UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
        Washington, D.C. 20549

FORM 10-K



(Mark One)

þAnnual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year endedDecember 31,
        2008.

o Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from
        to .



Commission file number:000-51763



COMCAM INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)



|Delaware

                    (State or other jurisdiction of

                    incorporation or organization) | 23-2976562

                    (I.R.S. Employer

                    Identification No.)
|----------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------



1140 McDermott Drive, West Chester, Pennsylvania 19380

(Address of principal executive offices) (Zip Code)



(610) 436-8089

(Issuer’s telephone number, including area code)



Securities registered under Section 12(b) of the Exchange Act: none.

Securities registered under Section 12(g) of the Exchange Act: common stock (title of class), $0.0001 par value.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act of 1933: Yes oNo þ.
        Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act: Yes oNo þ.

Indicate by check mark whether the registrant: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes o No
        þ.

Indicate by check mark if disclosure of delinquent filers in response to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K o.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company as defined by Rule 12b-2 of the Exchange Act: smaller reporting company
        þ.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes o No þ.

The aggregate market value of the registrant's common stock, $0.0001 par value, held by non-affiliates (4,213,634 shares) was approximately $4,002,952 based on the average of the bid and ask price ($0.95) for the common stock on December 28, 2009.

At December 31, 2009, the number of shares outstanding of the registrant's common stock, $0.0001 par value (the only class of voting stock), was 6,548,354.

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TABLE OF CONTENTS



|          |                                                                                                                                    |  |  |      |  | 
|--------- | ---------------------------------------------------------------------------------------------------------------------------------- |  |  | ---- |  | 
|          |                                                                                                                                    |  |  | Page
|          |                                                                                                                                    |  |  |     
|PART I.   |                                                                                                                                    |  |  |     
|          | Item       1.        Business                                                                                                      |  |  | 3    | 
|          | Item       1A.      Risk Factors                                                                                                   |  |  | 13   | 
|          | Item       1B.      Unresolved Staff Comments                                                                                      |  |  | 19   | 
|          | Item       2.        Properties                                                                                                    |  |  | 19   | 
|          | Item       3.        Legal Proceedings                                                                                             |  |  | 19   | 
|          | Item       4.        Submission of Matters to a Vote of Security Holders                                                           |  |  | 19   | 
|PART II.  |                                                                                                                                    |  |  |     
|          | Item       5.        Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities |  |  | 19   | 
|          | Item       6.        Selected Financial Data                                                                                       |  |  | 21   | 
|          | Item       7.        Management's Discussion and Analysis of Financial Condition and Results of Operations                         |  |  | 21   | 
|          | Item       7A.     Quantitative and Qualitative Disclosures about Market Risk                                                      |  |  | 28   | 
|          | Item       8.        Financial Statements and Supplementary Data                                                                   |  |  | 28   | 
|          | Item       9.        Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                          |  |  | 29   | 
|          | Item       9A.     Controls and Procedures (Item 9A (T))                                                                           |  |  | 29   | 
|          | Item       9B.     Other Information                                                                                               |  |  | 31   | 
|PART III. |                                                                                                                                    |  |  |     
|          | Item     10.      Directors, Executive Officers and Corporate Governance                                                           |  |  | 31   | 
|          | Item     11.      Executive Compensation                                                                                           |  |  | 34   | 
|          | Item     12.      Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                   |  |  | 35   | 
|          | Item     13.      Certain Relationships and Related Transactions, and Director Independence                                        |  |  | 35   | 
|          | Item     14.      Principal Accountant Fees and Services                                                                           |  |  | 35   | 
|PART IV.  |                                                                                                                                    |  |  |     
|          | Item     15.      Exhibits and Financial Statement Schedules                                                                       |  |  | 36   | 
|          | Signatures                                                                                                                         |  |  | 37   | 
|          |                                                                                                                                    |  |  |     

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PART I



ITEM 1.BUSINESS



As used herein the terms “Company,” “we,” “our,” and “us” refer to ComCam International, Inc., and its predecessor, unless context indicates otherwise.



Corporate History



The Company was incorporated as “Embedded Technology Group Inc.” on September 18, 1998, in the State of Delaware. Our name was changed to “ComCam International, Inc.” on February 19, 1999. On June 3, 2002, the Company was acquired by ComCam, Inc. We operated as a wholly-owned subsidiary
        of ComCam, Inc. until December 28, 2007, when 100% of our shares were distributed as a dividend to ComCam, Inc.’s shareholders on a pro rata basis of one share of our common stock for every twenty shares of ComCam,
        Inc.’s common stock held as of the record date, December 7, 2007. The board of directors of ComCam, Inc. decided to “spin-off” the Company in order to separately focus the attention of the financial community on our business, with the intention of improving our access to financing.



The Company’s principal place of business is located at 1140 McDermott Drive, Suite 200, West Chester, Pennsylvania, 19380, and our telephone number is (610) 436-8089.
         
        The Company’s registered agent is Delaware Registry Ltd., 3511 Silverside Road, Suite 105, Wilmington, Delaware, 19810.



The Company



Summary



The Company develops network video command-and-control products and provides solutions and technical services to U.S. government agencies, Fortune 500 companies, research facilities, original equipment manufacturers and systems integrators worldwide.
        The Company is both a network solution innovator and a provider of fusion technologies for security products and modern networks. Its proprietary digital wireless camera/management systems address complex command-and-control applications, from rapid deployment military use to borders, ports, airports and detention facilities.

The Company’s video fusion platform adds next generation, real-time interactive command-and-control capabilities to legacy security systems for greater performance at lower cost. The platform seamlessly integrates a suite of analytics, including
        third-party security solutions – access control, biometrics, radio frequency identification (RFID), chemical detection and seismic detection – to improve real-time decision-making for critical events over any wireless network.

The Company was responsible for introducing the world’s first wireless camera networking system using the current wireless standard, as well as developing the world’s smallest IP network recording device.



On its own or working with prime government contractors like DRS, Motorola, Siemens, and other strategic partners, the Company’s products are deployed in such diverse locales as JFK airport in New York City, isolated sections of the Texas-Mexico border, and remote mountain passes in Afghanistan.



3





The Company’s intellectual capital includes patents and a library of proprietary hardware and software implemented through the sale or licensing of: 1) intelligent camera and micro-server devices, 2) a suite of software and software toolkits for command & control, mobile display, and storage/data management, and 3) specialized
        "Intelligent Video Analysis" software applications using biometrics, sensors, motion detection/tracking, access control, and other functions.



The Company’s video networking system is comprised of proprietary hardware (namely our “COMCAM Series 10” cameras and micro-servers) and software (including the “C3” and “Pocket C3”), and other components that are programmable and can be reconfigured to integrate a wide variety of complementary applications. Our competitive features
        include:



| | · | high performance with low-power consumption;
| | - | --------------------------------------------

| | · | proprietary, low bandwidth compression;
| | - | ---------------------------------------

| | · | Data fusion with video;
| | - | -----------------------

| | · | frame-by-frame encryption, motion-detection, access-control and other software capabilities; and
| | - | ------------------------------------------------------------------------------------------------

| | · | multiple input/output ports.
| | - | ----------------------------



All of our products use flexible viewer/recorder software that runs on PCs, handheld personal digital assistants (“PDAs”), and cell phones. The operating platform is a hardware and software solution which can integrate old-style analog systems with next-generation IP surveillance/security applications.



The target for our next-generation video products, solutions, and services is the growing global market for fixed and mobile security applications over a wide range of uses. In addition to the homeland security market, applications exist in telemedicine, transportation monitoring, process control and customized solutions in high-margin specialty and mass-market sectors within
        corporate, government, and residential markets.



During 2008, we sold a limited quantity of units which were primarily used as pilot applications for testing purposes. Our customers have included certain United States Governmental agencies as well as private firms. Our marketing goal is to procure government contracts, expand our commercial business and, in the future, penetrate the retail market offering a monthly
        subscription model.



The Security Surveillance Industry



Since the beginning of the new century there have been repeated calls for improvement in everyday security measures. The immediate result of this concern has been a significant increase in the demand for effective security systems. Both face-recognition software and video-monitoring surveillance systems are receiving considerable attention in terms of what technology can do
        to manage security environments more effectively.



The security surveillance and monitoring industry is large and fragmented with no dominant leader. Providers are comprised of thousands of manufacturing, distribution, and installation/service companies engaged in the task of safeguarding public and/or private facilities, personnel, and assets. The threat of terrorism, higher crime rates, and computer vulnerability have all
        had an effect on creating a growing demand for security related products. Among the services and products available are access control and identification programs, alarm systems, biometrics, surveillance equipment, computer security, home automation, integrated systems, intrusion alarms with monitoring, and GPS mobile securities.



4





Over the last 20 years, video monitoring and surveillance applications have been served by analog technology, which requires heavy maintenance, does not offer remote accessibility, and is notoriously difficult to integrate with other information technology systems. In addition, searching for a sequence on videotape has traditionally taken hours of playback and searching.
        Despite these drawbacks, analog technology was popular within the security markets. Until recently, video in security applications was primarily used to provide raw data. However, new technology enables more precise information, making it possible to communicate, make decisions, and activate an immediate response to any perceived threat. Advances in communication technologies now make it easier to convert video into valuable real-time or time-lapsed information. Digital cameras today
        can be plugged into a standard computer network and offer greater performance and reliability than analog cameras. Large video archives can now be easily stored. Importantly, digital video archives can be indexed and specific video clips located quickly and easily. New product introductions or enhancements, declining market prices for component parts and products, and competing or overlapping systems and technologies characterize the dynamic nature of the security surveillance industry
        today. The potential for the burgeoning digital video market is evident as the industry makes the transition from analog to digital technology.



New Technology



The rapid growth of video monitoring surveillance has fostered a technology revolution from analog to digital format and the use of IP networks to enable the distribution of video over the Internet. In addition, the rapid adoption of wireless capabilities on laptop computers, cell phones, PDA’s, and other devices has expanded the mobile computing environment. A new
        technology, the IP-surveillance solution, creates digitized video streams that, when transferred via a computer network either over a wire line or wirelessly, enable remote monitoring from almost anywhere in the world.



IP-surveillance enables users to develop an open digital surveillance system by providing solutions for converting analog images into an easily distributable digital format. The high-resolution digital images can be viewed, stored, or transferred anywhere on a computer network. IP-surveillance has enormous performance advantages over analog video monitoring systems as well as
        substantial cost savings, which include:



| | · | Faster installation and step by step implementation;
| | - | ----------------------------------------------------

| | · | Lower maintenance costs;
| | - | ------------------------

| | · | Decreasing digital technology prices;
| | - | -------------------------------------

| | · | Capacity for integration; and
| | - | -----------------------------

| | · | Wireless remote accessibility that decreases costs.
| | - | ---------------------------------------------------



The networking video system utilized by the Company is a hardware and software solution that integrates existing analog as well as next-generation IP-surveillance and security applications. This technology has come about as a result of our multi-disciplinary research and development effort combining video systems design with related software products.



Hardware Products: the ComCam 10 Series



A traditional commercial digital video system incorporates three components: (1) the camera or video-capture device, (2) the player or video-display device, and (3) the server, storage medium, or data-management device. The Company assembles all three components and offers them as one integrated system, the ComCam 10 series.

5







The ComCam 10 series uses technologies for video capture, compression, analysis, and transmission capabilities. ComCam 10 technology works in all wired and wireless networks, including the internet. ComCam 10 operates to licensed standards (e.g., cellular phones) and unlicensed standards (e.g., the IEEE 802.11b Wireless standard and Bluetooth). The ComCam 10 series product
        compatibility represents a competitive advantage since it can be deployed in over one hundred countries around the world.

Compression is the key factor for effective IP-surveillance. The ComCam 10 system operates in digital format with a very sophisticated video compression technology that achieves a 300 to 500 percent improvement over the leading conventional compression solution JPEG and is more dynamic than MPEG.



Sophisticated software, embedded in the ComCam 10 camera and micro-server, compresses and manages a broadband video signal in real-time before transmitting it either via a wire line or wirelessly. Video entering the device’s IDNC network processor is converted to digital data, compressed, and formatted for local storage or direct transmission to a network server. The
        ComCam 10 enables easy data trans-coding to any data format which facilitates fast transmission to a variety of devices, such as cell phones, PDA’s, etc.



The Company’s technology operates with minimal power consumption, enabling the use of solar panels as a power source for full functionality in remote locations such as weather stations and border crossings.



Other Hardware Products



In addition to the ComCam 10 series, the Company offers the following hardware items:



| | · | Asset Tracking System developed by ComCam and used by DHS ICE in New York, including Integrated IP, sensor array, and network barcode devices;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------

| | · | Video MicroServers adapt legacy closed circuit television (CCTV) and Mil-Spec i maging products and sensors to enable IP command and control capability;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | High-end IP cameras (including the CF-130, a 1.3 mega pixel camera that delivers crisp, uncompressed, digital video over long distances previously unattainable by conventional camera systems, with both night and day capability );
                    and
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Original equipment manufacture (OEM) board sets.
| | - | ------------------------------------------------



Software Products: the C3 and Pocket C3



The Company offers five recently upgraded software products that work in concert with our custom hardware platform, the most important of which are the “Camera Control Centers,” the C3 and the Pocket C3. The C3 brings control room video and storage to laptops—in a choice of seven languages. Pocket C3 extends our proven network security applications and
        surveillance software to the PDA and smart-phone market sectors.



Video data can be transmitted over standard networks using any type of transmission media, such as Ethernet, wireless LAN, or conventional dial-up phone lines. Data is then received by a computer running the Company’s viewer program, the C3 or Pocket C3, which decodes and decompresses the images for viewing or archiving. The C3 and Pocket C3 can also be used to send
        proprietary user commands back to the ComCam 10 through the same path used to transmit the video data. Commands are decoded by the ComCam 10 and can be used to control remote devices such as pan/tilt/zoom camera domes and door locks. The Company’s unique management software modules can serve as stand-alone applications or browsers that can facilitate customization (i.e., translations) by local resellers, as well as interfacing with third-party devices from the consumer Compaq
        I-PAQ to the industrialized Symbol MC-50, both of which are PDAs that can be used as monitors and controls for our devices.

6







Other Software Products



In addition to the C3 and Pocket C3, the Company offers the following software items:



| | · | CamNos, a camera operating system, embedded;
| | - | --------------------------------------------

| | · | VideoLocker©, a video recording system;
| | - | ---------------------------------------

| | · | ICE (Immigration and Customs Enforcement) Tracker©;
| | - | ---------------------------------------------------

| | · | Intelligent Video Analysis, a facial, license plate, etc., recognition system;
| | - | ------------------------------------------------------------------------------

| | · | Browser (thin client);
| | - | ----------------------

| | · | Development kits;
| | - | -----------------

| | · | Remote servers; and
| | - | -------------------

| | · | Custom applications.
| | - | --------------------



Our software is compliant with Environmental Systems Research Institute (ESRI) GIS (geographic information system) modeling and mapping software and technology.



New Products



The Company’s next development target is the production of a powerful video client server on a computer chip.



Manufacturing



We began manufacturing with Pennsylvania-based Strategic Manufacturing Technologies, Inc. (“Strategic”), located at 505 Trestle Place, Downingtown, Pennsylvania, 19353, in October of 2005. We have no manufacturing agreement in place. Based on our purchase orders, Strategic obtains the necessary computer and camera components from source suppliers such as Motorola,
        Inc., and Analog Devices, Inc. Strategic then uses these components to manufacture and assemble our camera systems. Following Strategic’s manufacturing process we perform any needed final assembly in-house. Our customers then install their purchased units and we provide ongoing technical support.



The Company has begun a limited but scheduled delivery of its products from Strategic. Historically, we have had a time lag between purchases and delivery of our product. However, since our first purchase from Strategic, we are now able to stock our products for immediate distribution.

Customers



During the last few years, most of our sales have been for pilot applications and testing purposes, as well as providing consulting services and expert witness testimony. Our unrelated customers have included:



| | · | The U.S. Department of Homeland Security’s ICE (Immigration and Customs Enforcement): in the fourth quarter of 2007 they used our technical skills, including the development of
                    a Detainee Tracking System, to upgrade key infrastructure technology for ICE’s General Service Administration (GSA) facility located in lower Manhattan of New York City (we are a contender for a multi-facility deployment after an extended test period);
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Technology Service Corporation: they have purchased three video security systems, and we have provided software expertise as part of a team for product integration;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | University of South Florida, St. Petersburg, working with the Coast Guard and the Department of Commerce: they have purchased ten video security systems for work on port system security vehicles;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7







| | · | Fish & Richards, PC, San Diego, CA: we consulted for them in the capacity of an expert witness in a high-profile infringement case; and
| | - | ---------------------------------------------------------------------------------------------------------------------------------------

| | · | Strela-Development AG, Switzerland: we have provided software development.
| | - | --------------------------------------------------------------------------



Our related customers include Pinnacle Electronic Systems, Inc. of West Chester, Pennsylvania, who purchased two video security systems, and our provision of software consulting services for
        two projects, the Federal Detention Center (Brooklyn, New York) and the Liberty Center (Philadelphia, Pennsylvania).
          
        Additionally, we have delivered video systems to the National Oceanic & Atmospheric Administration (Department of Commerce) and the State of Washington Fish and Wildlife Service.



Marketing and Sales Opportunities



The Company’s marketing and sales team operates from West Chester, Pennsylvania and targets the following market segments.

| | 1. | We sell directly to end-users, with a focus on the government, specifically the Department of Homeland Security and U.S. Ports of Entry. In this space, the Company can leverage its extensive relationships throughout the law enforcement, military and intelligence communities, thereby capitalizing on a virtually recession-proof market experiencing phenomenal growth.
                    IMS Research in its Global Homeland Security, Homeland Defense & Intelligence Markets Outlook 2009-2018 reports that homeland security expenditures for Homeland Security, Homeland Defense and Counter Terror Intelligence are expected to increase from their current level of $418 billion in 2009 to $748 billion annually in 2018.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2. | Leverage our products’ mobile and wireless strengths to address the large and growing market for mobile video surveillance equipment. The World Market for Mobile Video Surveillance Equipment as outlined by IMS Research was
                    estimated at over $375M in 2008 and growing exponentially. The market is highly fragmented with no supplier holding over 10% market share. Transport operators face more threats than ever before whether from fraudulent insurance claims, vandalism or maintaining good driving practices. High profile terrorist attacks on public transportation have also highlighted the need for increased video surveillance. Governments around the world are identifying transit security as an
                    important part of their economic stimulus packages. The Company’s wireless surveillance and access control systems combine cutting-edge patented software and hardware; total system integration command and control solutions for major security agencies and others.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 3. | We intend to sell our products and/or licenses for our core proprietary technology to original equipment manufacturers (“OEMs”) as well as other key technology providers such as software developers and network systems operators who may in turn integrate our technology with their own branded products. Since 2002 we have been a supplier of original
                    technology (e.g., COMCAM 10, C3) to the University of South Florida’s Center for Ocean Technology for the development of remotely operated underwater vehicles. The University of South Florida plans to offer these vehicles for sale to United States and European underwater agencies at which time we expect to enter into an agreement to serve as an OEM supplier.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 4. | We supply qualified distributors and value added resellers (“VARs”) with a customer list; they then incorporate the Company’s products as part of their sales efforts. Our qualified distributors and VARs are established companies with at least five years’ experience working in the surveillance industry, have IT experience, can perform local
                    translating when necessary, and provide marketing, installation, service, and support.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 
| |  | 

8







5.

Our marketing and sales advantage is due to the flexibility of our technological platform which lends itself to rapid integration with many third-party technologies including access control, biometric, radio frequency identification (RFID), chemical detection, and seismic detection. The Company’s suite of software products and tools can extend the performance and
        functionality of many products, especially in the area of remote control with video. We believe that the current CCTV (closed circuit television), access control, biometrics and digital communications markets are consolidating and that our technology may well be the glue that will integrate these markets.



Business Partners

The Company builds partnerships with a variety of manufacturers, systems integrators, and other companies. One of these partnerships is with Symbol Technologies, Inc., now owned by Motorola (“Symbol”), a leader in mobile computing, RFID, and scanning technology. The Company is a member of
        Symbol’s PartnerSelect program as an authorized reseller. Further, our Pocket C3 software has been tested on all Symbol’s mobile computers and received their Symbol PLUS validation for use on all Symbol devices. In their validation report, our software was deemed “very straightforward and simple to set up... [and] worked right out of the gate on all devices under test.” As such, we are beginning to focus on bundling our
        hardware and software with Symbol’s mobile computers for a simple, comprehensive, mobile security system.

On April 15, 2005, we entered into a Teaming Agreement with Technology Service Corporation, (“TSC”) an employee-owned, high technology company engaged in providing engineering services and specialized products to U.S. governmental agencies and private industry. TSC’s specialized products include sensor and subsystem prototype
        development and demonstration, electronic circuit board manufacture, test devices, computer applications for “radar siting,” geographic information services, and sensor/system modeling and simulation. We have combined TSC’s current technology with our own to provide a powerful web based satellite imagery application that allows the user to zoom down to a detailed ground level view where various devices produced by us deliver live video and sensor data. TSC is committed
        to including the Company as part of its corporate presentation and, where appropriate, in its bids on federal government and other projects. The Company’s agreement with TSC provides that each entity may incorporate the other’s products and/or services into a proposal or bid on a case-by-case basis as is appropriate. Most recently, our technology was incorporated in a TSC bid for a Texas border security initiative. The Texas border security bid was formally submitted by DRS
        Technologies, Inc./Night Vision Equipment Company (a defense contractor). Also, our technology was incorporated into a TSC bid for the US Navy, under the Naval Facilities Engineering Command (NAVFAC) Anti-terrorism Force Protection (ATFP) Ashore Program (“Ashore”). The Ashore bid was formally submitted by EG&G (a defense contractor and subsidiary of URS Corporation).



The innovative Wireless Camera Surveillance System (“WCSS”), from Beacon Products, Inc. (“Beacon”), features our video network technology, which received recognition as the first fully integrated IP wireless surveillance system designed as an outdoor lighting fixture. Buildings Magazine, a national publication for owners and operators of
        commercial buildings, selected Beacon’s WCSS system as one of the "Top 100 Products of the Year 2003." Electrical Construction & Maintenance Magazine named Beacon’s WCSS system "Product of the Year 2004" in its Safety and Security category. Our partnership with Beacon represents an anticipated sales channel. Beacon’s North American sales force is comprised of 700 representatives in numerous cities and municipalities. We have no agreement with Beacon but
        intend to renew a partnership and resume our engagement in joint marketing and sales efforts. However, as our previous partnership led to no revenue, we can make no assumptions about how beneficial a new Beacon partnership will be to our business.



9





We have also begun a cross licensing and joint development venture with Strela Development AG of Switzerland (“Strela”). The Company’s core technology is to be included in Strela’s HealthSourceOne platform of remote medical diagnostic products and services. Strela will, in turn, license our sensor technology for use in non-medical markets. We invoice
        Strela for periodic consulting services and have no formal agreement in place.

Further, our recently developed Intelligent Video Analysis is the first result of a collaborative effort between us and Alparysoft Inc. of Tomsk, Russia.

Competition



Competition within the international market for fixed and mobile commercial video cameras and other equipment communication systems is intense. While there is no dominant technological or business leader, there are many companies with greater financial resources and more established distribution channels than the Company has. However, we offer a highly competitive video
        camera system that meets the requirements of both the commercial wired and wireless end-users, including the offering of a fully functional, compact wireless system for mobile and personal usage. Our products are distinguished by next-generation innovations that are both sophisticated and cost effective. Further, we believe that the Company has few direct competitors based on what we consider to be seven important product and industry characteristics:



| | · | Flexibility: Programmable behavior; new algorithms and accessories at the video/control source;
| | - | -----------------------------------------------------------------------------------------------

| | · | Video Features: Distinct video compression advantage vs. mainstream 300%-500% smaller than JPEG, more dynamic than MPEG;
| | - | ------------------------------------------------------------------------------------------------------------------------

| | · | Physical Features: Adaptive power consumption - localized solar power capability;
| | - | ---------------------------------------------------------------------------------

| | · | Network Features: Works on wireless networks and low bandwidth networks;
| | - | ------------------------------------------------------------------------

| | · | Storage Features: Local storage and network balance;
| | - | ----------------------------------------------------

| | · | Software: Strong user and developer suite of software; and
| | - | ----------------------------------------------------------

| | · | Barriers to Competition: Multidisciplinary R&D path, cross-disciplinary deployment.
| | - | -----------------------------------------------------------------------------------



As a specialized solutions integrator with a suite of hardware and software products, the Company faces current and prospective competitors from many sectors of the expanding video networking and security market – and we find ourselves working with apparent competitors to complement a limitation in the competitor’s solution-solving capabilities.
          
        In general, competitors include many companies from key sectors of the video networking and security market, including: hardware (e.g., camera and digital video recorder), software (e.g., analysis, access control), networking (e.g., WiFi, cell) and specialized solutions (e.g., data integration, data management). However, our principal competitors are camera manufacturers and/or suppliers that offer increasingly more sophisticated products, including Internet Protocol capabilities. The
        competition falls into the following broad categories:

| | · | Leading security camera companies: Axis Communications, Pelco, Pixord, Mobotix AG and others that supply a diverse product line of cameras, digital video recorders and other products;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Integrated conglomerates with products that include security cameras: Siemens/Bosch, Philips, Sony, GE, JVC, Sanyo and others that provide a full line of cameras and related accessories; and
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | “Boutique” camera and other security-industry equipment companies: LiveWare, ObjectVideo, DvTel, ioImage, IPIX and many others that offer specialized products.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------



10





Marketability



The global security market is in the midst of a transformation from first-generation analog to second-generation digital or software-based systems. Analog CCTV video camera technology connected to centralized control systems comprises the majority of first-generation video security applications. New digitally based security applications integrated with video security systems
        are emerging, which include access control, biometrics, RFID, chemical detection, seismic detection, and analytic capabilities like algorithmic facial recognition. The trend is moving toward security cameras integrated with digital applications.



The market’s transformation is potentially enormous. The Lehman Brothers 2007 Security Industry Report estimated the CCTV replacement market to second-generation systems would be in the billions. The Lehman report also believes that current analog CCTV video security systems are being replaced or enhanced by software based IP platforms.



Patents, Trademarks, Licenses, Franchises, Concessions, Royalty Agreements and Labor Contracts



All ComCam software is copyrighted, developed in-house, and licensed to customers in connection with sales of our hardware. In addition, some software is additionally protected under two company owned
        patents:



No. US 6,975,220 B1, “Internet Based Security, Fire and Emergency Identification and Communication System,”



No. US 7,302,481 B1, “Methods and Apparatus Providing Remote Monitoring of Security and Video Systems,”

Additionally, our company name “COMCAM” is trademarked.

We are under no licenses, franchises, concessions, or royalty agreements associated with our products.



The Company is not subject to any labor contracts.



Governmental Regulation

The following information generally summarizes governmental approval and regulations that pertain to the Company’s operations.
         
        The Company is subject to local, state and national taxation. Our fixed and mobile digital video cameras and communication systems must conform to local, national and international governmental authorities that set the regulations by which communications are transmitted within and across respective territories.

The FCC



Certain components within our products are required to meet Federal Communications Commission (“FCC”) approval, specifically for Classes A & B Digital Devices relating to Part 15, which is a common testing standard for products similar to our own. FCC Part 15 basically covers the regulations under which a device emits radio frequency energy by
        radiation, and the technical specifications, administrative requirements, and other conditions relating to the marketing of FCC Part 15 devices. Approvals as required in relation to Part 15 are obtained independently by suppliers of these components.

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The FCC’s definition of a Class A Digital Device is one which is marketed for use in a commercial, industrial or business environment. Our COMCAM series 10 camera and other hardware are Class A Digital Devices. However, since we sell our hardware products to system integrators, dealers and other third-party resellers who integrate our products into
        their own FCC approved video solutions, we are not required to obtain FCC approvals. Rather, each reseller secures its FCC and/or other approvals.



The FCC’s definition of a Class B Digital Device is one which is marketed for use in a residential environment. Our cameras and micro-servers are not currently sold directly into the consumer market nor to our knowledge are they being deployed by third-party distributors and/or resellers in a residential environment within the United States.
         
        Although we do not currently need to seek approval for our devices due to the particulars of our current sales and customer utilization, we do plan to produce a new generation of cameras and accompanying microservers for which we will seek appropriate FCC approval. In order to obtain FCC approval we will provide the FCC with examples of this new generation of products which will be subjected to a series of standardized radiation tests. Sufficient test results will cover our products
        with the FCC’s approval.



International Regulation



Outside the FCC’s jurisdiction we have integrated our products successfully within existing governmental regulation and are confident that any changes in governmental regulations can be met in relation to our core technology. Compliance with localized government regulation is made incumbent on our distributors and resellers. Our Japanese
        distributor, Multi-Media 21 Co. Ltd. has sold our products in Japan since 2000 in accord with local regulatory standards. Our distributor for the Commonwealth of Independent States, Alparysoft Inc., is in the process of complying with adoption requirements for our products within their territory.



Environmental Laws



The Company is not currently affected by compliance with any environmental laws. However, lead danger has historically been an issue in high-tech industries.

RoHS, short forRestriction of Hazardous Substances,also known as Lead-Free, is a European Union directive from 2002 which restricts the use of six hazardous materials found in electronic products. All electronic products sold in the EU market
        must pass RoHS compliance. Further, the need to comply with RoHS type directives is evolving globally. Japanese manufacturers have been reducing lead levels since 2000 and California has already passed legislation to fall in line with the EU RoHS timescales.

To satisfy lead related requirements as they expand in our customers’ states and countries, we may need to substitute different components into our hardware. These replacement components will need to contain less of the hazardous materials which are finding their way into the world’s landfills.

Research and Development



We are involved on an ongoing basis in research and development activities related to improving the capacity and performance of our products. During the years ended December 31, 2008 and 2007, the Company spent $9,188 and $6,052, respectively, on research and development activities. We
        expect to increase research and development expenditures as our business develops.



12





Employees



The Company has one (1) full-time employee. We also use legal, accounting, and auditing firms, as required, that assist us in the operation of our business.

Reports to Security Holders

The Company’s annual report contains audited financial statements. We are not required to deliver an annual report to security holders and will not automatically deliver a copy of the annual report to our security holders unless a request is made for such delivery. We file all of our required reports and other information with the
        Commission. The public may read and copy any materials that are filed by the Company with the Securities and Exchange Commission (the “Commission”) at the Commission’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the Commission at 1-800-SEC-0330. The statements and forms filed by us with the Commission have also been
        filed electronically and are available for viewing or copy on the Commission maintained Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the Commission. The Internet address for this site can be found athttp://www.sec.gov.

ITEM 1A.     RISK FACTORS



The Company’s operations and securities are subject to a number of risks. Below we have identified and discussed the material risks that we are likely to face. Should any of the following risks occur, they will adversely affect our operations, business, financial condition and/or operating results as well as the future trading price and/or
        the value of our securities.



Risks Related to the Company’s Business



THE COMPANY’S ABILITY TO CONTINUE AS A GOING CONCERN IS IN QUESTION



The Company’s auditors included an explanatory statement in paragraph 4 of their report on our financial statements for the years ended December 31, 2008 and 2007, stating that there are certain factors which raise substantial doubt about the Company’s
        ability to continue as a going concern. These factors include limited revenue generating activities in place, and losses since inception.

THE COMPANY HAS A HISTORY OF LOSSES AND MAY INCUR LOSSES FOR THE FORESEEABLE FUTURE



The Company had an accumulated deficit of $5,849,703 as of December 31, 2008. We do not expect to achieve profitability in the next twelve months and can provide no assurances that we will ever achieve profitability or in the event that we do achieve profitability that we will be able to sustain that profitability over time.



13





IF THE COMPANY DOES NOT GENERATE SUFFICIENT CASH FLOW FROM OPERATIONS AND IS UNABLE TO OBTAIN ADDITIONAL CAPITAL TO OPERATE ITS BUSINESS, WE MAY NOT BE ABLE TO EFFECTIVELY CONTINUE OPERATIONS



As of December 31, 2008, the Company had a working capital deficit of $1,418,608. We do not expect to generate sufficient cash flow from operations to cover our expenditures until the end of 2010. Until the point at which cash flow from operations match expenditures we will have to obtain additional working capital from debt or equity placements
        to effectively continue our operations. However, we have no commitment for the provision of additional working capital. Should we be unable to secure additional capital to cover our short fall in cash flow, such condition would cause us to reduce expenditures which could have a material adverse effect on our business.



THE COMPANY MAY NOT BE ABLE TO DEVELOP NEW PRODUCTS



We have historically had difficulty producing our products because of cash flow shortages. Though we have recently resumed the production of our products, our future success depends in a significant part on our ability to evolve our hardware and software and to develop and introduce new products and technologies in response to market demands. If
        adequate funds are not available, the Company’s ability to develop or enhance products and services or otherwise respond to competitive pressures would be significantly limited.

THE VIDEO MONITORING SURVEILLANCE INDUSTRY IS SUBJECT TO RAPID TECHNOLOGICAL CHANGE AND THE COMPANY'S PRODUCTS COULD BECOME OBSOLETE AT ANY TIME



Evolving technology, updated industry standards, and frequent new product and service introductions characterize the video surveillance market; our products could become obsolete at any time. Competitors could develop products similar to or better than our own, finish development of new technologies in advance of the Company’s research and
        development, or be more successful at marketing new products, any of which factors may hurt our prospects for success.



THE MARKET ACCEPTANCE OF THE COMPANY’S PRODUCTS IS CRITICAL TO THE COMPANY’S GROWTH



The Company generates revenue from the design and sale of video surveillance systems; therefore, market acceptance of our products is critical. If our customers do not accept or purchase our products, then our revenue, cash flow and/or operating results will be negatively impacted.

THE COMPANY COMPETES WITH LARGER AND BETTER-FINANCED CORPORATIONS



Competition within the international market for fixed and mobile commercial video cameras and other equipment communication systems is intense. While the Company’s products are distinguished by next-generation innovations that are more sophisticated, flexible and cost effective than many competitive products currently in the market place, a
        number of entities offer video surveillance systems, and new competitors may enter the market in the future. Some of our existing and potential competitors have longer operating histories, greater name recognition, larger customer bases and significantly greater financial, technical and marketing resources than we do, including well known multi-national corporations like Sony and JVC.



14





THE COMPANY IS LARGELY DEPENDENT UPONFEW CUSTOMERSWe have in the past, and may in the future lose our customers or a substantial portion of our business with one or more major customers. If we do not sell products to our existing customers in the quantities anticipated, or if our customers reduce or terminate their relationships with us, market perception of
        our products and technology, growth prospects, and financial condition and results of operations could be harmed. Any termination of our relationship with our largest customers or any other customers could materially reduce our revenue.



THE COMPANY DEPENDS UPON ONE MANUFACTURER AND LIMITED SOURCE SUPPLIERS



Pennsylvania-based Strategic Manufacturing Technologies, Inc. currently procures our components and manufactures our video surveillance systems. Our components are purchased for us from such source suppliers as Motorola, Inc., and Analog Devices, Inc. We anticipate that the
        Company will continue to depend upon one or few manufacturers, as well as a limited number of source suppliers, which dependence, reduces the level of control we have and exposes us to significant risks such as inadequate capacity, late delivery, substandard quality and higher prices, all of which could adversely affect the Company’s business. We currently have no agreement with Strategic Manufacturing Technologies, Inc. for the manufacture of
        our video surveillance systems.



If our suppliers were unable to provide parts in the volumes needed or at an acceptable price, our manufacturer and the Company would have to identify and qualify acceptable replacements from alternative sources of supply. If the Company was unable to obtain these components in a timely fashion, it would likely not be able to meet demand. Any
        disruption of either component procurement or manufacturing delays could adversely affect the Company’s results of operations.



OUR CHIEF EXECUTIVE OFFICER MAY NOT BE ABLE TO OFFER HIS UNDIVIDED ATTENTION TO THE COMPANY

Don Gilbreath serves as our chief executive officer and also as the chief executive officer of ComCam, Inc. Mr. Gilbreath’s dual responsibilities cause him to divide his time between two corporations with disparate interests. Currently, Mr. Gilbreath devotes significant time to the marketing of our products and services. However, ComCam,
        Inc. may increase its effort to seek out unrelated business opportunities in the technology sector, which pursuit will reduce the amount of time Mr. Gilbreath currently spends on the development of our business.



THE COMPANY’S SUCCESS DEPENDS ON THE COMPANY’S ABILITY TO ATTRACT AND RETAIN KEY PERSONNEL



The Company’s future success will depend substantially on the continued services and performance of Don Gilbreath and other key personnel. We have relatively few senior personnel, and so the loss of the services of Don Gilbreath or any other key employees could have a material adverse effect on the
        Company’s business prospects, financial condition and results of operations. Our future success also depends on the Company’s ability to identify, attract, hire, train, retain and motivate technical, managerial and sales personnel. Competition for such personnel is intense, and we cannot assure that we will succeed in attracting and retaining such personnel. Our failure to attract and retain the necessary technical, managerial and sales personnel could have a material
        adverse effect on our business prospects, financial condition and results of operations.

15





MISAPPROPRIATION OF PROPRIETARY RIGHTS OR CLAIMS OF INFRINGEMENT OR LEGAL ACTIONS RELATED TO INTELLECTUAL PROPERTY COULD ADVERSELY IMPACT THE COMPANY'S FINANCIAL CONDITION



The Company's success depends significantly on protecting proprietary technology. Despite the Company's efforts to protect its proprietary rights, unauthorized parties may attempt to copy or otherwise obtain and use our technology or products. Monitoring unauthorized use of the Company's technology is difficult, and we cannot be certain that the
        steps we have taken will prevent misappropriation of our technology, particularly in foreign countries where the laws may not protect our proprietary rights as fully as in the United States.



In addition, from time to time, third parties may assert patent, copyright, trademark and other intellectual property rights claims against us with respect to existing or future products or technology. If there is a successful claim of infringement and the Company fails or is unable to develop non-infringing technology or license the infringed or
        similar technology on a timely basis, the Company's business and results of operations could be seriously harmed.



THE COMPANY’S BUSINESS IS SUBJECT TO GOVERNMENTAL REGULATIONS



International, national and local standards set by governmental regulatory authorities set the regulations by which communications are transmitted within and across respective territories. The Company's fixed and mobile digital video cameras and communication systems are subject to such regulation in addition to national, state and local
        taxation. Our products may be required to meet Federal Communications Commission approval, specifically for Classes A & B of Part 15 for the telephone related applications of our hardware products. Although the Company successfully operates within current governmental regulations it is possible that regulatory changes could negatively impact our operations and cause us to diminish or cease operations.



THE COMPANY’S PRODUCTS ARE SUBJECT TO ENVIRONMENTAL LAWS



New hazardous materials restrictions have been and are being sought in numerous jurisdictions worldwide. As these restrictions take effect, the Company may need to change the components it uses in certain key products. These components may be difficult to procure or more expensive than the components we currently use. As such, current and future
        environmental regulations could negatively impact our operations.

Risks Related to the Company’s Stock



THE COMPANY WILL NEED TO RAISE ADDITIONAL CAPITAL TO FUND OPERATIONS WHICH COULD ADVERSELY AFFECT OUR SHAREHOLDERS



The Company will need to raise additional capital to fund operations until such time as our revenues match our expenditures. We expect that revenue will match expenditures at the end of 2010. Until the point at which cash flow from operations can match expenditures we will have to realize up to $3,000,000 in
        additional capital for operations. Capital realized would be used for research and development expenses, marketing costs and general and administrative expenses. However, we have no commitment from any source of financing to provide us with this necessary additional capital. Should we secure a commitment to provide us with capital such commitment may obligate us to issue additional shares of the Company’s common stock or warrants or other rights to acquire common stock which will
        result in dilution to existing shareholders. Nonetheless, if we are unable to obtain additional capital, then we will need to restrict or even cease operations, which action would adversely affect our shareholders.

16





Weincur significant expenses as a result of beingREGISTERED WITH THE COMMISSION, whichEXPENSESnegatively impact our financial performance.



We incur significant legal, accounting and other expenses as a result of the Sarbanes-Oxley Act of 2002, as well as related rules implemented by the Commission, which control the corporate governance practices of public companies. Compliance with these laws, rules and regulations, including compliance with Section 404 of the Sarbanes-Oxley Act of 2002,
        as discussed in the following risk factor, has substantially increased our expenses, including legal and accounting costs, and made some activities more time-consuming and costly. Further, expenses related to our compliance may increase in the future, as legislation affecting smaller reporting companies comes into effect that may negatively impact our financial performance to the
        point of having a material adverse effect on our results of operations and financial condition.



THE COMPANY’S STOCK PRICE IS VOLATILE



The market price for our common stock is subject to significant volatility and trading volumes are low. Factors affecting the Company’s market price could
        include:

| | · | the Company’s perceived prospects;
| | - | ----------------------------------

| | · | negative variances in our operating results, and achievement of key business targets;
| | - | -------------------------------------------------------------------------------------

| | · | limited trading volume in shares of the Company’s common stock in the public market;
| | - | ------------------------------------------------------------------------------------

| | · | sales or purchases of large blocks of our stock;
| | - | ------------------------------------------------

| | · | changes in, or the Company’s failure to meet, earnings estimates;
| | - | -----------------------------------------------------------------

| | · | changes in securities analysts’ buy/sell recommendations;
| | - | ---------------------------------------------------------

| | · | differences between our reported results and those expected by investors and securities analysts;
| | - | -------------------------------------------------------------------------------------------------

| | · | announcements of new contracts by the Company or our competitors;
| | - | -----------------------------------------------------------------

| | · | announcements of legal claims against us;
| | - | -----------------------------------------

| | · | market reaction to any acquisitions, joint ventures or strategic investments announced by us or our competitors;
| | - | ----------------------------------------------------------------------------------------------------------------

| | · | developments in the financial markets;
| | - | --------------------------------------

| | · | general economic, political or stock market conditions.
| | - | -------------------------------------------------------



In addition, our stock price may fluctuate in ways unrelated or disproportionate to our operating performance. The general economic, political and stock market conditions that may affect the market price of the Company’s common stock are beyond our control. The market price of the Company’s common stock at any particular time may not
        remain the market price in the future. In the past, securities class action litigation has been instituted against companies following periods of volatility in the market price of their securities. Any such litigation, if instituted against us, could result in substantial costs and a diversion of management’s attention and resources.

THE COMPANY’S STOCK IS A PENNY STOCK AND, THEREFORE, THE COMPANY’S SHAREHOLDERS MAY FACE SIGNIFICANT RESTRICTIONS ON THEIR STOCK



The Company’s stock differs from many stocks in that it is a "penny stock." The Commission defines a penny stock in Rule 3a51-1 of the Exchange Act as, generally speaking, those securities which are not listed on either NASDAQ or a national securities exchange and are
        priced under $5, excluding securities of issuers that (a) have net tangible assets greater than $2 million if they have been in operation at least three years, (b) have net tangible assets greater than $5 million if in operation less than three years, or (c) average revenue of at least $6 million for the last three years. OTCBB securities are considered penny stocks unless they qualify for one of the exclusions.

17





The Commission has adopted a number of rules to regulate penny stocks. These rules include, but are not limited to, Rules 3a5l-l, 15g-1, 15g-2, 15g-3, 15g-4, 15g-5, 15g-6 and 15g-9 under the Exchange Act. Since our securities constitute a "penny stock" within the meaning of the rules, the rules would apply to us and our securities. The rules may
        further affect the ability of owners of shares to sell their securities in any market that may develop for them. There may be a limited market for penny stocks, due to the regulatory burdens on broker-dealers. The market among dealers may not be active. Investors in penny stock often are unable to sell stock back to the dealer that sold them the stock. The mark-ups or commissions charged by the broker-dealers may be greater than any profit a seller may make. Because of large dealer
        spreads, investors may be unable to sell the stock immediately back to the dealer at the same price the dealer sold the stock to the investor. In some cases, the stock may fall quickly in value. Investors may be unable to reap any profit from any sale of the stock, if they can sell it at all.

Shareholders should be aware that, according to the Commission Release No. 34-29093, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. These patterns include:

| | · | control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer;
| | - | -----------------------------------------------------------------------------------------------------------------------

| | · | manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases;
| | - | -------------------------------------------------------------------------------------------------------------------

| | · | "boiler room" practices involving high pressure sales tactics and unrealistic price projections by inexperienced sales persons;
| | - | -------------------------------------------------------------------------------------------------------------------------------

| | · | excessive and undisclosed bid-ask differentials and markups by selling broker-dealers; and
| | - | ------------------------------------------------------------------------------------------

| | · | the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the inevitable collapse of those prices with consequent investor losses.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

We incur significant expenses as a result of the Sarbanes-Oxley Act of 2002, which expenses may continue to negatively impact our financial performance.

We incur significant legal, accounting and other expenses as a result of the Sarbanes-Oxley Act of 2002, as well as related rules implemented by the Commission, which control the corporate governance practices of public companies. Compliance with these laws, rules and regulations, including compliance with Section 404 of the Sarbanes-Oxley Act of 2002, as discussed in the following risk factor, has substantially increased our expenses, including legal and accounting costs, and made some
        activities more time-consuming and costly. Further, expenses related to our compliance may increase in the future, as legislation affecting smaller reporting companies comes into effect that may negatively impact our financial performance to the point of having a material adverse effect on our results of operations and financial condition.



OUR INTERNAL CONTROLS OVER FINANCIAL REPORTING ARE NOT CONSIDERED EFFECTIVE, WHICHCONCLUSION MAY RESULT IN A LOSS OF INVESTOR CONFIDENCE IN OUR FINANCIAL REPORTS AND IN
        TURN HAVE AN ADVERSE EFFECT ON OUR STOCK PRICE.

Pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 we are required to furnish a report by our management on our internal controls over financial reporting. Such report must contain, among other matters, an assessment of the effectiveness of our internal controls over financial reporting as of the end of the year, including a statement as to whether or not our internal controls over financial reporting are effective. This assessment must include disclosure of any material
        weaknesses in our internal controls over financial reporting identified by management. Since we are unable to assert that our internal controls are effective, our investors may lose confidence in the accuracy and completeness of our financial reports, which in turn could cause our stock price to decline.

18





ITEM 1B.     UNRESOLVED STAFF COMMENTS



Not applicable.



ITEM 2.PROPERTIES



The Company leases 4,500 square feet of office space on a monthly basis in West Chester, Pennsylvania. Our lease costs were approximately $50,000 for each of the years ended December 31, 2008 and 2007. We believe that the space leased is generally suitable and adequate to accommodate current operations.



ITEM 3.     LEGAL PROCEEDINGS



The Company was not party to any legal proceedings as of December 31, 2008.



Park Valley Associates II, LP



On October 29, 2009 Park Valley Associates II, LP filed a Writ of Execution in the Court of Common Pleas of Delaware County, Pennsylvania, Case #08-016724 against the Company in order to garnish its bank accounts charging a balance due of $191,827 and costs of $9,591 in connection with the Company’s failure to pay rent for the use of the premises. The
        Company is in negotiations with counsel for Park Valley Associates II, LP. to settle the outstanding amount due and has paid $25,000 to date.



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



No matter was submitted to a vote of the security holders, through the solicitation of proxies or otherwise, during the fourth quarter ended December 31, 2008.



PART II



ITEM 5.     MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES



The Company’s common stock was quoted on the Over the Counter Bulletin Board, a service maintained by the Financial Industry Regulatory Authority, under the symbol “CMCJ” in September of 2008. The quotation was relegated to the Pink Sheets in May 2009 due to the Company’s inability to file its annual
        report on a timely basis. Trading in the common stock over-the-counter market has been limited and sporadic and the quotations set forth below are not necessarily indicative of actual market conditions. These prices reflect inter-dealer prices without retail mark-up, mark-down, or commission, and may not necessarily reflect actual transactions. The high and low bid prices for the common stock for each quarter of the periods ended December 31,
        2008 through September 30, 2009 are as follows:



|Trading Market
|--------------
|Year          
|2009          
|              
|              
|2008          



19





Capital Stock



The following is a summary of the material terms of the Company’s capital stock. This summary is subject to and qualified by our articles of incorporation and bylaws.



Common Stock



As of December 31, 2008, there were 68 shareholders of record holding a total of 3,608,354 shares of fully paid and non-assessable common stock of the 100,000,000 shares of common stock, par value $0.0001, authorized. The board of directors believes that
        the number of beneficial owners is substantially greater than the number of record holders because a portion of our outstanding common stock is held in broker “street names” for the benefit of individual investors. The holders of the common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. Holders of the common stock have no preemptive rights and no right to convert their common stock into any other securities.
        There are no redemption or sinking fund provisions applicable to the common stock.



Preferred Stock



As of December 31, 2008, there were no shareholders of record of the 2,000,000 shares of preferred stock, par value $0.0001, authorized.



Warrants



As of December 31, 2008, the Company had no outstanding warrants to purchase shares of our common stock.



Stock Options



As of December 31, 2008, the Company had no outstanding stock options to purchase shares of our common stock.



Convertible Debenture



As of December 31, 2008, the Company had convertible debt agreements with HNI Group, LLC and Global Megatrend.



Dividends



The Company has not declared any cash dividends since inception and does not anticipate paying any dividends in the near future. The payment of dividends is within the discretion of the board of directors and will depend on our earnings, capital requirements, financial condition, and other relevant factors. There are no restrictions that
        currently limit the Company's ability to pay dividends on its common stock other than those generally imposed by applicable state law.



Transfer Agent and Registrar



Our transfer agent is Interwest Transfer, 1981 East, Murray-Holladay Road, Holladay, Utah, 84117-5164, and their telephone number is (801) 272-9294.





20





Purchases of Equity Securities made by the Issuer and Affiliated Purchasers



None.

Recent Sales of Unregistered Securities



None.



ITEM 6.     SELECTED FINANCIAL DATA



Not required.



ITEM 7.     MANAGEMENT’S DISCUSSION AND ANALYSISOF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



ThisManagement’s Discussion and Analysis of Financial Condition and Results of Operations and other parts of this current report
        contain forward-looking statements that involve risks and uncertainties. Forward-looking statements can also be identified by words such as “anticipates,” “expects,” “believes,” “plans,” “predicts,” and similar terms. Forward-looking statements are not guarantees of future performance and our actual results may differ significantly from the results discussed in the forward-looking statements.
        Factors that might cause such differences include but are not limited to those discussed in the subsection entitledForward-Looking Statements and Factors That May Affect Future Results and Financial Condition below. The following discussion should be read in conjunction with our financial statements and notes thereto included in this current report. Our fiscal year end is December 31.



Discussion and Analysis



Our financial condition and results of operations depend primarily on revenue generated from the sale of our products and by providing specialized services. In addition, our financial condition is tied to our ability to realize additional debt or equity financing in combination with stability in administrative expenses. There can be no assurance
        that an increase in sales of our products or any other sources of revenue will provide sufficient cash flows in the near term to sustain our operations and we have no commitments for additional debt or equity financing. Since The Company does not expect to generate sufficient cash flow in the short term, we are currently seeking financing as a means to bridge the gap between operational losses and expenses. We can provide no assurance that our efforts will be successful.

The Company’s business development strategy is prone to significant risks and uncertainties which can have an immediate impact on efforts to realize net cash flow and deter future prospects of revenue growth. We have a limited history of generating revenue which cannot be viewed as an indication of continued growth and a historical record
        of incurring losses. Should we be unable to consistently generate revenue and reduce or stabilize expenses on a consolidated basis to the point where we can realize net cash flow, such failure will have an immediate impact on our ability to continue our business operations.

Strategy

The Company remains focused on numerous domestic and international sales opportunities with businesses and organizations that have purchased our products in the past, including the following:

| | · | United States agencies: our products are currently being deployed with Immigration and Customs Enforcement (ICE) at the General Service Administration facility located in lower Manhattan, New York City.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | United States agencies: products sold to U.S. agencies have been used for testing purposes, including:
| | - | ------------------------------------------------------------------------------------------------------

21





(a)      the Coast Guard and Navy which funded the University of South Florida for remote underwater operating vehicles and purchased 10 camera systems between 2002 and the present,

(b)      Naval Undersea Warfare Center who purchased 16 camera systems for classified purposes in 2003,

(c)      the FBI through Photech, Inc., who purchased 4 camera systems for undisclosed surveillance monitoring in 2004,

(d)      National Oceanic and Atmospheric Administration (Department of Commerce) and the Fish and Wildlife Service (Department of the Interior) who each purchased 1 camera system in October 2005, and

(e)      Department of Interior who purchased several camera systems in 2001 to secure certain historic buildings in Independence Park, Philadelphia; and State agencies: the Washington Fish and Wildlife Service purchased 1 camera system in October 2005.



| | · | United States corporations: units sold to private US companies for both research purposes and for implementation, including:
| | - | ----------------------------------------------------------------------------------------------------------------------------

(a)      DRS/Night Vision Systems for various purposes and purchased 5 microserver systems between 2006 and the present, and provide engineering services;

(b)      Henry Brothers for installation at JFK Airport and purchased 3 microserver systems;

(c)      IBM for loss-prevention purpose at its corporate facility in Raleigh, NC, purchased 3 microserver systems.



| | · | Various South America and North Africa integrators: port security and various wireless applications including two companies in Cartagena, Columbia, who purchased 11 professional lens camera systems since 2003 for testing in a port security project.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The Company has significantly increased our intellectual property (IP) portfolio with the addition of US Patent 6,975,220 to our portfolio. The technology embodied in the patent is expected to enhance the command-and-control appliances and remote management services offered by our products. Further, we intend to license the ‘220’
        patent directly to OEM partners, online service providers, software developers, consumer electronics companies and other industry partners developing online services with intelligent remote devices. The patent was acquired from HNI, LLC (a Connecticut LLC), a partnership that includes The Hartford, Next Generation Ventures, LLC, and Connecticut Innovations.

Additionally, the Company intends to pursue numerous new domestic and international sales opportunities to generate increased revenue, including the following:

| | · | DRS/Night Vision Systems has provided engineering services for their Perceptor camera line and it has incorporated our microservers and software to support trials for the military projects.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Digi-Data Corporation has signed a letter of intent to pursue mutually advantageous business opportunities.
| | - | -----------------------------------------------------------------------------------------------------------

| | · | DataWorks Plus is developing a wireless inmate tracking system in partnership with the Company to meet the needs of the Immigration and Customs Enforcement (ICE).
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | EG&G has included the Company in design bids for wireless configurations on military contracts.
| | - | -----------------------------------------------------------------------------------------------

| | · | OLogic has included the Company in design of robotic based command-and-control system.
| | - | --------------------------------------------------------------------------------------

| | · | Siemens Maintenance Services, LLC, has included the Company in design bids for wireless configurations to commercial airports, municipal transportation departments and other venues.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Symbol/Motorola has made the Company a strategic sales partner for command-and-control and video display on mobile enterprise devices.
| | - | --------------------------------------------------------------------------------------------------------------------------------------

22







Marketing overtures through DRS/Night Vision, Siemans Maintenance Services, LLC, and Symbol/Motorola have not resulted in sales to date. All of the above are examples of potential future customers that may contribute to an increase in the Company’s revenues. Additionally, we plan to implement an aggressive marketing and sales campaign to reach a broader
        market for our products.

While maintaining direct sales relations with many of its historic customers (e.g., DRS), the Company has also focused our sales efforts on serving as an Original Equipment Manufacturer (OEM) for strategic resellers, to serve as a research and development partner, and to develop a network of dealers, resellers and system integrators with differing targeted market
        expertise.
         
        As an Original Equipment Manufacturer (OEM), the Company has established a strategic reseller alliance with Symbol/Motorola for the development of integrated solutions to take advantage of its MotoMESH network architecture.

The Company is offering a series of specialized “solution” bundles to be sold into the marketplace by select distributors, including:

| | · | AAID Security Solutions, Peachtree City, GA -- for the distribution of the RFID Biometric Access System.
| | - | --------------------------------------------------------------------------------------------------------

| | · | Remote Eyes, Laurel, MD – distribution of the CCTV Upgrade Kit (Limited System).
| | - | --------------------------------------------------------------------------------

| | · | ScanSource, Greenville, SC – distributor of the CCTV Wireless Upgrade Kit (Full System).
| | - | ----------------------------------------------------------------------------------------

| | · | Susquehanna Computer Innovations, South Williamsport, PA – for distribution of the Integrated Command-&-Control Van.
| | - | --------------------------------------------------------------------------------------------------------------------



Individual dealers, resellers and system integrators have begun to offer company-based solutions to their respective sales channels.



The Company’s marketing plan provides that we will:

| | · | promote our products and services through our website;
| | - | ------------------------------------------------------

| | · | promote our accomplishments through regular press releases distributed by a PR Newswire that reaches both the financial press and the specialized industry-sector press. We maintain an online mailing list of three thousand names and each release is sent to contacts on the list;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | attend leading industry events, including trade conferences and seminars, often with a strategic partner; two recent events include FenceTech 2007 with AAID, to introduce its “RFID Biometric Access System,” and CES 2007 with OLogic, to participate at “Robotics TechZone” to demonstrate a video command-and-control system; and
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | support our strategic partners by participating in planning sessions and other events.
| | - | --------------------------------------------------------------------------------------



Further, we intend to:

| | · | retain a professional investor relations / public relations firm to launch an aggressive re-branding awareness campaign targeted to both our core sales channels (e.g., security surveillance, video networking) as well as the investor community (e.g., market makers and research analysts); and
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | revise our corporate identity (e.g., logo), website and print materials: in line with overall corporate repositioning, we will revise and refresh our core branding elements to maximize their positioning message as a technology leader not only in video surveillance but also toward wireless networking; through these efforts, we will be able to manage sales growth as well as take advantage of new opportunities including customized solutions that
                resellers bring to us.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



23





Results of OperationsDuring the year ended December 31, 2008, we were engaged in the ongoing development and sale of ourInternet Protocol remote control platform cameras, micro servers, associated software, and unique end-to-end network solutions.

RevenueRevenue for the year ended December 31, 2008 decreased to $11,502 from $1,209,762 for the year ended December 31, 2007, a decrease of 99%. The decrease in revenue over the comparative periods can be attributed to the Department of Defense’s Immigration and Customs Enforcement
        contract that was completed during the fourth quarter of 2007. The Company expects revenue to increase over the next twelve months if sufficient resources become available for the manufacturing and marketing of our products.
         Cost of revenue for the year ended December 31, 2008 decreased to $132,438 from $1,019,564 for the year ended December 31, 2007, a decrease of 87%. The decrease in the cost of revenue over the comparative periods can be primarily attributed to the decrease in revenue over the current twelve month period. The Company expects the cost of revenue to grow
        in relation to an increase in sales over the next twelve months.



Gross loss for the year ended December 31, 2008 was $120,936 in comparison with a gross profit of $190,198
        for the year ended December 31, 2007. The gross loss can be attributed to the decline in revenue. An increase in revenue may return the Company to gross profits in future periods.



Expenses



Operating expenses for the year ended December 31, 2008 increased to $333,365 from $246,067 for the year ended December 31, 2007, an increase of 35%. The increase in operating expenses over the comparative periods is
        attributable to general and administrative expenses and research and development expenses. The Company expects that operating expenses will continue to increase over the next twelve months subject to the availability of financial resources dedicated to research and development and marketing.
         
        Depreciation and amortization expenses for the years ended December 31, 2008 and 2007 were $12,622 and $2,074, respectively.



Other Income (Expense)

Losses from other income and expenses for the year ended December 31, 2008 decreased to $71,871 from $312,273 for the year ended December 31, 2007, a decrease of 77%. This decrease
        is due primarily to a decrease in interest expenses over the comparative periods. The Company expects that losses from other income and expenses over the next twelve months will continue to decrease as interest expenses fall.



Losses



Net losses for the year ended December 31, 2008 increased to $526,172 from $368,142 for the year ended December 31, 2007, an increase of 43%. The decrease in losses over the comparative periods is primarily due to general and administrative expenses and
        interest expense. The Company expects to continue to incur losses over the next twelve months.



24





Income Tax Expense (Benefit)

The Company has an income tax benefit resulting from net operating losses to offset any future operating profit. The net operating loss carry forwards at December 31, 2008, consisted of approximately $5,593,000 which will begin to expire in the year 2019. The amount of net operating loss carry forwards that can be used in any
        one year can be limited by significant changes in the ownership of the Company and by the applicable tax laws which are in effect at the time such carry forwards are utilized.



Impact of InflationThe Company believes that inflation has had a negligible effect on operations over the past three years. We believe that we can offset inflationary increases in the cost of materials and labor by increasing sales and improving operating efficiencies.

Capital ExpendituresThe Company made no significant capital expenditures on property or equipment for the years ended December 31, 2008 or 2007.



Liquidity and Capital ResourcesCash flow used in operations was $29,602 for the year ended December 31, 2008, as compared to cash flow used in operations of $229,628 for the year ended December 31, 2007. The decrease in cash flows used in operating activities for the year ended December 31,
        2008 can be primarily attributed to the changes in accounts receivable and provision for inventory obsolescence. The Company expects to continue to use cash flow in operating activities until such time as net losses transition to net profits.
         
        Cash flows used in investing activities was $443 for the year ended December 31, 2008 and $0 for the year ended December 31, 2007. The Company expects to use cash flow in investing activities in future periods.

Cash flow provided by financing activities was $31,069 for the year ended December 31, 2008, as compared to $223,931 for the year ended December 31, 2007. Cash flow provided by financing activities for the year
        ended December 31, 2008 is primarily attributable to the increase in notes payable. The Company expects to generate additional cash flow from financing activities in future periods.

The Company had a working capital deficit of $1,418,608 as of December 31, 2008. We have funded our cash needs from inception through December 31, 2008 through revenues and a series of debt and equity transactions.
        Until such time as we can increase revenues, we will require new debt or equity transactions to satisfy cash needs. If we are unable to increase our cash flows from operating activities or obtain additional financing, we may not be able to continue operations.



The Company has no lines of credit or other bank financing arrangements.

The Company has no commitments for future capital expenditures that were material at year-end.

The Company has adopted the 2008 Benefit Plan of ComCam International, Inc. registered under Form S-8 pursuant to which it can issue or option up to 250,000 shares of its common stock to employees,
        directors, officers, consultants or advisors on the terms and conditions set forth therein. As of December 31, 2008, 200,000 shares had been issued to a consultant as payment for accounts payable related to consulting services.

25







The Company has entered an employment agreement with Don Gilbreath that provides for a five year term, effective June, 2005, that includes a monthly fee and the right to participate in the Company’s Benefit Plan.

The Company has no current plans for the purchase or sale of any plant or equipment.



The Company has no current plans to make any changes in the number of employees.



Since earnings, if any, will be reinvested in operations, the Company does not expect to pay cash dividends in the foreseeable future.



Off-Balance Sheet ArrangementsAs of December 31, 2008, the Company has no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to stockholders.



Going ConcernThe Company’s auditors have expressed an opinion as to our ability to continue as a going concern as a result of an accumulated deficit of $5,849,703 as of December 31, 2008. Our ability to continue as a going concern is subject to the ability of the Company to obtain a profit and/or obtaining the necessary funding from outside sources. Management’s plan to address the Company’s ability to continue as a going concern, includes (i) realization of increased revenues from
        the Company’s sales (ii) obtaining funding from private placement sources; (iii) obtaining additional funding from the sale of the Company’s securities; (iv) obtaining loans from shareholders as necessary, and (v) converting outstanding debt to equity. Although management believes that it will be able to obtain the necessary funding to allow the Company to remain a going concern through the methods discussed above, there can be no assurances that such methods will prove
        successful.



Forward-Looking Statements and Factors That May Affect Future Results and Financial Condition



The statements contained in the section titled “Results of Operations” and“Description of
        Business”, with the exception of historical facts, are forward-looking statements. A safe-harbor provision may not be applicable to the forward-looking statements made in this current report. Forward-looking statements reflect our current expectations and beliefs regarding our future results of operations, performance, and achievements. These statements are subject to risks and uncertainties and
        are based upon assumptions and beliefs that may or may not materialize. These statements include, but are not limited to, statements concerning:

| | · | the sufficiency of existing capital resources;
| | - | ----------------------------------------------

·

our ability to raise additional capital to fund cash requirements for future operations;

·

uncertainties involved in the rate of growth of the Company’s business and acceptance of products and services;

·

the ability of the Company to achieve and maintain an adequate customer base to have sufficient revenues to fund and maintain operations; and

·

general economic conditions.



26





We wish to caution readers that our operating results are subject to various risks and uncertainties that could cause our actual results to differ materially from those discussed or anticipated, including the factors set forth in the section entitled “Risk
        Factors” included elsewhere in this report. We also wish to advise readers not to place any undue reliance on the forward-looking statements contained in this report, which reflect our beliefs and expectations only as of the date of this report. We assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances or any
        changes in our beliefs or expectations, other than as required by law.



Stock-Based Compensation



We have adopted SFAS No. 123 (revised 2004) (SFAS No. 123R), Share-Based Payment, which addresses the accounting for stock-based payment transactions in which an enterprise receives employee services in exchange for (a) equity instruments of the enterprise or (b) liabilities that are based on the fair value of the
        enterprise’s equity instruments or that may be settled by the issuance of such equity instruments. In January 2005, the Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin (SAB) No. 107, which provides supplemental implementation guidance for SFAS No. 123R. SFAS No. 123R eliminates the ability to account for stock-based compensation transactions using the intrinsic value method under Accounting Principles Board (APB) Opinion No. 25, Accounting for Stock
        Issued to Employees, and instead generally requires that such transactions be accounted for using a fair-value-based method. We use the Black-Scholes-Merton (“BSM”) option-pricing model to determine the fair-value of stock-based awards under SFAS No. 123R, consistent with that used for pro forma disclosures under SFAS No. 123, Accounting for Stock-Based Compensation. We have elected the modified prospective transition method as permitted by SFAS No. 123R and accordingly
        prior periods have not been restated to reflect the impact of SFAS No. 123R. The modified prospective transition method requires that stock-based compensation expense be recorded for all new and unvested stock options, restricted stock, restricted stock units, and employee stock purchase plan shares that are ultimately expected to vest as the requisite service is rendered beginning on January 1, 2006, the first day of our fiscal year 2006. Stock-based compensation expense for awards
        granted prior to January 1, 2006 is based on the grant date fair-value as determined under the pro forma provisions of SFAS No. 123.



Prior to the adoption of SFAS No 123R, we measured compensation expense for our employee stock-based compensation plans using the intrinsic value method prescribed by APB Opinion No. 25. We applied the disclosure provisions of SFAS No. 123 as amended by SFAS No. 148, Accounting for Stock-Based Compensation – Transition and Disclosure, as if
        the fair-value-based method had been applied in measuring compensation expense. Under APB Opinion No. 25, when the exercise price of our employee stock options was equal to the market price of the underlying stock on the date of the grant, no compensation expense was recognized.
          
        We account for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with SFAS No. 123 and the conclusions reached by the Emerging Issues Task Force (“EITF”) in Issue No. 96-18. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for
        consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by EITF 96-18.



27





Recent Accounting Pronouncements



In November 2008, the Emerging Issues Task Force (“EITF”) issued Issue No. 08-7,Accounting for Defensive Intangible Assets(“EITF 08-7”). EITF 08-7 applies to all acquired intangible assets in which the acquirer does not intend to
        actively use the asset but intends to hold (lock up) the asset to prevent its competitors from obtaining access to the asset (a defensive asset), assets that the acquirer will never actually use, as well as assets that will be used by the acquirer during a transition period when the intention of the acquirer is to discontinue the use of those assets. EITF 08-7 is effective as of January 1, 2009. We do not expect the adoption of EITF 08-7 to have
        a material impact on our financial statements.



In May 2008, the FASB issued SFAS 163 which clarifies how SFAS 60 applies to financial guarantee insurance contracts, including the recognition and measurement to be used to account for premium revenue and claim liabilities. We are currently reviewing the effect, if any, that the adoption of this statement will have on our financial
        statements.

In May 2008, the FASB issued SFAS 162 which identifies the sources of accounting principles and the framework for selecting the principles to be used in the preparation of financial statements of non-governmental entities that are presented in conformity with generally accepted accounting principles (GAAP) in the United States (the GAAP
        hierarchy). We are currently reviewing the effect, if any, that the adoption of this statement will have on our financial statements.



In April 2008, the FASB issued FASB Staff Position (“FSP”) No. FAS 142-3, Determination of the Useful Life of Intangible Assets. FSP 142-3 amends the factors that should be considered in developing renewal or extension assumptions used to determine the
        useful life of a recognized intangible asset under SFAS No. 142, Goodwill and Other Intangible Assets (“SFAS 142”). FSP 142-3 is intended to improve the consistency between the useful life of an intangible asset determined under SFAS 142 and the period of expected cash flows used to measure the fair value of the asset under SFAS 141R and other GAAP. FSP 142-3 is effective as of January 1, 2009. We do
        not expect the adoption of FSP 142-3 to have a material impact on our financial statements.

In March 2008, the FASB issued SFAS No. 161,Disclosures about Derivative Instruments and Hedging Activities(“SFAS 161”). SFAS 161 is intended to help investors better understand how derivative instruments and hedging activities affect an
        entity’s financial position, financial performance and cash flows through enhanced disclosure requirements. SFAS 161 is effective as of January 1, 2009. We do not expect the adoption of SFAS 161 to have a material impact on our financial statements.



ITEM 7A.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK



Not required.



ITEM 8.     FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA



Our audited financial statements for the years ended December 31, 2008 and 2007 are attached hereto as F-1 through F-18.

28









COMCAM INTERNATIONAL, INC.

INDEX TO FINANCIAL STATEMENTS

December 31, 2008 and 2007



Page



Report of Independent Registered Public Accounting Firm     F-2



Balance
        Sheets                                                                    F-3



Statements of
        Operations                                                      F-4
         Statements of Stockholders’ Equity (Deficit)                          F-5
         Statements of Cash Flows                                                     F-6

Notes to Financial Statements                                               
        F-7





F-1





REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM





Board of Directors



ComCam International, INC.



West Chester, Pennsylvania





We have audited the accompanying balance sheets of ComCam International, Inc. as of December 31, 2008 and 2007 and the related statements of operations, stockholders' deficit and cash flows for each of the years in the two-year period ended December 31, 2008. ComCam International, Inc.’s management is responsible for these financial statements. Our
        responsibility is to express an opinion on these 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 financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an
        audit of its internal control over financial reporting. Our audit 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 internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures
        in the financial statements. An audit also includes 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 financial statements referred to above present fairly, in all material respects, the financial position of ComCam International, Inc. as of December 31, 2008 and 2007 and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2008, in conformity with accounting principles generally
        accepted in the United States of America.
          
        The accompanying financial statements have been prepared assuming ComCam International, Inc. will continue as a going concern. As discussed in Note 2 to the financial statements, ComCam International, Inc. has incurred losses since its inception and has not yet established profitable operations. These factors raise substantial doubt about the ability of the Company to continue as a going concern. Management’s plans in regards to these matters are also described in Note 2. The
        financial statements do not include any adjustments that might result from the outcome of these uncertainties.





/s/ Pritchett, Siler & Hardy, P.C.





PRITCHETT, SILER & HARDY, P.C.
         Salt Lake City, Utah
        December 31, 2009



F- 2







|COMCAM INTERNATIONAL, INC.                                                        
|----------------------------------------------------------------------------------
|BALANCE SHEETS                                                                    
|December 31, 2008 and 2007                                                        
|                                                                                  
|ASSETS                                                                            
|                                                                                  
|Current assets:                                                                   
|Cash and cash equivalents                                                         
|Accounts receivable, net                                                          
|Inventories, net                                                                  
|Total current assets                                                              
|                                                                                  
|Property and equipment, net                                                       
|Other assets                                                                      
|Total assets                                                                      
|                                                                                  
|LIABILITIES AND STOCKHOLDERS' DEFICIT                                             
|                                                                                  
|Current liabilities:                                                              
|Checks in excess of cash                                                          
|Accounts payable                                                                  
|Accrued payroll                                                                   
|Accrued interest                                                                  
|Related party payables                                                            
|Embedded derivative liability                                                     
|Notes payable                                                                     
|Total current liabilities                                                         
|                                                                                  
|Commitments and contingencies                                                     
|                                                                                  
|Stockholders' deficit:                                                            
|Preferred stock, $.0001 par value; 2,000,000                                      
|shares authorized, no shares issued and outstanding                               
|Common stock, $.0001 par value; 100,000,000 shares                                
|authorized, 3,608,354 and 3,408,354 shares issued and outstanding at 2008 and 2007
|Additional paid-in capital                                                        
|Accumulated deficit                                                               
|Total stockholders' deficit                                                       
|Total liabilities and stockholders' deficit                                       

The accompanying notes are an integral part of these financial statements.

F- 3





|COMCAM INTERNATIONAL, INC.                   
|---------------------------------------------
|STATEMENTS OF OPERATIONS                     
|Years Ended December 31, 2008 and 2007       
|                                             
|                                             
|                                             
|Revenues, net                                
|Cost of revenues                             
|                                             
|Gross profit (loss)                          
|                                             
|Operating expenses:                          
|General and administrative expenses          
|Research and development expenses            
|Gain on cancellation of debt                 
|                                             
|                                             
|                                             
|Loss from operations                         
|                                             
|Other income (expense):                      
|Interest income                              
|Interest expense                             
|Gain on embedded derivative liability        
|                                             
|                                             
|                                             
|Loss before provision for income taxes       
|                                             
|Provision for income taxes                   
|                                             
|Net loss                                     
|                                             
|                                             
|Net loss per common share - basic and diluted
|                                             
|Weighted average common and common           
|equivalent shares                            



The accompanying notes are an integral part of these financial statements.

F- 4





|COMCAM INTERNATIONAL INC.                  
|-------------------------------------------
|STATEMENTS OF STOCKHOLDERS' DEFICIT        
|Years Ended December 31, 2008 and 2007     
|                                           
|                                           
|                                           
|                                           
|Balance at January 1, 2007                 
|                                           
|Reduction in shares due to spin-off        
|                                           
|Transfer of assets and liabilities from    
|ComCam, Inc.                               
|                                           
|Issuance of common stock for note payable  
|                                           
|Net loss                                   
|                                           
|Balance at December 31, 2007               
|                                           
|Effect of removal of embedded derivative   
|                                           
|Issuance of common stock for debt reduction
|                                           
|Net loss                                   
|                                           
|Balance at December 31, 2008               



The accompanying notes are an integral part of these financial statements.

F- 5





|COMCAM INTERNATIONAL, INC.                 
|-------------------------------------------
|STATEMENTS OF CASH FLOWS                   
|Years Ended December 31, 2008 and 2007     
|                                           
|                                           
|Cash flows from operating activities:      
|Net loss                                   
|Adjustments to reconcile net loss to net   
|cash used in operating activities:         
|Depreciation and amortization              
|Accretion - debenture interest expense     
|Gain on embedded derivative                
|Gain on cancellation of accounts payable   
|Provision for losses on accounts receivable
|Provision for inventory obsolescence       
|(Increase) decrease in:                    
|Accounts receivable                        
|Inventories                                
|Other assets                               
|Increase (decrease) in:                    
|Accounts payable                           
|Related party payable                      
|Accrued expenses                           
|Net cash used in operating activities      
|                                           
|Cash flows from investing activities:      
|Purchase of property and equipment         
|Net cash used in investing activities      
|                                           
|Cash flows from financing activities:      
|Checks in excess of cash                   
|Increase in notes payable                  
|Net cash provided by financing activities  
|                                           
|Net increase (decrease) in cash            
|                                           
|Cash, beginning of year                    
|                                           
|Cash, end of year                          



The accompanying notes are an integral part of these financial statements.

F- 6







COMCAM INTERNATIONAL, INC. NOTES TO FINANCIAL STATEMENTS
            December 31, 2008 and 2007


Note 1 – Organization and Summary of Significant Accounting Policies



Organization

Comcam International, Inc. (the Company) was organized under the laws of the state of Delaware on September 19, 1998. The Company was a wholly-owned subsidiary of ComCam, Inc. until December 28, 2007 when the Company was spun-off as a dividend to the shareholders of ComCam, Inc. The Company’s operations consist primarily of the research and
        development of advanced compact video systems that utilize built-in digital compression technology.



Cash and Cash Equivalents



For purposes of the statement of cash flows, the Company considers all highly liquid investments with a maturity of three months or less to be cash equivalents.



Accounts Receivable

Accounts receivable are amounts due on product sales and are unsecured. Accounts receivable are carried at their estimated collectible amounts. Credit is generally extended on a short-term basis; thus accounts receivable do not bear interest although a finance charge may be applied to such receivables that are more than thirty days past due. Accounts receivable
        are periodically evaluated for collectiblity based on past credit history with clients. Provisions for losses on accounts receivable are determined on the basis of loss experience, known and inherent risk in the account balance and current economic conditions.

Inventories

The Company values its inventories at the lower of cost or market, determined on the first-in first-out (FIFO) method.

Property and Equipment
         Property and equipment are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. Costs of major renewals or betterments are capitalized over the remaining useful lives of the related assets. Depreciation is computed by using the straight-line method. Equipment is depreciated over three to five years and furniture and fixtures are depreciated over seven years. The cost of property disposed of and related
        accumulated depreciation is removed from the accounts at the time of disposal, and gain or loss is reflected in operations.



Long-Lived Assets
         The Company evaluates its long-lived assets in accordance with Statement of Financial Accounting Standards No. 144 (ASC Topic 360), “Accounting for the Impairment of Long-Lived Assets.”  Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable.  When such factors and circumstances exist, the Company compares
        the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts.  Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets and is recorded in the period in which the determination was made.

F- 7





COMCAM INTERNATIONAL, INC. NOTES TO FINANCIAL STATEMENTS
            December 31, 2008 and 2007




Note 1 – Organization and Summary of Significant Accounting Policies (continued)



Intangible Assets



The Company accounts for their intangible assets in accordance with Statement of Financial Accounting Standards No. 142 (ASC Topic 360), “Goodwill and Other Intangible Assets”. SFAS No. 142 (ASC Topic 360) establishes three classifications for intangible assets including
        definite-life intangible assets, indefinite-life intangible assets and goodwill and requires different accounting treatment and disclosures for each classification. In accordance with SFAS No. 144, the Company periodically reviews their definite-life intangible assets for impairment. No impairment was recorded during the years ended December 31, 2008 and 2007. Definite-life intangible assets are amortized using the straight-line method over their
        estimated 13 year useful lives.





Revenue Recognition



Currently the Company has only generated revenue from two sources of revenue; 1) product sales and 2) consulting services. Each of these are sold and delivered separately to the customer.
          
        Revenue from product sales is recognized at the time the product is shipped and invoiced and collectibility is reasonably assured. The Company believes that revenue should be recognized at the time of shipment as title passes to the customer at the time of shipment.
          
        Revenues from consulting services are recognized when a consulting agreement is executed that establishes the amount and scope of service to be provided, the consulting services have been performed and the Company has no additional rescission, refund or customer satisfaction requirements, and collectibility of the amount billed is reasonably assured.
          
        As the Company continues to grow, sales will be evaluated to determine if a product sale or consulting agreement contains multiple deliverables. If sales were to contain multiple deliverables they would be reviewed for compliance with the provisions of EITF 00-21, which would require the consideration of whether or not a separate unit of accounting existed for purposes of determining revenue recognition. The individual sales would be considered a separate unit of accounting if all of
        the following criteria are met:

| | a. | The delivered item(s) has value to the customer on a stand alone basis;
| | -- | -----------------------------------------------------------------------



| | b. | There is objective and reliable evidence of the fair value of the undelivered item(s); and
| | -- | ------------------------------------------------------------------------------------------



| | c. | If the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F- 8





COMCAM INTERNATIONAL, INC. NOTES TO FINANCIAL STATEMENTS
            December 31, 2008 and 2007


Note 1 – Organization and Summary of Significant Accounting Policies (continued)



Income Taxes



The Company accounts for income taxes in accordance with ASC Topic 740, “Income Taxes.” This standard requires the Company to provide a net deferred tax asset or liability equal to the expected future tax benefit or expense of temporary reporting differences between book and tax accounting and any available
        operating loss or tax credit carryforwards.



In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 48, (ASC Topic 740) “Accounting for Uncertainty in Income Taxes—an interpretation of FASB Statement No. 109 (ASC Topic 740).” This statement clarifies the accounting for uncertainty in income tax
        positions. The Company has filed income tax returns in the U.S. federal jurisdiction and in certain states.
          
        The Company adopted the provisions of FIN 48 (ASC Topic 740) on January 1, 2007. The Company did not make any adjustment to opening retained earnings as a result of the implementation. The Company recognizes interest accrued related to unrecognized tax benefits along with penalties in operating expenses. During the year ended December 31, 2008 and 2007, the Company did not recognize any interest and penalties relating to income taxes. The Company did
        not have any accrual for the payment of interest and penalties at December 31, 2008.



Earnings (Loss) Per Share



The computation of basic earnings (loss) per common share is based on the weighted average number of shares outstanding during the year.



The computation of diluted earnings (loss) per common share is based on the weighted average number of shares outstanding during the year plus the common stock equivalents which would arise from the exercise of stock options and warrants outstanding using the treasury stock method and the average market price per share during the year. Common stock equivalents
        are not included in the diluted earnings per share calculation when their effect is antidilutive.



Concentration of Credit Risk

The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.



Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with generally accepted accounting principles 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 the reported amounts of revenues and
        expenses during the reporting period. Actual results could differ from those estimates.



F- 9





COMCAM INTERNATIONAL, INC. NOTES TO FINANCIAL STATEMENTS
            December 31, 2008 and 2007


Note 2 – Going Concern



As of December 31, 2008, the Company has negative working capital, stockholders’ deficit, and the Company has incurred losses since inception. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management intends to seek additional equity and debt financing to expand marketing efforts and
        product development. There can be no assurance that such funds will be available to the Company nor that the marketing and product development efforts will be successful.



Note 3 – Accounts Receivable



Accounts receivable consists of the following:



Note 4 – Inventories
         Inventories consist of the following:



F- 10





COMCAM INTERNATIONAL, INC. NOTES TO FINANCIAL STATEMENTS
            December 31, 2008 and 2007


Note 5 – Property and Equipment



Property and equipment consists of the following:



F-11





COMCAM INTERNATIONAL, INC. NOTES TO FINANCIAL STATEMENTS
            December 31, 2008 and 2007










F-12





COMCAM INTERNATIONAL, INC. NOTES TO FINANCIAL STATEMENTS
            December 31, 2008 and 2007


Note 7 – Convertible Debenture and Embedded Derivative to HNI, LLC



On February 14, 2008, the Company entered into an amendment agreement with HNI, LLC. The Debenture, as amended, accrues interest at 12% per annum, is due on February 14, 2009, and was convertible into 138,834 shares. As a result of the new conversion provisions set forth in the amendment agreement, the
        embedded derivative liability was removed.



Details related to the convertible debenture are discussed below as they were when initiated.
          
        The Company analyzed the Debenture based on the provisions of EITF 00-19 (ASC Topic 815-15) and determined that the conversion option of the Debenture qualifies as an embedded derivative. Information related to the recognition of the embedded derivative is as follows:

Embedded Derivative
         The fair value upon inception of the embedded derivative was determined to be $113,080 and was recorded as an embedded derivative liability. The embedded derivative is revalued at the end of each reporting period and any resulting gain or loss is recognized as a current period charge to the statement of operations. Upon issuance the fair value was calculated using the Black-Scholes option pricing model with the following factors, assumptions and
        methodologies:

| | · | The fair value of the Company’s common stock was calculated to be $0.017 per share.
| | - | -----------------------------------------------------------------------------------

| | · | A volatility of 149% was calculated by using the Company’s closing stock prices since May 2006.
| | - | -----------------------------------------------------------------------------------------------

| | · | The exercise price was $0.0119. This amount was determined based on 30% off the most recent closing bid price immediately preceding the issuance date.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | The estimated life was determined to be 1 year, which is equal to the contractual life of the embedded derivative.
| | - | ------------------------------------------------------------------------------------------------------------------

| | · | The risk free interest rate was determined to be 5.06% based on the 1-year treasury rate.
| | - | -----------------------------------------------------------------------------------------



Note 8 – Operating Leases

The Company leases its office building on a month-to-month basis. Rental expense related to this operating lease for the years ended December 31, 2008 and 2007 was approximately $50,000 and $50,000, respectively.



Note 9 – Gain On Cancellation of Debt



During the year ended December 31, 2007, the Company recognized a gain from the cancellation of amounts owed to three individuals for costs incurred for consulting services of $31,950.



F-13





COMCAM INTERNATIONAL, INC. NOTES TO FINANCIAL STATEMENTS
            December 31, 2008 and 2007


Note 10 – Income Taxes

The difference between income taxes at statutory rates and the amount presented in the financial statements is a result of the following:







The Company has net operating loss carryforwards of approximately $5,593,000, which begin to expire in the year 2019. The amount of net operating loss carryforwards that can be used in any one year will be limited by significant changes in the ownership of the Company and by the applicable tax laws which are in effect at the time such
        carryforwards can be utilized.



F-14





COMCAM INTERNATIONAL, INC. NOTES TO FINANCIAL STATEMENTS
            December 31, 2008 and 2007


Note 11 – Supplemental Cash Flow Information



Note 12 – Preferred Stock



The Company’s preferred stock may have such rights, preferences and designations and may be issued in such series as determined by the Board of Directors. No shares were issued and outstanding at December 31, 2008.



F-15





COMCAM INTERNATIONAL, INC. NOTES TO FINANCIAL STATEMENTS
            December 31, 2008 and 2007


Note 13 – Common Stock



On October 27, 2008, the Company authorized the issuance of 200,000 shares to a consultant as payment against accounts payable related to consulting services.



Effective November 7, 2007, the Company approved a 1-for-2.87 reverse common stock split. All common share amounts and per share information have been retroactively adjusted to reflect this reverse common stock split in the accompanying financial statements.



Note 14 – Fair Value of Financial Instruments

The Company’s financial instruments consist of cash, accounts receivable, accounts payable and notes payable. The carrying amount of these items approximates fair value because of their short-term nature and the notes payable bear interest at the market interest rate.



Note 15 – Subsequent Events



The Company has evaluated subsequent events from the balance sheet date through December 31, 2009.



In December 2009, the Company acquired all of the outstanding shares of Pinnacle Integrated Systems, Inc. (d/b/a P2 ABC Controls, referred to herein as “P2”) pursuant to the terms and conditions of a Share Purchase Agreement
        in exchange for 300,000 shares of the Company’s common stock and a promissory note in the amount of $1,000,000 to be paid by June 15, 2010 in five equal payments of $200,000 that is secured by the shares of P2 and its business assets. The initial payment is due February 15, 2010.



In October 2009 Park Valley Associates II, LP filed a Writ of Execution in the Court of Common Pleas of Delaware County, Pennsylvania, Case #08-016724 against the Company in order to garnish its bank accounts charging a balance due of $191,827 and costs of $9,591 in connection with the Company’s failure to pay rent. The Company is in negotiations with
        counsel for Park Valley Associates II, LP to settle the outstanding amount due and has paid $25,000 to date.



In August 2009, the Company borrowed $35,000 from an individual, and then lent $35,000 to a vendor with the same terms as the amount borrowed from the individual. The terms are for the $35,000 to be repaid by March 3, 2010 along with $5,000 interest. On December 3, 2009, the vendor paid $5,000 in interest directly to the Company's
        individual.



In July 2009, the Company issued an Amended and Restated Debenture to HNI, LLC (“HNI”) in the principal amount of $151,185 that amended and restated a Secured Debenture with a maturity date of February 14, 2007, as amended
        on September 28, 2007 and February 14, 2008 in consideration for HNI’s sale and assignment of certain assets to the Company. Pursuant to the terms of the Amended and Restated Debenture the Company was to commence monthly payments on September 1, 2009 of $13,081 until such time as the principal
        amount and accrued interest was satisfied in full. The Company has failed to make any payments pursuant to the Amended and Restated Debenture and the agreement is currently in default.



During 2009, the Company has issued 3,314,286 shares of common stock to various parties for services rendered, $265,000 in cash, and for the stock of P2 as described above.

F-16





COMCAM INTERNATIONAL, INC. NOTES TO FINANCIAL STATEMENTS
            December 31, 2008 and 2007




Note 16 – Recent Accounting Pronouncements



In September 2009, the Financial Accounting Standards Board (FASB) issued ASU 2009-12,Fair Value Measurements and Disclosures (Topic 820): Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).This update
        provides amendments to Subtopic 820-10, Fair Value Measurements and Disclosures – Overall, for the fair value measurement of investments in certain entities that calculate net asset value per share (or its equivalent). The amendments in this update are effective for interim and annual periods ending after December 15, 2009. Early application is permitted in financial statements for earlier interim and annual periods that have not been issued. The adoption of this update will have
        no material effect on the Company’s financial condition or results of operations.



In August 2009, the FASB issued ASU 2009-05,Fair Value Measurements and Disclosures (Topic 820): Measuring Liabilities at Fair Value. This update provides amendments to Subtopic 820-10, Fair Value Measurements and Disclosures – Overall,
        for the fair value measurement of liabilities. The guidance provided in this update is effective for the first reporting period beginning after issuance. The adoption of this statement has had no material effect on the Company’s financial condition or results of operations.



In June 2009, the FASB issued SFAS No. 168,The FASB Accounting Standards CodificationTM and the Hierarchy of Generally Accepted Accounting Principles—a replacement of FASB Statement
        No. 162, which is codified in FASB ASC 105,Generally Accepted Accounting Principles (“ASC 105”). ASC 105 establishes the Codification as the source of authoritative GAAP in the United States (the “GAAP hierarchy”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and
        Exchange Commission (“SEC”) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. Once the Codification is in effect, all of its content will carry the same level of authority and the GAAP hierarchy will be modified to include only two levels of GAAP, authoritative and non-authoritative. ASC 105 is effective for financial statements issued for interim and annual periods ending after September 15, 2009. The adoption
        of ASC 105 has had no material effect on the Company’s financial condition or results of operation.



In June 2009, the FASB issued SFAS No. 167,Amendments to FASB Interpretation No. 46(R) (“SFAS No. 167”), which amends the consolidation guidance applicable to variable interest entities. The amendments significantly affect the overall consolidation
        analysis under FASB ASC 810,Consolidation and require an enterprise to perform an analysis to determine whether the enterprise’s variable interest or interests give it a controlling financial interest in a variable interest entity. SFAS No. 167 has not yet been codified and in accordance with ASC 105, remains authoritative guidance until such time that it is integrated in the FASB ASC. SFAS
        No. 167 is effective as of the beginning of the first fiscal year that begins after November 15, 2009, early adoption is prohibited. The adoption of this update will have no material affect on the Company’s financial condition or results of operations.



F-17





COMCAM INTERNATIONAL, INC. NOTES TO FINANCIAL STATEMENTS
            December 31, 2008 and 2007


Note 16 – Recent Accounting Pronouncements (continued)



In June, 2009, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 166,Accounting for Transfers of Financial Assets—an amendment of FASB Statement No.
        140” (“SFAS 166”). This statement removes the concept of a qualifying special-purpose entity Statement 140 and removes the exception from applying Interpretation No. 46 (revised December 2003),Consolidation of Variable Interest Entities,to qualifying special-purpose entities. SFAS No. 166 has not yet been codified and in accordance with ASC
        105, remains authoritative guidance until such time that it is integrated in the FASB ASC. SFAS No. 166 is effective for financial asset transfers occurring after the beginning of an entity’s first fiscal year that begins after November 15, 2009 and early adoption is prohibited. The adoption of this statement will have no material affect on the financial statements. The adoption of this statement will have no material effect on the Company’s financial condition or
        results of operations.



In May, 2009, FASB issued ASC 855Subsequent Eventswhich establishes principles and requirements for subsequent events. In accordance with the provisions of ASC 855, the Company currently evaluates subsequent events through the date the financial statements are available to be
        issued.



F- 18







ITEM 9.     CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE



None.



ITEM 9A(T).CONTROLS AND PROCEDURES



Evaluation of Disclosure Controls and Procedures



In connection with the preparation of this annual report, an evaluation was carried out by the Company’s management, with the participation of the chief executive officer and the chief financial officer, of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange
        Act of 1934 (“Exchange Act”)) as of December 31, 2008. Disclosure controls and procedures are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Commission’s rules and forms, and that such information is accumulated and communicated to management, including the chief executive
        officer and the chief financial officer, to allow timely decisions regarding required disclosures.
          
        Based on that evaluation, the Company’s management concluded, as of the end of the period covered by this report, that the Company’s disclosure controls and procedures were ineffective in recording, processing, summarizing, and reporting information required to be disclosed, within the time periods specified in the Commission’s rules and forms, and such information was accumulated and communicated to management, including the chief executive officer and the chief
        financial officer, to allow timely decisions regarding required disclosures.



Management’s Report on Internal Control over Financial Reporting



The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. The Company’s internal control over financial reporting is a process, under the supervision of the chief executive officer and the chief financial officer, designed to provide reasonable assurance regarding the reliability of
        financial reporting and the preparation of the Company’s financial statements for external purposes in accordance with United States generally accepted accounting principles (GAAP). Internal control over financial reporting includes those policies and procedures that:



| | · | pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the Company’s assets;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and the board of directors; and
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Due to its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may
        deteriorate.



29





The Company’s management conducted an assessment of the effectiveness of our internal control over financial reporting as of December 31, 2008 based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission, which assessment identified material weaknesses in
        internal control over financial reporting. A material weakness is a control deficiency, or a combination of deficiencies in internal control over financial reporting that creates a reasonable possibility that a material misstatement in annual or interim financial statements will not be prevented or detected on a timely basis. Since the assessment of the effectiveness of our internal control over financial reporting did identify material weaknesses, management considers its internal
        control over financial reporting to be ineffective.

The matters involving internal control over financial reporting that our management considered to be material weaknesses were:



| | · | lack of an audit committee due to a lack of a majority of outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls over financial reporting;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | inadequate segregation of duties consistent with control objectives; and
| | - | ------------------------------------------------------------------------



| | · | ineffective controls over period end financial disclosure and reporting processes.
| | - | ----------------------------------------------------------------------------------



The aforementioned material weaknesses were identified by our chief executive officer in connection with the review of our financial statements as of December 31, 2008. 
          
        Management believes that the material weaknesses set forth above did not have an effect on our financial results. However, management believes that the lack of a functioning audit committee, the inadequate segregation of duties and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls over financial reporting, which weaknesses could result in a material misstatement in our
        financial statements in future periods. 
          
        This annual report does not include an attestation report of the Company's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's registered public accounting firm pursuant to temporary rules of the Commission that permit the Company to provide only the management's report in this annual report.

Management’s Remediation Initiatives



In an effort to remediate the identified material weaknesses and enhance our internal controls over financial reporting, the Company plans to initiate, the following measures:



| | · | segregate the duties of chief executive officer and chief financial officer/principal accounting officer consistent with our control objectives; and
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | · | appoint additional outside directors to our board in order to form a functioning audit committee that will undertake oversight in the establishment and monitoring of required internal controls over financial reporting such as reviewing estimates and assumptions made by management.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



30





Changes in Internal Controls over Financial Reporting



During the period ended December 31, 2008 there has been no change in internal control over financial reporting that has materially affected, or is reasonably likely to materially affect our internal control over financial reporting.



9B.           OTHER INFORMATION



None.



PART III



ITEM10.     DIRECTORS, EXECUTIVE OFFICERS, ANDCORPORATE GOVERNANCE



Officers and Directors



The following table sets forth the name, age and position of each director and executive officer of the Company:



|Name                                                                                                    | Age                                                | Year
                    Elected/Appointed                                                           | Positions Held                                                                                                                    
|------------------------------------------------------------------------------------------------------- | -------------------------------------------------- | ---------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------
|Don Gilbreath

                    Robert Betty
                      
                    Albert White | 51
                     52
                     63 | 1998
                      
                    1999
                      
                    2000 | CEO, CFO, PAO and Director
                      
                    Director
                      
                    Director



Don Gilbreath - Mr. Gilbreath has served as a chief executive officer, chief financial officer, principal accounting officer, and director of the Company since September 18, 1998. He will serve until the next annual meeting of the Company’s shareholders or until his successor is elected.
          
        Mr. Gilbreath has 24 years of experience in product development, engineering project management and specialized technical sales. He has provided specialized R&D expertise to General Electric, Johnson Controls, TCI, Standard & Poor’s, and Commodore International. He developed and launched or licensed over 30 products including musical instruments, multimedia players, and Internet access devices. Mr. Gilbreath has broad experience in directing international engineering
        teams, vendor negotiations, licensing, patents, offshore manufacturing and launching of innovative products to world markets. From 1987 to 1992 Mr. Gilbreath was Director of Product and Market Development for Commodore International Ltd. Among other responsibilities he was Chief Designer of CDTV, the world’s first consumer multimedia player under $1,000. In addition, he created and developed OEM sales channels and vertical markets for Commodore’s complete line of
        microcomputers and peripherals. In 1990 Mr. Gilbreath was selected as delegate from the USA to the USSR for technology transfer of semiconductor and computer architecture. In 1993 he founded Gilbreath Systems Inc., an international contract engineering and product development firm, and from 1994 to 1997 served as CTO and VP Engineering for VIScorp, a Chicago-based company that designed and developed set-top boxes (pre-WebTV). In 1997, Mr. Gilbreath founded the Company.



31





Robert Betty - Mr. Betty was appointed as a director of the Company on February 19, 1999. He will serve until the next annual meeting of the Company’s shareholders or until his successor is elected.



Mr. Betty has over 22 years of experience in the electronics industry. From 1990 to 1994 he held various management positions for Maris Equipment Inc., rising to vice president of operations with responsibility for all P&L and a $63 million budget. He was the founder and is the current president of Pinnacle Integrated Systems, Inc., a security systems
        integration firm located in West Chester, Pennsylvania. He has used his security systems expertise as project and/or operations manager for, among others, state prisons, a strategic oil reserve at Big Hill Texas, and five air bases located in Saudi Arabia to support the F5 Aircraft. Betty is a member of several management associations and holds numerous technical certificates.



Albert White – Mr. White was appointed as a director of the Company on January 5, 2000. He will serve until the next annual meeting of the Company’s shareholders or until his successor is elected.
        Mr. White graduated from Columbia University with a Master of Business Administration and from the University of Denver with a Bachelor of Science/Bachelor of Arts in Marketing. Mr. White has held senior management positions with technology based companies, as the vice-president of Network Solutions, a Virginia based developer of internet addressing systems from 1989 to 1994, and as the senior vice president of RMS Technology, a New Jersey-based telecommunications provider, from 1994 to
        1996. Since 1996 Mr. White has acted as a business and financial consultant to chief executive officers throughout North America and has provided entrepreneurial advice to both national and international clients. These include acting as Senior Consultant for Safeguard Scientific, Inc., Wayne, Pennsylvania (1997-1999); Managing Director of Promark International, LLC, Silver Spring, Maryland. (1997-2001); Financial Advisor to the chairman and founder of Johnson Research and Development,
        Atlanta, Georgia (2000-2001); and Chief Executive Officer of Excellatron Solid State, LLC, Atlanta, Georgia (2001- 2003). Mr. White currently provides business consultancy services in the areas of finance, marketing, acquisition/merger and real estate development in the Atlanta, Georgia and Washington, D.C. area.



No other persons are expected to make any significant contributions to the Company’s executive decisions who are not executive officers or directors of the Company.

Term of OfficeOur directors are appointed for a one (1) year term to hold office until the next annual meeting of our shareholders or until removed from office in accordance with our bylaws. Our executive officers are appointed by our Board of Directors and hold office until removed by the board.



Family RelationshipsThere are no family relationships between or among the directors or executive officers.



Director Independence

Our common stock is listed on the Pink Sheets inter-dealer quotation system, which does not have director independence requirements. For purposes of determining director independence, we have applied the definitions set out in NASDAQ Rule 4200(a)(15). Under NASDAQ Rule
        4200(a)(15), a director is not considered to be independent if he or she is also an executive officer or employee of the corporation. Accordingly, we had one independent director as of December 31, 2008.



32





Involvement in Certain Legal ProceedingsTo the best of our knowledge, during the past five years, none of the following occurred with respect to a present or former director, executive officer, or employee: (1) any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; (2) any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic
        violations and other minor offences); (3) being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his or her involvement in any type of business, securities or banking activities; and (4) being found by a court of competent jurisdiction (in a civil action), the Commission or the Commodities Futures Trading Commission to have
        violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.



Compliance with Section 16(A) of the Exchange Act



Based solely upon a review of Forms 3, 4 and 5 furnished to the Company, we are aware of the following persons who, during the period ended December 31, 2008, failed to file, on a timely basis, reports required by Section 16(a) of the Securities Exchange Act of 1934.



| | · | Don Gilbreath failed to timely file a Form 3, 4 or 5 despite being our executive officer, a director , and the beneficial owner of more than 10% of our
                    common stock.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Robert Betty failed to timely file a Form 3, 4 or 5 despite being a director and shareholder.
| | - | ---------------------------------------------------------------------------------------------

| | · | Albert White failed to timely file a Form 3, 4 or 5 despite being a director.
| | - | -----------------------------------------------------------------------------



Code of Ethics

The Company has adopted a Code of Ethics within the meaning of Item 406(b) of Regulation S-K of the Securities Exchange Act of 1934. The Code of Ethics applies to directors and senior officers, such as the principal executive officer, principal financial officer, controller, and persons
        performing similar functions. The Company has incorporated a copy of its Code of Ethics as Exhibit 14 to this Form 10-K. Further, our Code of Ethics is available in print, at no charge, to any security holder who requests such information by contacting us.



Board of Directors Committees



The board of directors has not established an audit committee. An audit committee typically reviews, acts on and reports to the board of directors with respect to various auditing and accounting matters, including the recommendations and performance of independent auditors, the scope of the annual audits, fees to be paid to the independent auditors, and internal
        accounting and financial control policies and procedures. Certain stock exchanges currently require companies to adopt a formal written charter that establishes an audit committee that specifies the scope of an audit committee’s responsibilities and the means by which it carries out those responsibilities. In order to be listed on any of these exchanges, the Company will be required to establish an audit committee. The board of directors has
        not established a compensation committee.



Director Compensation



Directors are not reimbursed for out-of-pocket costs incurred in attending meetings and no director receives any compensation for services rendered as a director. The Company may adopt a provision for compensating directors in the future.

33





ITEM 11.     EXECUTIVE COMPENSATION



Compensation Discussion and Analysis



The objective of the Company’s compensation program is to provide compensation for services rendered by our executive officer. Salary and consulting fees are currently the only forms of compensation utilized in our compensation program. We believe that these forms of compensation are
        adequate to retain and motivate our sole executive officer. The amounts we deem appropriate to compensate our executive officer are determined in accordance with market forces though we have no specific formula to determine compensatory amounts. While we have deemed that our current compensatory program and the decisions regarding compensation are easy to administer and are appropriately suited for our current
        objectives, we may expand our compensation program to include options and other compensatory elements in the future.



Due to financial constraints, limited compensation was paid as of the annual periods ended December 31, 2008, 2007, and 2006 to retain the services of its sole executive officer Don Gilbreath. Nonetheless, the Company does have an employment agreement, with a five year term,
        that currently entitles Mr. Gilbreath to a salary of $100,000 per annum, Company health benefits and participation in equity based benefit plans. Despite this agreement, Mr. Gilbreath agreed to waive any entitlement to said salary and benefits for the period from June 22,
        2005 to December 31, 2007 though he was paid certain amounts over this period in consulting fees. During the period ended December 31, 2008 Mr. Gilbreath accrued his salary of $100,000.

Tables



The following table provides summary information for the years 2008, 2007, and 2006 concerning cash and non-cash compensation paid or accrued by the Company to or on behalf of (i) the chief executive officer and (ii) any other employee to receive compensation in excess of $100,000.



|Summary Compensation Table                                    
|--------------------------------------------------------------
|Name and Principal Position                                   
|Don Gilbreath

                    CEO, CFO, PAO, and director

* Salary of of $100,000 was accrued but not paid to Mr. Gilbreath.



We have no “Grants of Plan-Based Awards”, “Outstanding Equity Awards at Fiscal Year-End”, “Option Exercises and Stock Vested”, “Pension Benefits”, or “Nonqualified Deferred Compensation”. Nor do we have any “Post Employment Payments” to report.



Compensation Committee Deliberations and Insider Participation



There are no deliberations to report concerning executive officer compensation during the last fiscal year.



34





ITEM 12.     SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS



The following table sets forth certain information concerning the ownership of the Company’s 3,608,354 shares of common stock issued and outstanding as of December 31, 2008, with respect to: (i) all directors; (ii) each person known by us to be the beneficial owner of more than five percent of our common stock; and (iii)
        our directors and executive officers as a group.

|Names and Addresses of Managers and Beneficial Owners                                                                                                                | Title of Class | Number of Shares | Percent of 
                    Class
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------- | ---------------- | -------------------------------------
|Don Gilbreath, CEO, CFO, principal accounting officer and director 
                    1525 Tanglewood Drive 
                    West Chester, Pennsylvania, 19380 | Common         | 561,157          | 15.6%                                
|Robert Betty, director
                    912 Carrie Lane
                    West Chester, Pennsylvania, 19383                                                     | Common         | 66,004           | 1.8%                                 
|Albert White, director
                    420 Northwest Drive 
                    Silver Spring, Maryland 20901                                                    | Common         | 10,000           | 0.3%                                 
|ACC Investors, LLC*
                    1330 Avenue of the Americas
                    36thFloor
                    New York, New York 10019                       | Common         | 1,408,394        | 39.0%                                
|Officer and Directors as a Group                                                                                                                                     | Common         | 627,161          | 17.7%                                

*      Paul Higbee makes voting and investment decisions for ACC Investors. Paul Higbee uses ACC Investors’ address as his mailing address.



ITEM 13.     CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

None of our directors or executive officers, nor any proposed nominee for election as a director, nor any person who beneficially owns, directly or indirectly, shares carrying more than 5% of the voting rights attached to all of our outstanding shares, nor any members of the immediate family (including spouse, parents, children, siblings, and
        in-laws) of any of the foregoing persons has any material interest, direct or indirect, in any transaction in the period covered by this report or in any presently proposed transaction which, in either case, has or will materially affect us, except as follows:



On June 22, 2005 the Company entered into an employment agreement with Don Gilbreath, our sole executive officer and one of our directors that entitles him to a fixed salary, health benefits and participation in our equity based benefit plan. Since execution to December 31,
        2007 Mr. Gilbreath waived any entitlements pursuant to his employment agreement and was instead compensated with consulting fees. Mr. Gilbreath accrued an amount of $100,000 during the annual period ended December 31, 2008 pursuant to his employment agreement.

ITEM 14.PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit Fees



Pritchett, Siler & Hardy ("Pritchett") is providing audit services to the Company in connection with its annual report for the fiscal years ended December 31, 2008 and December 31, 2007 and review of the Company’s quarterly financial statements for the fiscal years
        ended December 31, 2008. The aggregate fees billed by Pritchett were $28,799 during 2008.

35





Jones Simkins P.C. (“Jones Simkins”) provided audit services to the Company in connection with its annual report for the fiscal year ended December 31, 2006 and reviews of the Company’s quarterly financial statements for the fiscal year ended December 31, 2006. The aggregate fees billed by Jones Simkins were
        $8,733 during 2007.



Audit Related Fees



Pritchett billed the Company no fees in 2008 or 2007 for professional services that were reasonably related to the audit or review of the Company’s financial statements that are not disclosed in “Audit Fees” above.



Tax Fees



Pritchett billed the Company no fees for professional services rendered in connection with the preparation of the Company’s tax returns.



All Other Fees



Pritchett billed the Company no fees in 2008 or 2007 for other professional services rendered or any other services not disclosed above.



Audit Committee Pre-Approval



The Company does not have an audit committee. Therefore, all services provided to the Company by Pritchett, as detailed above, were pre-approved by the Company’s board of directors. Pritchett performed all work only with their permanent full time employees.



PART IV



ITEM 15.     EXHIBITS AND FINANCIAL STATEMENT SCHEDULES



(a)Financial Statements



The following documents are filed under “Item 8. Financial Statements and Supplementary Data,” pages F-1 through F-18,
        and are included as part of this Form 10-K:

Financial Statements of The Company for the years ended December 31, 2008 and 2007:

Report of Independent Registered Public Accounting Firm

Balance Sheets

Statements of Income
        Statements of Stockholders’ Equity
        Statements of Cash Flows

Notes to Financial Statements

(b) Exhibits



The exhibits required to be attached by Item 601 of Regulation S-K are listed in the Index to Exhibits on page 38 of this Form 10-K, and are incorporated herein by this reference.



(c) Financial Statement Schedules



We are not filing any financial statement schedules as part of this Form 10-K because such schedules are either not applicable or the required information is included in the financial statements or notes thereto.

36





SIGNATURES



In accordance with the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized this 31st day of December, 2009.



COMCAM INTERNATIONAL, INC.





/s/ Don Gilbreath

Don Gilbreath

Chief Executive Officer, Chief Financial Officer, and Principal Accounting Officer



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



Signature     Title     Date



/s/ Don GilbreathDirector     December 31, 2009

Don Gilbreath



/s/ Robert BettyDirector     December 31, 2009

Robert Betty



/s/ Albert WhiteDirector     December 31, 2009

Albert White



37





INDEX TO EXHIBITS



Exhibit     Description



3 (i)*     Amended and Restated Certificate of Incorporation of the Company (incorporated by reference to the Form 10-SB/A filed with the Commission on June 26, 2006).

3 (ii)*     Bylaws of the Company (incorporated by reference to the Form 10-SB/A filed with the Commission on June 26, 2006).

10 (i)*     Stock Exchange Agreement between ComCam, Inc. and the Company dated May 8, 2002 (incorporated by reference to the Form 10-SB/A filed with the Commission on June 6, 2006).

10 (ii)(a)*     Securities Purchase Agreement between the Company, ComCam, Inc. and ACC Investors, LLC dated June 22, 2005 (incorporated by reference to the Form 10-SB/A filed with the Commission on June 26, 2006).

10 (ii)(b)*     Convertible Secured Promissory Note between the Company, ComCam, Inc. and ACC Investors, LLC dated June 22, 2005 (incorporated by reference to the Form 10-SB/A filed with the Commission on June 26, 2006).

10 (ii)(c)*     Warrant to Purchase Common Stock between the Company and ACC Investors, LLC dated June 22, 2005 (incorporated by reference to the Form 10-SB/A filed with the Commission on June 26, 2006).

10 (ii)(d)*     Warrant to Purchase Common Stock between the Company and ACC Investors, LLC dated June 22, 2005 (incorporated by reference to the Form 10-SB/A filed with the Commission on June 26, 2006).

10 (ii)(e)*     Registration Rights Agreement between the Company and ACC Investors, LLC dated June 22, 2005 (incorporated by reference to the Form 10-SB/A filed with the Commission on June 26, 2006).

10 (ii)(f)*     Shareholders Agreement between Don Gilbreath and ACC Investors, LLC dated June 22, 2005 (incorporated by reference to the Form 10-SB/A2 filed with the Commission on October 31, 2006).

10 (ii)(g)*          Employment Agreement between the Company, ComCam, Inc. and Don Gilbreath dated June 22, 2005 (incorporated by reference to the Form 10-SB/A filed with the Commission on June 26, 2006).

10 (iii)*     Asset Purchase Agreement between ComCam, Inc. and HNI, LLC dated February 14, 2007(incorporated by reference to the Form 10-K filed with the Commission on April 14, 2008).

10 (iv)*          Joinder, Amendment and Consent Agreement between ComCam, Inc., ComCam International, Inc. and HNI, LLC dated September 28, 2007 (incorporated by reference to the Form 10-QSB filed with the Commission on November 14, 2007).

10(v)     * Amendment Agreement dated February 14, 2008 (incorporated by reference to the Form 10-K filed with the Commission on April 14, 2008).

14*     Code of Ethics adopted March 24, 2008 (incorporated by reference to the Form 10-K filed with the Commission on April 14, 2008).

31     Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14 of the Securities and Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32          Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.



*      Incorporated by reference to previous filings of the Company.

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