                              | –  |                                                                                       |   | – |   |   | 25,000 |   |
| Proceeds                from notes payable, stockholders                                                       |   |                                              | –  |                                                                                       |   | – |   |   | 348,791 |   |
| Repayment                of notes payable, stockholders                                                        |   |                                              | (100,000 | )                                                                                          |   | – |   |   | (243,791 | ) |
| Proceeds                from private placement                                                                 |   |                                              | –  |                                                                                       |   | 1,500,000 |   |   | 1,500,000 |   |
| Proceeds                from initial public offering                                                           |   |                                              | –  |                                                                                       |   | 58,500,000 |   |   | 58,500,000 |   |
| Payment                of expenses of offering                                                                 |   |                                              | –  |                                                                                       |   | (1,646,978 | ) |   | (2,091,649 | ) |
| **Net                cash provided by financing activities**                                                   |   |                                              | (100,000 | )                                                                                          |   | 58,353,022 |   |   | 58,047,171 |   |
|                                                                                                           |   |                                              |     |                                                                                       |   |   |   |   |   |   |
| **Net                increase (decrease) in cash**                                                             |   |                                              | (195,048 | )                                                                                          |   | 139,023 |   |   | 374,675 |   |
| **Cash,                beginning of period**                                                                   |   |                                              | 569,723  |                                                                                       |   | 24,279 |   |   | – |   |
| **Cash,                end of period**                                                                         |   | $                                                 | 374,675  |                                                                                       | $      | 163,302 |   | $ | 374,675 |   |
|                                                                                                           |   |                                              |     |                                                                                       |   |   |   |   |   |   |
| Supplemental                disclosure of cash flow information                                                |   |                                              |     |                                                                                       |   |   |   |   |   |   |
| Cash                paid for interest                                                                          |   | $                                                 | –  |                                                                                       | $      | – |   |   | 8,734 |   |
| **Supplemental                schedule of non-cash financing activities:**                                     |   |                                              |     |                                                                                       |   |   |   |   |   |   |
| Accrual                of deferred underwriting costs                                                          |   | $                                                 | –  |                                                                                       | $      | 2,352,333 |   | $ | 2,340,000 |   |

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**Vector      Intersect Security Acquisition Corp.**

**(a      development stage company)**

**Notes      to Financial Statements**

**June      30, 2008**

| **1.** **Organization,                Proposed Business Operations** |   | **Basis                of Presentation**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **and                Summary of Significant Accounting Policies**         |   | The                financial statements of Vector Intersect Security Acquisition Corporation                (the ‘‘Company’’) , for the six months ended June 30, 2008 and 2007, for                the three months ended June 30, 2008 and 2007 and for the period                from July                19, 2005 (inception) to June 30, 2008, are unaudited. In the opinion                of                management, all adjustments (consisting of normal adjustments) have                been                made that are necessary to present fairly the financial position                of the                Company as of June 30, 2008 and the results of its operations and                its cash                flows for the six months ended June 30, 2008 and 2007, the three                months                ended June 30, 2008 and 2007 and for the period from July 19, 2005                (inception) to June 30, 2008. Operating results for the interim periods                presented are not necessarily indicative of the results to be expected                for                the full fiscal year. The balance sheet as of December 31, 2007 has                been                derived from the audited financial statements.                                                                                                                                                                                                                                                     |
|                                                                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                      |   | Vector                Intersect Security Acquisition Corporation (the ‘‘Company’’) was                incorporated in Delaware on July 19, 2005 as a blank check company.                It’s                objective is to acquire, through a merger, capital stock exchange,                asset                acquisition or other similar business combination (as defined below),                one                or more businesses in the homeland security, national security and/or                command and control industries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                      |   | The                registration statement for the Company’s initial public offering (the                ‘‘Public Offering’’) was declared effective on April 25, 2007. The Company                completed a private placement (the ‘‘Private Placement’’) and received                gross proceeds of $1,500,000 on April 25, 2007. The Company consummated                the Public Offering on May 1, 2007 and received gross proceeds of                $58,500,000. The Company’s management has broad discretion with respect to                the specific application of the net proceeds of the Private Placement                and                the Public Offering (collectively the (‘‘Offerings’’) each as described in                Note 2), although substantially all of the net proceeds of the Offerings                are intended to be generally applied toward consummating a business                combination with a target company. As used herein, a ‘‘target business’’                shall include an operating business in the homeland security or defense                industries, or a combination thereof, and a ‘‘business combination’’ shall                mean the acquisition by the Company of such a target business. There                is no                assurance that the Company will be able to effect a business combination                successfully. |

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|   |   | Of                the proceeds of the Offerings, $58,030,000 was placed in a trust                account                (‘‘Trust Account’’) at JP MorganChase, New York City, New York, maintained                by American Stock Transfer & Trust Company, the Company’s transfer                agent. This amount includes the net proceeds of the Public Offering                and                the Private Placement, and $2,340,000 of deferred underwriting                compensation fees (the ‘‘Discount’’) which will be paid to Rodman &                Renshaw, LLC if, and only if, a business combination is consummated.                The                funds in the Trust Account will be invested until the earlier of                (i) the                consummation of the Company’s first business combination or (ii) the                liquidation of the Trust Account as part of a plan of dissolution                and                liquidation approved by our stockholders. Up to $1,500,000 of interest                income on the Trust Account may be used to fund the Company’s working                capital requirements including payments for legal and accounting                fees to                due diligence on prospective acquisitions and continuing general                and                administrative expenses. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   | After                signing a definitive agreement for the acquisition of a target business,                the Company will submit such transaction for stockholder approval.                In the                event (i) the Business Combination is not approved by a majority of                the shares of common stock issued in our initial public offering                or (ii)                20% or more of the shares of common stock held by the public stockholders                vote against the Business Combination and exercise their conversion                rights                described below, the Business Combination will not be                consummated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   | With                respect to the first Business Combination which is approved and                consummated, any Public Stockholder who voted against the Business                Combination may demand that the Company redeem its, his or her shares.                The                per share redemption price will equal the amount in the Trust Fund,                plus                interest (net of taxes payable and net of up to $1,500,000 of interest                income on the Trust Fund that may be used to fund the Company’s working                capital) calculated as of two business days prior to the proposed                Business                Combination, divided by the number of shares of common stock held                by                Public Stockholders at the consummation of the Public Offering.                Accordingly, Public Stockholders holding approximately 19.99% of                the                aggregate number of shares owned by all Public Stockholders may seek                redemption of their shares in the event of a Business Combination.                Such                Public Stockholders are entitled to receive their per share interest                in                the Trust Fund computed without regard to the shares held by the                Initial                Stockholders.                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   | **Use                of estimates**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   | The                preparation of financial statements in conformity with accounting                principles generally accepted in the United States of America requires                management to make estimates and assumptions that affect the reported                amounts of assets and liabilities at the date of the financial statements                and the reported amounts of expenses during the reporting period.                Actual                results could differ from those estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

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|                      |   | **Concentration                of Credit Risk**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                      |   | Financial                instruments that potentially subject the Company to credit risk consist                of                cash and cash equivalents. The Company’s policy is to limit the amount of                credit exposure to any one financial institution and place investments                with financial institutions or in short-term money market funds that                provide minimal exposure to interest rate and credit                risk.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                      |   | **Earnings                per Common Share**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                      |   | Basic                earnings per share (‘‘EPS’’) is computed by dividing net income applicable                to common stock by the weighted average common shares outstanding                during                the period. Diluted EPS reflects the additional dilution for all                potentially dilutive securities such as stock warrants.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                      |   | **Recent                Accounting Pronouncements**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                      |   | Management                does not believe that any recently issued, but not yet effective,                accounting standards if currently adopted would have a material affect                on                the accompanying financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| **2.** **Offerings** |   | On                April 25, 2007 the Company sold 187,500 units in a Private Placement,                and                on May 1, 2007 the Company sold 7,312,500 units in the Public Offering                (collectively the ‘‘Units’’). Each Unit consists of one share of the                Company’s common stock, $0.001 par value, and one common stock purchase                warrant (‘‘Warrants’’). Each Warrant entitles the holder to purchase from                the Company one share of common stock at an exercise price of $5.00                per                share (which Warrant may be exercised on a cashless basis) commencing                the                later of (a) one year from the effective date of the Public Offering;                or                (b) the completion of a Business Combination with a target business                and                expiring four years from the date of the Public Offering prospectus                (unless earlier redeemed). The Warrant is redeemable at a price of                $0.01                per Warrant upon 30 days notice after the Warrant becomes exercisable,                only in the event that (a) the last sales price of the common stock                is at                least $11.50 per share for any 20 trading days within a 30-trading-day                period ending on the third business day prior to date on which notice                of                redemption is given. |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                      |   | The                Company will use its best efforts to cause a registration statement                to                become effective on or prior to the commencement of the Warrant exercise                period and to maintain the effectiveness of such registration statement                until the expiration of the Warrants. The Warrants may not be exercised                in                the absence of an effective registration statement and, in the event                that                the Company is unable to maintain the effectiveness of such registration                statement until the expiration of the Warrants, and therefore is                unable to                deliver registered shares, the Warrants may expire unexercised and                worthless. In no event will the Company be required to net-cash settle                the                Warrants. Accordingly, the Company has determined that the Warrants                should                be classified in stockholders’ equity upon issuance in accordance with the                guidance in EITF 00-19, ‘‘Accounting for Derivative Financial Instruments                Indexed to, and Potentially Settled in, a Company’s Own                Stock’’.                                                                                                                                                                                                                                            |

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| **3.** **Deferred                Acquisition Costs**  |   | Deferred                acquisition costs consist of legal, auditing, regulatory filing,                underwriting fees and other costs incurred related to the Proposed                Acquisition.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| **4.** **Advances                from Stockholder**   |   | In                March 2006 and in September 2006, a stockholder advanced the Company                a                total of $8,820 for operating expenses. The advance is non-interest                bearing and is due on demand.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| **5.** **Notes                Payable, Stockholders** |   | In                addition to their purchase of the Company’s common stock, two of the                Company’s stockholders and officers advanced the Company an aggregate of                $205,000 in exchange for unsecured promissory notes. The notes bear                interest at a rate of 4% per annum with principal and accrued interest                due                no later than the first anniversary of the Public Offering. During                the                quarter ended March 31, 2008, the Company repaid $100,000 of these                loans.                                                                                                                                                                            |
|                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                       |   | The                Company issued two additional notes with an aggregate principal amount                of                $143,791 to SCP Private Equity Management Company, LLC. The notes                bore                interest at a rate of 5.5% per annum with principal and were repaid                during                the fiscal year of 2007.                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| **6.** **Per                Share Information**       |   | In                accordance with SFAS No. 128, ‘‘Earnings Per Share,’’ basic income per                common share (‘‘Basic EPS’’) is computed by dividing the net income by the                weighted-average number of shares outstanding. Diluted income per                common                share (‘‘Diluted EPS’’) is computed by dividing the net income by the                weighted-average number of common shares and dilutive common share                equivalents then outstanding. SFAS No. 128 requires the presentation                of                both Basic EPS and Diluted EPS on the face of the Company’s Condensed                Statements of Income. |
|                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                       |   | The                following table sets forth the computation of basic and diluted per                share                information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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|                                                           |   | **Three Months Ended** |       | **Six Months Ended** |   | **For the ****period****from ****July 19, 2005****(inception) to** |   |
|----------------------------------------------------------------|--------|----------------------------------|------------|--------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|
|                                                           |   | **June 30, 2008**      |       | **June 30, 2007**    |   | **June 30, 2008**                                                                      |   | **June 30, 2007** |   | **June 30, 2008** |   |
|                                                           |   |                             |       |                           |   |                                                                                             |   |   |   |   |   |
| Interest                Income                                 |   | $                                | 612,584    |                           | $      | 342,434                                                                                          |   | $ | 248,846 |   | $ | 342,434 |   | $ | 1,959,506 |   |
| Operating                expenses                              |   |                             | 412,135    |                           |   | 124,275                                                                                          |   |   | 156,452 |   |   | 100,169 |   |   | 991,825 |   |
| Income                before interest expense and income taxes |   |                             | 200,449    |                           |   | 218,159                                                                                          |   |   | 92,394 |   |   | 242,265 |   |   | 967,681 |   |
| Interest                expense – related party          |   |                             | 2,831      |                           |   | 11,079                                                                                           |   |   | 1,061 |   |   | 8,243 |   |   | 31,049 |   |
| Income                before provision for income taxes        |   |                             | 197,618    |                           |   | 207,080                                                                                          |   |   | 91,333 |   |   | 234,022 |   |   | 936,632 |   |
| Provision                for income taxes                      |   |                             | (20,238    | )                              |   | 30,400                                                                                           |   |   | 84,497 |   |   | 30,400 |   |   | 66,124 |   |
| Net                income for the period                       |   | $                                | 217,856    |                           | $      | 176,680                                                                                          |   | $ | 6,836 |   | $ | 203,622 |   | $ | 870,508 |   |
| Weighted                average shares outstanding –     |   |                             |       |                           |   |                                                                                             |   |   |   |   |   |   |   |   |   |   |
| basic                                                          |   |                             | 9,375,000  |                           |   | 4,381,250                                                                                        |   |   | 9,375,000 |   |   | 6,887,500 |   |   | 4,849,582 |   |
| diluted                                                        |   |                             | 11,871,317 |                           |   | 5,315,901                                                                                        |   |   | 11,880,099 |   |   | 8,746,532 |   |   | 10,357,506 |   |
| Net                income per share – Basic              |   | $                                | 0.02       |                           | $      | 0.04                                                                                             |   | $ | — |   | $ | 0.03 |   | $ | 0.18 |   |
| Net                income per share – Diluted            |   | $                                | 0.02       |                           | $      | 0.03                                                                                             |   | $ | — |   | $ | 0.02 |   | $ | 0.08 |   |

| **7.** **Commitments** |   | In                connection with the Public Offering the Company sold to the representative                of the underwriter for $100 an option to purchase up to a total of                731,250                Units. The Units issuable upon exercise of this option are identical                to                those offered to the public, except that the Warrants underlying                this                option are exercisable at $5.50 (110% of the exercise price of the                Warrants included in the units sold in the Public Offering). This                option                is exercisable at $8.80 per unit commencing on the later of the                consummation of a Business Combination and one year from the date                of                offerings and expiring five years from the date of offerings. The                option                and the 731,250 units, the 731,250 shares of common stock and the                731,250                Warrants underlying such units, and the 731,250 shares of common                stock                underlying such Warrants, have been deemed compensation by the National                Association of Securities Dealers (‘‘NASD’’) and are therefore subject to                a 180-day lock-up pursuant to Rule 2710(g)(1) of the NASD Conduct                Rules.                Additionally, the option may not be sold, transferred, assigned,                pledged                or hypothecated for a one-year period (including the foregoing 180-day                period) following the date of offerings. However, the option may                be                transferred to any underwriter and selected dealers participating                in the                offering and their bona fide officers or                partners. |
|-----------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |   | The              Company accounted for this purchase option as a cost of raising capital              and will include the instrument as equity in the financial statements.              Accordingly, there will be no net impact on the Company’s financial              position or results of operations, except for the recording of the              $100              proceeds from the sale. The Company estimated, based upon a Black-Scholes              model, that the fair value of the purchase option on the date of sale              is              approximately $3.40 per unit (or $2,486,250 in the aggregate), using              an              expected life of 5 years, volatility of 44%, and a risk-free rate of              5%.              However, because the Company’s units did not have a trading history, the              volatility assumption was based on information then available to              management. The volatility estimate is derived using historical data              of              public companies in the proposed industry. The Company believes the              volatility estimate calculated from these companies is a reasonable              benchmark to use in estimating the expected volatility of our units;              however, the use of an index to estimate volatility may not necessarily              be              representative of the volatility of the underlying securities. Although              an              expected life of five years was used in the calculation, if the Company              does not consummate a Business Combination with the prescribed time              period              and it liquidates the option will become worthless. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |
|   |   | The              Company has engaged the representative of the underwriters on a              non-exclusive basis as an agent for the solicitation of target for              a              Business Combination. The Company has agreed to pay the representative              of              the underwriters a transaction fee in cash equal to 3% of the aggregate              consideration paid by the Company in a Business Combination with a              target              business the representative of the underwriters introduces to the Company,              if such Business Combination is consummated within twenty-four months              of              such introduction.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |
|   |   | The              Company has engaged the representative of the underwriters, on a              non-exclusive basis, as its agent for the solicitation of the exercise              of              the Warrants. To the extent not inconsistent with the guidelines of              the              Financial Industry Regulatory Authority and the rules and regulations              of              the Securities and Exchange Commission, the Company has agreed to pay              the              representative of the underwriter for bona fide services rendered a              commission equal to 3% of the exercise price for each Warrant exercised              more than one year after the date of the Public Offering prospectus              if the              exercise was solicited by the representative. In addition to soliciting,              either orally or in writing, the exercise of the Warrants the              representative’s services may also include disseminating information,              either orally or in writing, to Warrant holders about the Company or              the              market for the Company’s securities, and assisting in the processing of              the exercise of the Warrants. No compensation will be paid to the              representative upon the exercise of the Warrants if:                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |
|   |   |  ·                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 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; |

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|   |   | ·                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | The                Warrants are held in a discretionary account;                                                                                                                                                                                                  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                              |
|   |   | ·                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | The                Warrants are exercised in an unsolicited transaction;                or                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                              |
|   |   | ·                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | The                representative has not provided to the holder of the Warrants solicited                for exercise a copy of the Public Offering prospectus with respect                to the                shares of common stock underlying the Warrants. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                              |
|   |   | The              Company has engaged Selway Partners LLC, an entity with which several              of              the Company’s officers and directors are affiliated for an aggregate              monthly fee of $7,500 for certain administrative, technology, bookkeeping              and secretarial services, as well as, the use of limited office space              in              New Jersey.                                                                                                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                              |
|   |   | On              May 1, 2007, the Company entered into a $500,000 revolving credit              agreement with SCP Private Equity Management Company, LLC, of which              the              Company’s Chief Executive officer and one of its directors are members.              Any amounts outstanding under the revolving credit agreement will bear              interest at a rate of 5.5% per year. Any funds outstanding under the              revolving credit agreement will become due and payable by the Company              upon              our consummation of a business combination. As of June 30, 2008, the              Company has not borrowed any amounts under this facility. |

**8.**
**Proposed          Business Combination**

|   |   | On                February 14, 2008, Vector and its newly-formed, wholly-owned                subsidiary Cyalume Acquisition Corp. (‘‘Transaction Subsidiary’’), entered                into a stock purchase agreement with Cyalume Technologies, Inc.                (‘‘Cyalume’’) and GMS Acquisition Partners Holdings, LLC (‘‘Seller’’),                which owns 100% of the issued and outstanding equity securities of                Cyalume, pursuant to which the Transaction Subsidiary will acquire                all of                the outstanding securities of Cyalume, resulting in Cyalume becoming                an                indirect wholly-owned subsidiary of Vector. The total transaction                consideration will equal $117,196,687 minus $40,621,808 for the repayment                of the indebtedness of Cyalume, Cyalume’s unpaid acquisition expenses, and                the value of the 1,505,646 shares placed in escrow at a contractually                agreed value of $7.97 per share (which was based on the amount per                public                share held in the trust account as of the date of the purchase agreement).                The estimated closing payment will be adjusted based on an estimate                of                Cyalume’s net working capital on the closing date. If Cyalume’s estimated                net working capital is above $9,000,000, then the estimated closing                payment will be increased, on a dollar for dollar basis, by the amount                that the estimated net working capital exceeds $9,000,000. If Cyalume’s                estimated net working capital is below $7,000,000, then the estimated                closing payment will be reduced, on a dollar for dollar basis, by                the                difference between the estimated net working capital and $7,000,000.                A                number of shares held in escrow with a value equal to any adjustment                on                Vector’s behalf will be returned to Vector for cancellation in                satisfaction of such adjustment. The amount held in escrow will be                available for any purchase price adjustment and/or indemnification                obligation of Seller. The                Company has filed preliminary proxy statement on Schedule 14A which                is                pending SEC approval. Once SEC approval is received the Company will                hold                a meeting and the shareholders will vote on the proposed business                combination. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| **9.                Subsequent Event** |   | On                July 31 2008, Vector signed a commitment letter for a senior secured                credit facility from TD Banknorth N.A. in the aggregate amount of                $30                million (collectively, the “TD Loan”). The TD Loan is divided into three                distinct facilities, consisting of (i) a $5,000,000 senior secured                revolving credit facility (the “Revolver”); (ii) a $20,000,000 amortizing                senior secured term loan (the “Term Loan”); and (iii) a $5,000,000                commercial real estate mortgage loan (the “CREM”). The TD Loan is to close                on or before November 30, 2008, and the Revolver, Term Loan and CREM                are                to mature three, five and five years from the closing date of the                TD Loan,                respectively. Cyalume would be the borrower under the facilities,                which                would close concurrently with the proposed acquisition of Cyalume                (discussed in further detail in Item 2, below), and the TD Loan is                guaranteed by Vector, Cyalume Technologies, S.A., a wholly-owned                subsidiary of Cyalume, and all existing or future subsidiaries of                Cyalume. |
|----------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                   |   | The                TD Loan, as well as any interest rate hedging provided by TD Banknorth,                will be secured by a first priority perfected security interest in                all of                Cyalume’s tangible and intangible assets and all proceeds thereof. The                Loans will also be secured by a pledge by Vector of Cyalume’s capital                stock, 2/3 of Cyalume Technologies, S.A.’s capital stock, and a first                mortgage on Cyalume’s real estate property located in West Springfield,                MA. Cyalume is to pay an origination fee at closing in an amount                equal to                1% of the TD Facility ($300,000), and Vector will pay a commitment                fee of                $10,000 per month, which is payable whether or not the transaction                closes.                Cyalume will also pay a fee equal to one half of one percent of the                average daily unused portion of the Revolver, payable quarterly in                arrears, after Closing.                                                                                                                                                                                                                                                      |
|                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                   |   | Interest                will accrue and payments will be due monthly in arrears on each of                the                Revolver and Term Loan at a rate determined by adding the applicable                margin to (i) the prime rate as reported in the Wall Street journal                or                (ii) 30, 60, or 90 day LIBOR, at Cyalume’s election so long as no default                has occurred or is continuing. The applicable margin will be set                quarterly                and will be based on a ratio of Cyalume’s senior debt to its adjusted                EBITDA. The initial Prime Rate margin will be 1.5% and the initial                LIBOR                margin will be 3.5%, with a 30 day LIBOR floor of 3.0%. The default-rate                of interest will be 2% above the applicable non-default interest                rate.                Other debts incurred by Cyalume will be subordinate to the TD Loan                and on                terms acceptable to the lender. Cyalume will provide monthly, quarterly                and annual reports to the lender to test Cyalume’s compliance with various                financial covenants under the TD Loan.                                                                                                          |
|                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                   |   | The                terms of the TD Loan are subject to the satisfactory completion of                due                diligence, credit approval, satisfactory review of documentation                and such                other terms and conditions as are determined by TD                Banknorth.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

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

**Overview**

**Forward      Looking Statements**

----

**Critical      Accounting Policies**

**Results      of Operations f**
**or      the Three Month Period ended June 30, 2008**

**Results      of Operations for the **
**Six      Month Period ended June 30, 2008**

**Liquidity      and Capital Resources**

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**Off-Balance        Sheet Arrangements**

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| **ITEM              3** | **QUANTITATIVE                AND QUALITATIVE DISCLOSURES ABOUT MARKET                RISK** |
|-------------------------|----------------------------------------------------------------------------------------------|

| **ITEM              4** | **CONTROLS                AND PROCEDURES** |
|-------------------------|--------------------------------------------|

| **ITEM              4T** | **CONTROLS                AND PROCEDURES** |
|--------------------------|--------------------------------------------|

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**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** |
|-------------------------|---------------------------------------------------------------------------------------|

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| **ITEM              5** | **OTHER                INFORMATION** |
|-------------------------|--------------------------------------|

| **ITEM              6** | **EXHIBITS** |
|-------------------------|--------------|

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

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**SIGNATURES**

|                                      |                                                                                                                                |                                |
|-------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|
|                                      | **VECTOR INTERSECT SECURITY ACQUISITION CORP.**                                                                 |
|                                 |                                                                                                                           |                           |
| Date: August                14, 2008 | By:                                                                                                                       | /s/ Yaron                Eitan |
|                                      | Yaron                  Eitan                                                                                                        |
|                                      | Chief                    Executive Officer(Principal                  Executive, Accounting and Financial                  officer) |

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**Exhibit      Index**

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

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