**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**Form      10-KSB**

| [x] | ANNUAL                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934 |
|-----|--------------------------------------------------------------------------------------------------------------|

| [                ] | TRANSITION                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934 |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| Delaware                                                                      |   | 20-2027651                                          |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) |   | (I.R.S.                Employer Identification No.) |
|                                                                          |   |                                                |
| 4100                North Fairfax Dr., Ste. 1150, Arlington, VA               |   | 22203-1664                                          |
| (Address                of principal executive offices)                       |   | (Zip                Code)                           |

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***SAFE      HARBOR PROVISIONS***

*This      Annual Report on Form 10-KSB and the documents incorporated by reference into      this Annual Report on Form 10-KSB include forward-looking statements within      the      meaning of Section 27A of the Securities Act of 1933 and Section 21E of the      Securities Exchange Act of 1934. These forward-looking statements can be      identified by the use of forward-looking terminology, including the words“believes,” “estimates,” “anticipates,” “expects,” “intends,” “may,” “will” or“should,” or, in each case, their negative or other variations or comparable      terminology. Such statements include, but are not limited to, any statements      relating to our ability to consummate any acquisition or other business      combination and any other statements that are not historical facts. These      statements are based on management’s current expectations, but actual results      may differ materially due to various factors, including, but not limited      to:*

|   | · | our                being a development stage company with no operating                history; |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | our                dependence on key personnel, some of whom may or may not join us                following                a business combination; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                personnel allocating their time to other businesses and potentially                having                conflicts of interest with our                business; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                potentially being unable to timely complete a business                combination; |
|--------|--------|-------------------------------------------------------------------------------------------------------|

|   | · | the                ownership of our securities being                concentrated; |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | risks                associated with the homeland security industry;                and |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | · | those                other risks and uncertainties detailed in the Company’s filings with the                Securities and Exchange Commission. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

*By      their nature, forward-looking statements involve risks and uncertainties because      they relate to events and depend on circumstances that may or may not occur      in      the future. We caution you that forward-looking statements are not guarantees      of      future performance and that our actual results of operations, financial      condition and liquidity, and developments in the industry in which we operate      may differ materially from those made in or suggested by the forward-looking      statements contained in this Annual Report on Form 10-KSB. In addition, even      if      our results of operations, financial condition and liquidity, and developments      in the industry in which we operate, are consistent with the forward-looking      statements contained in this Annual Report on Form 10-KSB, those results or      developments may not be indicative of results or developments in subsequent      periods.*

*These      forward-looking statements are subject to numerous risks, uncertainties and      assumptions about us. The forward-looking events we discuss in this Annual      Report on Form 10-KSB speak only as of the date of such statements and might      not      occur in light of these risks, uncertainties and assumptions. We undertake      no      obligation and disclaim any obligation to publicly update or revise any      forward-looking statements, whether as a result of new information, future      events or otherwise.*

*Unless      otherwise provided in this Annual Report on Form 10-KSB, references to the      “Company,” the “Registrant,” “we,” “us,” and “our” refer to Fortress America      Acquisition Corporation.*

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**PART      I**

| **ITEM                1.** | **DESCRIPTION                OF BUSINESS** |
|----------------------------|--------------------------------------------|

**Introduction**

**Homeland      Security Industry**

**Planning:**

|   | · | Security                risk assessment, probability analysis, and simulation software for                disaster planning; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | Bio-information                systems for casualty analysis; |
|--------|--------|---------------------------------------------------------------|

|   | · | Training                for law enforcement, emergency, medical, security, food safety, and                environmental remediation personnel;                and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Medical                and public health preparedness. |
|--------|--------|--------------------------------------------------------|

**Prevention:**

|   | · | Individual                tracking and identification, including access control systems, smart                cards, hardware readers, software, and                biometrics; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Surveillance                and monitoring, including communication interception, digital video                surveillance, intrusion detection, and infrared                systems; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Chemical,                biological, radiological, nuclear and other explosive detection and                identification products and                services; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other                remote sensing of air, food, and water                screening; |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | Physical                security products, including personnel and vehicle armor, ballistic                and                blast protection, nonlethal munitions, safe rooms, and alarm                systems; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Food                safety products and services; |
|--------|--------|---------------------------------------------------|

|   | · | Software                for intelligence, security and data                analysis; |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | Data,                cyber security and information                assurance; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | Other                critical infrastructure security products and services for the private                sector; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | · | Integrated                security solution providers; and |
|--------|--------|------------------------------------------------------------|

|   | · | Risk                mitigation including consultative services, background screening,                and                investigative services |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

**Response:**

|   | · | Personal                protection equipment; |
|--------|--------|-----------------------------------------------|

|   | · | Rapid                containment products and services for chemical, biological or radiological                agents; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | Decontamination                products and services to manage disaster                occurrences; |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | Emergency                alert and response communication hardware, software and                services; |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | Advance                fire suppression techniques; |
|--------|--------|-----------------------------------------------------|

|   | · | Medical                and public health disaster management, including treatment for                bio-terror; |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | Terrorism-related                insurance products and services;                and |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | Mobile                medical and command control units. |
|--------|--------|----------------------------------------------------------|

**Recovery:**

|   | · | Environmental                and infrastructure cleanup and disaster management                services; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | Recovery                products, such as hydration, temporary housing, first aid materials,                etc.;                and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Business                continuity and substitute services for temporary loss of major services                from attacks or disasters. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

**Regulation**

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**Effecting      a business combination**

*General*

*We      have not agreed to acquire a target business*

*Sources      of target businesses*

*Selection      of a target business and structuring of a business combination*

|   | Ÿ | financial                condition and results of                operations; |
|--------|--------|------------------------------------------------------------------------------|

|   | Ÿ | growth                potential; |
|--------|--------|----------------------------------|

|   | Ÿ | experience                and skill of management and availability of additional                personnel; |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | Ÿ | capital                requirements; |
|--------|--------|--------------------------------------|

|   | Ÿ | competitive                position and customer base; |
|--------|--------|--------------------------------------------------------|

|   | Ÿ | barriers                to entry into other industries; |
|--------|--------|---------------------------------------------------------|

|   | Ÿ | stage                of development of the products, processes or                services; |
|--------|--------|--------------------------------------------------------------------------------------------|

----

|   | Ÿ | degree                of current or potential market acceptance of the products, processes                or                services; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | proprietary                features and degree of intellectual property or other protection                of the                products, processes or services; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | regulatory                environment of the industry; and |
|--------|--------|------------------------------------------------------------|

|   | Ÿ | costs                associated with consummating the business                combination. |
|--------|--------|--------------------------------------------------------------------------------------------|

*Fair      Market Value of Target Business*

*Opportunity      for stockholder approval of business combination*

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*Conversion      rights*

*Dissolution      and Liquidation if no business combination*

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**Competition**

|   | Ÿ | our                obligation to seek stockholder approval of a business combination                or                obtain the necessary financial information to be included in the                proxy                statement to be sent to stockholders in connection with such business                combination may delay or prevent the completion of a                transaction; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | our                obligation to convert into cash shares of common stock held by our                public                stockholders in certain instances may reduce the resources available                to us                for a business combination; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | our                outstanding warrants and options, and the future dilution they potentially                represent and the ability to exercise the warrants included in the                units                on a cashless basis, may not be viewed favorably by certain target                businesses. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Employees**

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**Risks      associated with our business**

*In      addition to other information included in this Annual Report on Form 10-KSB,      the      following factors should be considered in evaluating our business and future      prospects.*

***We      are a development stage company with no operating history and, accordingly,      you      will not have any basis on which to evaluate our ability to achieve our business      objective.***

***We      may not be able to consummate a business combination within the required time      frame, in which case, we would be forced to      liquidate.***

***If      we are forced to dissolve and liquidate before a business combination, our      public stockholders will receive less than $6.00 per share upon distribution      of      the trust fund and our warrants will expire      worthless.***

***Because      there are numerous companies with a business plan similar to ours seeking to      effectuate a business combination, it may be more difficult for us to do      so.***

----

***If      third parties bring claims against us, the proceeds held in trust could be      reduced and the per share liquidation price received by stockholders will be      reduced.***

***Since      we have not entered into a binding agreement with any prospective target      business with which to complete a business combination, public stockholders      are      unable to currently ascertain the merits or risks of the target business’operations.***

***We      may issue shares of our capital stock or debt securities to complete a business      combination, which would reduce the equity interest of our stockholders and      possibly cause a change in control of our ownership.***

|   | Ÿ | may                significantly reduce the equity interest of our                stockholders; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | Ÿ | will                likely cause a change in control if a substantial number of our shares                of                common stock are issued, which may affect, among other things, our                ability                to use our net operating loss carry forwards, if any, and most likely                also                result in the resignation or removal of our present officers and                directors; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | may                adversely affect prevailing market prices for our common                stock. |
|--------|--------|---------------------------------------------------------------------------------------------------|

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|   | Ÿ | default                and foreclosure on our assets if our operating cash flow after a                business                combination were insufficient to pay our debt                obligations; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | acceleration                of our obligations to repay the indebtedness even if we have made                all                principal and interest payments when due if the debt security contained                covenants that required the maintenance of certain financial ratios                or                reserves and any such covenant were breached without a waiver or                renegotiation of that covenant; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | our                immediate payment of all principal and accrued interest, if any,                if the                debt security was payable on                demand; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | covenants                that limit our ability to acquire capital assets or make additional                acquisitions; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | our                inability to obtain additional financing, if necessary, if the debt                security contained covenants restricting our ability to obtain additional                financing while such security was                outstanding. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***It      is probable that we will only be able to complete one business combination      with      the funds held in the trust fund, which will cause us to be solely dependent      on      a single business and a limited number of products or      services.***

|   | Ÿ | solely                dependent upon the performance of a single business,                or |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | Ÿ | dependent                upon the development or market acceptance of a single or limited                number of                products, processes or services. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Because      of our limited resources and the significant competition for business      combination opportunities, we may not be able to consummate an attractive      business combination.***

----

***Our      ability to successfully effect a business combination and to be successful      afterwards will be totally dependent upon the efforts of our key personnel,      some      of whom may join us following a business combination and whom we would have      only      a limited ability to evaluate.***

***Our      officers and directors will allocate their time to other businesses thereby      causing conflicts of interest in their determination as to how much time to      devote to our affairs. This could have a negative impact on our ability to      consummate a business combination.***

***Our      officers and directors may in the future become affiliated with entities engaged      in business activities similar to those intended to be conducted by us and,      accordingly, may have conflicts of interest in determining to which entity      a      particular business opportunity should be presented.***

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***All      of our directors own shares of our common stock which will not participate      in      liquidation distributions and therefore they may have a conflict of interest      in      determining whether a particular target business is appropriate for a business      combination.***

***If      our common stock becomes subject to the SEC’s penny stock rules, broker-dealers      may experience difficulty in completing customer transactions and trading      activity in our securities may be adversely affected.***

|   | · | make                a special written suitability determination for the                purchaser; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | receive                the purchaser’s written agreement to a transaction prior to                sale; |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | · | provide                the purchaser with risk disclosure documents which identify certain                risks                associated with investing in “penny stocks” and which describe the market                for these “penny stocks” as well as a purchaser’s legal remedies;                and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | obtain                a signed and dated acknowledgement from the purchaser demonstrating                that                the purchaser has actually received the required risk disclosure                document                before a transaction in a “penny stock” can be                completed. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***We      may be unable to obtain additional financing, if required, to complete a      business combination or to fund the operations and growth of the target      business, which could compel us to restructure the transaction or abandon a      particular business combination.***

----

***Our      officers and directors control a substantial interest in us and thus may      influence certain actions requiring stockholder vote.***

***Our      outstanding warrants may have an adverse effect on the market price of our      common stock and make it more difficult to effect a business      combination.***

***If      our founders exercise their registration rights, it may have an adverse effect      on the market price our common stock and the existence of these rights may      make      it more difficult to effect a business combination.***

----

***Our      securities are quoted on the OTC Bulletin Board, which limits the liquidity      and      price of our securities more than if our securities were quoted or listed on      the      Nasdaq Stock Market or a national exchange.***

***If      we are deemed to be an investment company, we may be required to institute      burdensome compliance requirements and our activities may be restricted, which      may make it difficult for us to complete a business      combination.***

|   | Ÿ | restrictions                on the nature of our investments;                and |
|--------|--------|----------------------------------------------------------------------------------|

|   | Ÿ | restrictions                on the issuance of securities, |
|--------|--------|------------------------------------------------------------|

|   | Ÿ | registration                as an investment company; |
|--------|--------|-------------------------------------------------------|

|   | Ÿ | adoption                of a specific form of corporate structure;                and |
|--------|--------|---------------------------------------------------------------------------------------|

|   | Ÿ | reporting,                record keeping, voting, proxy and disclosure requirements and other                rules                and regulations. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

***Because      we may be deemed to have no “independent” directors, actions taken and expenses      incurred by our officers and directors on our behalf will generally not be      subject to “independent” review.***

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**Risks      associated with the homeland security industry**

***The      loss or impairment of our relationship with governments and their agencies      could      adversely affect our business.***

***Changes      in spending priorities may cause a reduction in the demand or profitability      of      the products or services we may ultimately produce or      offer.***

***Federal      government contracts often contain provisions that are unfavorable, which could      adversely affect our target company’s business.***

|   | Ÿ | Terminate                existing contracts for convenience, as well as for                default; |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | Ÿ | Reduce                or modify contracts or                subcontracts; |
|--------|--------|---------------------------------------------------------------------------|

|   | Ÿ | Cancel                multi-year contracts and related orders if funds for contract performance                for any subsequent year become                unavailable; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | Decline                to exercise an option to renew a multi-year                contract; |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | Ÿ | Claim                rights in products and systems produced by the                company; |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | Ÿ | Suspend                or debar the company from doing business with the federal government                or                with a governmental agency; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | Control                or prohibit the export of products. |
|--------|--------|------------------------------------------------------------|

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***We      will likely have to comply with complex procurement laws and regulations which      may impose added costs on our target company’s      business.***

***Government      contracts are usually awarded through a competitive bidding process which      entails risks not present in other circumstances.***

|   | Ÿ | need                to bid on programs in advance of the completion of their design,                which may                result in unforeseen technological difficulties and cost                overruns; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | substantial                cost and managerial time and effort that our target company may spend                to                prepare bids and proposals for contracts that may not be awarded                to our                target company; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | need                to accurately estimate the resources and cost structure that will                be                required to service any contract our target company is awarded;                and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | expense                and delay that may arise if our target company’s or its partners’                competitors protest or challenge contract awards made to our target                company or partners pursuant to competitive bidding, and the risk                that any                such protest or challenge could result in the resubmission of bids                on                modified specifications, or in termination, reduction or modification                of                the awarded contract. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***Federal      government customers spend their procurement budgets through multiple award      contracts and our failure to compete for post-award orders under these contracts      could adversely affect our acquired companies’business.***

***Our      contracts with the federal government and its agencies will be subject to audits      and cost adjustments.***

***Our      target business may face inherent product liability or other liability risks      which could result in a large claim against us.***

| **ITEM                2.** | **DESCRIPTION                OF PROPERTY** |
|----------------------------|--------------------------------------------|

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| **ITEM                3.** | **LEGAL                PROCEEDINGS** |
|----------------------------|--------------------------------------|

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

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**PART      II**

| **ITEM                5.** | **MARKET                FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND SMALL BUSINESS                ISSUERS                PURCHASES OF EQUITY                SECURITES** |
|----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                  |   | **Units** |   | **Common** |   | **Warrants** |   |
|---------------------------------------|--------|-----------|--------|------------|--------|--------------|--------|
|                                  |   |      |   |       |   |         |   |
|                                  |   | **High**  |   | **Low**    |   | **High**     |   | **Low** |   | **High** |   | **Low** |   |
| **Quarter                ended**      |   |      |   |       |   |         |   |   |   |   |   |   |   |
| **September                30, 2005** |   |      | $6.055 |       |   | $5.800       |   |   | $5.075 |   |   | $5.000 |   |   | $0.500 |   |   | $0.430 |   |
| **December                31, 2005**  |   |      | $6.090 |       |   | $5.850       |   |   | $5.235 |   |   | $5.040 |   |   | $0.510 |   |   | $0.380 |   |

**Holders      of Common Equity**

**Dividends**

**Recent      Sales of Unregistered Securities**

| **S****tockholders**                                |   | **Number                of****Shares** |
|-----------------------------------------------------|--------|----------------------------------------|
| Washington                Capital Advisors, LLC*    |   | 575,000                                |
| Harvey                L. Weiss                      |   | 575,000                                |
| David                J. Mitchell                    |   | 150,000                                |
| Donald                L. Nickles                    |   | 200,000                                |
| Asa                Hutchinson                       |   | 200,000                                |
| Paladin                Homeland Security Fund, L.P. |   | 24,765                                 |
| Paladin                Homeland Security Fund, L.P. |   | 15,926                                 |
| Paladin                Homeland Security Fund, L.P. |   | 5,553                                  |
| Paladin                Homeland Security Fund, L.P. |   | 3,756                                  |

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**Use      of Proceeds from our Initial Public Offering**

| *Gross                proceeds*                                                                  |   | $      | 46,800,000 |   |
|--------------------------------------------------------------------------------------------------|--------|--------|------------|--------|
| *Offering                expenses*                                                               |   |   |       |   |
| Underwriting                discount (6% of gross proceeds)                                      |   |   | 2,808,000  |   |
| Underwriters’                non-accountable expense allowance                             |   |   | 420,000    |   |
| Legal                fees and expenses (including blue sky services and                expenses) |   |   | 223,350    |   |
| Underwriters’                reimbursable expenses                                         |   |   | 32,793     |   |
| Miscellaneous                expenses1                                                           |   |   | 14,644     |   |
| Printing                and engraving expenses                                                   |   |   | 36,116     |   |
| Accounting                fees and expenses                                                      |   |   | 47,623     |   |
| SEC                registration fee                                                              |   |   | 17,005     |   |
| NASD                registration fee                                                             |   |   | 14,948     |   |
| Transfer                agent fee                                                                |   |   | 2,000      |   |
| *Net                proceeds*                                                                    |   |   |       |   |
| Held                in trust                                                                     |   |   | 41,964,000 |   |
| Not                held in trust                                                                 |   |   | 1,219,521  |   |
| Total                net proceeds                                                                |   | $      | 43,183,521 |   |

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| **ITEM                6.** | **MANAGEMENT’S                DISCUSSION AND ANALYSIS OR PLAN OF                OPERATION** |
|----------------------------|---------------------------------------------------------------------------------------------------|

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**Off      Balance Sheet Arrangements**

| **ITEM                7.** | **FINANCIAL                STATEMENTS** |
|----------------------------|-----------------------------------------|

| **ITEM                8.** | **CHANGES                IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL                DISCLOSURE** |
|----------------------------|------------------------------------------------------------------------------------------------------------------------|

| **ITEM                8A.** | **CONTROLS                AND PROCEDURES** |
|-----------------------------|--------------------------------------------|

| **ITEM                8B.** | **OTHER                INFORMATION** |
|-----------------------------|--------------------------------------|

**PART      III**

| **ITEM                9.** | **DIRECTORS,                EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH                SECTION                16(****a****)                OF THE EXCHANGE ACT** |
|----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Directors      and Executive Officers**

| **Name**                          |   | **Age** |   | **Position**                                                           |
|-----------------------------------|--------|---------|--------|------------------------------------------------------------------------|
| C.                Thomas McMillen |   | 53      |   | Chairman                of the Board, Director                         |
| Harvey                L. Weiss    |   | 63      |   | President,                Chief Executive Officer, Secretary, Director |
| David                J. Mitchell  |   | 44      |   | Director                                                               |
| Donald                L. Nickles  |   | 57      |   | Director                                                               |

----

**C.      Thomas McMillen**

**Harvey      L. Weiss**

**David      J. Mitchell**

----

**Donald      L. Nickles**

**Audit      Committee**

**Code      of Ethics**

**Section      16(a) Beneficial Ownership Reporting Compliance**

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| **ITEM                10.** | **EXECUTIVE                COMPENSATION** |
|-----------------------------|-------------------------------------------|

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| **ITEM                11.** | **SECURITY                OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED                STOCKHOLDER MATTERS** |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------|

| **Name**                                                                      |   | **Shares****Beneficially****Owned** |   | **%                of****Outstanding****Shares** |
|-------------------------------------------------------------------------------|--------|-------------------------------------|--------|--------------------------------------------------|
| C.                Thomas McMillen*                                            |   | 575,000                             |   | 6.0%                                             |
| Harvey                L. Weiss                                                |   | 575,000                             |   | 6.0%                                             |
| David                J. Mitchell                                              |   | 150,000                             |   | 1.6%                                             |
| Donald                L. Nickles                                              |   | 200,000                             |   | 2.1%                                             |
| All                directors and executive officers as a group                |   | 1,500,000                           |   | 15.7%                                            |
| Amaranth                LLC**                                                 |   | 903,220(1)                          |   | 9.5%                                             |
| Satellite                Advisors, L.L.C./Satellite Asset Management, L.P.*** |   | 950,437(2)                          |   | 9.9%                                             |

|   | * | Includes                575,000 shares held by Washington Capital Advisors, LLC, of which                Mr. McMillen is the Chief Executive Officer and sole                member |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ** | c/o                Amaranth Advisors L.L.C., One American Lane, Greenwich, Connecticut                06831 |
|--------|----|-------------------------------------------------------------------------------------------------------------|

|   | *** | 623                Fifth Avenue, 19th Floor, New York, New York                10022 |
|--------|-----|--------------------------------------------------------------------------------------|

|   | (1) | As                reported in a Schedule 13G/A dated February 3, 2006, and filed with                the                SEC on February 3, 2006 |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | As                reported in a Schedule 13G/A dated February 15, 2006, and filed with                the                SEC on February 15, 2006 |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

| **ITEM                12.** | **CERTAIN                RELATIONSHIPS AND RELATED                TRANSACTIONS** |
|-----------------------------|----------------------------------------------------------------------------------|

| **Name**                                            |   | **Number                of****Shares** |   | **Relationship                to Us**                                     |
|-----------------------------------------------------|--------|----------------------------------------|--------|---------------------------------------------------------------------------|
| Washington                Capital Advisors, LLC     |   | 575,000                                |   | Stockholder                                                               |
| Harvey                L. Weiss                      |   | 575,000                                |   | Chief                Executive Officer, President, Secretary and Director |
| David                J. Mitchell                    |   | 150,000                                |   | Director                                                                  |
| Donald                L. Nickles                    |   | 200,000                                |   | Director                                                                  |
| Asa                Hutchinson                       |   | 200,000                                |   | Stockholder                and Special Advisor                            |
| Paladin                Homeland Security Fund, L.P. |   | 24,765                                 |   | Stockholder                                                               |
| Paladin                Homeland Security Fund, L.P. |   | 15,926                                 |   | Stockholder                                                               |
| Paladin                Homeland Security Fund, L.P. |   | 5,553                                  |   | Stockholder                                                               |
| Paladin                Homeland Security Fund, L.P. |   | 3,756                                  |   | Stockholder                                                               |

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|   | Ÿ | July                13, 2008; |
|--------|--------|-------------------------------|

|   | Ÿ | our                dissolution and liquidation; or |
|--------|--------|----------------------------------------------------|

|   | Ÿ | the                consummation of a liquidation, merger, stock exchange or other similar                transaction which results in all of our stockholders having the right                to                exchange their shares of common stock for cash, securities or other                property subsequent to our consummating a business combination with                a                target business. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**ITEM      13.**
**EXHIBITS**

| **Exhibit****No.** |   | **Description**                                                                                                                                                                                                                                                                                                                                              |
|--------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                |   | Amended                and restated certificate of incorporation (incorporated by reference                to                Exhibit 3.2 of the Company’s Registration Statement No. 333-123504,                effective July 13, 2005).                                                                                                              |
| 3.2                |   | By-laws                (incorporated by reference to Exhibit 3.3 of the Company’s Registration                Statement No. 333-123504, effective July 13, 2005).                                                                                                                                                                                      |
| 4.1                |   | Specimen                Unit Certificate (incorporated by reference to Exhibit 4.1 of the                Company’s Registration Statement No. 333-123504, effective July 13,                2005).                                                                                                                                                     |
| 4.2                |   | Specimen                Common Stock Certificate (incorporated by reference to Exhibit 4.2                of the                Company’s Registration Statement No. 333-123504, effective July 13,                2005).                                                                                                                              |
| 4.3                |   | Specimen                Warrant Certificate (incorporated by reference to Exhibit 4.3 of                the                Company’s Registration Statement No. 333-123504, effective July 13,                2005).                                                                                                                                   |
| 4.4                |   | Warrant                Agreement between Continental Stock Transfer & Trust Company and                the Company.                                                                                                                                                                                                                                 |
| 4.5                |   | Unit                Purchase Option                                                                                                                                                                                                                                                                                                                          |
| 10.1               |   | Letter                Agreement among the Company, Sunrise Securities Corp. and C. Thomas                McMillen                                                                                                                                                                                                                                            |
| 10.2               |   | Letter                Agreement among the Company, Sunrise Securities Corp. and Harvey                L.                Weiss                                                                                                                                                                                                                                |
| 10.3               |   | Letter                Agreement among the Company, Sunrise Securities Corp. and David J.                Mitchell                                                                                                                                                                                                                                             |
| 10.4               |   | Letter                Agreement among the Company, Sunrise Securities Corp. and Donald                L.                Nickles                                                                                                                                                                                                                              |
| 10.5               |   | Agreement                among the Company, Sunrise Securities Corp. and Paladin Homeland                Security                Fund, L.P., Paladin Homeland Security Fund (NY City), L.P., Paladin                Homeland Security Fund (CA), L.P. and Paladin Homeland Security Fund                (Cayman Islands), L.P.                               |
| 10.6               |   | Letter                Agreement among the Company Sunrise Securities Corp. and Asa Hutchinson.                                                                                                                                                                                                                                                               |
| 10.7               |   | Investment                Management Trust Agreement between Continental Stock Transfer & Trust                Company and the Company.                                                                                                                                                                                                                  |
| 10.8               |   | Stock                Escrow Agreement between the Company, Continental Stock Transfer                & Trust Company and the Initial Stockholders                                                                                                                                                                                                   |
|  10.9         |   | Registration                Rights Agreement among the Company and the Initial                Stockholders.                                                                                                                                                                                                                                             |
| 10.10              |   | Warrant                Purchase Agreement between C. Thomas McMillen, Harvey L. Weiss and                Sunrise Securities Corp.                                                                                                                                                                                                                       |
| 10.11              |   | Letter                Agreement between the Company and Global Defense Corp.                                                                                                                                                                                                                                                                                 |
| 10.12              |   | Agreement                and Plan of Merger among Fortress America Acquisition Corporation                and FAAC                Merger Corporation dated June 29, 2005 (incorporated by reference                to                Exhibit 10.15 of the Registrant’s Registration Statement No. 333-123504,                effective July 13, 2005). |
|  14           |   | Code              of Ethics                                                                                                                                                                                                                                                                                                                                  |
| 31                 |   | Certification              by Principal Executive and Financial Officer                                                                                                                                                                                                                                                                                 |
| 32                 |   | Certification of              Principal Executive and Financial Officer 18 U.S.C.              1350                                                                                                                                                                                                                                                     |

| **ITEM                14.** | **PRINCIPAL                ACCOUNTING FEES AND                SERVICES** |
|-----------------------------|--------------------------------------------------------------------------|

**Audit      Fees**

----

**Pre-Approval      of Fees**

----

**SIGNATURES**

|         |                                                                           |                                               |
|--------------|--------------------------------------------------------------------------------|----------------------------------------------------|
|         | **FORTRESS                AMERICA ACQUISITION CORPORATION**                    |
|    |                                                                      |                                          |
|         | By:                                                                  | /s/ Harvey              L.              Weiss |
|         | Harvey              L. Weiss                                                   |
|         | President,                Chief Executive Officer and                Secretary |

| **SIGNATURE**                         |   | **TITLE**                                                                 | **DATE**                          |
|---------------------------------------|--------|---------------------------------------------------------------------------|-----------------------------------|
|                                  |   |                                                                      |                              |
| /s/                C. Thomas McMillen |   | Chairman                                                                  | March                  31, 2006   |
| C.                Thomas McMillen     |   |                                                                      |                              |
|                                  |   |                                                                      |                              |
|                                  |   |                                                                      |                              |
| /s/                Harvey L. Weiss    |   | President                and Chief Executive Officer                      | March                    31, 2006 |
| Harvey                L. Weiss        |   | (principal                executive and financial and accounting officer) |                              |
|                                  |   |                                                                      |                              |
|                                  |   |                                                                      |                              |
| /s/                David J. Mitchell  |   | Director                                                                  | March                    31, 2006 |
| David                J. Mitchell      |   |                                                                      |                              |
|                                  |   |                                                                      |                              |
|                                  |   |                                                                      |                              |
| /s/                Donald L. Nickles  |   | Director                                                                  | March                  31, 2006   |
| Donald                L. Nickles      |   |                                                                      |                              |

----

**REPORT        OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

**GOLDSTEIN        GOLUB KESSLER LLP**

----

**Fortress      America Acquisition Corporation**

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

**Balance      Sheet**

|                                                                                                                                                                             |   | **December                31, 2005** |       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|------------|
|                                                                                                                                                                             |   |                                 |       |
| **Assets**                                                                                                                                                                       |   |                                 |       |
| Current                assets:                                                                                                                                                   |   |                                 |       |
| Cash                                                                                                                                                                             |   | $                                    | 992,547    |   |
| Investments                held in Trust Fund                                                                                                                                    |   |                                 | 42,603,801 |   |
| Prepaid                expenses                                                                                                                                                  |   |                                 | 50,165     |   |
| Total                current assets                                                                                                                                              |   |                                 | 43,646,513 |   |
| Deferred                tax asset                                                                                                                                                |   |                                 | 132,000    |   |
| Total                assets                                                                                                                                                      |   | $                                    | 43,778,513 |   |
|                                                                                                                                                                             |   |                                 |       |   |
| **Liabilities                and Stockholders’ Equity**                                                                                                                    |   |                                 |       |   |
|                                                                                                                                                                             |   |                                 |       |   |
| Current                liabilities:                                                                                                                                              |   |                                 |       |   |
| Accounts                payable and accrued expenses                                                                                                                             |   | $                                    | 105,308    |   |
| Income                taxes payable                                                                                                                                              |   |                                 | 206,194    |   |
| Deferred                interest on investments                                                                                                                                  |   |                                 | 127,904    |   |
| Total                current liabilities                                                                                                                                         |   |                                 | 439,406    |   |
|                                                                                                                                                                             |   |                                 |       |   |
| Common                stock, subject to possible conversion, 1,559,220 shares at conversion                value                                                                 |   |                                 | 8,388,604  |   |
|                                                                                                                                                                             |   |                                 |       |   |
| **Commitment**                                                                                                                                                                   |   |                                 |       |   |
|                                                                                                                                                                             |   |                                 |       |   |
| **Stockholders'                equity**                                                                                                                                          |   |                                 |       |   |
| Preferred                stock, $.0001 par value, Authorized 1,000,000 shares; none                issued                                                                        |   |                                 | -          |   |
| Common                stock, $.0001 par value                                                                                                                                    |   |                                 |       |   |
| Authorized                50,000,000 shares                                                                                                                                      |   |                                 |       |   |
| Issued                and outstanding 9,550,000 shares (which includes 1,559,220 subject                to                possible conversion) and 1,250,000 shares respectively |   |                                 | 955        |   |
| Additional                paid-in capital                                                                                                                                        |   |                                 | 34,819,062 |   |
| Income                (deficit) accumulated during the development stage                                                                                                         |   |                                 | 130,486    |   |
| **Total                stockholders'                equity**                                                                                                                     |   |                                 | 34,950,503 |   |
| **Total                liabilities and stockholders' equity**                                                                                                                    |   | $                                    | 43,778,513 |   |

*The      accompanying notes should be read in conjunction with the financial      statements.*

----

**Fortress      America Acquisition Corporation**

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

**Statement      of Operations**

|                                                                                                  |   | **For                the Year Ended****December                31, 2005** |      | **For                the Period****December                20, 2004****(inception)                to****December                31, 2004** |   | **For                the Period****December                20, 2004****(inception)                to****December                31, 2005** |   |
|-------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|-----------|--------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Income:                                                                                               |   |                                                                      |      |                                                                                                                                       |   |                                                                                                                                       |   |
| Net                interest income                                                                    |   | $                                                                         | 525,430   |                                                                                                                                       | $      | -                                                                                                                                          |   | $ | 525,430 |   |
| Total                income                                                                           |   |                                                                      | 525,430   |                                                                                                                                       |   | -                                                                                                                                          |   |   | 525,430 |   |
| Expenses:                                                                                             |   |                                                                      |      |                                                                                                                                       |   |                                                                                                                                       |   |   |   |   |
| Formation                and operating costs                                                          |   |                                                                      | 319,694   |                                                                                                                                       |   | 1,056                                                                                                                                      |   |   | 320,750 |   |
|                                                                                                  |   |                                                                      |      |                                                                                                                                       |   |                                                                                                                                       |   |   |   |   |
| Net                income (loss) for the period before income taxes                                   |   |                                                                      | 205,736   |                                                                                                                                       |   | (1,056                                                                                                                                     | )      |   | 204,680 |   |
|                                                                                                  |   |                                                                      |      |                                                                                                                                       |   |                                                                                                                                       |   |   |   |   |
| State                and federal income taxes                                                         |   |                                                                      | 74,194    |                                                                                                                                       |   | -                                                                                                                                          |   |   | 74,194 |   |
|                                                                                                  |   |                                                                      |      |                                                                                                                                       |   |                                                                                                                                       |   |   |   |   |
| Net                income (loss) for the period                                                       |   | $                                                                         | 131,542   |                                                                                                                                       | $      | (1,056                                                                                                                                     | )      | $ | 130,486 |   |
|                                                                                                  |   |                                                                      |      |                                                                                                                                       |   |                                                                                                                                       |   |   |   |   |
| Weighted                average number of shares outstanding - basic and                diluted  |   |                                                                      | 5,107,534 |                                                                                                                                       |   | 1,250,000                                                                                                                                  |   |   | 4,984,748 |   |
|                                                                                                  |   |                                                                      |      |                                                                                                                                       |   |                                                                                                                                       |   |   |   |   |
| Net                income (loss) per share - basic and diluted                                        |   | $                                                                         | .03       |                                                                                                                                       | $      | (.00                                                                                                                                       | )      | $ | .03 |   |

*The      accompanying notes should be read in conjunction with the financial      statements.*

----

**Fortress      America Acquisition Corporation**

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

**Statement      of Stockholders' Equity**

*For      the period from December 20, 2004 (inception) to December 31,      2005*

|                                                                                                                                                                                                  |   | **Common                Stock** |               | **Addition****paid-in** |   | **Income****(Deficit)****Accumulated****During                the****Development** |   | **Total****Stockholders’** |               |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------------------|-------------------------|--------|------------------------------------------------------------------------------------|--------|----------------------------------|--------------------|
|                                                                                                                                                                                                  |   | **Shares**                      |               | **Amount**              |   | **capital**                                                                        |   | **Stage**                        |               | **Equity** |   |
| Common                shares issued December 20, 2004 at $.02 per share                                                                                                                               |   |                            | 1,250,000          |                    | $      | 125                                                                                |   | $                                | 24,875             |   |   |   |   | $ | 25,000 |   |
|                                                                                                                                                                                                  |   |                            |               |                    |   |                                                                               |   |                             |               |   |   |   |   |   |   |   |
| Net                loss for the period                                                                                                                                                                |   |                            |     |                    |   |                                                                     |   |                             |          |   | $ | (1,056 | ) |   | (1,056 | ) |
| Balance                at December 31, 2004                                                                                                                                                           |   |                            | 1,250,000          |                    |   | 125                                                                                |   |                             | 24,875             |   |   | (1,056 | ) |   | 23,944 |   |
|                                                                                                                                                                                                  |   |                            |               |                    |   |                                                                               |   |                             |               |   |   |   |   |   |   |   |
| Redemption                of common stock                                                                                                                                                        |   |                            | (1,250,000         | )                       |   | (125                                                                               | )      |                             | (24,875            | ) |   |   |   |   | (25,000 | ) |
|                                                                                                                                                                                                  |   |                            |               |                    |   |                                                                               |   |                             |               |   |   |   |   |   |   |   |
| Common                shares issued March 9, 2005 at $0.01429 per share                                                                                                                          |   |                            | 1,750,000          |                    |   | 175                                                                                |   |                             | 24,825             |   |   |   |   |   | 25,000 |   |
|                                                                                                                                                                                                  |   |                            |               |                    |   |                                                                               |   |                             |               |   |   |   |   |   |   |   |
| Common                shares issued July 20, 2005, net of underwriters’ discount and offering                expenses (includes 1,399,300 shares subject to possible                conversion) |   |                            | 7,000,000          |                    |   | 700                                                                                |   |                             | 38,687,329         |   |   |   |   |   | 38,688,029 |   |
| Common                shares issued August 24, 2005, net of underwriters’ discount and offering                expenses (includes 159,920 shares subject to possible                conversion) |   |                            | 800,000            |                    |   | 80                                                                                 |   |                             | 4,495,412          |   |   |   |   |   | 4,495,492 |   |
| Proceeds                subject to possible conversion of 1,559,220 shares                                                                                                                            |   |                            |               |                    |   |                                                                               |   |                             | (8,388,604         | ) |   |   |   |   | (8,388,604 | ) |
| Proceeds                from issuance of option                                                                                                                                                       |   |                            |               |                    |   |                                                                               |   |                             | 100                |   |   |   |   |   | 100 |   |
| Net                income for the period                                                                                                                                                              |   |                            |     |                    |   |                                                                     |   |                             |     |   |   | 131,542 |   |   | 131,452 |   |
| Balance                at December 31, 2005                                                                                                                                                           |   |                            | 9,550,000          |                    | $      | 955                                                                                |   | $                                | 34,819,062         |   | $ | 130,486 |   | $ | 34,950,503 |   |

*The      accompanying notes should be read in conjunction with the financial      statements.*

----

**Fortress      America Acquisition Corporation**

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

**Statement      of Cash Flows**

|                                                                                                               |   | **For                the Year Ended****December                31, 2005** |        | **For                the period****December                20, 2004****(inception)                to****December                31, 2004** |   | **For                the period****December                20, 2004****(inception)                to****December                31, 2005** |   |
|--------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|-------------|--------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **Cash                flow from operating activities**                                                             |   |                                                                      |        |                                                                                                                                       |   |                                                                                                                                       |   |
| Net                income (loss)                                                                                   |   | $                                                                         | 131,542     |                                                                                                                                       | $      | (1,056                                                                                                                                     | )      | $ | 130,486 |   |
| Adjustments                to reconcile net income (loss) to net cash used in operating                activities: |   |                                                                      |        |                                                                                                                                       |   |                                                                                                                                       |   |   |   |   |
| Deferred                income taxes                                                                               |   |                                                                      | (132,000    | )                                                                                                                                          |   |                                                                                                                                       |   |   | (132,000 | ) |
| Interest                income on treasury bills                                                                   |   |                                                                      | (639,801    | )                                                                                                                                          |   | -                                                                                                                                          |   |   | (639,801 | ) |
| Increase                in prepaid expenses                                                                        |   |                                                                      | (50,165     | )                                                                                                                                          |   | -                                                                                                                                          |   |   | (50,165 | ) |
| Increase                in accounts payable and accrued expenses                                                   |   |                                                                      | 104,252     |                                                                                                                                       |   | 1,056                                                                                                                                      |   |   | 105,308 |   |
| Increase                in income taxes payable                                                                    |   |                                                                      | 206,194     |                                                                                                                                       |   | -                                                                                                                                          |   |   | 206,194 |   |
| Increase                in deferred interest                                                                       |   |                                                                      | 127,904     |                                                                                                                                       |   | -                                                                                                                                          |   |   | 127,904 |   |
| **Net                cash used in operating activities**                                                           |   |                                                                      | (252,074    | )                                                                                                                                          |   | -                                                                                                                                          |   |   | (252,074 | ) |
|                                                                                                               |   |                                                                      |        |                                                                                                                                       |   |                                                                                                                                       |   |   |   |   |
| **Cash                flows from investing activities**                                                            |   |                                                                      |        |                                                                                                                                       |   |                                                                                                                                       |   |   |   |   |
| Investments                placed in Trust Fund                                                                    |   |                                                                      | (41,964,000 | )                                                                                                                                          |   | -                                                                                                                                          |   |   | (41,964,000 | ) |
| **Net                cash used in investing activities**                                                           |   |                                                                      | (41,964,000 | )                                                                                                                                          |   | -                                                                                                                                          |   |   | (41,964,000 | ) |
|                                                                                                               |   |                                                                      |        |                                                                                                                                       |   |                                                                                                                                       |   |   |   |   |
| **Cash                flows from financing activities**                                                            |   |                                                                      |        |                                                                                                                                       |   |                                                                                                                                       |   |   |   |   |
| Gross                proceeds of public offering, including over-allotment option                exercise          |   |                                                                      | 46,800,000  |                                                                                                                                       |   | -                                                                                                                                          |   |   | 46,800,000 |   |
| Proceeds                of issuance of option                                                                      |   |                                                                      | 100         |                                                                                                                                       |   | -                                                                                                                                          |   |   | 100 |   |
| Proceeds                of notes payable, stockholders                                                             |   |                                                                      | 57,500      |                                                                                                                                       |   | 12,500                                                                                                                                     |   |   | 70,000 |   |
| Payment                of notes payable, stockholders                                                              |   |                                                                      | (70,000     | )                                                                                                                                          |   | -                                                                                                                                          |   |   | (70,000 | ) |
| Proceeds                from sales of shares of common stock                                                       |   |                                                                      | 25,000      |                                                                                                                                       |   | 25,000                                                                                                                                     |   |   | 50,000 |   |
| Redemption                of common stock                                                                          |   |                                                                      | (25,000     | )                                                                                                                                          |   | -                                                                                                                                          |   |   | (25,000 | ) |
| Payment                of costs of public offering, including over-allotment option                exercise        |   |                                                                      | (3,603,979  | )                                                                                                                                          |   | (12,500                                                                                                                                    | )      |   | (3,616,479 | ) |
|                                                                                                               |   |                                                                      |        |                                                                                                                                       |   |                                                                                                                                       |   |   |   |   |
| **Net                cash provided by financing activities**                                                       |   |                                                                      | 43,183,621  |                                                                                                                                       |   | 25,000                                                                                                                                     |   |   | 43,208,621 |   |
|                                                                                                               |   |                                                                      |        |                                                                                                                                       |   |                                                                                                                                       |   |   |   |   |
| **Net                increase in cash**                                                                            |   |                                                                      | 967,547     |                                                                                                                                       |   | 25,000                                                                                                                                     |   |   | 992,547 |   |
| **Cash                at beginning of the period**                                                                 |   |                                                                      | 25,000      |                                                                                                                                       |   | 0                                                                                                                                          |   |   | - |   |
| **Cash                at the end of the period**                                                                   |   | $                                                                         | 992,547     |                                                                                                                                       |   | 25,000                                                                                                                                     |   | $ | 992,547 |   |

*The      accompanying notes should be read in conjunction with the financial      statements.*

----

**Fortress      America Acquisition Corporation**

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

**Notes      to Financial Statements**

| **1.   Organization                and Proposed****Business                Operations** |   | Fortress                America Acquisition Corporation (the “Company”) was incorporated in                Delaware on December 20, 2004 as a blank check company, the objective                of                which is to acquire one or more operating businesses in the homeland                security industry.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                   |   | The                Company was formed on December 20, 2004 and consummated an initial                public                offering (“IPO”) on July 20, 2005. In addition, on August 24, 2005 the                underwriters for the IPO exercised their over-allotment option (the                “Over-Allotment Option Exercise” and, together with the IPO, the                “Offering”), generating total net proceeds of $43,183,521. The Company’s                management has broad discretion with respect to the specific application                of the net proceeds of this Offering, although substantially all                the net                proceeds of this Offering are intended to be generally applied toward                consummating a business combination with (or acquisition of) one                or more                operating businesses in the homeland security industry (“Business                Combination”). Furthermore, there is no assurance that the Company will be                able to successfully effect a Business Combination. Upon the closing                of                the Offering, approximately $41,964,000 of the net proceeds was deposited                in a trust fund account (“Trust Fund”) and has been invested in Treasury                Bills until the earlier of (i) the consummation of its first Business                Combination; or (ii) the liquidation of the Company. The Treasury                Bills                have been accounted for as trading securities and are recorded at                their                market value of approximately $42,603,801 at December 31, 2005. The                excess                of market value over cost, exclusive of the deferred interest described                further below, is included in interest income in the accompanying                statement of operations. The remaining proceeds may be used to pay                for                business, legal and accounting due diligence on prospective acquisitions                and continuing general and administrative expenses. The Company,                after                signing a definitive agreement for the acquisition of a target business,                will submit such transaction for stockholder approval. All of the                Company                stockholders prior to the Offering, including all of the officers                and                directors of the Company (“Initial Stockholders”), have agreed to vote                their 1,750,000 founding shares of common stock in accordance with                the                vote of the majority in interest of all other stockholders of the                Company                (“Public Stockholders”) with respect to any Business Combination. After                consummation of the Company’s first Business Combination, all of these                voting safeguards will no longer be                applicable. |

----

**Fortress      America Acquisition Corporation**

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

**Notes      to Unaudited Financial Statements**

|   |   | In                the event (i) the Business Combination is not approved by a majority                of                the shares of common stock held by the Public Stockholders 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 convert his or her shares.                The per                share conversion price will equal the amount in the Trust Fund, 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 Offering. Accordingly, Public                Stockholders holding approximately 19.99% of the aggregate number                of                shares owned by all Public Stockholders may seek conversion 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.                Accordingly, a portion of the net proceeds of the Offering (19.99%                of the                amount originally held in the Trust Fund) has been classified as                common                stock subject to possible conversion in the accompanying December                31, 2005                balance sheet and 19.99% of the related interest earned has been                recorded                as deferred interest. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   | The                Company’s Certificate of Incorporation, as amended, provides for the                mandatory liquidation of the Company in the event that the Company                does                not consummate a Business Combination within 12 months from the date                of                the consummation of the Offering, or 18 months from the consummation                of                the Offering if certain extension criteria have been satisfied. There                is                no assurance that the Company will be able to successfully effect                a                Business Combination during this period. This factor raises substantial                doubt about the Company’s ability to continue as a going concern. The                accompanying financial statements are prepared assuming the Company                will                continue as a going concern. The financial statements do not include                any                adjustments that might result from the outcome of this uncertainty.                In the                event of liquidation, it is likely that the per share value of the                residual assets remaining available for distribution (including Trust                Fund                assets) will be less than the initial public offering price per share                in                the Offering.                                                                                          |

----

**Fortress      America Acquisition Corporation**

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

**Notes      to Unaudited Financial Statements**

|                                                              |   | The                Company maintains cash in bank deposit accounts which, at times,                exceed                federally insured limits. The Company has not experienced any losses                on                these accounts.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
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|                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                              |   | Deferred                income taxes are provided for the differences between the bases of                assets                and liabilities for financial reporting and income tax purposes.                A                valuation allowance is established when necessary to reduce deferred                tax                assets to the amount expected to be realized.                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                              |   | Basic                income (loss) per share is computed by dividing net income (loss)                by the                weighted-average number of shares of common stock outstanding during                the                period. Diluted earnings per share gives effect to dilutive options,                warrants and other potential common stock outstanding during the                period.                Potential common stock (consisting of 15,600,000 warrants included                in the                units issued in the initial public offering and 700,000 units issued                to                the underwriters as described in Note 4) has not been included in                the                computations for all periods as the effect would be antidilutive. |
|                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                              |   | 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.                                                                                                                                                                                                                                                                                         |
|                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                              |   | In                December 2004, the Financial Accounting Standards Board issued Statement                of Financial Accounting Standards No. 123 (revised 2004) (“SFAS 123(R)”),                “Share Based Payment”. SFAS 123(R) requires all share-based payments to                employees, including grants of employee stock options, to be recognized                in                the financial statements based on their fair values. The Company                is                required to adopt SFAS 123(R) effective January 1, 2006.  The Company                does not believe that the adoption of SFAS No. 123(R) will have a                significant impact on its financial condition or results of                operations.                    |
|                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                              |   | Management                does not believe that any other recently issued, but not yet effective,                accounting standards if currently adopted would have a material effect                on                the accompanying financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **2.   Notes                Payable-Stockholders** |   | The                Company had unsecured promissory notes to the Initial Stockholders,                who                are officers and directors of the Company, of $12,500 at December                31,                2004. The loans were non-interest bearing and were payable the earlier                of                March 9, 2006 or the consummation of the Offering. Due to the short-term                nature of the notes, the fair value of the notes approximated its                carrying                amount. The notes were paid in full subsequent to the consummation                of the                Offering.                                                                                                                                                           |
|                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **3.   Commitment**                                |   | Commencing                January 1, 2005, the Company occupied office space from, and had                certain                office and secretarial services made available to it by, an unaffiliated                third party. Rent expense under this agreement for each of the periods                from December 20, 2004 (inception) to December 31, 2005 and for the                year                ended December 31, 2005 was $1,362. The rental agreement expired                June 30,                2005.                                                                                                                                                                                                                                                                               |

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|                                                           |   | Commencing                on the consummation of the Offering, the Company occupies office                space                provided by an affiliate of an Initial Stockholder. Such affiliate                has                agreed that, until the acquisition or a target business by the Company,                it                will make such office space, as well as certain office and secretarial                services, available to the Company, as may be required by the Company                from                time to time. The Company has agreed to pay such affiliate $7,500                per                month for such services. Rent expense under this agreement amounted                to                $37,500 during the periods ended December 31, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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|                                                           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| **4.   Initial                Public Offering** |   | On                July 20, 2005, the Company sold 7,000,000 units ("Units") in the                IPO. On                August 24, 2005 the Company sold an additional 800,000 Units pursuant                to                the Over-Allotment                Option Exercise. Each Unit consists of one share of the.                Company's                common stock, $0.0001 par value, and two Redeemable Common Stock                Purchase                Warrants ("Warrants"). Each Warrant entitles the holder to purchase                from                the Company one share of common stock at an exercise price of $5.00                (which                such Warrant                may be exercised on a cashless basis) commencing the later of (a)                one                year from                the effective date of the IPO; or (b) the completion of a Business                Combination                with a target business and expiring four years from the date of the                prospectus (unless                earlier redeemed). The Warrant will be redeemable, upon written consent                of                the representative of the underwriters, 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 $8.50 per share for any 20                trading                days within a 30-trading-day period ending on the third day prior                to date                on which notice of redemption is given and (b) the weekly trading                volume                of our common stock has been at least 200,000 shares for each of                the 2                calendar weeks before the Company sends the notice of                redemption. |
|                                                           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                           |   | In                addition, the Company sold to Sunrise Securities Corporation, for                $100, an                option to purchase up to a total of 700,000 units. The units issuable                upon                exercise of                this option are identical to those offered in the Offering, except                that                each of the warrants underlying this option entitles the holder to                purchase one share of our common stock at a price of $6,25. This                option is                exercisable at $7.50 per unit commencing on the later of the consummation                of a business combination and one year from the date of the prospectus                and                expiring five years from the date of the prospectus. In lieu of exercise,                the option maybe converted into units (i.e., a "cashless exercise")                to the                extent that the market value of the units at the time of conversion                exceeds the exercise price of the option. The option may only be                exercised                or converted by the option holder.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                           |   | The                sale of the option is accounted for as an equity transaction. Accordingly,                there is 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                determined, based upon a Black-Scholes model, that the fair value                of the                option on the date of sale was approximately $3.075 per unit, or                $2,152,500 total, using an expected life of four years, volatility                of                75.19% and a risk-free interest rate of 3.922%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                           |   | The                volatility calculation of 75.19% is based upon the 365-day average                volatility of a representative sample of seven (7) companies with                market                capitalizations under $250 million that management believes could                be                considered to be engaged in a business                in the homeland security industry (the "Sample Companies"). Because                the                Company does not have a trading history, the Company needed to estimate                the potential volatility of its common stock price, which will depend                on a                number of factors which cannot be ascertained at this time. The Company                referred to the 365-day                average volatility of the Sample Companies because management believes                that                the average volatility of such companies is a reasonable benchmark                to use                in estimating the expected volatility of the Company's common stock                post-business combination. Although an expected life of four years                was                taken into account for purposes of assigning a fair value to the                option,                if the Company does not consummate a business 'combination within                the                prescribed time period and liquidates, the option would become                worthless.                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

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|                                                |   | Although                the purchase option and its underlying securities have been registered,                the                purchase option grants to holders demand and "piggyback" rights for                periods of five and seven years, respectively, from the date of the                prospectus with respect to the registration under the Securities                Act of                1933 of the securities directly and indirectly                issuable upon exercise of the purchase option. The Company will bear                all                fees and expenses attendant to registering the securities, other                than                underwriting commissions which will be paid for by the holders themselves.                The exercise price and number of units issuable upon exercise of                the                purchase option may be adjusted in certain circumstances including                in the                event of a stock dividend, or the Company's recapitalization,                reorganization, merger or consolidation. However, the purchase                option will not be adjusted for issuances of common stock at a price                below                its exercise price. |
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| **5.   Common                Stock** |   | On                December 20, 2004, the Company issued 1,250,000 shares of Common                Stock. On                March 8, 2005, the Company authorized the redemption of the 1,250,000                shares of common stock at the original subscription price. On March                9,                2005, the Company issued 1,750,000 shares of common stock to the                original                stockholders along with new stockholders (in the aggregate, these                stockholders are the Initial Stockholders).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                |   | At                August 24, 2005, 17,700,000 shares of Common Stock were reserved                for                issuance upon exercise of redeemable warrants and underwriters’ unit                purchase option.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

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**Fortress      America Acquisition Corporation**

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

**Notes      to Unaudited Financial Statements**

| **6.   Preferred                Stock** |   | The                Company is authorized to issue 1,000,000 shares of preferred stock                with                such designations, voting and other rights and preferences as may                be                determined from time to time by the Board of                Directors. |
|--------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.   Income                Taxes** |   | The                provision for income taxes consists of the                following:                                                                                                                                                                          |
|-----------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                |   |                                                                                                                                                                                                                                                             |   | **For                the period ended December 31,** |   |
|                                                |   |                                                                                                                                                                                                                                                             |   | **2005** |   | **2004** |   |
|                                                |   | Current:                                                                                                                                                                                                                                                         |   |   |   |   |   |
|                                                |   | Federal                                                                                                                                                                                                                                                          |   | $  | 202,163 |   | $ | - |   |
|                                                |   | State                                                                                                                                                                                                                                                            |   |   | 4,031 |   |   | - |   |
|                                                |   | Deferred:                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
|                                                |   | Federal                                                                                                                                                                                                                                                          |   |   | (132,000 | ) |   | - |   |
|                                                |   |                                                                                                                                                                                                                                                             |   | $ | 74,194 |   | $ | - |   |
|                                                |   |                                                                                                                                                                                                                                                             |
|                                                |   | The                total provision for income taxes differs from that amount which would                be                computed by applying the U.S. federal income tax rate to income before                provision for income taxes due to the following: |
|                                                |   |                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |

|   |   |                                                  |   |   | **For                  the period ended** |    |
|--------|--------|-------------------------------------------------------|--------|--------|-------------------------------------------|---------|
|   |   |                                                  |   |   | **December                  31,**         |    |
|   |   |                                                  |   |   | **2005**                                  |    |   | **2004** |   |
|   |   | Federal                  statutory rate               |   |   | 34                                        | %  |   | (34) | %  |
|   |   |                                                  |   |   |                                      |    |   |   |   |
|   |   | State                  tax, net of income tax benefit |   |   | 2                                         |    |   | - |   |
|   |   |                                                  |   |   |                                      |    |   |   |   |
|   |   | Valuation                  allowance                  |   |   | -                                         |    |   | 34 |   |
|   |   |                                                  |   |   |                                      |    |   |   |   |
|   |   |                                                  |   |   | 36                                        | %  |   | - |   |

|   |   | The                tax effect of temporary differences that give rise to the net deferred                tax                asset is as follows: |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |                                                           |   |   | **December                31,**                                                        |   |   |
|--------|--------|----------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------|--------|--------|
|   |   |                                                           |   |   | **2005**                                                                               |   |   |
|   |   | Interest                income deferred for reporting purposes |   |   | 43,000                                                                                 |   |   |
|   |   |                                                           |   |   |                                                                                   |   |   |
|   |   | Expenses                deferred for income tax purposes       |   |   | 89,000                                                                                 |   |   |
|   |   |                                                           |   |   |                                                                                   |   |   |
|   |   | Subtotal                                                       |   |   | 132,000                                                                                |   |   |
|   |   |                                                           |   |   |                                                                                   |   |   |
|   |   | Valuation                allowance                             |   |   | -                                                                                      |   |   |
|   |   |                                                           |   |   |                            |   |   |
|   |   | Net                deferred tax asset                          |   | $      | 132,000                                                                                |   |   |

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