----

| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
|---|---------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
|--------|----------------------------------------------------------|

| INDIANA                         | 20-2803889             |
|---------------------------------|------------------------|
| (State or other jurisdiction of | (IRS Employer          |
| incorporation or organization)  | Identification Number) |

| 6402 Corporate Drive                     | 46278      |
|------------------------------------------|------------|
| Indianapolis, IN                         | (Zip Code) |
| (Address of principal executive offices) |       |

| Large accelerated filer                       |  ̈ | Accelerated filer         |  ̈ |
|-----------------------------------------------|--------|---------------------------|--------|
|                                          |   |                      |   |
| Non-accelerated filer                         |  ̈ | Smaller reporting company | x      |
| (Do not check if a smaller reporting company) |

----

|   | · | Part I, Item 1.  Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Changes in Shareholders’ Equity, Consolidated Statements of Cash Flows and Note 3; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Part I, Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|                                                |   | March 31, 2010 |    |
|-----------------------------------------------------|--------|----------------|---------|
|                                                |   | As Previously  |    |   |   |   |
| Consolidated Balance Sheets:                        |   | Reported       |    |   | Restated |   |
| Additional Paid-in Capital and Warrants Outstanding |   | $              | 19,336  |   |   | $ | 19,586 |   |
| Accumulated Deficit                                 |   | $              | (30,703 | ) |   | $ | (30,953 | ) |

| Consolidated Statements of Operations:                               |   | Three Month Period EndedMarch 31, 2010 |   |
|----------------------------------------------------------------------|--------|----------------------------------------|--------|
|                                                                 |   | As Previously                          |   |   |   |   |
|                                                                 |   | Reported                               |   |   | Restated |   |
| Other Income                                                         |   | $                                      | 250    |   |   | $ | - |   |
| Total Other Income                                                   |   | $                                      | 275    |   |   | $ | 25 |   |
| Income (Loss) Before Provision for Income Taxes                      |   | $                                      | (10    | ) |   | $ | (260 | ) |
| Net Income (Loss) From Continuing Operations                         |   | $                                      | (24    | ) |   | $ | (274 | ) |
| Net Income (Loss)                                                    |   | $                                      | (28    | ) |   | $ | (278 | ) |
| Net Income (Loss) Available to Common Shareholders                   |   | $                                      | (176   | ) |   | $ | (426 | ) |
| Basic Income (Loss) Per Common Share – Continuing Operations   |   | $                                      | (0.01  | ) |   | $ | (0.03 | ) |
| Basic Income (Loss) Per Common Share                                 |   | $                                      | (0.01  | ) |   | $ | (0.03 | ) |
| Diluted Income (Loss) Per Common Share – Continuing Operations |   | $                                      | (0.01  | ) |   | $ | (0.03 | ) |
| Diluted Income (Loss) Per Common Share                               |   | $                                      | (0.01  | ) |   | $ | (0.03 | ) |

|                                                                 |   | Nine Month Period EndedMarch 31, 2010 |   |
|----------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                 |   | As Previously                         |   |   |   |   |
|                                                                 |   | Reported                              |   |   | Restated |   |
| Other Income                                                         |   | $                                     | 250    |   |   | $ | - |   |
| Total Other Income                                                   |   | $                                     | 323    |   |   | $ | 73 |   |
| Income (Loss) Before Provision for Income Taxes                      |   | $                                     | 859    |   |   | $ | 609 |   |
| Net Income (Loss) From Continuing Operations                         |   | $                                     | 1,137  |   |   | $ | 887 |   |
| Net Income (Loss)                                                    |   | $                                     | 1,114  |   |   | $ | 864 |   |
| Net Income (Loss) Available to Common Shareholders                   |   | $                                     | 670    |   |   | $ | 420 |   |
| Basic Income (Loss) Per Common Share – Continuing Operations   |   | $                                     | 0.06   |   |   | $ | 0.03 |   |
| Basic Income (Loss) Per Common Share                                 |   | $                                     | 0.06   |   |   | $ | 0.03 |   |
| Diluted Income (Loss) Per Common Share – Continuing Operations |   | $                                     | 0.05   |   |   | $ | 0.03 |   |
| Diluted Income (Loss) Per Common Share                               |   | $                                     | 0.05   |   |   | $ | 0.03 |   |

|                                                                          |   | March 31, 2010                        |    |
|-------------------------------------------------------------------------------|--------|---------------------------------------|---------|
|                                                                          |   | As Previously                         |    |   |   |   |
|                                                                          |   | Reported                              |    |   | Restated |   |
| Consolidated Statements of Changes in Shareholders’ Equity              |   |                                  |    |   |   |   |
| Net Income/Accumulated Deficit                                                |   | $                                     | 1,114   |   |   | $ | 864 |   |
| Capital Contribution by Majority Shareholder/Additional Paid-in Capital and   |   |                                  |    |   |   |   |   |   |
| Warrants Outstanding                                                          |   | $                                     | -       |   |   | $ | 250 |   |
| Balance at March 31, 2010/Additional Paid-in Capital and Warrants Outstanding |   | $                                     | 19,336  |   |   | $ | 19,586 |   |
| Balance at March 31, 2010/Accumulated Deficit                                 |   | $                                     | (30,703 | ) |   | $ | (30,953 | ) |
|                                                                          |   |                                  |    |   |   |   |   |   |
|                                                                          |   | Nine Month Period Ended March31, 2010 |    |
|                                                                          |   | As Previously                         |    |   |   |   |   |
| Consolidated Statements of Cash Flows                                         |   | Reported                              |    |   | Restated |   |
| Net Income                                                                    |   | $                                     | 1,114   |   |   | $ | 864 |   |
| Extinguishment of debt                                                        |   | $                                     | (250    | ) |   | $ | - |   |

----

|                                                                                                                                               |   | Page   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| PART I.    Financial Information                                                                                                    |   |   |
| ITEM 1.  Financial Statements                                                                                                                 |   | 3      |
| Consolidated Balance Sheets as of March 31, 2010 (unaudited, restated) and June 30, 2009                                                           |   | 3      |
| Consolidated Statements of Operations for the three and nine month periods ended March 31, 2010 (unaudited, restated) and May 31, 2009 (unaudited) |   | 5      |
| Consolidated Statement of Changes in Shareholders’ Equity for the nine month period ended March 31, 2010 (unaudited, restated)               |   | 6      |
| Consolidated Statements of Cash Flows for the nine month periods ended March 31, 2010 and May 31, 2010 (unaudited, restated)                       |   | 7      |
| Notes to the Unaudited Interim Consolidated Financial Statements                                                                                   |   | 9      |
| ITEM 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations                                                |   | 16     |
| ITEM 3.  Quantitative and Qualitative Disclosures About Market Risk                                                                           |   | 23     |
| ITEM 4.  Controls and Procedures                                                                                                              |   | 23     |
| PART II.    Other Information                                                                                                       |   |   |
| ITEM 1.  Legal Proceedings                                                                                                                    |   | 23     |
| ITEM 1A. Risk Factors                                                                                                                              |   | 23     |
| ITEM 2.    Unregistered Sales of Equity Securities and Use of Proceeds                                                              |   | 23     |
| ITEM 3    Defaults Upon Senior Securities                                                                                      |   | 23     |
| ITEM 4.     Submission of Matters to a Vote of Security Holders                                                                |   | 24     |
| ITEM 5.    Other Information                                                                                                        |   | 24     |
| ITEM 6.    Exhibits                                                                                                                 |   | 24     |
| Signatures                                                                                                                                         |   | 24     |

----

|                                                                                  |   | March 31, |   |   | June 30, |   |
|---------------------------------------------------------------------------------------|--------|----------------|--------|--------|---------------|--------|
|                                                                             |   | 2010           |   |   | 2009          |   |
|                                                                             |   | (Unaudited)    |   |   | (Audited)     |   |
|                                                                                  |   |           |   |   |          |   |
| ASSETS                                                                                |   |           |   |   |          |   |
| CURRENT ASSETS                                                                        |   |           |   |   |          |   |
| Cash and equivalents                                                                  |   | $              | 1,747  |   |          | $      | 1,686 |   |
| Restricted cash (Note 1)                                                              |   |           | 3,258  |   |          |   | 3,142 |   |
| Accounts receivable, net of allowance for doubtful accounts of $29 and $137           |   |           | 2,454  |   |          |   | 2,622 |   |
| Deferred tax asset                                                                    |   |           | 1,750  |   |          |   | 1,750 |   |
| Prepaid expenses and other current assets                                             |   |           | 1,147  |   |          |   | 1,496 |   |
| Assets of discontinued operations, net                                                |   |           | 18     |   |          |   | 112 |   |
| Total Current Assets                                                                  |   |           | 10,374 |   |          |   | 10,808 |   |
|                                                                                  |   |           |   |   |          |   |   |   |
| OTHER ASSETS                                                                          |   |           |   |   |          |   |   |   |
| Property, plant & equipment, net of accumulated depreciation of $2,448 and $2,193 |   |           | 560    |   |          |   | 764 |   |
| Term note receivable related party (Note 2)                                           |   |           | 2,509  |   |          |   | 2,546 |   |
| Deferred tax asset                                                                    |   |           | 1,000  |   |          |   | 750 |   |
| Goodwill                                                                              |   |           | 12,339 |   |          |   | 12,339 |   |
| Other intangible assets, net                                                          |   |           | 2,958  |   |          |   | 3,263 |   |
| Other long-term assets                                                                |   |           | 77     |   |          |   | 43 |   |
| Total Other Assets                                                                    |   |           | 19,443 |   |          |   | 19,705 |   |
|                                                                                  |   |           |   |   |          |   |   |   |
| TOTAL ASSETS                                                                          |   | $              | 29,817 |   |          | $      | 30,513 |   |

----

|                                                                                                                                                      |   | March 31,       |    |   | June 30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|---------------|--------|
|                                                                                                                                                 |   | 2010                 |    |   | 2009          |   |
|                                                                                                                                                 |   | (Unaudited Restated) |    |   | (Audited)     |   |
|                                                                                                                                                      |   |                 |    |   |          |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                      |   |                 |    |   |          |   |
| CURRENT LIABILITIES                                                                                                                                       |   |                 |    |   |          |   |
| Short-term debt and current maturities of long-term debt (Note 3)                                                                                         |   | $                    | 17      |   |          | $      | 275 |   |
| Accounts payable                                                                                                                                          |   |                 | 902     |   |          |   | 1,037 |   |
| Health and workers' compensation reserves                                                                                                                 |   |                 | 2,151   |   |          |   | 4,125 |   |
| Accrued expenses                                                                                                                                          |   |                 | 6,155   |   |          |   | 5,376 |   |
| Other current liabilities                                                                                                                                 |   |                 | 818     |   |          |   | 1,003 |   |
| Liabilities of discontinued operations, net                                                                                                               |   |                 | -       |   |          |   | 1 |   |
| Total Current Liabilities                                                                                                                                 |   |                 | 10,043  |   |          |   | 11,817 |   |
|                                                                                                                                                      |   |                 |    |   |          |   |   |   |
| LONG-TERM LIABILITIES                                                                                                                                     |   |                 |    |   |          |   |   |   |
| Health and workers' compensation reserves                                                                                                                 |   |                 | 322     |   |          |   | - |   |
| Long-term debt, less current maturities (Note 3)                                                                                                          |   |                 | -       |   |          |   | 11 |   |
| Total Long-Term Liabilities                                                                                                                               |   |                 | 322     |   |          |   | 11 |   |
|                                                                                                                                                      |   |                 |    |   |          |   |   |   |
| Total Liabilities                                                                                                                                         |   |                 | 10,365  |   |          |   | 11,828 |   |
|                                                                                                                                                      |   |                 |    |   |          |   |   |   |
| SHAREHOLDERS' EQUITY (NOTE 5)                                                                                                                             |   |                 |    |   |          |   |   |   |
| Common stock, $0.10 par value; 150,000,000 authorized; 12,224,290 and 12,082,173 issued and outstanding at March 31, 2010 and June 30, 2009, respectively |   |                 | 1,201   |   |          |   | 1,187 |   |
| Series C Preferred stock, $0.10 par value; 1,000,000 authorized; 296,180 issued and outstanding at March 31, 2010 and June 30, 2009, respectively         |   |                 | 29,618  |   |          |   | 29,618 |   |
| Additional paid-in capital and warrants outstanding                                                                                                       |   |                 | 19,586  |   |          |   | 19,253 |   |
| Accumulated deficit                                                                                                                                       |   |                 | (30,953 | )      |          |   | (31,373 | ) |
| Total Shareholders' Equity                                                                                                                                |   |                 | 19,452  |   |          |   | 18,685 |   |
|                                                                                                                                                      |   |                 |    |   |          |   |   |   |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                |   | $                    | 29,817  |   |          | $      | 30,513 |   |

----

|                                                         |   | Three Month Period Ended |       |   | Nine Month Period Ended |   |
|--------------------------------------------------------------|--------|-----------------------------------------|------------|--------|----------------------------------------|--------|
|                                                    |   | March 31,                          |       |   | May 31,                           |   |   | March 31, |   |   | May 31, |   |
|                                                    |   | 2010                                    |       |   | 2009                                   |   |   | 2010 |   |   | 2009 |   |
| REVENUES                                                     |   |                                    |       |   |                                   |   |   |   |   |   |   |   |
| Service revenues                                             |   | $                                       | 15,319     |   |                                   | $      | 15,393 |   |   | $ | 45,133 |   |   | $ | 50,057 |   |
| Product revenues                                             |   |                                    | -          |   |                                   |   | - |   |   |   | - |   |   |   | 17,929 |   |
| TOTAL REVENUES                                               |   |                                    | 15,319     |   |                                   |   | 15,393 |   |   |   | 45,133 |   |   |   | 67,986 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| COST OF REVENUES                                             |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Service cost of revenues                                     |   |                                    | 12,684     |   |                                   |   | 12,300 |   |   |   | 35,911 |   |   |   | 39,528 |   |
| Product cost of revenues                                     |   |                                    | -          |   |                                   |   | - |   |   |   | - |   |   |   | 14,944 |   |
| TOTAL COST OF REVENUES                                       |   |                                    | 12,684     |   |                                   |   | 12,300 |   |   |   | 35,911 |   |   |   | 54,472 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| GROSS PROFIT                                                 |   |                                    | 2,635      |   |                                   |   | 3,093 |   |   |   | 9,222 |   |   |   | 13,514 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES                                           |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses                 |   |                                    | 2,744      |   |                                   |   | 2,568 |   |   |   | 8,127 |   |   |   | 11,744 |   |
| Depreciation and amortization                                |   |                                    | 176        |   |                                   |   | 207 |   |   |   | 559 |   |   |   | 798 |   |
| Total Operating Expenses                                     |   |                                    | 2,920      |   |                                   |   | 2,775 |   |   |   | 8,686 |   |   |   | 12,542 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING INCOME (LOSS)                                      |   |                                    | (285       | )      |                                   |   | 318 |   |   |   | 536 |   |   |   | 972 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                       |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                              |   |                                    | 27         |   |                                   |   | 69 |   |   |   | 83 |   |   |   | 107 |   |
| Interest expense                                             |   |                                    | (2         | )      |                                   |   | (32 | ) |   |   | (10 | ) |   |   | (112 | ) |
| Gain (loss) on disposal of assets                            |   |                                    | -          |   |                                   |   | 1 |   |   |   | - |   |   |   | (20 | ) |
| Exchange rate gain                                           |   |                                    | -          |   |                                   |   | - |   |   |   | - |   |   |   | 1 |   |
| Other income                                                 |   |                                    | -          |   |                                   |   | 42 |   |   |   | - |   |   |   | 76 |   |
| Total Other Income                                           |   |                                    | 25         |   |                                   |   | 80 |   |   |   | 73 |   |   |   | 52 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES              |   |                                    | (260       | )      |                                   |   | 398 |   |   |   | 609 |   |   |   | 1,024 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income taxes                                   |   |                                    | 14         |   |                                   |   | 26 |   |   |   | (278 | ) |   |   | 70 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS) FROM CONTINUING OPERATIONS                 |   |                                    | (274       | )      |                                   |   | 372 |   |   |   | 887 |   |   |   | 954 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| DISCONTINUED OPERATIONS                                      |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from discontinued operations                   |   |                                    | (4         | )      |                                   |   | 8 |   |   |   | (23 | ) |   |   | (70 | ) |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS)                                            |   |                                    | (278       | )      |                                   |   | 380 |   |   |   | 864 |   |   |   | 884 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred stock dividends                                    |   |                                    | 148        |   |                                   |   | 370 |   |   |   | 444 |   |   |   | 815 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS           |   | $                                       | (426       | )      |                                   | $      | 10 |   |   | $ | 420 |   |   | $ | 69 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic Income (Loss) Per Common Share-Continuing Operations   |   | $                                       | (0.03      | )      |                                   | $      | 0.00 |   |   | $ | 0.03 |   |   | $ | 0.01 |   |
| Basic Loss Per Common Share-Discontinued Operations          |   |                                    | -          |   |                                   |   | - |   |   |   | - |   |   |   | - |   |
| BASIC INCOME (LOSS) PER COMMON SHARE                         |   | $                                       | (0.03      | )      |                                   | $      | 0.00 |   |   | $ | 0.03 |   |   | $ | 0.01 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic Weighted Average Shares Outstanding                    |   |                                    | 12,205,534 |   |                                   |   | 12,082,173 |   |   |   | 12,162,281 |   |   |   | 11,828,878 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted Income (Loss) Per Common Share-Continuing Operations |   | $                                       | (0.03      | )      |                                   | $      | 0.00 |   |   | $ | 0.03 |   |   | $ | 0.01 |   |
| Diluted Loss Per Common Share-Discontinued Operations        |   |                                    | -          |   |                                   |   | - |   |   |   | - |   |   |   | - |   |
| DILUTED INCOME (LOSS) PER COMMON SHARE                       |   | $                                       | (0.03      | )      |                                   | $      | 0.00 |   |   | $ | 0.03 |   |   | $ | 0.01 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted Weighted Average Shares Outstanding                  |   |                                    | 14,715,577 |   |                                   |   | 14,592,336 |   |   |   | 14,672,444 |   |   |   | 13,740,144 |   |

----

|                                                        |   |   |    |   |      |   |   | Additional           |   |   |        |   |   |          |    |
|-------------------------------------------------------------|--------|--------|---------|--------|-----------|--------|--------|----------------------|--------|--------|-------------|--------|--------|---------------|---------|
|                                                   |   |   |    |   |      |   |   | Paid-in Capital |   |   |        |   |   | Total         |    |
|                                                   |   | Common |    |   | Preferred |   |   | and Warrants    |   |   | Accumulated |   |   | Shareholders' |    |
|                                                   |   | Stock  |    |   | Stock     |   |   | Outstanding          |   |   | Deficit     |   |   | Equity        |    |
|                                                   |   |   |    |   |      |   |   |                 |   |   |        |   |   |          |    |
| BALANCE AT JUNE 30, 2009                                    |   | $      | 1,187   |   |      | $      | 29,618 |                 |   | $      | 19,253      |   |   | $             | (31,373 | ) |   | $ | 18,685 |   |
| Issuance of 142,117 shares of common stock for compensation |   |   | 14      |   |      |   | -      |                 |   |   | 83          |   |   |          | -       |   |   |   | 97 |   |
| Net income                                                  |   |   | -       |   |      |   | -      |                 |   |   | -           |   |   |          | 864     |   |   |   | 1,114 |   |
| Capital contribution by majority shareholder                |   |   |  - |   |      |   | -      |                 |   |   | 250         |   |   |          | -       |   |   |   | - |   |
| Preferred stock dividends                                   |   |   | -       |   |      |   | -      |                 |   |   | -           |   |   |          | (444    | ) |   |   | (444 | ) |
|                                                        |   |   |    |   |      |   |   |                 |   |   |        |   |   |          |    |   |   |   |   |   |
| BALANCE AT MARCH 31, 2010                                   |   | $      | 1,201   |   |      | $      | 29,618 |                 |   | $      | 19,586      |   |   | $             | (30,953 | ) |   | $ | 19,452 |   |

----

|                                                                              |   | Nine Months Ended |   |
|-----------------------------------------------------------------------------------|--------|-----------------------------|--------|
|                                                                              |   | March 31,              |   |   | May 31, |   |
|                                                                              |   | 2010                        |   |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                              |   |                        |   |   |   |   |
| Net Income                                                                        |   | $                           | 864    |   |   | $ | 884 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                        |   |   |   |   |   |   |
| Depreciation and amortization                                                     |   |                        | 559    |   |   |   | 965 |   |
| Provision for losses on accounts receivable                                       |   |                        | (108   | ) |   |   | (142 | ) |
| Loss on disposal of assets                                                        |   |                        | -      |   |   |   | 20 |   |
| Stock based compensation                                                          |   |                        | 97     |   |   |   | 195 |   |
| Deferred income taxes                                                             |   |                        | (250   | ) |   |   | - |   |
| Changes in certain operating assets and liabilities:                              |   |                        |   |   |   |   |   |   |
| Restricted cash                                                                   |   |                        | (116   | ) |   |   | 2,117 |   |
| Accounts receivable                                                               |   |                        | 276    |   |   |   | (19 | ) |
| Inventory, net                                                                    |   |                        | -      |   |   |   | 96 |   |
| Prepaid assets and other current assets                                           |   |                        | 349    |   |   |   | 435 |   |
| Assets of discontinued operations                                                 |   |                        | 94     |   |   |   | 375 |   |
| Other long-term assets                                                            |   |                        | 3      |   |   |   | 5 |   |
| Accounts payable                                                                  |   |                        | (135   | ) |   |   | 404 |   |
| Health and workers' compensation reserves                                         |   |                        | (1,652 | ) |   |   | (1,554 | ) |
| Accrued expenses and other current liabilities                                    |   |                        | 299    |   |   |   | (2,314 | ) |
| Liabilities of discontinued operations                                            |   |                        | (1     | ) |   |   | (217 | ) |
| Net Cash Provided by Operating Activities                                         |   |                        | 279    |   |   |   | 1,250 |   |
|                                                                              |   |                        |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                              |   |                        |   |   |   |   |   |   |
| Capital expenditures                                                              |   |                        | (50    | ) |   |   | (107 | ) |
| Proceeds from sale of assets                                                      |   |                        | -      |   |   |   | 7 |   |
| Net Cash Used in Investing Activities                                             |   |                        | (50    | ) |   |   | (100 | ) |
|                                                                              |   |                        |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                              |   |                        |   |   |   |   |   |   |
| Payments on long-term debt majority shareholder                                   |   |                        | -      |   |   |   | (300 | ) |
| Borrowings on short term debt                                                     |   |                        | -      |   |   |   | 250 |   |
| Payments on long-term debt                                                        |   |                        | (19    | ) |   |   | (48 | ) |
| Payments on convertible debentures                                                |   |                        | -      |   |   |   | (3,405 | ) |
| Dividends paid on preferred stock                                                 |   |                        | (149   | ) |   |   | (198 | ) |
| Net Cash Used in Financing Activities                                             |   |                        | (168   | ) |   |   | (3,701 | ) |
|                                                                              |   |                        |   |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS                                   |   |                        | 61     |   |   |   | (2,551 | ) |
|                                                                              |   |                        |   |   |   |   |   |   |
| CASH AND EQUIVALENTS                                                              |   |                        |   |   |   |   |   |   |
| Beginning of Period                                                               |   |                        | 1,686  |   |   |   | 4,740 |   |
|                                                                              |   |                        |   |   |   |   |   |   |
| End of Period                                                                     |   | $                           | 1,747  |   |   | $ | 2,189 |   |

----

|                                                            |   | Nine Months Ended |   |
|-----------------------------------------------------------------|--------|-----------------------------|--------|
|                                                       |   | March 31,              |   |   | May 31, |   |
|                                                       |   | 2010                        |   |   | 2009 |   |
| SUPPLEMENTAL DISCLOSURES                                        |   |                        |   |   |   |   |
| Interest paid                                                   |   | $                           | 10     |   |   | $ | 78 |   |
|                                                            |   |                        |   |   |   |   |   |   |
| Income taxes paid                                               |   | $                           | 68     |   |   | $ | 67 |   |
|                                                            |   |                        |   |   |   |   |   |   |
| Non-cash investing and financing activities:                    |   |                        |   |   |   |   |   |   |
| Retirement of series B preferred stock in exchange for series C |   |                        | -      |   |   |   | (7,918 | ) |
| Issuance of series C preferred stock in exchange for series B   |   |                        | -      |   |   |   | 7,918 |   |
| Issuance of series C preferred stock for debt extinguishment    |   |                        | -      |   |   |   | 21,700 |   |
| Term note receivable for disposition of assets                  |   |                        | -      |   |   |   | (3,240 | ) |
| Reduction in term loan in exchange for disposition of assets    |   |                        | -      |   |   |   | (10,000 | ) |
|                                                            |   | $                           | -      |   |   | $ | 8,460 |   |

----

----

----

| Assets                                                                      |   |   |   |
|-----------------------------------------------------------------------------|--------|--------|--------|
| Cash and equivalents                                                        |   | $      | 556    |   |
| Accounts receivable, net                                                    |   |   | 12,927 |   |
| Costs and estimated earnings in excess of billings on uncompleted contracts |   |   | 3,292  |   |
| Inventory, net                                                              |   |   | 4,073  |   |
| Deferred tax asset                                                          |   |   | 46     |   |
| Prepaid expenses and other current assets                                   |   |   | 790    |   |
| Property, plant & equipment, net                                        |   |   | 3,527  |   |
| Goodwill                                                                    |   |   | 152    |   |
| Other long term assets                                                      |   |   | 13     |   |
| Total Assets                                                                |   |   | 25,376 |   |
|                                                                        |   |   |   |   |
| Liabilities                                                                 |   |   |   |   |
| Accounts payable                                                            |   |   | 4,248  |   |
| Accrued expenses                                                            |   |   | 1,510  |   |
| Billings in excess of costs and estimated earnings on uncompleted contracts |   |   | 402    |   |
| Line of credit                                                              |   |   | 5,500  |   |
| Other liabilities                                                           |   |   | 476    |   |
| Total Liabilities                                                           |   |   | 12,136 |   |
|                                                                        |   |   |   |   |
| Net Assets                                                                  |   | $      | 13,240 |   |
|                                                                        |   |   |   |   |
| Cash considertation - related party term note                               |   | $      | 10,000 |   |
| Term note receivable - three year                                           |   |   | 3,240  |   |
|                                                                        |   |   |   |   |
| Total consideration                                                         |   | $      | 13,240 |   |

|   | · | To eliminate the impact of consolidating Fisbeck-Fortune Development, LLC (“FFD”), which prior to completion of the sales transaction, was considered a variable interest entity in conjunction with FIN 46R.  With the sale of the subsidiaries described in Note 2 and the cancellation of the lease agreement between Fortune Industries, Inc. and FFD, the primary beneficiary relationship between the entities ceased to exist. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | To eliminate the results of operations of the subsidiaries sold. |
|--------|--------|------------------------------------------------------------------|

|   | · | To adjust the dividends to the terms of the Series C Preferred shares that were issued in conjunction with the sales transaction. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

----

|                                         |   | For the Nine |   |
|----------------------------------------------|--------|------------------------|--------|
|                                    |   | Months Ended      |   |
|                                    |   | May 31,           |   |
|                                    |   | 2009                   |   |
|                                         |   |                   |   |
| Revenues                                     |   | $                      | 48,562 |   |
| Cost of Revenues                             |   |                   | 38,759 |   |
|                                         |   |                   |   |   |
| Gross Profit                                 |   |                   | 9,803  |   |
|                                         |   |                   |   |   |
| Operating Expenses                           |   |                   |   |   |
| Selling, general and administrative expenses |   |                   | 8,554  |   |
| Depreciation and amortization                |   |                   | 542    |   |
|                                         |   |                   |   |   |
| Total Operating Expenses                     |   |                   | 9,096  |   |
|                                         |   |                   |   |   |
| Operating Income                             |   |                   | 707    |   |
|                                         |   |                   |   |   |
| Other Income                                 |   |                   | 11     |   |
|                                         |   |                   |   |   |
| Income Before Provision for Income Taxes     |   |                   | 718    |   |
|                                         |   |                   |   |   |
| Provision for income taxes                   |   |                   | 66     |   |
|                                         |   |                   |   |   |
| Net Income                                   |   |                   | 652    |   |
|                                         |   |                   |   |   |
| Preferred stock dividends                    |   |                   | 1,110  |   |
|                                         |   |                   |   |   |
| Net Loss available to common shareholder     |   | $                      | (458   | ) |
|                                         |   |                   |   |   |
| Basic loss per common share                  |   | $                      | (0.04  | ) |
|                                         |   |                   |   |   |
| Diluted loss per common share                |   | $                      | (0.04  | ) |

----

| Segment & Entity                                                                                                                                                                           |   | Business Activity                                                                                                                                                                           |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                           |   |                                                                                                                                                                                        |
| Business Solutions                                                                                                                                                                             |   |                                                                                                                                                                                        |
| Professional Staff Management, Inc. and subsidiaries; CSM, Inc. and subsidiaries and related entities; Employer Solutions Group, Inc. and related entities; Precision Employee Management, LLC |   | Provider of outsourced human resource services                                                                                                                                              |
|                                                                                                                                                                                           |   |                                                                                                                                                                                        |
| Wireless Infrastructure                                                                                                                                                                        |   |                                                                                                                                                                                        |
| Fortune Wireless, Inc.; Magtech Services, Inc.; Cornerstone Wireless Construction Services, Inc.; James Westbrook & Associates, LLC                                                        |   | Provider turnkey development services for the deployment of wireless networks                                                                                                               |
|                                                                                                                                                                                           |   |                                                                                                                                                                                        |
| Transportation Infrastructure                                                                                                                                                                  |   |                                                                                                                                                                                        |
| James H. Drew Corp. and subsidiaries                                                                                                                                                           |   | Installer of fiber optic, smart highway systems, traffic signals, street signs, high mast and ornamental lighting, guardrail, wireless communications, and fabrications of structural steel |
|                                                                                                                                                                                           |   |                                                                                                                                                                                        |
| Ultraviolet Technologies                                                                                                                                                                       |   |                                                                                                                                                                                        |
| Nor-Cote International, Inc. and subsidiaries                                                                                                                                                  |   | Manufacturer of UV curable screen printing ink products                                                                                                                                     |
|                                                                                                                                                                                           |   |                                                                                                                                                                                        |
| Electronics Integration                                                                                                                                                                        |   |                                                                                                                                                                                        |
| Kingston Sales Corporation; Commercial Solutions, Inc.; Telecom Technology, Corp.                                                                                                              |   | Distributor and installer of home and commercial electronics                                                                                                                                |

----

|                                   |   | Business           |   |   | Holding |   |   | Segment |   |
|----------------------------------------|--------|--------------------|--------|--------|---------|--------|--------|---------|--------|
|                              |   | Solutions (1) |   |   | Company |   |   | Totals  |   |
| Three months ended March 31, 2010 |   |               |   |   |    |   |   |    |   |
| Revenue                                |   | $                  | 15,319 |   |    | $      | -      |    |   | $ | 15,319 |   |
| Cost of revenue                        |   |               | 12,684 |   |    |   | -      |    |   |   | 12,684 |   |
| Gross profit                           |   |               | 2,635  |   |    |   | -      |    |   |   | 2,635 |   |
| Operating expenses                     |   |               |   |   |    |   |   |    |   |   |   |   |
| Selling, general and administrative    |   |               | 2,595  |   |    |   | 149    |    |   |   | 2,744 |   |
| Depreciation and amortization          |   |               | 138    |   |    |   | 38     |    |   |   | 176 |   |
| Total operating expenses               |   |               | 2,733  |   |    |   | 187    |    |   |   | 2,920 |   |
|                                   |   |               |   |   |    |   |   |    |   |   |   |   |
| Segment operating loss                 |   | $                  | (98    | )      |    | $      | (187   | )       |   | $ | (285 | ) |

|                                |   | Business           |   |   | Holding |   |   | Segment |   |
|-------------------------------------|--------|--------------------|--------|--------|---------|--------|--------|---------|--------|
|                                |   | Solutions (1) |   |   | Company |   |   | Totals  |   |
| Three Months Ended May 31, 2009     |   |               |   |   |    |   |   |    |   |
| Revenue                             |   | $                  | 15,393 |   |    | $      | -      |    |   | $ | 15,393 |   |
| Cost of revenue                     |   |               | 12,300 |   |    |   | -      |    |   |   | 12,300 |   |
| Gross profit                        |   |               | 3,093  |   |    |   | -      |    |   |   | 3,093 |   |
| Operating expenses                  |   |               |   |   |    |   |   |    |   |   |   |   |
| Selling, general and administrative |   |               | 2,613  |   |    |   | (45    | )       |   |   | 2,568 |   |
| Depreciation and amortization       |   |               | 160    |   |    |   | 47     |    |   |   | 207 |   |
| Total operating expenses            |   |               | 2,773  |   |    |   | 2      |    |   |   | 2,775 |   |
|                                |   |               |   |   |    |   |   |    |   |   |   |   |
| Segment operating income (loss)     |   | $                  | 320    |   |    | $      | (2     | )       |   | $ | 318 |   |

|                                  |   | Business           |   |   | Holding |   |   | Segment |   |
|---------------------------------------|--------|--------------------|--------|--------|---------|--------|--------|---------|--------|
|                             |   | Solutions (1) |   |   | Company |   |   | Totals  |   |
| Nine months ended March 31, 2010 |   |               |   |   |    |   |   |    |   |
| Revenue                               |   | $                  | 45,133 |   |    | $      | -      |    |   | $ | 45,133 |   |
| Cost of revenue                       |   |               | 35,911 |   |    |   | -      |    |   |   | 35,911 |   |
| Gross profit                          |   |               | 9,222  |   |    |   | -      |    |   |   | 9,222 |   |
| Operating expenses                    |   |               |   |   |    |   |   |    |   |   |   |   |
| Selling, general and administrative   |   |               | 7,681  |   |    |   | 446    |    |   |   | 8,127 |   |
| Depreciation and amortization         |   |               | 437    |   |    |   | 122    |    |   |   | 559 |   |
| Total operating expenses              |   |               | 8,118  |   |    |   | 568    |    |   |   | 8,686 |   |
|                                  |   |               |   |   |    |   |   |    |   |   |   |   |
| Segment operating income (loss)       |   | $                  | 1,104  |   |    | $      | (568   | )       |   | $ | 536 |   |

----

|                                          |   | Business           |   |   | Wireless       |   |   | Transportation |   |   | Ultraviolet  |   |   | Electronics |   |   | Holding |   |   |   |   |
|----------------------------------------------------|--------|--------------------|--------|--------|----------------|--------|--------|----------------|--------|--------|--------------|--------|--------|-------------|--------|--------|---------|--------|--------|--------|--------|
|                                          |   | Solutions (1) |   |   | Infrastructure |   |   | Infrastructure |   |   | Technologies |   |   | Integration |   |   | Company |   |   | Totals |   |
| Nine Months Ended May 31, 2009 |   |               |   |   |           |   |   |           |   |   |         |   |   |        |   |   |    |   |   |   |   |
| Revenue                                            |   | $                  | 48,562 |   |           | $      | 3,312  |           |   | $      | 12,090       |   |   | $           | 2,771  |   |    | $      | 1,251  |   |   | $ | - |   |   | $ | 67,986 |   |
| Cost of revenue                                    |   |               | 38,759 |   |           |   | 2,458  |           |   |   | 10,747       |   |   |        | 1,596  |   |    |   | 912    |   |   |   | - |   |   |   | 54,472 |   |
| Gross profit                                       |   |               | 9,803  |   |           |   | 854    |           |   |   | 1,343        |   |   |        | 1,175  |   |    |   | 339    |   |   |   | - |   |   |   | 13,514 |   |
| Operating expenses                                 |   |               |   |   |           |   |   |           |   |   |         |   |   |        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative                |   |               | 8,627  |   |           |   | 650    |           |   |   | 781          |   |   |        | 1,320  |   |    |   | 238    |   |   |   | 128 |   |   |   | 11,744 |   |
| Depreciation and amortization                      |   |               | 495    |   |           |   | 11     |           |   |   | 5            |   |   |        | 59     |   |    |   | 1      |   |   |   | 227 |   |   |   | 798 |   |
| Total operating expenses                           |   |               | 9,122  |   |           |   | 661    |           |   |   | 786          |   |   |        | 1,379  |   |    |   | 239    |   |   |   | 355 |   |   |   | 12,542 |   |
|                                               |   |               |   |   |           |   |   |           |   |   |         |   |   |        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Segment operating income (loss)                    |   | $                  | 681    |   |           | $      | 193    |           |   | $      | 557          |   |   | $           | (204   | )      |    | $      | 100    |   |   | $ | (355 | ) |   | $ | 972 |   |

|                                      |   | Business  |   |   | Electronics |   |   | Holding |   |   |   |   |
|-------------------------------------------|--------|-----------|--------|--------|-------------|--------|--------|---------|--------|--------|--------|--------|
|                                 |   | Solutions |   |   | Integration |   |   | Company |   |   | Totals |   |
| As of March 31, 2010 (Unaudited)          |   |      |   |   |        |   |   |    |   |   |   |   |
| Current Assets                            |   |      |   |   |        |   |   |    |   |   |   |   |
| Cash and equivalents                      |   | $         | 1,649  |   |        | $      | -      |    |   | $      | 98     |   |   | $ | 1,747 |   |
| Restricted cash                           |   |      | 3,258  |   |        |   | -      |    |   |   | -      |   |   |   | 3,258 |   |
| Accounts receivable, net                  |   |      | 2,452  |   |        |   | -      |    |   |   | 2      |   |   |   | 2,454 |   |
| Deferred tax asset                        |   |      | 1,750  |   |        |   | -      |    |   |   | -      |   |   |   | 1,750 |   |
| Prepaid expenses and other current assets |   |      | 1,189  |   |        |   | -      |    |   |   | (42    | )      |   |   | 1,147 |   |
| Assets of discontinued operations, net    |   |      | -      |   |        |   | 18     |    |   |   | -      |   |   |   | 18 |   |
| Total Current Assets                      |   |      | 10,298 |   |        |   | 18     |    |   |   | 58     |   |   |   | 10,374 |   |
|                                      |   |      |   |   |        |   |   |    |   |   |   |   |   |   |   |   |
| Other Assets                              |   |      |   |   |        |   |   |    |   |   |   |   |   |   |   |   |
| Property, plant & equipment, net      |   |      | 408    |   |        |   | -      |    |   |   | 152    |   |   |   | 560 |   |
| Term note receivable-related party        |   |      | -      |   |        |   | -      |    |   |   | 2,509  |   |   |   | 2,509 |   |
| Deferred tax asset                        |   |      | 1,000  |   |        |   | -      |    |   |   | -      |   |   |   | 1,000 |   |
| Goodwill                                  |   |      | 12,339 |   |        |   | -      |    |   |   | -      |   |   |   | 12,339 |   |
| Other intangible assets, net              |   |      | 2,958  |   |        |   | -      |    |   |   | -      |   |   |   | 2,958 |   |
| Other long term assets                    |   |      | 55     |   |        |   | -      |    |   |   | 22     |   |   |   | 77 |   |
| Total Other Assets                        |   |      | 16,760 |   |        |   | -      |    |   |   | 2,683  |   |   |   | 19,443 |   |
|                                      |   |      |   |   |        |   |   |    |   |   |   |   |   |   |   |   |
| Total Assets                              |   | $         | 27,058 |   |        | $      | 18     |    |   | $      | 2,741  |   |   | $ | 29,817 |   |

----

|                                      |   | Business  |   |   | Electronics |   |   | Holding |   |   |   |   |
|-------------------------------------------|--------|-----------|--------|--------|-------------|--------|--------|---------|--------|--------|--------|--------|
|                                 |   | Solutions |   |   | Integration |   |   | Company |   |   | Totals |   |
| As of June 30, 2009 (Audited)             |   |      |   |   |        |   |   |    |   |   |   |   |
| Current Assets                            |   |      |   |   |        |   |   |    |   |   |   |   |
| Cash and equivalents                      |   | $         | 1,622  |   |        | $      | -      |    |   | $      | 64     |   |   | $ | 1,686 |   |
| Restricted cash                           |   |      | 3,142  |   |        |   | -      |    |   |   | -      |   |   |   | 3,142 |   |
| Accounts receivable, net                  |   |      | 2,619  |   |        |   | -      |    |   |   | 3      |   |   |   | 2,622 |   |
| Deferred tax asset                        |   |      | 1,750  |   |        |   | -      |    |   |   | -      |   |   |   | 1,750 |   |
| Prepaid expenses and other current assets |   |      | 1,506  |   |        |   | -      |    |   |   | (10    | )      |   |   | 1,496 |   |
| Assets of discontinued operations, net    |   |      | -      |   |        |   | 112    |    |   |   | -      |   |   |   | 112 |   |
| Total Current Assets                      |   |      | 10,639 |   |        |   | 112    |    |   |   | 57     |   |   |   | 10,808 |   |
|                                      |   |      |   |   |        |   |   |    |   |   |   |   |   |   |   |   |
| Other Assets                              |   |      |   |   |        |   |   |    |   |   |   |   |   |   |   |   |
| Property, plant & equipment, net      |   |      | 489    |   |        |   | -      |    |   |   | 275    |   |   |   | 764 |   |
| Term note receivable-related party        |   |      | -      |   |        |   | -      |    |   |   | 2,546  |   |   |   | 2,546 |   |
| Deferred tax asset                        |   |      | 750    |   |        |   | -      |    |   |   | -      |   |   |   | 750 |   |
| Goodwill                                  |   |      | 12,339 |   |        |   | -      |    |   |   | -      |   |   |   | 12,339 |   |
| Other intangible assets, net              |   |      | 3,263  |   |        |   | -      |    |   |   | -      |   |   |   | 3,263 |   |
| Other long term assets                    |   |      | 22     |   |        |   | -      |    |   |   | 21     |   |   |   | 43 |   |
| Total Other Assets                        |   |      | 16,863 |   |        |   | -      |    |   |   | 2,842  |   |   |   | 19,705 |   |
|                                      |   |      |   |   |        |   |   |    |   |   |   |   |   |   |   |   |
| Total Assets                              |   | $         | 27,502 |   |        | $      | 112    |    |   | $      | 2,899  |   |   | $ | 30,513 |   |

----

----

----

|                                               |   | Revenue for the        |   |   | Operating income (loss) for the |   |
|----------------------------------------------------|--------|----------------------------------|--------|--------|-----------------------------------------------------|--------|
|                                          |   | Three Months Ended     |   |   | Three Months Ended                        |   |
|                                          |   | March 31,                   |   |   | May 31,                                        |   |   | March 31, |   |   | May 31, |   |
|                                          |   | 2010                             |   |   | 2009                                                |   |   | 2010 |   |   | 2009 |   |
|                                          |   | (Dollars in thousands) |   |
| Business Solutions                            |   | $                                | 15,319 |   |                                                | $      | 15,393 |   |   | $ | (98 | ) |   | $ | 320 |   |
| Holding Company                                    |   |                             | -      |   |                                                |   | - |   |   |   | (187 | ) |   |   | (2 | ) |
| Segment Totals                                     |   | $                                | 15,319 |   |                                                | $      | 15,393 |   |   | $ | (285 | ) |   | $ | 318 |   |
|                                               |   |                             |   |   |                                                |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) Available to Common Shareholders |   |                             |   |   |                                                |   |   |   |   | $ | (426 | ) |   | $ | 10 |   |

----

|                                        |   | Revenue for the        |         |   | Operating income (loss) for the |   |
|---------------------------------------------|--------|----------------------------------|--------------|--------|-----------------------------------------------------|--------|
|                                   |   | Nine Months Ended      |         |   | Nine Months Ended                         |   |
|                                   |   | March 31,                   |         |   | May 31,                                        |   |   | March 31, |   |   | May 31, |   |
|                                   |   | 2010                             |         |   | 2009                                                |   |   | 2010 |   |   | 2009 |   |
|                                   |   | (Dollars in thousands) |         |
| Business Solutions                          |   | $                                | 45,133       |   |                                                | $      | 48,562 |   |   | $ | 1,104 |   |   | $ | 681 |   |
| Wireless Infrastructure                     |   |                             | -            |   |                                                |   | 3,312 |   |   |   | - |   |   |   | 193 |   |
| Transportation Infrastructure               |   |                             | -            |   |                                                |   | 12,090 |   |   |   | - |   |   |   | 557 |   |
| Ultraviolet Technologies                    |   |                             | -            |   |                                                |   | 2,771 |   |   |   | - |   |   |   | (204 | ) |
| Electronics Integration                     |   |                             | -            |   |                                                |   | 1,251 |   |   |   | - |   |   |   | 100 |   |
| Holding Company                             |   |                             | -            |   |                                                |   | - |   |   |   | (568 | ) |   |   | (355 | ) |
| Segment Totals                              |   | $                                | 45,133       |   |                                                | $      | 67,986 |   |   | $ | 536 |   |   | $ | 972 |   |
|                                        |   |                             |         |   |                                                |   |   |   |   |   |   |   |   |   |   |   |
| Net Income Available to Common Shareholders |   |                             |    |   |                                                |   |    |   |   | $ | 420 |   |   | $ | 69 |   |

| · | Decrease in Business Solutions is due to a decrease in the total number of worksite employees related to client reductions in a) base payrolls, b) bonus programs, and c) overall staffing levels, all related to the downturn in economic conditions. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Wireless Infrastructure, Transportation Infrastructure, Ultraviolet Technologies, and the Electronics Integration decreases are due to the sale and or discontinuation of operations for the subsidiaries in these divisions. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Decreases in the Business Solutions are due to fewer enrollments in the health and workers compensation plans as a result of client reductions in base payrolls and overall staffing levels, and increases in the state unemployment rates without a corresponding increase to our clients. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Wireless Infrastructure, Transportation Infrastructure, Ultraviolet Technologies, and the Electronics Integration increases are due to the sale and or discontinuation of operations for the subsidiaries in these divisions. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                           |   | Three Month Period Ended |   |   | Nine Month Period Ended |   |
|-------------------------------------|--------|--------------------------|--------|--------|-------------------------|--------|
|                                |   | March 31, 2010           |   |   | May 31, 2009            |   |   | March 31, 2010 |   |   | May 31, 2009 |   |
|                                |   | (Dollars in thousands)   |   |
| Revenues                            |   | $                        | 15,319 |   |                    |   | 100 | % |   | $ | 15,393 |   |   |   | 100 | % |   | $ | 45,133 |   |   |   | 100 | % |   | $ | 48,562 |   |   |   | 100 | % |
| Cost of revenues                    |   |                     | 12,684 |   |                    |   | 82.8 | % |   |   | 12,300 |   |   |   | 79.9 | % |   |   | 35,911 |   |   |   | 79.6 | % |   |   | 38,759 |   |   |   | 79.8 | % |
| Gross profit                        |   |                     | 2,635  |   |                    |   | 17.2 | % |   |   | 3,093 |   |   |   | 20.1 | % |   |   | 9,222 |   |   |   | 20.4 | % |   |   | 9,803 |   |   |   | 20.2 | % |
|                                |   |                     |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                  |   |                     |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative |   |                     | 2,595  |   |                    |   | 16.9 | % |   |   | 2,613 |   |   |   | 17.0 | % |   |   | 7,681 |   |   |   | 17.0 | % |   |   | 8,627 |   |   |   | 17.8 | % |
| Depreciation and amortization       |   |                     | 138    |   |                    |   | 0.9 | % |   |   | 160 |   |   |   | 1.0 | % |   |   | 437 |   |   |   | 1.0 | % |   |   | 495 |   |   |   | 1.0 | % |
| Total operating expenses            |   |                     | 2,733  |   |                    |   | 17.8 | % |   |   | 2,773 |   |   |   | 18.0 | % |   |   | 8,118 |   |   |   | 18.0 | % |   |   | 9,122 |   |   |   | 18.8 | % |
|                                |   |                     |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment operating income (loss)     |   | $                        | (98    | )      |                    |   | -0.6 | % |   | $ | 320 |   |   |   | 2.1 | % |   | $ | 1,104 |   |   |   | 2.4 | % |   | $ | 681 |   |   |   | 1.4 | % |

----

----

----

| 31.1 | Rule 15d-14(a) Certification of CEO |
|------|-------------------------------------|
| 31.2 | Rule 15d-14(a) Certification of CFO |
| 32.1 | Section 1350 Certification of CEO   |
| 32.2 | Section 1350 Certification of CFO   |

|                      | Fortune Industries, Inc. |   |
|---------------------------|--------------------------|--------|
|                      | (Registrant)             |   |
|                      |                     |   |
| Date:  05/13/11 | By: /s/ Tena Mayberry    |   |
|                      | Tena Mayberry,           |   |
|                      | Chief Executive Officer  |   |
|                      |                     |   |
| Date:  05/13/11 | By: /s/ Randy E. Butler  |   |
|                      | Randy E. Butler,         |   |
|                      | Chief Financial Officer  |   |

----