SECUR
      ITIES AND EXCHANGE COMMISSION


WASHINGTON,
      D.C.  20459





FORM
      10-KSB





(Mark
      One)





[X]
      ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF
      1934





For
      the
      fiscal year ended September 30, 2007


OR





[
      ]
      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT
      OF 1934




Commission
      File Number 0-17580





SYNERGX
      SYSTEMS INC


(Exact
      name of Small Business Issuer in its charter)





Delaware                                                         11-2941299


(State
      or
      other jurisdiction
      of                              (I.R.S.
      Employer


incorporation
      or
      organization)                              Identification
      No.)





209
      Lafayette Drive, Syosset, New York  11791


(Address  of
      principal executive offices) (zip code)





Issuer's
      telephone number, including area code:  (516) 433-4700





Securities
      registered pursuant to Section 12(b) of the Act: None





Securities
      registered pursuant to Section 12(g) of the Act:





Common
      Stock, $.001 par value per share


(Title
      of
      Class)





Indicate
      by check mark whether the Registrant (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the
      preceding 12 months and (2) has been subject to such filing requirements for
      the
      past 90 days. YES X     NO





Indicate
      by check mark if disclosure of delinquent filers pursuant to Item 405 of
      Regulation S-K is not contained herein, and will not be contained, to the best
      of the Registrant's   knowledge, in definitive
      proxy  or  information statements by reference in Part III
      of this Form 10-KSB ( )





Indicate
      by check mark whether the registrant is a shell company (as defined in rule
      12b-2 of the Exchange Act)    YES   NO
      X





State
      issuer's revenues for its most recent fiscal year: $18,289,000





The
      aggregate market value of the voting stock held by non-affiliates of the
      Registrant, based upon the average bid and ask prices for
      the  Registrant's
      Common  Stock,  $.001  par  value  per  share,  as
      of  December  12,  2007  was
      $4,570,836





As
      of December 12, 2007,
      the  Registrant  had  5,210,950 shares of Common
      Stock outstanding.




Documents
      Incorporated by Reference: Definitive Proxy Statement to be filed.











PART
      I





ITEM
      1.
      DESCRIPTION OF BUSINESS




Synergx
      Systems Inc. ("Synergx" or the "Company") is a Delaware corporation organized
      in
      October 1988 to acquire controlling interests in companies engaged in the
      design, manufacture, distribution, sale and servicing of fire, life safety,
      security, energy management, intercom, audio-video communication and other
      systems. Reference to Synergx or the Company include operations of each of
      its
      subsidiaries except where the context otherwise requires.






Synergx's
      business is conducted through subsidiaries in the New York City metropolitan
      area. Synergx conducts its business in New York principally through Casey
      Systems Inc., (“Casey”) its wholly owned subsidiary located in New York City and
      Long Island, New York






***CASEY
      SYSTEMS.***   Synergx’s principal operating subsidiary
      is Casey Systems.   Casey has been in the business of designing,
      servicing and maintaining building communication systems since
      1970.   Today Casey is a diversified systems integrator which, in
      addition to its own proprietary line of life safety and building protection
      products, also is a premier low-voltage systems provider for a broad range
      of
      video, teleconferencing/multimedia, audio visual, public address, customer
      information, access control, intercoms, security, closed circuit TV (CCTV)
      and
      professional sound systems.   In addition, Casey designs, markets
      and supports these systems for the rail and mass transit
      industries.






***Fire
      and Life Safety***.  For over 30 years Casey has been
      providing fire and smoke signaling and detection systems for institutional,
      municipal, commercial and residential buildings in the New York City
      metropolitan area.  Casey provides services primarily as a
      sub-contractor to electrical and general contractors but also acts as a
      general  contractor from time to time as well as engages in direct
      sales of products and services to building owners, managers and other
      users.  New and modified systems must be installed and maintained in
      compliance with local law requirements.  New York City in particular
      maintains a very comprehensive and detailed body of regulations to govern the
      installation and operation of fire alarm and life safety
      systems.  Casey markets its expertise in putting systems on line and
      servicing such systems in compliance with these regulations.




Casey
      has
      developed and markets its own proprietary signaling and fire detection
      technology known as COMTRAK, and also acts as a strategic distributor for
      national manufacturers such as Edwards Systems Technology, a General Electric
      company.   Casey has installed a number of generations of COMTRAK
      and other systems in hundreds of facilities in the New York metropolitan
      area.    COMTRAK and other such systems sold by Casey
      control and monitor smoke detectors, pull stations and other devices, supervise
      other building systems such as elevators and fans and provide dedicated audio
      communication channels for building and emergency personnel.   In
      many cases after installation and fire department approval thereof, Casey
      continues to provide products and services to such facilities related to the
      changing requirements of tenants in such buildings (e.g. smoke detectors and
      other devices when tenant spaces are altered) or service contracts to building
      owners or managers.





***Transit***.   Since
      1991 Casey has designed, installed and maintained sound, life safety and
      security systems for over one hundred transit facilities in the New York City
      market region.   Casey has expanded its capabilities to handle to
      handle all low voltage systems and fiber communications systems for mass transit
      facilities.  Our staff consists of experienced sales engineers,
      project managers, field technicians and administrative support staff who are
      experienced with the specialized technical, documentary and critical path
      requirements of this market.   Our communications engineers are
      approved by the New York City Transit Authority (NYCTA) and other
      agencies.   Casey and its engineers are also certified in most
      cases as the sole or one of only a limited number of by the manufacturers of
      numerous systems specified by these agencies.    Casey
      markets its products and services to prime contractors and electrical
      contractors to serve as the required systems integrator on projects for
      the  NYCTA, Metro-North, The Long Island Railroad, New Jersey Transit,
      Amtrak and other agencies.  In nearly all cases the systems integrator
      hired by the prime or electrical must be approved by the relevant agency.




***Engineered
      Sound Systems***.    Casey has augmented its
      established position in marketing engineered life safety systems (proprietary
      and third party) by developing a significant business in engineered sound
      systems for application to a variety of users including airline terminals,
      hospitals, educational facilities and transit facilities (e.g. commuter
      terminals and subway stations).  Casey has developed a focused unit
      with a high level of experience to penetrate this niche market with significant
      success as a substantial portion of Casey’s revenues and order position derives
      from this effort.     Casey offers simple analog paging
      systems as well as state-of-the-art computerized systems that emphasize speech
      intelligibility and high quality music reproduction.   Casey is
      an authorized dealer for many leading manufacturers.




***Audio-Visual***.   Casey’s
      engineering and sales team work with consultants, architects and construction
      managers to design, install and integrate audio visual systems in buildings
      in
      the New York metropolitan areas.    These facilities include
      museums, auction houses, advertising agencies, houses of worship, health care
      and educational facilities, financial institutions and law
      firms.   On these projects Casey oversees software integration,
      selects hardware and oversees all aspects of the project installation and
      activation.  Systems include audio and video conferencing, video
      projection systems, media streaming and command and control
      centers.  Casey is an authorized supplier of numerous high quality
      national product lines.




***Security***.   Casey
      provides integrated security systems for institutional, municipal, commercial
      and residential buildings handling design and engineering, product
      specification, installation, maintenance and personnel
      training.    Customers include commercial and apartment
      buildings, transportation and educational facilities and medical
      centers.   Products include indoor-outdoor, perimeter,
      pan-tilt-zoom cameras, monitors, wireless command and remote control and
      transmission technology.    Casey designs and installs a
      full range of card access control systems including scrambled pad-biometrics,
      smart cards, swipe cards and proximity readers.  Casey has worked with
      many network technologies including encrypted networks.






***Service.***  Casey
      continues to put an increasing priority on the development of an integrated
      and
      efficient service organization. Sales personnel have been dedicated to securing
      service contracts and to market service of COMTRAK and other projects coming
      out
      of warranty and the renewal of such contracts. To provide efficient and
      productive****customer service, Casey maintains an office in
      New York City which houses its New York service management offering 24/7
      customer support with over 30 manufacturer-trained field service
      technicians






***RESEARCH
      AND DEVELOPMENT.***   During the fiscal years ended
      September 30, 2007 and 2006, Synergx spent approximately $304,000 and $114,000,
      respectively, for research and development of Synergx's life safety and
      communication systems.






***CUSTOMERS
      AND SUPPLIERS*****.**For the fiscal year ended
      September 30, 2007, one customer accounted for more than 10% of Synergx's
      revenues and one supplier accounted for more than 10% of Synergx's cost of
      sales. At September 30, 2007 one customer accounted for more than 10% of
      accounts receivable. For the fiscal year ended September 30, 2006, no customer
      accounted for more than 10% of Synergx's revenues and no supplier accounted
      for
      more than 10% of Synergx's cost of sales.






***REGULATIONS***.  Synergx
      believes that it is in compliance with applicable building codes, zoning
      ordinances, occupational, safety and hazard standards and other Federal, state
      and local ordinances and regulations governing its business activities.
      .






***COMPETITION***.  Synergx
      business is competitive; some of Synergx's competitors may have greater
      financial resources and may offer a broader line of fire and life safety
      products. Synergx also faces competition in the servicing of systems which
      it
      sells. Accordingly, even though Synergx may sell and install a fire and life
      safety and/or communications system, it may not receive the contract to service
      that system. Synergx, however, believes that it can effectively compete with
      any
      entity which conforms to applicable rules and regulations.






***EMPLOYEES.***  As
      of September 30, 2007, Synergx and its subsidiaries had 91 full time employees,
      including 31 New York hourly employees that are covered by a Collective
      Bargaining Agreement expiring March 2009.






***BUSINESS
      CONDITIONS.***   Synergx believes that its labor and
      material sources are sufficient and that other than normal competitive factors,
      and what is discussed above or under "MANAGEMENT'S DISCUSSION AND ANALYSIS
      OF
      FINANCIAL CONDITION AND RESULTS OF OPERATION", Synergx's operations and industry
      do not have any special characteristics which may have a material impact upon
      its future financial performance.






***PATENTS
      AND TRADEMARKS.***The Company does not have any patents
      on its systems, but, it uses proprietary technology which it seeks to protect
      as
      trade secrets. The "Firetector," "Casey Systems" and "COMTRAK" trademarks are
      registered with the United States Patent and Trademark Office.







ITEM
      2.
      DESCRIPTION OF PROPERTY





The
      Company leases approximately 16,400 square feet of office, manufacturing and
      warehouse space in Syosset, New York under a seven year lease that was to expire
      in  June 2007.  In 2006, the lease was extended on similar
      terms to expire June 30, 2012.The rental schedule provides for monthly rent
      of
      $17,800 during 2007 with 3.3% yearly increases through the remainder of the
      term
      of the lease.





The
      Company has a lease for its service center in New York City that became
      effective August 2002 and runs through December 31, 2009.  The lease
      is for office and warehouse space and provides for yearly rental of $84,000
      during the first year plus expenses with yearly escalation of 2% each year
      thereafter.





Management  believes  there
      is sufficient space at these facilities for its current and intended
      business.







ITEM
      3.
      LEGAL PROCEEDINGS





In
      the normal course of its  operations,  the Company has been,
      or from time to time may be, named in
      legal  actions  seeking  monetary  damages.  While
      the outcome of these matters cannot be estimated with certainty, management
      does
      not expect,  based  upon
      consultation  with  legal  counsel,  that
      such actions will have a material effect on the Company's business or financial
      condition.










ITEM
      4.
      SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS





None.
















PART
      II





ITEM
      5.  MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER
      MATTERS





Synergx's  Common
      Stock has been traded on the National  Association  of
      Securities Dealer's Inc. Automated  Quotation System ("NASDAQ") since
      April 11, 1989  under the "FTEC" symbol and since May 2002 under the
“SYNX” symbol.****The following table shows the high and low
      bid and ask quotations for each fiscal quarter from December 31, 2005
      through  September 30,  2007
      which  quotations  were  obtained  from
      the  National  Association  of
      Securities  Dealers Inc.





Common
                Stock
              
              Bid
              
              
              AskQuarter
                Ended
              
              High
              
              
              Low
              
              
              High
              
              
              LowDecember
                  31, 2005
              
              
              2.590
              
              
              
              1.680
              
              
              
              2.610
              
              
              
              1.720March
                  31, 2006
              
              
              2.430
              
              
              
              1.580
              
              
              
              2.450
              
              
              
              1.630June
                  30, 2006
              
              
              2.060
              
              
              
              1.250
              
              
              
              2.090
              
              
              
              1.320September
                  30, 2006
              
              
              1.860
              
              
              
              1.210
              
              
              
              1.890
              
              
              
              1.310December
                  31, 2006
              
              
              2.620
              
              
              
              1.100
              
              
              
              2.720
              
              
              
              1.360March
                  31, 2007
              
              
              2.380
              
              
              
              1.380
              
              
              
              2.540
              
              
              
              1.400June
                  30, 2007
              
              
              2.350
              
              
              
              1.610
              
              
              
              2.450
              
              
              
              1.810September
                  30, 2007
              
              
              2.380
              
              
              
              1.800
              
              
              
              2.590
              
              
              
              1.860


The
      above  quotations  represent  prices  between  dealers,  do
      not include
      retail  markups,   markdowns  or  commissions  and  may  not  represent   actual
      transactions.  As of  December
      12,  2007,  there  were
      246****record  holders  of Synergx's
      Common Stock.





****On
      December 12, 2007, the closing bid and ask prices for the Common Stock were
      $1.70 and $1.76, respectively.





The
      Company has not paid any cash dividends on its Common Stock. Payment of cash
      dividends in the  foreseeable  future is
      not  contemplated  by the Company. Whether dividends are
      paid in the future will depend on the Company's  earnings,
      capital  requirements,  financial  condition  along  with  economic  and  market
      conditions,  industry standard  and
      other  factors  considered  relevant to the
      Company's  Board of  Directors. Payment of dividends
      is  restricted  in certain cases by the Company's credit
      facilities. Accordingly, no assurance can be given as to the amount or timing
      of
      future dividend payments, if any.








Registration
      of Shares of Common Stock





The
      Company filed a Form S-8 registration statement, which became effective July
      22,
      2003.  The registration statement provided for the registration of
      404,885 shares issue able under the 1997 Non-Qualified Stock Option Plan.






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





LIQUIDITY
      AND CAPITAL RESOURCES





The
      Company has a $3.5 million revolving credit facility with TD Banknorth, N.A.
      (the "Bank") (the
      “Credit Facility”). The credit facility had been increased to this level in
      August 2007. This credit facility has an annual interest rate of prime plus
1⁄4%
      and was to expire in January  2008. On December 26, 2007,
      the
      Company received a letter from the Bank agreeing to extend the Credit Facility
      to expire on January 31, 2009.  Advances under the Credit
      Facility are measured  against a  borrowing
      base  calculated  on  eligible  receivables  and
      inventory.  The Credit Facility is secured by all assets of the
      Company and all of its operating  subsidiaries.





The
      Credit Facility includes various covenants, which among other things, impose
      limitations on declaring or paying dividends, acquisitions and capital
      expenditures. The Company is also required to maintain certain financial ratios
      and tangible net worth covenants.  At September 30, 2007, the Company
      did not meet one of its financial covenants related to its debt service coverage
      ratio.  However, the requirement of this covenant was waived by the
      Bank in conjunction with  the letter agreement to extend the Credit
      Facility. At September 30, 2007 the full amount of the Credit Facility was
      available under the borrowing base calculation and $2,071,000 was owed under
      the
      Credit Facility.





Net
      cash used in continuing operations for the year ended September 30, 2007
      amounted to $883,000 as compared to $64,000 for the comparable prior
      year.  The increase in cash being used in operations was primarily due
      to a $375,000 operating loss from continuing operations in 2007 and from an
      increase of $683,000 in operating assets and liabilities in
      2007.   This increase reflects the requirement to fund the
      working capital requirement for a $5.0 million transit project. This additional
      working capital (primarily an increase in accounts receivable) was funded in
      part by an increase of  $390,000 in accounts payable and accrued
      expenses that resulted from the extension of payment terms from certain
      suppliers.





In
      2007, the net cash out flow of  $883,000 cash
      from  continuing operations along with the purchases of capital assets
      of $281,000 (primarily for a new management information system)  was
      funded by $1,141,000 of additional bank borrowing.





The
      ratio of the Company’s current assets to current liabilities decreased slightly
      to approximately 3.01 to 1 at September 30, 2007 compared to 3.04 to 1 at
      September 30, 2006.











Management's
      Discussion and Analysis of Financial


Condition
      and Results of Operations








RESULTS
      OF OPERATIONS





Revenues
      and Gross Profit








For
              the years ended September 30,2007                               
                2006(In
                thousands)Product
                Sales
            
            $
            12,953
            
            
            $
            10,059Subcontract
                Sales
            
            
            319
            
            
            
            665Service
                Revenue
            
            
            5,017
            
            
            
            5,101Total
                Revenue
            
            $
            18,289
            
            
            $
            15,825Product
                Gross Margin
            
            $
            2,948
            
            
            $
            2,678Subcontract
                Gross Margin
            
            
            58
            
            
            
            127Service
                Gross Margin
            
            
            2,485
            
            
            
            2,363Total
                Gross Margin
            
            $
            5,491
            
            
            $
            5,168Gross
                Profit Product %
            
            
            23
            %
            
            
            27
            %Gross
                Profit Subcontractor %
            
            
            18
            %
            
            
            19
            %Gross
                Profit Service %
            
            
            50
            %
            
            
            46
            %Total
                Gross Profit %
            
            
            30
            %
            
            
            33
            %











Revenues





The
      increase in product revenues resulted primarily from higher shipments of transit
      and audio/visual products, particularly a $5.0 million project for a New York
      City subway station security system. Revenues of $3.5 million from this project
      are included in 2007 product sales.  The Company continues to bid on
      new orders and has quotations outstanding for several large transit
      projects.





Subcontract
      revenue decreased during 2007 as the Company was responsible as prime contractor
      for fewer electrical installations in 2007 compared to similar projects in
      2006.





Service
      revenues decreased 2% during 2007 primarily due to an decrease in call-in
      service on fire alarm systems (replacement parts and service required by
      buildings).

















Management's
      Discussion and Analysis of Financial


Condition
      and Results of Operations








Gross
      Profit





Gross
      profit margin from product revenues increased 10% to $2,948,000 due to higher
      sales of transit and audio/visual products (noted above) and their related
      gross
      margins.  Gross profit margin as a percentage of product revenues was
      23% in 2007 compared to 27% in 2006.  This decline in gross profit
      percentage was due to a shift in product mix to larger projects with lower
      margin sales in 2007.  While recent audio-visual and transit projects
      do involve a lower gross profit percentage than the Company experienced
      over  the last few years from its product mix, the Company has not
      fully begun to benefit from greater revenue levels commensurate with its
      increased order position which should result in increased gross margin dollars,
      not withstanding the lower gross profit percentage.





Gross
      profit margin related to subcontract revenues for 2007 decreased in absolute
      terms as the Company was responsible for fewer number of electrical installation
      by third parties (subcontract work).





Gross
      profit margin from service revenues increased 5% during 2007 primarily due
      to
      certain reductions in the number of service technicians as the Company reduced
      its customer support staffing levels during 2007. This improvement was in spite
      of the 2% reduction in service revenue caused by lower call in service on fire
      alarm systems (noted above).





Selling,
      General and Administrative Expenses





Selling,
      General and Administrative Expenses (“S G &A”)
      increased  $236,000  in 2007 over 2006 primarily due to
      $96,000 of investment banking and legal expenses related to exploring strategic
      options, from $33,000 of additional computer consulting costs to
      upgrade  the Company’s information technology system, from $28,000 of
      stock based compensation with respect to the adoption of SFAS No. 123R in 2007
      and from $80,000 of outside development costs incurred to modernize components
      of  the Company’s proprietary Comtrak fire alarm system in 2007. This
      program is expected to generate future revenue and is designed to allow a
      building owner to enhance the capabilities of its fire alarm system at a
      fraction of the cost of a new system replacement and is expected to generate
      future revenues to the Company as well as extend the useful life of the
      installed base of the Company’s proprietary Comtrak system.





In
      2007,
      SG&A reflected a high level of  sales and marketing personnel
      expenses which were geared to support higher product
      revenues.  However,  S G & A expenses as a percentage of
      sales declined 3.9% to 30.8% in 2007 due to higher sales volume compared to
      the
      relative fixed nature of these costs. The Company will continue to invest in
      staff to








Management's
      Discussion and Analysis of Financial


Condition
      and Results of Operations





secure
      and support sales of new products in future years, but management expects S
      G &
A expenses as a percentage of sales to decline in 2008.


.


(Loss)
      Before Tax





The
      $67,000 decrease in loss from operations during 2007 was due to a $323,000
      improvement in gross profit margin primarily related to higher product
      revenues.   Partially offsetting the increase in gross profit was
      an increase in selling, general and administrative expenses of $236,000 that
      remained  at a high level geared to support higher product sales and a
      $20,000 increase in depreciation expense primarily resulting from a new computer
      system.





Interest
      expense increased during 2007 due to the effect of both higher interest rates
      and higher borrowing levels.





During
      2007, the Company sold its investment in Secure 724 LP and reported a gain
      of
      $98,398 on the sale. In contrast during 2006, the Company reported a loss of
      $437,000 related to it’s investment in Secure 724 LP that consisted of a full
      impairment charge of $377,000 (due to insufficient cash flow, lack of outside
      funding and slow progress and uncertainty on bringing its product to market)
      and
      the equity in the operating loss of Secure 724 LP through the date of sale
      of
      $60,000.





Tax
      Provision





The
      Company’s current income tax provision represents federal, state and local
      income taxes.  Deferred taxes represents the net change in current and
      noncurrent deferred tax assets and noncurrent  deferred tax liability
      as it related to certain timing differences of book and tax deductions. Deferred
      tax expense in 2007 is net of and resulted from a $80,000 valuation allowance
      regarding future tax benefits of the capital loss of Secure 724 LP and a
      $250,000 valuation allowance for future utilization of the Company’s deferred
      tax asset.





Discontinued
      Operations





On
      May
      31, 2006, the Company’s wholly owned subsidiary, General Sound (Texas) Company
      (“General Sound”) that operated in Dallas/Ft. Worth, Texas sold its inventory,
      property, trade name, business and operations to LCR Sound, a Texas
      company.  Under terms of an Asset Purchase Agreement, General Sound
      received cash proceeds


from
      the
      buyer of $518,000 for its inventory, property and equipment and goodwill, and
      remaining resulting in a gain of $197,901.  The buyer assumed
      responsibility for the remaining term of the lease for its office and warehouse
      space.  General Sound retained cash and all accounts receivable and
      remained responsible for all existing








Management's
      Discussion and Analysis of Financial


Condition
      and Results of Operations








liabilities
      which have been paid as of September 30, 2007.  The operations of
      General Sound are reported as discontinued for the year ended September 30,
      2006
      in the accompanying Consolidated Financial Statements.





The
      results of the discontinued operations for the year ended September 30, 2006
      are
      as follows:





Sales
              
              $
              1,398,809Cost
                  of Sales
              
              
              1,113,211Operating
                  expenses
              
              
              684,584Operating
                  (loss)
              
              $
              (398,986
              )Gain
                  on sale of assets
              
              
              197,901(Loss)
                  before taxes
              
              $
              (201,085
              )





Order
      Position





Synergx’s
      order position, excluding service was $11.2 million at September 30,
      2007   compared to $8.0 million level at September 30, 2006. The
      Company expects to fulfill a significant portion of its order position over
      the
      next twelve months.    While quotation activity is brisk,
      there is no assurance when orders will be received and whether the order
      position will increase.  Due to the fact that some of
      the  Company's products  are sold and
      installed  as part of  larger construction  or
      mass transit  projects,  there is typically a delay between
      the booking of the contract and its revenue realization. The order position
      from
      time to time includes, and the Company continues  to bid on,
      projects  that  include   subcontractor  labor,  (electrical
      installation performed by others). The Company  expects  to
      be active in  seeking  orders  where the Company
      would act as a prime contractor and responsible for management of the project
      as
      well as  electrical installation.





Plan
      of
      Operations





During  fiscal  2008,  management  intends  to
      continue to focus  on it’s  intensified marketing  programs  and
      to  continue  to contain or monitor fixed overhead as well
      as to reduce  variable  costs
      through  improved  efficiency and
      productivity.   Specifically management is pursuing a strategy of
      aggressive  marketing of products and systems to drive more revenue
      through established channels of distribution.   Management will
      concentrate on these initiatives with a focus on reducing costs thereby
      enhancing the Company’s competitiveness which combined  with improved
      sales and marketing





Management's
      Discussion and Analysis of Financial


Condition
      and Results of Operations





techniques
      should result in increased revenues over time.  However, competition
      remains severe in many of the Company’s product categories.  Longer
      term, management expects increased demand for the Company’s audio-visual, public
      address, security and other communication
      products    .Recent enhancements  to
      Synergx’s  management information systems and methods of approving and
      monitoring  project costs  have improved management's
      ability to pinpoint waste  and/or third party (supplier or customer)
      cost responsibility.  Further enhancements in theses areas will be in
      progress during 2008.





Management
      will be reviewing inventory levels with a view towards generally reducing
      inventory levels in 2008.  The Company will be assessing the use of
      third party vendors to procure and manufacture products and to reduce its
      inventory levels of products distributed to and held for customer
      service.





Inflation





The  impact  of  inflation  on
      the  Company's  business  operations has not been
      material in the
      past.  Casey's  labor  costs  are  normally  controlled  by
      union  contracts covering a period of three years and its
      material  costs have remained  relatively
      stable.  However, in July of 2005, the Company and its union agreed to
      a new three year nine month contract that provides for wage/benefits increases
      of approximately 4% in each year.  Under terms of previous union
      contracts, certain union members, upon passing certain test requirements, began
      moving up to higher paying categories that have multiple salary steps per year
      in excess of the 4% contractual level. In addition, the demand for highly
      skilled professionals has resulted in the need to assess salary levels in order
      to remain competitive.  It is expected that required salary
      adjustments will exceed normal increases given in the past. The Company will
      try
      to mitigate the effect of these increases in labor costs by efficiency
      initiatives, expense reductions and, if possible, price increases.





Off-Balance
      Sheet Arrangements





As
      of September 30, 2007,  the Company did not have any off-balance sheet
      debt nor did it have any transactions, arrangements, obligations (including
      contingent obligations) or other relationships with any unconsolidated entities
      or other persons that may have a material current or future effect on financial
      condition, changes in financial condition, results of operations, liquidity,
      capital expenditures, capital resources, or significant resources or significant
      components of revenue or expenses.





ITEM
      7.  FINANCIAL STATEMENTS





Our
      financial statements together with accompanying notes and the report of Marcum
      & Kliegman LLP, our independent registered public accounting firm, are set
      forth on the pages indicated below.





Report
      of
      Independent Registered Public Accounting
      Firm                                         
F1





Audited
      Consolidated Financial
      Statements





Consolidated
      Balance Sheet  September 30,
      2007                                                       
F2 – F3





Consolidated
      Statements of Operations


Years
      Ended September 30, 2007 and
      2006                                                                   
F4





Consolidated
      Statements of Stockholders’ Equity


Years
      Ended September 30, 2007 and
      2006                                                                    F5





Consolidated
      Statements of Cash Flows


Years
      Ended September 30, 2007 and
      2006                                                                   F6





Notes
      to
      Consolidated Financial
      Statements                                                              F7
– F22








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





None




ITEM
      8A.  Controls and Procedures





Evaluation
      of disclosure controls and procedures.  At the period end of this
      Annual Report on Form 10-KSB, the Company’s management, including the Company’s
      Chief Executive Officer and Chief Financial Officer evaluated the effectiveness
      of the design and operation of the Company’s disclosure controls and
      procedures.  Based on that evaluation, the Company’s Chief Executive
      Officer and Chief Financial Officer have concluded, as of the end of the fiscal
      year covered by this report, that:





The
      Company’s disclosure controls and procedures are designed to ensure that
      information required to be disclosed by the Company in the reports it files
      or
      submits under the Securities Exchange Act of 1934 is recorded, processed,
      summarized and reported within the time periods specified.





That
      Company’s disclosure controls and procedures are effective to ensure that such
      information is accumulated and communicated to the Company’s management, and
      made known to the Company’s Chief Executive Officer and Chief Financial Officer,
      to allow timely decision regarding the required disclosure.





There
      have been no changes in the Company’s internal controls over financial reporting
      that have materially affected, or is reasonably likely to materially affect
      the
      Company’s internal controls over financial reporting during the period covered
      by the Annual Report.











PART
      III





Item
      9.  Directors, Executive Officer, Promoters and Control
      Persons:  Compliance with Section 16(a) of the Exchange
      Act.





The
      information required by this Item is incorporated by reference from our
      definitive Proxy Statement for the 2007 Annual Meeting of
      Stockholders.





Item
      10.  Executive Compensation





The
      information required by this Item is incorporated by reference from our
      definitive Proxy Statement for the 2007 Annual Meeting of
      Stockholders.





Item
      11.  Security Ownership of Certain Beneficial Owners and
      Management





The
      information required by this Item is incorporated by reference from our
      definitive Proxy Statement for the 2007 Annual Meeting of
      Stockholders.





Item
      12.  Certain Relationships and Related Transactions





The
      information required by this Item is incorporated by reference from our
      definitive Proxy Statement for the 2007 Annual Meeting of
      Stockholders.







ITEM
      13.  EXHIBITS





(a)  Exhibits





Exhibit
      No.            Description
      of Exhibit





3.1    Certificate
      of Incorporation of the Company, as amended (6)





3.2    By-Laws
      of the Company (2)





4.1    Specimen
      Common Stock Certificate (2)





10.1   Credit
        Facility dated October 9, 2003 between Synergx Systems Inc. as borrower and
        Hudson United Bank as lender. (5)





10.2    Employment
      Agreement between Casey Systems Inc. and Al Koenig dated as
      of  February 17, 2005 (7)





10.3    Employment
      Agreement between Synergx Systems Inc. and Daniel S. Tamkin dated as of
      October 1, 2005 (7).





10.4    Second
      Amendment to Revolving Loan Agreement, Promissory Note and
      Other Loan
      Documents, between Synergx Systems Inc. and TD Banknorth, N.A., dated
      as


of September 29, 2006.(8)





10.8    Form
      of Lease dated February, 2000 between Casey Systems as Tenant
      and First
      Industrial L.P. as Landlord (3)




10.9    Form
        of Lease dated July 23rd, 2002 between
        Systems Service Technology Corp as Tenant and Balbo Realty LLC as Landlord
        (4)




10.10  Form
        of
        Limited Partnership Agreement dated May 29, 2003 between 3077118 Nova Scotia
        ULC
        (a Synergx Systems owned company) and Secure 724 LP (5)





22.1   Subsidiaries
      of the Registrant *





23.1   Consent
      of Marcum & Kliegman LLP Independent Registered Public Accounting Firm
      *





31.1
      Certification of Daniel S. Tamkin pursuant to 18 U.S.C. Section 1350, as adopted
      pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*





31.2
      Certification of John A. Poserina pursuant to 18 U.S.C. Section 1350, as adopted
      pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*





32.1
      Certification of Daniel S. Tamkin and  John A. Poserina pursuant
      to  Section 906 of the Sarbanes-Oxley Act of 2002*





-
      --------


*
      filed herewith





(1)
      Reference is made to the correspondingly  numbered Exhibit to
      Amendment No. 1 to
      the  Company's  Registration  Statement on Form
      S-2,  Registration  No. 33-51472,  filed with the
      Commission on December 23, 1992, which is incorporated herein by
      reference.





(2)
      Reference is made to the correspondingly  numbered Exhibit to
      Amendment No. 1 to
      the  Company's  Registration  Statement on Form
      S-1,  Registration  No. 22-26050,  filed with the
      Commission on January 23, 1989,  which is incorporated herein by
      reference.





(3)  Reference
      is made to the correspondingly numbered Exhibit to the Company’s Annual Report
      on Form 10-KSB for the Fiscal Year Ended September 30,
      2001,  which


Exhibit
      is incorporated herein by reference.





(4)  Reference
      is made to the correspondingly numbered Exhibit to the Company’s Annual Report
      on Form 10-KSB for the Fiscal Year Ended September 30,
      2002,  which


Exhibit
      is incorporated herein by reference.





(5)
      Reference is made to the correspondingly numbered Exhibit to the Company’s
      Annual Report on Form 10-KSB for the Fiscal Year Ended September 30, 2003 which
      Exhibit is incorporated herein by reference.





(6)
      Reference is made to the correspondingly numbered Exhibit to the Company’s
      Amendment to Annual Report  on Form 10-KSB/A for the Fiscal Year Ended
      September 30, 2002 which Exhibit is incorporated herein by
      reference.





(7)  Reference
      is made to the correspondingly numbered Exhibit to the
      company’s  Annual Report on Form 10-KSB for the Fiscal Year Ended
      September 30, 2005 which Exhibit is incorporated herein by
      reference.




(8)  Reference
        is made to the correspondingly numbered Exhibit to the
        company’s  Annual Report on Form 10-KSB for the Fiscal Year Ended
        September 30, 2006 which Exhibit is incorporated herein by
        reference.





(b)
            Reports
                on Form 8-K





None





Item
      14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES





The
      information required by this Item is incorporated by reference from our
      definitive Proxy Statement for the 2007 Annual Meeting of
      Stockholders.














SIGNATURES





Pursuant  to
      the  requirements  of  Section  13 or
      15(d) of the  Securities Exchange  Act of
      1934,  the  Company has duly caused this Report to be signed
      on its behalf by the undersigned, hereunto duly authorized.





SYNERGX
      SYSTEMS INC.


(Registrant)


By:/s/DANIEL
      S. TAMKIN


Daniel
      S. Tamkin,


Chief
      Executive Officer and Director





Dated:
      December  26, 2007





In  accordance  with
      the Exchange Act, this report has been signed below by the
      following  persons on behalf of the Company and in the capacities and
      on the


dates
      indicated.





SIGNATURE
              TITLE
              DATE/s/DANIEL
                  S. TAMKIN
                Daniel
                  S. Tamkin
              Chairman,
                  Chief Executive Officer and Director
              December  26,
                  2007/s/JOHN
                  A. POSERINA
                John
                  A. Poserina
              Chief
                  Financial Officer (Principal Accounting and Financial Officer),
                  Secretary, and Director
              December   26,
                  2007/s/HARRIS
                  EPSTEIN
                Harris
                  Epstein
              Director
              December    26,
                  2007/s/PETER
                  BAROTZ
                Peter
                  Barotz
              Director
              December   26,
                  2007/s/MARK
                  LITWIN
                Mark
                  Litwin
              Director
              December    26,
                  2007/s/J.
                  IAN DALRYMPLE
                J.
                  Ian Dalrymple
              Director
              December    26,
                  2007/s/RONALD
                  P. FETZER
                Ronald
                  P. Fetzer
              Director
              December   26,
                  2007











Report
      of
      Independent Registered Public Accounting Firm





To
      the
      Audit Committee, Board of Directors and Shareholders of


Synergx
      Systems Inc.





We
      have
      audited the accompanying  consolidated  balance sheet of
      Synergx Systems Inc. and its  subsidiaries  (the “Company”)
      as of  September  30, 2007 and
      the  related  consolidated statements of
      operations,  stockholders' equity, and cash flows for
      the  years ended September 30, 2007 and 2006.  These
      financial  statements are the  responsibility of the
      Company's management. Our  responsibility is to express
      an  opinion  on
      these  consolidated  financial statements  based
      on our audits.





We  conducted  our  audits  in  accordance  with  the
      standards of the Public Company Accounting Oversight Board (United States).
      Those standards require that we plan and perform the audit  to obtain
      reasonable  assurance about whether the consolidated
      financial  statements are free of
      material  misstatement.    The Company is not
      required to have, nor are we engaged to perform, an audit of its internal
      control over financial reporting.  Our audits included consideration
      of internal control over financial reporting as a basis for designing audit
      procedures that are appropriate in the circumstances, but not for the purpose
      of
      expressing an opinion on the effectiveness of the Company’s control over
      financial reporting.  Accordingly, we express no
      opinion.  An audit also includes examining on a test basis evidence
      supporting the amounts and disclosures in the financial statements, assessing
      the accounting principles used and significant estimates made
      by  management, as well as evaluating  the
      overall  financial  statement  presentation.  We
      believe  that our  audits provide a reasonable basis for our
      opinion.





In
      our
      opinion, the consolidated financial statements referred to above present fairly,
      in all material  respects,  the
      consolidated  financial position of Synergx  Systems Inc.
      and its  subsidiaries as of September 30, 2007 and
      the  consolidated  results of their
      operations  and their cash flows for the  years ended
      September 30, 2007 and 2006,  in conformity  with accounting
      principles generally accepted in the United States of America.





/s/
      MARCUM & KLIEGMAN LLP


New
      York,
      New York




December
      26, 2007




















F1




SYNERGX
                  SYSTEMS INC. AND SUBSIDIARIESCONSOLIDATED
                  BALANCE SHEETSeptember
                  30,2007ASSETSCURRENT
                  ASSETSCash
              
              $
              253,000Accounts
                  receivable, principally trade, less allowancefor
                  doubtful accounts of $350,000
              
              
              6,466,000Inventories,
                  net
              
              
              2,042,000Deferred
                  taxes
              
              
              330,000Prepaid
                  expenses and other current assets
              
              
              888,000TOTAL
                  CURRENT ASSETS
              
              
              9,979,000PROPERTY
                  AND EQUIPMENT -at cost, lessaccumulated
                  depreciation and amortization of $1,837,000
              
              
              831,000OTHER
                  ASSETS
              
              
              233,000TOTAL
                  ASSETS
              
              $
              11,043,000See
                  accompanying Notes to the  Consolidated Financial
                  StatementsF2
   
  SYNERGX
                  SYSTEMS INC. AND SUBSIDIARIESCONSOLIDATED
                  BALANCE SHEETSeptember
                  30,2007LIABILITIES
                  AND STOCKHOLDERS' EQUITYCURRENT
                  LIABILITIESNotes
                  payable - current portion
              
              
              21,000Accounts
                  payable and accrued expenses
              
              
              2,466,000Deferred
                  revenue
              
              
              830,000TOTAL
                  CURRENT LIABILITIES
              
              
              3,317,000OTHER
                  LIABILITIESNote payable to Bank
              
              
              2,071,000Notes
                  payable - less current portion
              
              
              68,000TOTAL
                  LIABILITIES
              
              
              5,456,000COMMITMENTS
                  AND CONTINGENCIESSTOCKHOLDERS'
                  EQUITYPreferred
                  stock, 2,000,000 shares authorized- none issued and
                  outstandingCommon
                  stock, 10,000,000 shares authorized, $.001 par value; issued and
                  outstanding 5,210,950 shares
              
              
              5,000Additional
                  Paid in Captal
              
              
              6,832,000Accumulated
                  deficit
              
              
              (1,250,000
              )TOTAL
                  STOCKHOLDERS' EQUITY
              
              
              5,587,000TOTAL
                  LIABILITIES AND STOCKHOLDERS' EQUITY
              
              $
              11,043,000See
                  accompanying Notes to the Consolidated Financial
                  StatementsF3


SYNERGX
                  SYSTEMS INC. AND SUBSIDIARIESCONSOLIDATED
                  STATEMENTS OF OPERATIONSFor
                  the years ended September 30,2007
              
              
              2006Product
                  sales
              
              $
              12,953,000
              
              
              $
              10,059,000Subcontract
                  sales
              
              
              319,000
              
              
              
              665,000Service
                  revenue
              
              
              5,017,000
              
              
              
              5,101,000Total
                  revenues
              
              
              18,289,000
              
              
              
              15,825,000Cost
                  of product sales
              
              
              10,005,000
              
              
              
              7,381,000Cost
                  of subcontract sales
              
              
              261,000
              
              
              
              538,000Cost
                  of service revenue
              
              
              2,532,000
              
              
              
              2,738,000Selling,
                  general and administrative
              
              
              5,625,000
              
              
              
              5,389,000Depreciation
                  and amortization
              
              
              198,000
              
              
              
              178,000Total
                  operating expenses
              
              
              18,621,000
              
              
              
              16,224,000(Loss)
                  from operations
              
              
              (332,000
              )
              
              
              (399,000
              )Other
                  income (expense):Interest
                  expense
              
              
              (142,000
              )
              
              
              (106,000
              )Gain/(loss)
                  on  equity investment
              
              
              98,000
              
              
              
              (437,000
              )(44,000
              )
              
              
              (543,000
              )(Loss)
                  before provision (benefit) from income taxes
              
              
              (376,000
              )
              
              
              (942,000
              )(Benefit)
                  provision for income taxes from continuing operations:Current
              
              
              11,000
              
              
              
              (76,000
              )Deferred
              
              
              159,000
              
              
              
              (253,000
              )170,000
              
              
              
              (329,000
              )(Loss)
                  from continuing operations
              
              
              (546,000
              )
              
              
              (613,000
              )Discontinued
                  operations (Note 8):(Loss)
                  from discontinued operations
              
              
              --
              
              
              
              (201,000
              )Current
                  income tax (benefit)
              
              
              --
              
              
              
              (69,000
              )(Loss)
                  from discontinued operations
              
              
              --
              
              
              
              (132,000
              )Net
                  (loss)
              
              $
              (546,000
              )
              
              $
              (745,000
              )(Loss)
                  Per Common Share:Basic
                  and diluted (loss)  from continuing operations
              
              $
              (0.10
              )
              
              $
              (0.12
              )Basic
                  and diluted (loss) from discontinued operations
              
              
              --
              
              
              $
              (0.02
              )Basic
                  and diluted (loss) per Share
              
              $
              (0.10
              )
              
              $
              (0.14
              )Basic
                  and diltued weighted average number of commonshares
                  outstanding
              
              
              5,210,950
              
              
              
              5,206,453See
                  accompanying Notes to the  Consolidated Financial
                  StatementsF4
   
  SYNERGX
                  SYSTEMS INC. and SUBSIDIARIESCONSOLIDATED
                  STATEMENTS OF STOCKHOLDERS' EQUITYFOR
                  THE YEARS ENDED SEPTEMBER 30, 2007 and 2006(ACCUMULATEDTOTAL
              
              
              
              
              
              
              
              
              ADDITIONAL
              
              
              DEFICIT)/STOCKHOLDERS'
              
              
              COMMONSTOCK
              
              
              PAID
                  IN
              
              
              RETAINEDEQUITY
              
              
              SHARES
              
              
              AMOUNT
              
              
              CAPITAL
              
              
              EARNINGSBalance
                  at September 30, 2005
              
              $
              6,831,000
              
              
              
              5,192,118
              
              
              $
              5,000
              
              
              $
              6,785,000
              
              
              $
              41,000Exercise
                  of employee stock options
              
              
              9,000
              
              
              
              18,832
              
              
              
              
              
              
              
              9,000Tax
                  benefit of stock option exercise
              
              
              10,000
              
              
              
              
              
              
              
              
              
              
              
              10,000Net
                  (Loss)
              
              
              (745,000
              )
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (745,000
              )Balance
                  at September 30, 2006
              
              
              6,105,000
              
              
              
              5,210,950
              
              
              
              5,000
              
              
              
              6,804,000
              
              
              
              (704,000
              )Net
                  (Loss)
              
              
              (546,000
              )
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (546,000
              )Stock-based
                  compensation
              
              
              28,000
              
              
              
              
              
              
              
              
              
              
              
              28,000Balance
                  at September 30, 2007
              
              $
              5,587,000
              
              
              
              5,210,950
              
              
              $
              5,000
              
              
              $
              6,832,000
              
              
              $
              (1,250,000
              )See
                  accompanying Notes to the Consolidated Financial
                  StatementsF5
   
  SYNERGX
                  SYSTEMS INC. AND SUBSIDIARIESCONSOLIDATED
                  STATEMENTS OF CASH FLOWSFor
                  the Years Ended September 30,2007
              
              
              2006OPERATING
                  ACTIVITIESNet  (Loss)
                  from continuing operations
              
              $
              (546,000
              )
              
              $
              (613,000
              )Adjustments
                  to reconcile net  (loss)  to net cash (used
                  in)provided
                  by operating activities:Depreciation
                  and amortization *
              
              
              226,000
              
              
              
              193,000Deferred
                  tax  (benefit)
              
              
              190,000
              
              
              
              (253,000
              )Share-based
                  compensation
              
              
              28,000Gain
                  on sale of  investment
              
              
              (98,000
              )Loss
                  on equity investment
              
              
              
              
              
              
              437,000Changes
                  in operating assets and liabilities:Accounts
                  receivable, net
              
              
              (447,000
              )
              
              
              290,000Inventories
              
              
              (1,000
              )
              
              
              167,000Prepaid
                  expenses and other current assets
              
              
              (605,000
              )
              
              
              43,000Income
                  tax receivable
              
              
              80,000
              
              
              
              (82,000
              )Other
                  assets
              
              
              (26,000
              )
              
              
              24,000Accounts
                  payable and accrued expenses
              
              
              390,000
              
              
              
              (464,000
              )Deferred
                  revenue
              
              
              (74,000
              )
              
              
              194,000Net
                  cash (used in) provided by continuing operations
              
              
              (883,000
              )
              
              
              (64,000
              )Net
                  cash provided by operating activities of discontinued
                  operation
              
              
              0
              
              
              
              158,000NET
                  CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES
              
              
              (883,000
              )
              
              
              94,000INVESTING
                  ACTIVITIESProceeds
                  from sale of equity investment
              
              
              9,000Proceeds
                  from note receivable
              
              
              21,000Purchases
                  of property and equipment
              
              
              (281,000
              )
              
              
              (256,000
              )Net
                  cash (used in) investing activities of continuing
                  operations
              
              
              (251,000
              )
              
              
              (256,000
              )Proceeds
                  from sale of discontinued operations
              
              
              
              
              
              
              518,000NET
                  CASH  (USED IN) PROVIDED BY INVESTING ACTIVITIES
              
              
              (251,000
              )
              
              
              262,000FINANCING
                  ACTIVITIESPrincipal
                  payments on notes payable
              
              
              (27,000
              )
              
              
              (11,000
              )Payments
                  and proceeds from note payable bank - net
              
              
              1,141,000
              
              
              
              (520,000
              )Proceeds
                  from exercise of stock options and warrants
              
              
              
              
              
              
              9,000Net
                  cash provided by (used in) continuing operations
              
              
              1,114,000
              
              
              
              (522,000
              )Net
                  cash (used in) financing activities of discontinued
                  operations
              
              
              --
              
              
              
              (27,000
              )NET
                  CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
              
              1,114,000
              
              
              
              (549,000
              )NET  (DECREASE)
                  IN CASH
              
              
              (20,000
              )
              
              
              (193,000
              )Cash
                  at beginning of the year
              
              
              273,000
              
              
              
              466,000Cash  at
                  end of the year
              
              
              253,000
              
              
              
              273,000SUPPLEMENTAL
                  CASH FLOW INFORMATION:Cash
                  paid during the period for:Income
                  taxes
              
              $
              13,000
              
              
              $
              48,000Interest
              
              $
              146,000
              
              
              $
              105,000NON-CASH
                  INVESTING AND FINANCING ACTIVITIESNote
                  receivable in amount of $73,000 obtained in consideration for sale
                  of
                  equity investment .Included
                  in the year ended September 30, 2006, was the purchase of equipment
                  for
                  $116,000 through financing.*
                  Depreciation of $27,000 and $15,000 is included in cost of product
                  and
                  service sales for the years ended September 30, 2007and
                  2006, respectively.See
                  accompanying Notes to the Consolidated Financial
                  Statements
              
              
              
              
              
              
              F6


Synergx
              Systems Inc. and Subsidiaries
  Notes
              to Consolidated Financial Statements





1.
      Summary of Significant Accounting Policies





Business





Synergx
      Systems Inc. and Subsidiaries (the ”Company”) operates in one industry segment:
      the design, manufacture, distribution, marketing and service of a variety of
      data communications products and systems with applications in the fire alarm,
      life safety, transit, security and communications industry.  The
      Company conducts its business principally in the New York Metropolitan
      area.





Principles
      of Consolidation





The
      consolidated financial statements include the accounts of Synergx Systems
      Inc.  and its subsidiaries, all of which are wholly owned. The
      principal operating subsidiaries are: Casey Systems Inc. (“Casey”), and Systems
      Service Technology Corp. (“SST”), and  General Sound (Texas) Company
      (“General Sound”), which was sold in May 2006 and is reflected as a discontinued
      operation.  See Note 3 Discontinued Operations. In addition, the
      Company has a payroll disbursing subsidiary FT Clearing Inc. and Comco
      Technologies Inc., a subsidiary that held the investment in Secure 724 LP,
      which
      was sold in March 2007 (see Note 4).  Significant intercompany items
      and transactions have been eliminated in consolidation.





Revenue
      Recognition





Product
      sales include sales of systems,  which are similar in nature, that
      involve fire alarm, life safety and security (CCTV and card access), transit
      (train station platforms and on board systems) and communication (paging,
      announcement and audio/visual).  Product sales represent sales of
      products along with the integration of technical services at a fixed price
      under
      a contract with an electrical contractor or end user customer (building owner
      or
      tenant), or customer agent.  Product sales for long term
      contracts  are recognized, using the percentage-of-completion method
      of accounting.  The effects of changes in contract terms are reflected
      in the accounting period in which they become known.  Contract terms
      provide for billing schedules that differ from revenue recognition and give
      rise
      to costs and estimated profits in excess billings, and billings in excess of
      costs and estimated profits.  Costs and estimated profits in excess of
      billing were $464,000 at September 30, 2007 and have been included in other
      current assets.  Billings in excess of costs and estimated profits
      were $99,000 at September 30, 2007 and have been included in deferred
      revenue.  Product sales for short term contracts are recognized when
      the services are preformed or the product has been delivered, which is when
      title to the product and risk of loss have been substantially transferred to
      the
      customer and collection is reasonably assured.











Revenue
      Recognition (continued)





Subcontract
      sales principally represent revenues related to electrical installation of
      wiring and piping performed by others for the Company when the Company acts
      as
      the prime
      contractor and sells its products along with electrical
      installation.  Revenue is recognized when these services are preformed
      at the job site.





Service
      revenue from separate maintenance contracts is recognized on a straight-line
      basis over the terms of the respective contract, which is generally one
      year.  The unearned service revenue from these contracts is included
      in current liabilities as deferred revenue. Non-contract service revenue is
      recognized when services are performed.





Use
      of
      Estimates





The
      preparation of financial statements in conformity with accounting principles
      generally accepted in the United States of America requires management to make
      estimates and assumptions that affect the reported amounts of assets and
      liabilities and disclosure of contingent assets and liabilities at the date
      of
      the financial statements  and reported amounts of revenues and
      expenses during the reporting period. Actual results could differ from those
      estimates.





Accounts
      Receivable





Accounts
      receivable are reported net of an allowance for doubtful
      accounts.  The adequacy of the allowance is determined by management
      based on a periodic review of the status of the individual accounts
      receivable.





Inventories





Inventories
      are priced at the lower of cost (first–in, first–out) or market and consist
      primarily of raw materials and at September 30, 2007 reflects an inventory
      allowance of $419,000.





Property
      and Equipment





Property
      and equipment are stated at historical cost.





Depreciation
      of machinery and equipment and furniture and fixtures is provided primarily
      by
      the straight–line method over their estimated useful lives (3 to 10
      years).


Amortization
      of leasehold improvements is provided by the straight-line method over the
      life
      of the lease or the economic useful life, whichever is shorter.





Other
      Assets





Other
      assets consist of  security deposits of $48,000,  goodwill
      related to the acquisition of Casey Systems of approximately $34,000, and
      deferred costs of $26,000 related to required independent approval for the
      upgrade to the Company’s Comtrak fire alarm system, which will be amortized over
      the estimated period of sales and restricted cash on deposit with the Company's
      bank of $125,000.





The
      Company does not amortize goodwill but evaluates whether the carrying value
      of
      goodwill has become impaired. This evaluation is performed on an annual basis
      each fiscal year end. The Company has determined that there was no impairment
      of
      goodwill at September 30, 2007.





Advertising
      Costs





Advertising
      costs are expensed as incurred. Advertising costs for the years ended September
      30, 2007 and 2006 amounted to $11,000 and $45,000, respectively.





Research
      and Development Costs





Research
      and development costs are expensed as incurred.  Research and
      development costs for the years ended September 30, 2007 and 2006 amounted
      to
      $304,000 and $114,000, respectively.





Income
      Taxes





The
      Company accounts for income taxes under Statement of Financial Accounting
      Standards (“SFAS”) No. 109, “Accounting for Income Taxes.” Under SFAS
      No. 109, the asset and  liability method is used to determine
      deferred tax assets and liabilities based on the differences between financial
      reporting and tax bases of assets and liabilities and are measured using the
      enacted tax rates and laws that will be in effect when the differences are
      expected to reverse.





Loss
      Per
      Share





SFAS
      No.
      128 “Earnings Per Share” requires companies to report basic and diluted earnings
      (loss) per share computations.  The basic calculation excludes
      dilution and is based on the weighted-average common shares outstanding and
      the
      diluted calculation gives effect to potential dilution of securities that could
      share in the results of the Company.   For the years ended
      September 30, 2007 and 2006, the impact of employees’ options was anti-dilutive,
      therefore these options were excluded from the diluted weighted average common
      shares.








Cash
      Equivalents





The
      Company considers all investments with original maturities of three months
      or
      less when purchased to be cash equivalents.





Restricted
      Cash





In
      connection with the Credit Facility with its bank (see Note 5), the Company
      has
      on deposit $125,000 that is restricted as to use that has been included in
      other assets.





Concentration
      of Credit Risk





The
      Company grants credit to its customers, principally all of which are general
      or
      specialized construction contractors, none of which individually constitutes
      a
      significant portion of outstanding receivables.  The Company does not
      require collateral to support financial instruments subject to credit
      risk.  However, on certain public works projects the Company can
      proceed against bonds if payment is not forthcoming from its
      customers.





At
      September 30, 2007, the Company had cash of approximately $80,000, that is
      in
      excess of insured amount limitations.





Stock
      Options and Similar Equity Instruments





Through
      September 30, 2006 the Company adopted the disclosure requirements of SFAS
      No.
      123, “Accounting for Stock-Based Compensation,” for stock options and similar
      equity instruments (collectively, “Options”) issued to employees; however, the
      Company applied the  intrinsic value based method of accounting for
      options issued to employees prescribed by Accounting Principles Board (“APB”)
      Opinion 25, “Accounting for Stock Issues to Employees,” rather than the fair
      value based method of accounting prescribed by SFAS No. 123.





On
      December 31, 2002, the Financial Accounting Standards Board issued SFAS No.
      148,  Accounting for Stock-Based Compensation-Transition and
      Disclosure.  SFAS No. 148
      amends SFAS No. 123, to provide an alternative method of transition to SFAS
      No.
      123’s fair value method of accounting for stock based employee
      compensation.  SFAS No.148
      also amends the disclosure provisions of SFAS No. 123 and APB Opinion 28,
“Interim Financial Reporting,” to require  disclosure in the summary
      of significant accounting policies of the effects of an entity’s accounting
      policy with respect to stock-based employee compensation on reported net income
      and earnings per share in annual and interim financial
      statements.  While the statement does not amend
      SFAS  No.  123 to require companies to account for employee
      stock options using the fair value
      method, the disclosure provisions of SFAS No. 123 was applicable to all
      companies with stock based employee compensation, regardless of whether they
      account for that compensation using the fair value method of SFAS No. 123,
      or
      the intrinsic value method of APB Opinion 25.





As
      required under SFAS No. 148, the following table illustrates the effect on
      the
      net loss and basic net loss per share if the Company had applied the fair
      value  recognition provisions of SFAS 123R to stock-based employee
      compensation for the year ended September 30, 2006, as follows:







Net
                  (Loss)
              
              $
              (745,000
              )Less:
                  Fair Value of Options issued to
                employees
                  and directors, net of income tax
              
              
              (16,000
              )Pro
                  Forma Net (loss)
              
              $
              (761,000
              )Weighted
                  Average Basic Shares
              
              
              5,206,493Weighted Average Diluted Shares
              
              
              5,206,493Basic
                  Net Loss Per Share as Reported
              
              $
              (.14
              )Basic
                  Pro Forma Net Loss per share
              
              $
              (.15
              )


Effective
      October 1, 2006, the Company adopted the fair value recognition provision of
      Statement of Financial Accounting Standards (“SFAS”) No. 123R “Accounting for
      Share-Based Payment Compensation,” (Revised 2004), disclosure requirements of
      SFAS No. 123R, using the modified-prospective-transition method for stock
      options and similar equity instruments (collectively, “Options”) issued to
      employees.  As a result, the Company recorded stock based compensation
      of $27,785 during year ended September 30,  2007.





On
      January 22, 2007 10,000 stock options were granted at an exercise price of
      $1.70
      per share to be vested ratably over five years.





The
      Black-Scholes option valuation model was used to estimate the fair value of
      the


options
      granted.  The model includes subjective input assumptions that can
      materially affect the fair value estimates. The model was developed for use
      in
      estimating the fair value of traded options that have no vesting restrictions
      and that are fully transferable.

















Stock
      Options and Similar Equity Instruments (continued)





The
      expected volatility is estimated based on the most recent historical period
      of
      time equal to the weighted average life of the options granted. Principal
      assumptions used in applying the Black-Scholes model along with the results
      from
      the model are as follows:





Assumptions:


Risk-free
      interest
      rate                         4.77%


Dividend                                                  0


Expected
      life in
      years                     5
      years


Expected
      volatility                                154%





2.
      Property and Equipment





Property
      and equipment  at September 30, 2007 are summarized as
      follows:


Machinery
                  and equipment
              
              $
              2,363,000Furniture
                  and fixtures
              
              
              171,000Leasehold
                  improvements
              
              
              134,0002,668,000Less
                  accumulated depreciation and amortization
              
              
              1,837,000$
              831,000


Depreciation
      and amortization expense related to these assets were $226,000 and $189,000
      for
      the years ended September 30, 2007 and 2006, respectively.





3.  Discontinued
      Operations





On
      May
      31, 2006, the Company’s wholly owned subsidiary, General Sound (Texas) Company
      (“General Sound”) that operated in Dallas/Ft. Worth, Texas sold its inventory,
      property, trade name, business and operations to LCR Sound, a Texas
      company.  The operations of General Sound are reported as discontinued
      for the year ended September 30, 2006 in the Consolidated Financial Statements.
      Under terms of an Asset Purchase Agreement, General Sound received cash
      proceeds from the buyer of $518,000 for its inventory, property and equipment
      and goodwill resulting in a gain of $197,901.  The buyer assumed
      responsibility for the remaining term of the lease for its office and warehouse
      space.  General Sound retained cash and all accounts receivable and
      remains responsible for all existing liabilities, which have been paid as of
      September 30, 2007.








3.  Discontinued
      Operations (continued)





The
      results of the discontinued operations for the year ended September 30, 2006
      is
      as follows:





2006


Sales                                        
      $1,398,809


Cost
      of
      Sales                            
1,113,211


Operating
      expenses                   
684,584


Operating
      (loss)                      
($398,986)





Gain
      on sale of
      assets                
197,901





(Loss)
      income before taxes      ($201,085)








4.  Sale
      of the Investment in Secure 724 LP





The
      Company had a 25% equity investment in and loans to Secure 724 LP which were
      determined to be impaired at September 30, 2006 and a charge of $377,264 was
      recorded to fully reserve for recovery of these investments.  In March
      2007, the company sold its entire interest in Secure 724 LP to Avante Security
      (the general managing partner of Secure 724 LP) for consideration of
      $97,323.  The Company received cash of $9,218 and a note receivable of
      $88,105 on the closing date.  The note was payable with interest
      beginning April 30, 2007 with principal payments of $3,673 per month through
      August 31, 2007 and a final payment at September 30, 2007.  The
      $68,182 final payment of the note was made in October 2007 and is included
      in
      prepaid expenses and other current assets.





The
      sales
      agreement also provides for an additional variable payment based on sales of
      Secure 724 LP product up to a maximum additional payment of
      $73,455.  This additional payment, if any, will be earned
      when,  and if Secure 724 LP generates revenues.  The Company
      received $1,075 of the variable payment during 2007.





Total
      sale proceeds of $97,323 plus the $1,075 variable payment made through September
      30, 2007 was recorded as a $98,398 gain on sale of equity investment during
      the
      year ended September 30, 2007.





5.  Note
      Payable to Bank





The
      Company has a $3.5 million revolving credit facility with TD
      Banknorth   (the “Credit Facility”).  The Credit
      Facility has an annual interest rate of prime plus 1⁄4% on outstanding balances
      (8.50% at September 30, 2007) and was to expire in June 2007.  On
      December 26, 2007, the credit facility was extended to expire on January
      31, 2009.  The Credit Facility is secured by all assets of the
      Company and all of its operating subsidiaries.  Advances under this
      Credit Facility are measured against a borrowing base calculated on eligible
      accounts receivable and inventories.





At
      September 30, 2007, the full amount of the Credit Facility was available under
      the borrowing base calculation and $2,071,000 was outstanding under this
      facility.





The
        Credit Facility includes certain restrictive covenants, which among other
        things, impose limitations on declaring or paying dividends, acquisitions,
        and
        capital expenditures.  The Company is also required to maintain
        certain financial ratios and tangible net worth covenants.  At
        September 30, 2007, the Company did not meet one of its financial covenants
        related to its debt service coverage ratio. However, the requirement of this
        covenant was waived by TD Banknorth in conjunction with the agreement to
        extend
        the Credit Facility.


6.
      Long
      Term Debt – Notes Payable





As
      of
      September 30, 2007, the Company had notes payable associated with purchases
      of
      certain assets of which their annual maturities are as follows:





Notes
                Payable2008
            
            
            22,0002009
            
            
            22,0002010
            
            
            22,0002011
            
            
            23,000Total
            
            $
            89,000





7.  Lease
      Commitments





The
      Company leases certain office and warehouse space under
      non-cancelable  operating leases expiring at various times through
      2012. In February 2000, the Company signed a lease for office, manufacturing
      and
      warehouse space in Syosset,  New York.  An additional 700
      square feet of space was added to the lease in August 2004 and in 2006, the
      lease was extended  on similar terms to expire June 30,
      2012.   The  lease provides for monthly rent of $17,800
      during 2007 with 3.3% yearly increases through the expiration of the lease
      in
      June 2012.





The
      Company has a non-cancelable lease for its service center in New York City
      that
      became effective August 2002 and runs through December 31, 2009.  The
      lease is for office
      and warehouse space and provides for yearly rental of $84,000 during the first
      year plus expenses with yearly escalation of 2% each year
      thereafter.











7.  Lease
      Commitments (continued)





The
      following is a schedule of future minimum payments, by year and in the
      aggregate, under operating leases with initial or remaining terms of one year
      or
      more at September 30, 2007:





Total
                Operating Leases2008
            
            
            310,0002009
            
            
            344,0002010
            
            
            232,0002011
            
            
            241,0002012
            
            
            186,000Total
                minimum lease payments
            
            $
            1,313,000





Rental
      expense amounted to $334,000 and $299**,**000, for the years ended
      September 30, 2007 and 2006, respectively.





8.
      Significant Customers and Suppliers





During
      fiscal 2007, one customer accounted for more than 10% of sales and one supplier
      accounted for more than 10% of the Company’s cost of sales in
      2007.  At September 30, 2007, one customer accounted for more than 10%
      of accounts receivable.





During
      fiscal 2006, no customer accounted for more than 10% of sales and no one
      supplier accounted for more than 10% of the Company’s cost of
      sales.













9  Income
      Taxes





A
      reconciliation of the provision (benefit) for income taxes with the amounts
      computed by applying the statutory federal income tax rate is as
      follows:


Year
                Ended September 30,2007
            
            
            2006Statutory
                federal income tax rate
            
            
            34
            %
            
            
            34
            %Computed
                expected tax (benefit) from income (loss) from continuing operations
                before  income tax
            
            $
            (128,000
            )
            
            $
            (320,000
            )Increase
                (decrease)in taxes resulting from:State
                and local income tax (benefit), net of Federal income tax
            
            
            9,000
            
            
            
            (72,000
            )Nondeductible
                expenses
            
            
            2,000
            
            
            
            3,000Valuation
                allowance
            
            
            330,000Other
            
            
            (43,000
            )
            
            
            60,000Income
                tax expense (benefit) from continuing operations
            
            $
            170,000
            
            
            $
            (329,000
            )





The
      Company did not have state and local franchise and capital taxes for the years
      ended September 30, 2007 and provided $4,000 (minimum taxes) the year ended
      September 30, 2006. These expenses have been included in selling, general and
      administrative expenses for each of the years presented.





The
      Company has recorded a net current deferred tax asset at September 30,
      2007.  This deferred tax asset relates to certain accelerated tax
      deductions or book provisions to be deducted in future tax returns and
      utilization of the 2007 and 2006 net operating loss
      carryforwards.  Management anticipates profitable operations to resume
      at a level that will result in the utilization of  a portion of the
      deferred tax assets. Accordingly, a partial valuation allowance in the amount
      of
      $330,000 was recorded in the year ended and as of September 30,
      2007.











9  Income
      Taxes (continued)





The
      components of deferred tax assets and liabilities at September 30, 2007 consist
      of the following:





Deferred
                  Tax AssetsAllowance
                  for doubtful accounts
              $
              140,000Inventory
                  reserve
              
              148,000Net
                  operating loss carryforward (through 2026)
              
              292,000Total
                  Deferred Tax Asset
              
              580,000Valuation
                  allowance
              
              (250,000
              )Net
                  Deferred Tax Asset
              $
              330,000Non
                  Current Deferred Tax Asset/LiabilityNet
                  operating loss carryforward (through 2026)
              $
              63,000Capital
                  loss carryforward (through 2012)
              
              95,000Depreciation
                  and amortization
              
              (90,000
              )Other
              
              12,000Total
                  Non Current Deferred Tax Asset
              
              80,000Valuation
                  allowance
              
              (80,000
              )Net
                  Non Current Deferred Tax Asset
              $
              0





10.   STOCK
      OPTIONS





In
      March
      2004, the Company and its stockholders adopted a nonqualified stock option
      plan
      (“2004 Plan”), which will expire March 10, 2009, except as to options
      outstanding under a prior 1997 Plan. Under the 2004 Plan, the Board of Directors
      may grant options to eligible employees at exercise prices not less than 100%
      of
      the fair market value of the common shares at the time the options are granted.
      The number of shares of


Common
      Stock that may be issued shall not exceed an aggregate of up to 10% of the
      Company’s issued  and outstanding shares from time to
      time.  Options vest at a rate of 20% per year commencing one year
      after date of grant.  Issuances under the 2004





Plan
      are
      to be reduced by options outstanding under the prior 1997 nonqualified stock
      option plan.





On
      January 22, 2007 10,000 stock options were granted at an exercise price of
      $1.70
      per share to be vested ratably over five years.





A
      summary
      of the option activity and changes during the years ended September 30, 2007
      and
      2006 are presented below:








10. STOCK
      OPTIONS (continued)


Weighted
                Average
                Exercise
                Price
              
              Weighted
                Average
                Remaining
                Contractual
                Term
              
              Weighted
                Average
                Grant
                  Date
                Intrinsic
                Value
              
              Weighted
                Average
                Grant
                  Date
                Fair
                    ValueOutstanding
                  October 1, 2005
              
              150,324
              
              
              $
              2.23
              
              4.4
                  Yrs
              
              
              -0-
              
              
              1.21Exercised
              
              (18,832
              )
              
              
              .50
              
              .3
                  Yrs
              
              
              -0-
              
              
              1.21Forfeited
              
              (23,492
              )
              
              
              2.37
              
              4.4
                  Yrs
              
              
              -0-
              
              
              1.21Outstanding
                  October 1, 2006
              
              108,000
              
              
              $
              2.50
              
              3.4
                  Yrs
              
              
              -0-
              
              
              1.21Granted
              
              10,000
              
              
              
              1.70
              
              5.0
                  Yrs
              
              
              -0-
              
              
              1.50Forfeited
              
              (2,000
              )
              
              
              2.50
              
              3.0
                  Yrs
              
              
              -0-
              
              
              1.21Outstanding
                  September 30, 2007
              
              116,000
              
              
              
              2.43
              
              2.8
                  Yrs
              
              
              -0-.
              
              
              1.24Exercisable
                  at September 30, 2007
              
              42,400
              
              
              
              2.50
              
              2.4
                  Yrs
              
              
              -0-
              
              
              1.21


A
      summary
      of the option activity of nonvested shares at September 30, 2006 and 2007,
      and
      changes during the years ended September 30, 2006 and 2007 is presented
      below:





Weighted
                Average
                Grant
                  Date
                Fair
                  ValueNonvested
                  at October 1, 2005
              
              
              131,931
              
              
              $
              1.21Vested
              
              
              (23,531
              )
              
              
              1.21Forfeited
              
              
              (22,000
              )
              
              
              1.21Nonvested
                  at October 1, 2006
              
              
              86,400
              
              
              
              1.21Vested
              
              
              (21,600
              )
              
              
              1.21Granted
              
              
              10,000
              
              
              
              1.50Forfeited
              
              
              (1,200
              )
              
              
              1.21Nonvested
                  at September 30, 2007
              
              
              73,600
              
              
              $
              1.25


The
      Company has $72,733 of deferred stock based compensation expense remaining
      to be
      expensed over the period from October 2007 through January 2012.





11.
      Contingencies





In
      the
      normal course of its operations, the Company has been, or from time to time
      may
      be, named in legal actions seeking monetary damages. Management does not expect,
      based upon consultation with legal counsel, that any item exists that will
      have
      a significant impact on the Company’s business or financial
      condition.








12.
      Other





Approximately
      34% of the Company’s employees are covered by collective bargaining agreements.
      On July 10, 2005, the union representing hourly employees and the Company
      ratified a Collective Bargaining Agreement expiring March 9, 2009, providing
      for
      an increase in salaries and benefits averaging approximately 4% per year over
      the life
      of
      the contract. Effective January 1, 1996, the Board of Directors instituted
      a 401K plan for non-union employees. The plan includes a profit sharing
      provision at the discretion of the Board of Directors.  There was no
      profit sharing contribution in 2007 and 2006.





13.
      Fair
      Value of Financial Instruments





SFAS
      No.
      107, “Disclosures about Fair Values of Financial Instruments,” requires
      disclosing fair value to the extent practicable for financial instruments which
      are recognized or unrecognized in the balance sheet. The fair value of the
      financial


instruments
      disclosed herein is not necessarily representative of the amount that could
      be
      realized or settled, nor does the fair value amount consider the tax
      consequences of realization or settlement.





The
      carrying amount of cash and cash equivalents, trade receivables and payables,
      and short-term debt, approximates fair value because of the near term maturities
      of such obligations.  The fair value of long-term debt was determined
      based  on current rates at which the Company could borrow funds with
      similar remaining maturities, which amount approximates its carrying
      value.





14  New
      Accounting Pronouncement





In
      July
      2006, the Financial Acoounting Standard Board (“FASB”) released FASB
      Interpretation No. 48, “Accounting for Uncertainty in Income Taxes, an
      interpretation of SFAS No. 109” (“FIN 48”). FIN 48 clarifies the accounting and
      reporting for uncertainties in income tax law. FIN 48 prescribes a comprehensive
      model for the financial statement recognition, measurement, presentation and
      disclosure of uncertain tax positions taken or expected to be taken in income
      tax returns. FIN 48 shall be effective for fiscal years beginning after December
      15, 2006. Earlier adoption is permitted
      as of the beginning of an enterprise’s fiscal year, provided the enterprise has
      not yet issued financial statements, including financial statements for any
      interim period for that fiscal year. The cumulative effects, if any, of applying
      FIN 48 will be recorded as an adjustment to retained earnings as of the
      beginning of the period of adoption. The Company has commenced the process
      of
      evaluating the expected effect of FIN 48 on its financial position and results
      of operations and  has not yet determined such effects.





14.
      New
      Accounting Pronouncement (continued)





In
      September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements” (“SFAS
      157”). This statement defines fair value, establishes a framework for measuring
      fair value in accordance with accounting principles generally accepted in the
      United 14.


States
      (“GAAP”), and expands disclosures about fair value measurements. SFAS 157 does
      not require any new fair value measurements. However, for some entities, the
      application of SFAS 157 will change current practice. SFAS 157 is effective
      for
      financial statements issued for fiscal years beginning after November 15, 2007,
      and interim.


periods
      within those fiscal years, with earlier application permitted. The Company
      does
      not expect SFAS 157 to have a material impact on the Company’s financial
      position or results of operations.





In
      February 2007, the FASB, issued SFAS 159, “The Fair Value Option for Financial
      Assets and Financial Liabilities” (“SFAS 159”).  SFAS 159 provides
      companies with an option to report selected financial assets and liabilities
      at
      fair value and establishes presentation and disclosure requirements designed
      to
      facilitate comparisons between companies that choose different measurement
      attributes for similar types of assets and liabilities.  SFAS 159 is
      effective for fiscal years beginning after November 15, 2007.  The
      Company does not expect SFAS 159 to have a material impact on the Company’s
      financial position or results of operations.