##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-QSB
  þ
    
    Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the quarterly period ended May 31, 2007
 or
 o
    
    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the transition period from  to
 Commission File Number: 1-13484
 COHESANT TECHNOLOGIES INC.
  Delaware
    
    34-1775913(State or other jurisdiction of
    
    (I.R.S. EmployerIncorporation or organization)
    
    Identification No.)5845 West 82nd Street, Suite 102, Indianapolis, Indiana
    
    46278(Address of principal executive offices)
    
    (Zip Code)
 317-871-7611
 
  þ o
 o þ
  o þ




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##### 



COHESANT TECHNOLOGIES INC.
 INDEX
 TABLE OF CONTENTS
    
    PAGEPART IItem 1.
    
    Financial InformationCohesant Technologies Inc. Condensed Consolidated
Balance Sheets as of May 31, 2007 and November 30, 2006
    
    
    3Cohesant Technologies Inc. Condensed Consolidated
Statements of Operations for the Three Months Ended
May 31, 2007 and May 31, 2006
    
    
    4Cohesant Technologies Inc. Condensed Consolidated
Statements of Operations for the Six Months Ended
May 31, 2007 and May 31, 2006
    
    
    5Cohesant Technologies Inc. Condensed Consolidated
Statements of Cash Flows for the Six Months Ended
May 31, 2007 and May 31, 2006
    
    
    6Notes to Condensed Consolidated Financial Statements
    
    
    7Item 2.
    
    Managements Discussion and Analysis of Financial Condition
and Results of Operations
    
    
    17Item 3.
    
    Controls and Procedures
    
    
    23PART IIItem 5.
    
    Other Information
    
    
    23Item 6.
    
    Exhibits and Reports on Form 8-K
    
    
    23SignaturesEX-31.1EX-31.2EX-32
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##### Table of Contents



PART I
 
 ITEM 1. FINANCIAL INFORMATION
 COHESANT TECHNOLOGIES INC.
 
 CONDENSED CONSOLIDATED BALANCE SHEETS
 May 31, 2007
    
    
    November 30, 2006(Unaudited)ASSETS:Cash and cash equivalents
    
    $
    630,921
    
    
    $
    1,318,607Accounts receivable, net of allowance for doubtful
accounts of $290,949 and $282,415, respectively
    
    
    5,534,341
    
    
    
    4,517,316Note receivable
    
    
    150,184
    
    
    
    Inventories, net of allowance for obsolete and slow-moving
inventory of $292,500 and $285,000, respectively
    
    
    4,450,725
    
    
    
    3,944,818Costs in excess of billings and estimated earnings
    
    
    9,465
    
    
    
    52,805Prepaid expenses and other
    
    
    313,706
    
    
    
    490,408Deferred tax assets
    
    
    308,978
    
    
    
    318,766Total Current Assets
    
    
    11,398,320
    
    
    
    10,642,720Property and equipment, net
    
    
    2,796,689
    
    
    
    2,424,983License agreements, patents and other intangibles, net
    
    
    1,085,122
    
    
    
    1,125,419Goodwill
    
    
    8,767,563
    
    
    
    8,767,563Other noncurrent assets
    
    
    7,965
    
    
    
    7,965Total Assets
    
    $
    24,055,659
    
    
    $
    22,968,650LIABILITIES AND SHAREHOLDERS EQUITY:Accounts payable
    
    $
    2,652,341
    
    
    $
    2,073,649Revolving credit facility
    
    
    800,599
    
    
    
    Current portion of long-term note payable
    
    
    125,788
    
    
    
    122,604Accrued salaries, benefits and commissions
    
    
    713,996
    
    
    
    877,224Accrued income taxes
    
    
    39,830
    
    
    
    402,165Billings in excess of costs and estimated earnings
    
    
    67,472
    
    
    
    49,224Customer deposits
    
    
    4,400
    
    
    
    204,128Dividends payable
    
    
    461,731
    
    
    
    Other current liabilities
    
    
    340,970
    
    
    
    331,627Total Current Liabilities
    
    
    5,207,127
    
    
    
    4,060,621Long-term note payable, net of current portion
    
    
    201,196
    
    
    
    264,896Deferred tax liabilities
    
    
    664,012
    
    
    
    527,156Total Liabilities
    
    
    6,072,335
    
    
    
    4,852,673Commitments and Contingencies (Note 8)Shareholders Equity:Common stock ($.001 par value, 10,000,000 shares
authorized and 3,292,219 and 3,274,905 shares issued
and outstanding, respectively)
    
    
    3,292
    
    
    
    3,275Additional paid-in capital
    
    
    12,282,278
    
    
    
    12,008,087Accumulated other comprehensive income
    
    
    54,478
    
    
    
    24,302Retained earnings
    
    
    5,643,276
    
    
    
    6,080,313Total Shareholders Equity
    
    
    17,983,324
    
    
    
    18,115,977Total Liabilities and Shareholders Equity
    
    $
    24,055,659
    
    
    $
    22,968,650
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COHESANT TECHNOLOGIES INC.
 
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 For the Three Months EndedMay 31, 2007
    
    
    May 31, 2006NET SALES
    
    $
    7,362,900
    
    
    $
    6,792,400COST OF SALES
    
    
    4,197,021
    
    
    
    3,710,539Gross profit
    
    
    3,165,879
    
    
    
    3,081,861RESEARCH AND DEVELOPMENT EXPENSES
    
    
    341,123
    
    
    
    278,325SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES
    
    
    2,689,108
    
    
    
    2,004,101TOTAL OPERATING EXPENSES
    
    
    3,030,231
    
    
    
    2,282,426Income from operations
    
    
    135,648
    
    
    
    799,435OTHER INCOME (EXPENSE):Interest income
    
    
    226
    
    
    
    5,356Interest expense
    
    
    (13,295
    )
    
    
    Other income, net
    
    
    2,968
    
    
    
    5,422INCOME BEFORE TAXES
    
    
    125,547
    
    
    
    810,213INCOME TAX PROVISION
    
    
    (47,712
    )
    
    
    (307,959
    )NET INCOME
    
    $
    77,835
    
    
    $
    502,254EARNINGS PER COMMON SHARE:BASIC
    
    $
    0.02
    
    
    $
    0.16DILUTED
    
    
    0.02
    
    
    $
    0.15AVERAGE SHARES OF COMMON STOCK
OUTSTANDING:BASIC
    
    
    3,284,493
    
    
    
    3,129,898DILUTED
    
    
    3,306,921
    
    
    
    3,270,232CASH DIVIDENDS DECLARED PER SHARE
    
    $
    0.14
    
    
    $
    0.14COMPREHENSIVE INCOMENet income
    
    $
    77,835
    
    
    $
    502,254Foreign currency translation adjustment
    
    
    43,395
    
    
    
    24,623NET COMPREHENSIVE INCOME
    
    $
    121,230
    
    
    $
    526,877
  4




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COHESANT TECHNOLOGIES INC.
 
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 For the Six Months EndedMay 31, 2007
    
    
    May 31, 2006NET SALES
    
    $
    13,545,229
    
    
    $
    13,257,997COST OF SALES
    
    
    7,796,887
    
    
    
    7,262,421Gross profit
    
    
    5,748,342
    
    
    
    5,995,576RESEARCH AND DEVELOPMENT EXPENSES
    
    
    667,990
    
    
    
    550,946SELLING,
GENERAL AND ADMINISTRATIVE EXPENSES
    
    
    5,029,304
    
    
    
    4,040,987TOTAL OPERATING EXPENSES
    
    
    5,697,294
    
    
    
    4,591,933Income from operations
    
    
    51,048
    
    
    
    1,403,643OTHER INCOME (EXPENSE):Interest income
    
    
    542
    
    
    
    11,769Interest expense
    
    
    (17,906
    )
    
    
    Other income, net
    
    
    6,145
    
    
    
    7,177INCOME BEFORE TAXES
    
    
    39,829
    
    
    
    1,422,589INCOME TAX PROVISION
    
    
    (15,135
    )
    
    
    (540,663
    )NET INCOME
    
    $
    24,694
    
    
    $
    881,926EARNINGS PER COMMON SHARE :BASIC
    
    $
    0.01
    
    
    $
    0.28DILUTED
    
    $
    0.01
    
    
    $
    0.27AVERAGE SHARES OF COMMON STOCK
OUTSTANDING:BASIC
    
    
    3,280,398
    
    
    
    3,127,367DILUTED
    
    
    3,308,334
    
    
    
    3,255,062CASH DIVIDENDS DECLARED PER SHARE
    
    $
    0.14
    
    
    $
    0.14COMPREHENSIVE INCOMENet income
    
    $
    24,694
    
    
    $
    881,926Foreign currency translation adjustment
    
    
    30,176
    
    
    
    34,339NET COMPREHENSIVE INCOME
    
    $
    54,870
    
    
    $
    916,265
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COHESANT TECHNOLOGIES INC.
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (Unaudited)
 For the Six Months EndedMay 31, 2007
    
    
    May 31, 2006CASH FLOWS PROVIDED BY (USED IN)
OPERATING ACTIVITIES:Net income
    
    $
    24,694
    
    
    $
    881,926Adjustments to reconcile net income to net cash
provided by (used in) operating activities -Depreciation and amortization
    
    
    398,272
    
    
    
    232,599Stock-based compensation
    
    
    186,839
    
    
    
    67,224Deferred tax benefit
    
    
    146,644
    
    
    
    Excess tax benefits from stock-based compensation
    
    
    (15,422
    )
    
    
    Gain on asset disposal
    
    
    
    
    
    
    227Provision for doubtful accounts
    
    
    8,534
    
    
    
    22,444Net change in assets and liabilities-Accounts receivable
    
    
    (1,025,559
    )
    
    
    (398,688
    )Notes receivable
    
    
    (150,184
    )
    
    
    Inventories
    
    
    (507,999
    )
    
    
    (379,664
    )Costs in excess of billings and estimated earnings
    
    
    43,340
    
    
    
    Prepaid expenses and other
    
    
    176,702
    
    
    
    24,891Accounts payable
    
    
    578,692
    
    
    
    383,364Other current liabilities
    
    
    (700,526
    )
    
    
    (206,011
    )Billings in excess of costs and estimated earnings
    
    
    18,248
    
    
    
    (33,080
    )Other noncurrent assets
    
    
    21,505
    
    
    
    26,490Net cash provided by (used in) operating activities
    
    
    (796,220
    )
    
    
    621,722CASH FLOWS USED IN INVESTING ACTIVITIES:Patent and trademark additions
    
    
    (23,703
    )
    
    
    (8,125
    )Property and equipment additions
    
    
    (695,215
    )
    
    
    (746,318
    )Proceeds from sale of property & equipment
    
    
    
    
    
    
    350Payment on Triton acquisition note payable
    
    
    (60,516
    )
    
    
    Payment to former owners of acquired CuraFlo business
    
    
    
    
    
    
    (342,136
    )Return of cash paid for acquisition of CuraFlo
    
    
    
    
    
    
    77,250Net cash used in investing activities
    
    
    (779,434
    )
    
    
    (1,018,979
    )CASH FLOWS PROVIDED BY FINANCING
ACTIVITIES:Proceeds from note receivable  restricted stock
    
    
    
    
    
    
    40,262Excess tax benefits from stock-based compensation
    
    
    15,422
    
    
    
    Borrowings under revolving credit facility
    
    
    2,097,851
    
    
    
    Payments under revolving credit facility
    
    
    (1,297,252
    )
    
    
    Proceeds from exercise of stock options
    
    
    71,947
    
    
    
    102,285Net cash provided by financing activities
    
    
    887,968
    
    
    
    142,547NET DECREASE IN CASH
AND CASH EQUIVALENTS
    
    
    (687,686
    )
    
    
    (254,710
    )CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD
    
    
    1,318,607
    
    
    
    2,238,281CASH AND CASH EQUIVALENTS AT
END OF PERIOD
    
    $
    630,921
    
    
    $
    1,983,571
  6




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COHESANT TECHNOLOGIES INC.
 
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (Unaudited)
 Note 1  Background
      7




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COHESANT TECHNOLOGIES INC.
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 Note 2  Basis of Presentation
    Note 3  Earnings per Share
   8




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COHESANT TECHNOLOGIES INC.
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 Three Months Ended May 31,
    
    Six Months Ended May 31,2007
    
    2006
    
    2007
    
    2006Income available to common
stockholders
    
    $
    77,835
    
    
    $
    502,254
    
    
    $
    24,694
    
    
    $
    881,926Basic earnings per share:Weighted-average number of
common shares outstanding
    
    
    3,284,493
    
    
    
    3,129,898
    
    
    
    3,280,398
    
    
    
    3,127,367Basic earnings per share
    
    $
    0.02
    
    
    $
    0.16
    
    
    $
    0.01
    
    
    $
    0.28Diluted earnings per share:Weighted-average number of
common shares outstanding
    
    
    3,284,493
    
    
    
    3,129,898
    
    
    
    3,280,398
    
    
    
    3,127,367Stock Options
    
    
    19,645
    
    
    
    112,640
    
    
    
    24,948
    
    
    
    100,001Restricted Stock
    
    
    2,783
    
    
    
    27,694
    
    
    
    2,988
    
    
    
    27,694Diluted weighted-average
number of
common shares outstanding
    
    
    3,306,921
    
    
    
    3,270,232
    
    
    
    3,308,334
    
    
    
    3,255,062Diluted earnings per share
    
    $
    0.02
    
    
    $
    0.15
    
    
    $
    0.01
    
    
    $
    0.27
 Note 4  Accounting for Stock-Based Compensation
 Description of the Plan
  Adoption of FASB Statement No. 123(R), Share-Based Payment
 Share-Based Payment Accounting for Stock-Based
Compensation, Accounting for Stock Issued to Employees, Statement of Cash Flows.
 9




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COHESANT TECHNOLOGIES INC.
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
     10




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COHESANT TECHNOLOGIES INC.
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 Three Months
    
    
    Six MonthsEnded
    
    
    EndedMay 31, 2006
    
    
    May 31, 2006Net income, as reported
    
    $
    502,254
    
    
    $
    881,926Add: Stock-based employee
compensation expense included in reported net
income, net of related tax effects
    
    
    19,699
    
    
    
    40,538Deduct: Total stock-based employee
compensation expense determined under
fair value based method for all
awards, net of related tax effects
    
    
    (63,267
    )
    
    
    (157,186
    )Pro forma net income
    
    $
    458,686
    
    
    $
    765,278Earnings per share:Basicas reported
    
    $
    0.16
    
    
    $
    0.28Basicpro forma
    
    $
    0.15
    
    
    $
    0.24Dilutedas reported
    
    $
    0.15
    
    
    $
    0.27Dilutedpro forma
    
    $
    0.14
    
    
    $
    0.24
 Stock Option Grants
    2007
    
    2006Risk-free interest rate
    
    
    4.6
    %
    
    
    4.5
    %Expected term  years
    
    
    6.5
    
    
    
    4.5Expected dividend yield
    
    
    3.2
    %
    
    
    3.3
    %Expected volatility
    
    
    45.8
    %
    
    
    49.4
    %
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COHESANT TECHNOLOGIES INC.
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
  Weighted-
    
    
    Weighted-Average
    
    
    AverageNumber
    
    
    Exercise
    
    
    Remaining
    
    
    AggregateOptions
    
    of Options
    
    
    Price
    
    
    Contractual Life
    
    
    Intrinsic ValueOptions outstanding
at November 30,
2006
    
    
    306,384
    
    
    $
    7.39Granted
    
    
    115,000
    
    
    $
    8.78Exercised
    
    
    (15,001
    )
    
    $
    4.80
    
    
    
    
    
    
    $
    40,585Forfeited
    
    
    (6,333
    )
    
    $
    8.53Options outstanding
at May 31,
2007
    
    
    400,050
    
    
    $
    7.87
    
    
    
    4.0
    
    
    $
    238,628Options exercisable
at May 31, 2007
    
    
    154,581
    
    
    $
    6.56
    
    
    
    2.4
    
    
    $
    227,307
 Note 5
 Costs and Estimated Earnings on Uncompleted Contracts
  May 31,
    
    
    November 30,2007
    
    
    2006Costs incurred on uncompleted contracts
    
    $
    1,342,262
    
    
    $
    743,480Estimated earnings to date
    
    
    391,746
    
    
    
    361,928Subtotal
    
    
    1,734,008
    
    
    
    1,105,408Less  Billings to date
    
    
    (1,792,015
    )
    
    
    (1,101,827
    )Total
    
    $
    (58,007
    )
    
    $
    3,581Included in the accompanying balance
sheets under the following caption:Costs and estimated earnings in excess
of billings
    
    $
    9,465
    
    
    $
    52,805Billings in excess of costs and
estimated earnings
    
    
    (67,472
    )
    
    
    (49,224
    )Total
    
    $
    (58,007
    )
    
    $
    3,581
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COHESANT TECHNOLOGIES INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


Note 6  Revolving Line of Credit




Note 7  Segment Information




13




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COHESANT TECHNOLOGIES INC.
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 CIPARFranchisingThree Months Ended
    
    and
    
    CIPARMay 31, 2007
    
    Licensing
    
    Rehabilitation
    
    CMI
    
    GCI
    
    Corporate
    
    Eliminations
    
    ConsolidatedNet Sales:External customers
    
    $
    1,520,232
    
    
    $
    996,428
    
    
    $
    86,157
    
    
    $
    4,760,083
    
    
    $
    
    
    
    $
    
    
    
    $
    7,362,900Intersegment sales
    
    
    63,433
    
    
    
    
    
    
    
    844,047
    
    
    
    
    
    
    
    
    
    
    
    (907,480
    )
    
    
    Total net sales
    
    $
    1,583,665
    
    
    $
    996,428
    
    
    $
    930,204
    
    
    $
    4,760,083
    
    
    $
    
    
    
    $
    (907,480
    )
    
    $
    7,362,900Depreciation and
amortization:
    
    
    43,162
    
    
    
    33,130
    
    
    
    10,922
    
    
    
    58,404
    
    
    
    60,359
    
    
    
    
    
    
    
    205,977Net income (loss):
    
    
    (83,960
    )
    
    
    (154,572
    )
    
    
    121,001
    
    
    
    542,921
    
    
    
    (347,555
    )
    
    
    
    
    
    
    77,835Identifiable assets:
    
    
    9,776,938
    
    
    
    3,746,795
    
    
    
    1,041,097
    
    
    
    7,494,961
    
    
    
    1,995,868
    
    
    
    
    
    
    
    24,055,659Capital expenditures:
    
    
    55,521
    
    
    
    23,735
    
    
    
    1,989
    
    
    
    77,340
    
    
    
    60,507
    
    
    
    
    
    
    
    219,092
 CIPARThree Months Ended
    
    Franchising and
    
    CIPARMay 31, 2006
    
    Licensing
    
    Rehabilitation
    
    CMI
    
    GCI
    
    Corporate
    
    Eliminations
    
    ConsolidatedNet Sales:External customers
    
    $
    1,715,020
    
    
    $
    1,116,868
    
    
    $
    74,947
    
    
    $
    3,885,565
    
    
    $
    
    
    
    $
    
    
    
    $
    6,792,400Intersegment sales
    
    
    17,000
    
    
    
    
    
    
    
    833,698
    
    
    
    
    
    
    
    
    
    
    
    (850,698
    )
    
    
    Total net sales
    
    $
    1,732,020
    
    
    $
    1,116,868
    
    
    $
    908,645
    
    
    $
    3,885,565
    
    
    $
    
    
    
    $
    (850,698
    )
    
    $
    6,792,400Depreciation and
amortization:
    
    
    34,564
    
    
    
    20,257
    
    
    
    6,945
    
    
    
    54,222
    
    
    
    653
    
    
    
    
    
    
    
    116,641Net income (loss):
    
    
    99,108
    
    
    
    88,251
    
    
    
    98,817
    
    
    
    484,355
    
    
    
    (268,277
    )
    
    
    
    
    
    
    502,254Identifiable assets:
    
    
    8,846,897
    
    
    
    2,802,807
    
    
    
    1,023,768
    
    
    
    7,350,302
    
    
    
    1,716,992
    
    
    
    
    
    
    
    21,740,766Capital expenditures:
    
    
    6,007
    
    
    
    9,664
    
    
    
    94,883
    
    
    
    428,912
    
    
    
    731
    
    
    
    
    
    
    
    540,197
 CIPARSix Months Ended
    
    Franchising and
    
    CIPARMay 31, 2007
    
    Licensing
    
    Rehabilitation
    
    CMI
    
    GCI
    
    Corporate
    
    Eliminations
    
    ConsolidatedNet Sales:External customers
    
    $
    3,031,489
    
    
    $
    1,774,056
    
    
    $
    143,367
    
    
    $
    8,596,317
    
    
    $
    
    
    
    $
    
    
    
    $
    13,545,229Intersegment sales
    
    
    43,996
    
    
    
    
    
    
    
    1,492,686
    
    
    
    
    
    
    
    
    
    
    
    (1,536,682
    )
    
    
    Total net sales
    
    $
    3,075,485
    
    
    $
    1,774,056
    
    
    $
    1,636,053
    
    
    $
    8,596,317
    
    
    $
    
    
    
    $
    (1,536,682
    )
    
    $
    13,545,229Depreciation and
amortization:
    
    
    81,184
    
    
    
    62,119
    
    
    
    21,800
    
    
    
    118,351
    
    
    
    114,818
    
    
    
    
    
    
    
    398,272Net income (loss):
    
    
    (162,425
    )
    
    
    (258,259
    )
    
    
    201,758
    
    
    
    880,056
    
    
    
    (636,436
    )
    
    
    
    
    
    
    24,694Identifiable assets:
    
    
    9,776,938
    
    
    
    3,746,795
    
    
    
    1,041,097
    
    
    
    7,494,961
    
    
    
    1,995,868
    
    
    
    
    
    
    
    24,055,659Capital expenditures:
    
    
    256,209
    
    
    
    138,009
    
    
    
    5,727
    
    
    
    128,754
    
    
    
    166,516
    
    
    
    
    
    
    
    695,215
 14




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##### Table of Contents



COHESANT TECHNOLOGIES INC.
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 CIPARSix Months Ended
    
    Franchising and
    
    CIPARMay 31, 2006
    
    Licensing
    
    Rehabilitation
    
    CMI
    
    GCI
    
    Corporate
    
    Eliminations
    
    ConsolidatedNet Sales:External customers
    
    $
    3,570,142
    
    
    $
    2,505,522
    
    
    $
    137,545
    
    
    $
    7,044,788
    
    
    $
    
    
    
    $
    
    
    
    $
    13,257,997Intersegment sales
    
    
    77,183
    
    
    
    
    
    
    
    1,687,031
    
    
    
    
    
    
    
    
    
    
    
    (1,764,214
    )
    
    
    Total net sales
    
    $
    3,647,325
    
    
    $
    2,505,522
    
    
    $
    1,824,576
    
    
    $
    7,044,788
    
    
    $
    
    
    
    $
    (1,764,214
    )
    
    $
    13,257,997Depreciation and
amortization:
    
    
    69,326
    
    
    
    44,154
    
    
    
    13,698
    
    
    
    103,966
    
    
    
    1,455
    
    
    
    
    
    
    
    232,599Net income (loss):
    
    
    222,600
    
    
    
    195,831
    
    
    
    208,849
    
    
    
    792,137
    
    
    
    (537,491
    )
    
    
    
    
    
    
    881,926Identifiable assets:
    
    
    8,846,897
    
    
    
    2,802,807
    
    
    
    1,023,768
    
    
    
    7,350,302
    
    
    
    1,716,992
    
    
    
    
    
    
    
    21,740,766Capital expenditures:
    
    
    6,007
    
    
    
    16,944
    
    
    
    116,274
    
    
    
    606,362
    
    
    
    731
    
    
    
    
    
    
    
    746,318
  Three Months Ended May 31,2007
    
    2006Equipment and Parts
    
    $
    4,788,564
    
    
    
    65.0
    %
    
    $
    4,096,763
    
    
    
    60.3
    %Coatings
    
    
    1,531,115
    
    
    
    20.8
    
    
    
    1,516,942
    
    
    
    22.3Franchise & Licensee
    
    
    46,793
    
    
    
    0.7
    
    
    
    61,827
    
    
    
    1.0Rehabilitation
    
    
    996,428
    
    
    
    13.5
    
    
    
    1,116,868
    
    
    
    16.4Total
    
    $
    7,362,900
    
    
    
    100
    %
    
    $
    6,792,400
    
    
    
    100
    %
 Six Months Ended May 31,2007
    
    2006Equipment and Parts
    
    $
    8,954,597
    
    
    
    66.1
    %
    
    $
    7,636,916
    
    
    
    57.6
    %Coatings
    
    
    2,738,763
    
    
    
    20.2
    
    
    
    3,010,121
    
    
    
    22.7Franchise & Licensee
    
    
    77,813
    
    
    
    0.6
    
    
    
    105,438
    
    
    
    0.8Rehabilitation
    
    
    1,774,056
    
    
    
    13.1
    
    
    
    2,505,522
    
    
    
    18.9Total
    
    $
    13,545,229
    
    
    
    100
    %
    
    $
    13,257,997
    
    
    
    100
    %
  Three Months Ended
    
    Three Months Ended
    
    Six Months Ended
    
    Six Months EndedRegion
    
    May 31, 2007
    
    May 31, 2006
    
    May 31, 2007
    
    May 31, 2006United States
    
    
    56
    
    
    
    57
    
    
    
    54
    
    
    
    57Canada
    
    
    18
    
    
    
    18
    
    
    
    18
    
    
    
    19Asia/Pacific Rim
    
    
    9
    
    
    
    11
    
    
    
    11
    
    
    
    10Europe
    
    
    12
    
    
    
    9
    
    
    
    11
    
    
    
    9Other
    
    
    5
    
    
    
    5
    
    
    
    6
    
    
    
    5Total
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
 15




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##### Table of Contents



COHESANT TECHNOLOGIES INC.
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 Note 8  Contingencies
  Note 9
 New Accounting Standards
   Note 10  Dividends
  16




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##### Table of Contents



COHESANT TECHNOLOGIES INC.
 
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS
 Results of Operations
 Three months ended May 31, 2007 as compared to the same period in the prior year.
       17




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##### Table of Contents





COHESANT TECHNOLOGIES INC.


MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS










Six months ended May 31, 2007 as compared to the same period in the prior year.




18




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##### Table of Contents





COHESANT TECHNOLOGIES INC.


MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS














19




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##### Table of Contents



COHESANT TECHNOLOGIES INC.
 MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
 Liquidity and Capital Resources
      Critical Accounting Policies and Estimates
   20




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##### Table of Contents



COHESANT TECHNOLOGIES INC.
 MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
  Revenue Recognition.
    Accounts receivable.
 Inventories .
 21




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##### Table of Contents



COHESANT TECHNOLOGIES INC.
 MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
 Goodwill.
  Forward Looking Statements
  22




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##### Table of Contents



COHESANT TECHNOLOGIES INC.
 
 ITEM 3. CONTROLS AND PROCEDURES
    
 PART II
 
 ITEM 5. OTHER INFORMATION
  
 ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
 (a)
    
    Exhibit
 31.1
    
    302 Certification of Chief Executive Officer31.2
    
    302 Certification of Chief Financial Officer32
    
    906 Certification of Chief Executive Officer and Chief Financial Officer
 23




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##### Table of Contents



COHESANT TECHNOLOGIES INC.
 (b)
    
    Reports on Form 8-K
    24




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##### Table of Contents



SIGNATURES
   COHESANT TECHNOLOGIES INC.BY:
    /s/ Morris H. WheelerMorris H. WheelerPresident & Chief Executive OfficerBY:
    /s/ Robert W. PawlakRobert W. PawlakChief Financial Officer 25