**UNITED        STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,        D.C. 20549**

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**FORM        10-QSB/A**

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**Commission        File Number 000-50813**

**Sand        Hill IT Security Acquisition Corp.**

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| **Delaware**                                                    | **20-0996152**                                        |
|-----------------------------------------------------------------|-------------------------------------------------------|
| (State                  or other Jurisdiction of incorporation) | (I.R.S.                  Employer Identification No.) |

**3000      Sand Hill Road**

**Building      1, Suite 240**

**Menlo      Park, California**

**(650)      926-7022**

** **

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**PART I. CONDENSED FINANCIAL      INFORMATION**

**Item      1. Condensed Financial Statements**

**SAND      HILL IT SECURITY ACQUISITION CORP.**

**(A      Corporation in the Development Stage)**

**CONDENSED      BALANCE SHEET**

| **ASSETS**                                                                                                                |   | **June                  30, 2005****(Unaudited)** |        |
|---------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|-------------|
|                                                                                                                      |   | **(Restated)**                                    |        |
| **Current                  assets:**                                                                                      |   |                                              |             |   |
| Cash                                                                                                                      |   | $                                                 | 526,180     |   |
| Treasury                  securities held in trust, at market                                                             |   |                                              | 21,353,922  |   |
| Prepaid                  expenses                                                                                         |   |                                              | 70,442      |   |
| Total                  current assets                                                                                     |   |                                              | 21,950,544  |   |
| **Total                  Assets**                                                                                         |   | $                                                 | $21,950,544 |   |
|                                                                                                                      |   |                                              |             |   |
| **LIABILITIES                  AND STOCKHOLDERS’ EQUITY**                                                           |   |                                              |             |   |
| **Current                  Liabilities:**                                                                                 |   |                                              |             |   |
| Accounts                  payable and accrued expenses                                                                    |   | $                                                 | $92,522     |   |
| **Total                  Liabilities**                                                                                    |   |                                              | 92,522      |   |
|                                                                                                                      |   |                                              |        |   |
| **Common                  stock subject to possible conversion****(821,589                  shares at conversion value)** |   |                                              | 4,268,649   |   |
| **Stockholders’                  Equity:**                                                                          |   |                                              |             |   |
| Preferred                  stock, $0.01 par valueAuthorized                  5,000,000 shares; none issued                |   | $                                                 | $-          |   |
| Common                  stock, $0.01 par value                                                                            |   |                                              |             |   |
| Authorized                  50,000,000 shares                                                                             |   |                                              |             |   |
| Issued                  and outstanding, 5,110,000 and 5,110,000 shares,                  respectively                    |   |                                              | 51,100      |   |
| Additional                  paid-in capital                                                                               |   |                                              | 17,744,842  |   |
| Deficit                  accumulated during the development stage                                                         |   |                                              | (206,569    | ) |
| **Total                  Stockholders’ Equity**                                                                     |   |                                              | 17,589,373  |   |
| **Total                  Liabilities and Stockholders’ Equity**                                                     |   | $                                                 | $21,950,544 |   |

*See      accompanying notes to condensed financial statements*

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**SAND      HILL IT SECURITY ACQUISITION CORP.**

**(A      Corporation in the Development Stage)**

**CONDENSED      STATEMENTS OF OPERATIONS**

|                                                         |   | **Three                months ended****June                30, 2005****(Unaudited)** |      | **Six                months ended****June                30,2005****(Unaudited)** |   | **Period                from****April                15, 2004 (inception) to****June                30, 2005****(Unaudited)** |   |
|--------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|-----------|-----------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                         |   |                                                                                 |      |                                                                              |   |                                                                                                                          |   |
| Formation                and operating costs            |   | $                                                                                    | (244,569  | )                                                                                 | $      | (416,717                                                                                                                      | )      | $ | (608,663 | ) |
|                                                         |   |                                                                                 |           |                                                                              |   |                                                                                                                               |   |   |  |   |
| Operating                loss                           |   |                                                                                 | (244,569  | )                                                                                 |   | (416,717                                                                                                                      | )      |   | (608,663 | ) |
|                                                         |   |                                                                                 |      |                                                                              |   |                                                                                                                          |   |   |   |   |
| Interest                income and mark to market gain  |   |                                                                                 | 136,156   |                                                                              |   | 260,054                                                                                                                       |   |   | 402,093 |   |
|                                                         |   |                                                                                 |      |                                                                              |   |                                                                                                                          |   |   |   |   |
| Net                loss                                      |   | $                                                                                    | (108,413  | )                                                                                 | $      | (156,663                                                                                                                      | )      | $ | (206,570 | ) |
|                                                         |   |                                                                                 |      |                                                                              |   |                                                                                                                          |   |   |   |   |
| Weighted                Average Shares Outstanding      |   |                                                                                 | 5,110,000 |                                                                              |   | 5,110,000                                                                                                                     |   |   | 3,896,928 |   |
|                                                         |   |                                                                                 |           |                                                                              |   |                                                                                                                               |   |   |  |   |
| Net                loss Per Share (Basic and Diluted)        |   | $                                                                                    | (0.02     | )                                                                                 | $      | (0.03                                                                                                                         | )      | $ | (0.05 | ) |

*See      accompanying notes to condensed financial statements*

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**SAND      HILL IT SECURITY ACQUISITION CORP.**

**(A      Corporation in the Development Stage)**

**CONDENSED      STATEMENTS OF CASH FLOWS**

|                                                                              |   | **Six                months ended****June                30, 2005****(Unaudited)** |     | **Period                from****April                15, 2004 (inception) to****June                30, 2005****(Unaudited)** |   |
|-----------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|----------|-------------------------------------------------------------------------------------------------------------------------------|--------|
| CASH                FLOW FROM OPERATING ACTIVITIES                                |   |                                                                               |          |                                                                                                                          |   |  |   |
| Net                loss                                                           |   | $                                                                                  | (156,663 | )                                                                                                                             | $      | (206,570 | ) |
| Compensation                expense related to issuance of Advisory Board options |   |                                                                               | 14,682   |                                                                                                                          |   | 17,129 |   |
| Accretion                of treasury bill and mark to market gain                 |   |                                                                               | (253,412 | )                                                                                                                             |   | (328,922 | ) |
| Changes                in assets & liabilities:                               |   |                                                                               |          |                                                                                                                          |   |  |   |
| Prepaid                expenses                                                   |   |                                                                               | 61,689   |                                                                                                                          |   | (70,442 | ) |
| Accounts                payable and accrued expenses                              |   |                                                                               | 76,750   |                                                                                                                          |   | 92,522 |   |
|                                                                              |   |                                                                               | 14,682   |                                                                                                                          |   | 17,129 |   |
| Net                cash used in operating activities                              |   |                                                                               | (256,953 | )                                                                                                                             |   | (496,282 | ) |
|                                                                              |   |                                                                               |          |                                                                                                                          |   |  |   |
| CASH                FLOW FROM INVESTING ACTIVITIES                                |   |                                                                               |          |                                                                                                                          |   |  |   |
| Purchase                of treasury bill in trust account                         |   |                                                                               | -        |                                                                                                                          |   | 21,025,000 |   |
| Net                cash used in investing activities                              |   |                                                                               | -        |                                                                                                                          |   | 21,025,000 |   |
|                                                                              |   |                                                                               |          |                                                                                                                          |   |  |   |
| CASH                FLOW FROM FINANCING ACTIVITIES                                |   |                                                                               |          |                                                                                                                          |   |  |   |
| Proceeds                from sale of common stock to initial stockholders         |   |                                                                               | -        |                                                                                                                          |   | 25,000 |   |
| Gross                proceeds from public offering                                |   |                                                                               | -        |                                                                                                                          |   | 24,660 |   |
| Costs                of public offering                                           |   |                                                                               | -        |                                                                                                                          |   | (2,637,538 | ) |
| Proceeds                from stockholder loan                                     |   |                                                                               | -        |                                                                                                                          |   | 40,000 |   |
| Repayment                of stockholder loan                                      |   |                                                                               | -        |                                                                                                                          |   | (40,000 | ) |
| Net                cash provided by financing activities                          |   |                                                                               | -        |                                                                                                                          |   | 22,047,462 |   |
|                                                                              |   |                                                                               |          |                                                                                                                          |   |  |   |
| NET                INCREASE (DECREASE) IN CASH                                    |   |                                                                               | (256,953 | )                                                                                                                             |   | 526,180 |   |
| CASH                AT BEGINNING OF PERIOD                                        |   |                                                                               | 783,134  |                                                                                                                          |   |  |   |
| CASH                AT END OF PERIOD                                              |   | $                                                                                  | 526,180  |                                                                                                                          | $      | 526,180 |   |

*See      accompanying notes to condensed financial statements*

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**SAND      HILL IT SECURITY ACQUISITION CORP.**

**(A      Corporation in the Development Stage)**

**NOTES      TO CONDENSED FINANCIAL STATEMENTS**

| **1.** | **BASIS                OF PRESENTATION** |
|--------|------------------------------------------|

| **2.** | **ORGANIZATION,                BUSINESS OPERATIONS** |
|--------|------------------------------------------------------|

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| **3.** | **PUBLIC                OFFERING** |
|--------|------------------------------------|

| **4.** | **TREASURY                SECURITIES** |
|--------|----------------------------------------|

| **5.** | **COMMITMENT** |
|--------|----------------|

| **6.** | **NOTE                PAYABLE** |
|--------|---------------------------------|

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| **7**. | **COMMON                STOCK** |
|--------|---------------------------------|

| **8**. | **PREFERRED                STOCK** |
|--------|------------------------------------|

| 9. | **RESTATEMENT** |
|----|-----------------|

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**Item          3. Controls and Procedures**

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|   | Dated:                December 15, 2005SAND                HILL IT SECURITY ACQUISITION CORP./s/                Humphrey P. PolanenHumphrey                P. PolanenChief                Executive Officer/s/                Keith WalzKeith                WalzChief                Financial Officer and Secretary |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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