*Table
        of Contents*







**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


Washington,
      D.C. 20549





**FORM
      10-Q**





x
            QUARTERLY
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                1934





For
      the
      quarter ended June 30, 2008





o
            TRANSITION
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                1934





For
      the
      transition period from _____ to _____




Commission
      File Number: 000-52792





**PCMT
      CORPORATION**


(Exact
      name of registrant as specified in its charter)





Delaware
            
            98-0534701(State
                or other jurisdiction of incorporation or organization)
            
            (IRS
                Employer Identification No.)





4
      Nafcha Street, Jerusalem, Israel 95508


(Address
      of principal executive offices)





+972-2-500-1128


(Issuer's
      telephone number)





N/A


(Former
      name, former address and former fiscal year, if changed since last
      report)





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





Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, a non-accelerated filer, or a smaller reporting company.
      See
      the definitions of “large accelerated filer,” “accelerated filer” and “smaller
      reporting company” in Rule 12b-2 of the Exchange Act.





Large
                accelerated filero
            Accelerated
                fileroNon-accelerated
                filero
            Smaller
                reporting companyx(Do
                not check if a smaller reporting company)





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





Number
      of
      shares of common stock outstanding as of August 4, 2008: 70,356,336
      shares.












*Table
        of Contents*




**TABLE
      OF CONTENTS**




Page**PART
                I - FINACIAL INFORMATION**Item
                1. Financial Statements
            3Item
                2. Management’s Discussion and Analysis or Financial
                Condition and Results of Operations
            4Item
                3 Quantitative and Qualitative Disclosure About Market
                Risk
            6Item
                4(T) Controls and Procedures
            6**PART
                II - OTHER INFORMATION**Item
                1. Legal Proceedings
            7Item
                1A Risk Factors
            7Item
                2. Unregistered Sales of Equity Securities and Use of
                Proceeds
            7Item
                3. Defaults Upon Senior Securities
            7Item
                4. Submission of Matters to a Vote of Security Holders
            7Item
                5. Other Information
            8Item
                6. Exhibits
            8







-
            2 -
 *Table
            of Contents*




**PART
      I**


**FINANCIAL
      INFORMATION**





**Item
              1.**
            **Financial
                Statements.**






-
          3 -
 *Table
          of Contents*




**PCMT
        CORPORATION**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **INDEX
        TO FINANCIAL STATEMENTS**
 **JUNE
        30, 2008, AND 2007**
 **(Unaudited)**
  Financial
                  Statements-Balance
                  Sheets as ofJune
                  30,
                  2008, and December 31, 2007
              F-2Statements
                  of Operations for the Three Months and Six Months
                  Ended June 30, 2008, and 2007, and Cumulative from
                  Inception
              F-3Statement
                  of Stockholders’ Equity for the Period from
                  Inception Through June 30, 2008
              F-4Statements
                  of Cash Flows for the Six Months Ended June 30,
                  2008, and 2007, and Cumulative from Inception
              F-5Notes
                  to Financial Statements June 30, 2008, and
                  2007
              F-6
 
  F-1
 *Table
              of Contents*
  
 **PCMT
                  CORPORATION****(A
                  DEVELOPMENT STAGE COMPANY)****BALANCE
                  SHEETS (NOTE 2)****AS
                  OF JUNE 30, 2008, AND DECEMBER 31,
                  2007**
  **ASSETS****2008**
              
              **2007****(Unaudited)**
              
              **(Audited)****Current
                  Assets:**Cash
                  in bank
              
              $
              730,058
              
              $
              6,245Restricted
                  cash
              
              
              —
              
              
              358,289Accounts
                  receivable - Other
              
              
              4,299
              
              
              —Due
                  from Related Party - SDS
              
              
              15,500
              
              
              —Prepaid
                  expenses
              
              
              80,583
              
              
              —Total
                  current assets
              
              
              830,440
              
              
              364,534**Other
                  Assets:**Security
                  deposit
              
              
              500
              
              
              500Deferred
                  acquisition costs
              
              
              375,000
              
              
              75,500Total
                  other assets
              
              
              375,500
              
              
              76,000**Total
                  Assets**
              
              $
              1,205,940
              
              $
              440,534**LIABILITIES
                  AND STOCKHOLDERS' EQUITY****Current
                  Liabilities:**Accounts
                  payable - Trade
              
              $
              1,132
              
              $
              7,400Accrued
                  liabilities
              
              
              2,662
              
              
              8,525Accrued
                  officer's salary
              
              
              3,000
              
              
              5,000Accrued
                  office rent - Related party
              
              
              6,252
              
              
              4,452Due
                  to Director and stockholder
              
              
              200
              
              
              200Total
                  current liabilities
              
              
              13,246
              
              
              25,577Total
                  liabilities
              
              
              13,246
              
              
              25,577**Commitments
                  and Contingencies****Stockholders'
                  Equity:**Common
                  stock, par value $0.0001 per share, 100,000,000 sharesauthorized;
                  68,803,336 and 61,500,000 shares issued andoutstanding
                  in 2008 and 2007, respectively
              
              
              6,880
              
              
              6,150Additional
                  paid-in capital
              
              
              1,214,771
              
              
              119,801Common
                  stock subscribed - 1,553,333 shares and 2,621,666 sharesin
                  2008 and 2007, respectively
              
              
              233,000
              
              
              393,250Less
                  - Common stock subscriptions receivable
              
              
              (67,000
              )
              
              (15,000
              )(Deficit)
                  accumulated during the development stage
              
              
              (194,957
              )
              
              (89,244
              )Total
                  stockholders' equity
              
              
              1,192,694
              
              
              414,957**Total
                  Liabilities and Stockholders' Equity**
              
              $
              1,205,940
              
              $
              440,534
 The
        accompanying notes to the financial statements are
 an
        integral part of this balance sheet.
  F-2
 *Table
            of Contents*
  **PCMT
                  CORPORATION****(A
                  DEVELOPMENT STAGE COMPANY)****STATEMENTS
                  OF OPERATIONS (NOTE 2)****FOR
                  THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2008, AND 2007,****AND
                  CUMULATIVE FROM INCEPTION (OCTOBER 5, 2006)****THROUGH
                  JUNE 30, 2008****(Unaudited)**




**Three
                  Months Ended**
              
              **Six
                  Months Ended****June
                  30,**
              
              **June
                  30,**
              
              **Cumulative****2008**
              
              **2007**
              
              **2008**
              
              **2007**
              
              **Inception****Revenues**
              
              $
              —
              
              $
              —
              
              $
              —
              
              $
              —
              
              $
              —**Expenses:**General
                  and administrative-Legal
                  fees
              
              
              12,355
              
              
              3,188
              
              
              28,740
              
              
              6,688
              
              
              46,640Accounting
                  and audit fees
              
              
              4,000
              
              
              8,000
              
              
              9,000
              
              
              9,000
              
              
              31,500Travel
                  expense
              
              
              14,184
              
              
              —
              
              
              24,844
              
              
              —
              
              
              27,034Advertising
                  and promotion
              
              
              26,417
              
              
              —
              
              
              26,417
              
              
              —
              
              
              26,417Transfer
                  agent fees
              
              
              978
              
              
              14,500
              
              
              4,955
              
              
              14,500
              
              
              21,800Officer's
                  compensation
              
              
              3,000
              
              
              —
              
              
              7,200
              
              
              —
              
              
              15,200Consulting
                  fees
              
              
              5,000
              
              
              —
              
              
              5,000
              
              
              —
              
              
              12,400Filing
                  fees
              
              
              1,132
              
              
              1,204
              
              
              2,076
              
              
              2,568
              
              
              7,227Office
                  rent
              
              
              900
              
              
              900
              
              
              1,800
              
              
              1,800
              
              
              6,252Other
              
              
              858
              
              
              99
              
              
              (205
              )
              
              928
              
              
              3,289Legal
                  fees - Organization costs
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              1,500Officers'
                  compensation paid by issued shares
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              250Total
                  general and administrative expenses
              
              
              68,824
              
              
              27,891
              
              
              109,827
              
              
              35,484
              
              
              199,509**(Loss)
                  from Operations**
              
              
              (68,824
              )
              
              (27,891
              )
              
              (109,827
              )
              
              (35,484
              )
              
              (199,509
              )**Other
                  Income**
              
              
              1,896
              
              
              —
              
              
              4,114
              
              
              —
              
              
              4,552**Provision
                  for income taxes**
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              —**Net
                  (Loss)**
              
              $
              (66,928
              )
              $
              (27,891
              )
              $
              (105,713
              )
              $
              (35,484
              )
              $
              (194,957
              )**(Loss)
                  Per Common Share:**(Loss)
                  per common share - Basic and Diluted
              
              $
              (0.00
              )
              $
              (0.00
              )
              $
              (0.00
              )
              $
              (0.00
              )**Weighted
                  Average Number of Common Shares****Outstanding
                  - Basic and Diluted**
              
              
              68,293,916
              
              
              45,100,000
              
              
              65,878,152
              
              
              44,385,080
 The
      accompanying notes to the financial statements are


an
      integral part of these statements.




F-3
 *Table
          of Contents*




**PCMT
                  CORPORATION****(A
                  DEVELOPMENT STAGE COMPANY)****STATEMENT
                  OF STOCKHOLDERS' EQUITY (NOTE
                  2)****FOR
                  THE PERIOD FROM INCEPTION (OCTOBER 5, 2006)****THROUGH
                  JUNE 30, 2008****(Unaudited)**
  **Less
                  -**
              
              **(Deficit)****Common**
              
              **Accumulated****Additional**
              
              **Common**
              
              **Stock**
              
              **During
                  the****Common
                  stock**
              
              **Paid-in**
              
              **Stock**
              
              **Subscriptions**
              
              **Development****Description**
              
              **Shares**
              
              **Amount**
              
              **Capital**
              
              **Subscribed**
              
              **Receivable**
              
              **Stage**
              
              **Total****Balance
                  - October 5, 2006**
              
              
              —
              
              $
              —
              
              $
              —
              
              $
              —
              
              $
              —
              
              $
              —
              
              $
              —Common
                  stock issued to officer at par value
              
              
              100,000
              
              
              10
              
              
              (9
              )
              
              —
              
              
              (1
              )
              
              —
              
              
              —Common
                  stock issued for officer's compensation
              
              
              25,000,000
              
              
              2,500
              
              
              (2,250
              )
              
              —
              
              
              —
              
              
              —
              
              
              250Common
                  stock issued for cash
              
              
              12,600,000
              
              
              1,260
              
              
              30,240
              
              
              —
              
              
              (11,500
              )
              
              —
              
              
              20,000Net
                  (loss) for the period
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              (7,207
              )
              
              (7,207
              )**Balance
                  - December 31, 2006**
              
              
              37,700,000
              
              $
              3,770
              
              $
              27,981
              
              $
              —
              
              $
              (11,501
              )
              $
              (7,207
              )
              $
              13,043Payment
                  of common stock subscription
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              11,501
              
              
              —
              
              
              11,501Common
                  stock issued for cash
              
              
              7,400,000
              
              
              740
              
              
              17,760
              
              
              —
              
              
              —
              
              
              —
              
              
              18,500Common
                  stock issued for cash
              
              
              16,300,000
              
              
              1,630
              
              
              63,570
              
              
              —
              
              
              —
              
              
              —
              
              
              65,200Common
                  stock issued for services
              
              
              100,000
              
              
              10
              
              
              10,490
              
              
              —
              
              
              —
              
              
              —
              
              
              10,500Common
                  stock subscribed- 2,621,666 shares
              
              
              —
              
              
              —
              
              
              —
              
              
              393,250
              
              
              (15,000
              )
              
              —
              
              
              378,250Net
                  (loss) for the period
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              (82,037
              )
              
              (82,037
              )**Balance
                  - December 31, 2007**
              
              
              61,500,000
              
              $
              6,150
              
              $
              119,801
              
              $
              393,250
              
              $
              (15,000
              )
              $
              (89,244
              )
              $
              414,957Payment
                  of common stock subscription
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              15,000
              
              
              —
              
              
              15,000Common
                  stock subscribed - 5,568,337 shares
              
              
              —
              
              
              —
              
              
              —
              
              
              835,250
              
              
              (67,000
              )
              
              —
              
              
              768,250Common
                  stock issued from subscribed shares
              
              
              6,636,670
              
              
              663
              
              
              995,037
              
              
              (995,500
              )
              
              —
              
              
              —
              
              
              200Common
                  stock issued for services
              
              
              666,666
              
              
              67
              
              
              99,933
              
              
              —
              
              
              —
              
              
              —
              
              
              100,000Net
                  (loss) for the period
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              (105,713
              )
              
              (105,713
              )**Balance
                  - June 30, 2008**
              
              
              68,803,336
              
              $
              6,880
              
              $
              1,214,771
              
              $
              233,000
              
              $
              (67,000
              )
              $
              (194,957
              )
              $
              1,192,694
 The
        accompanying notes to the financial statements are
 an
        integral part of this statement.




F-4
 *Table
          of Contents*






**PCMT
                  CORPORATION****(A
                  DEVELOPMENT STAGE COMPANY)****STATEMENTS
                  OF CASH FLOWS (NOTE 2)****FOR
                  THE SIX MONTHS ENDED JUNE 30, 2008, AND 2007,****AND
                  CUMULATIVE FROM INCEPTION (OCTOBER 5, 2006)****THROUGH
                  JUNE 30, 2008****(Unaudited)**




**Six
                  Months Ended**
              
              **Cumulative****June
                  30,**
              
              **From****2008**
              
              **2007**
              
              **Inception****Operating
                  Activities:**Net
                  (loss)
              
              $
              (105,713
              )
              $
              (35,484
              )
              $
              (194,957
              )Adjustments
                  to reconcile net (loss) to net cash(used
                  in) operating activities:Common
                  stock issued for officers' compensation
              
              
              —
              
              
              —
              
              
              250Common
                  stock issued for services
              
              
              100,000
              
              
              —
              
              
              110,500Changes
                  in net liabilities-Accounts
                  receivable - Trade
              
              
              (4,299
              )
              
              —
              
              
              (4,299
              )Prepaid
                  rent
              
              
              —
              
              
              2,000
              
              
              —Prepaid
                  expenses
              
              
              (80,583
              )
              
              —
              
              
              (80,583
              )Security
                  deposit
              
              
              —
              
              
              (500
              )
              
              (500
              )Accounts
                  payable - Trade
              
              
              (6,268
              )
              
              (1,500
              )
              
              1,132Accrued
                  liabilities
              
              
              (5,863
              )
              
              5,688
              
              
              2,662Accrued
                  officer's salary
              
              
              (2,000
              )
              
              —
              
              
              3,000Accrued
                  office rent - Related party
              
              
              1,800
              
              
              1,800
              
              
              6,252**Net
                  Cash (Used in) Operating Activities**
              
              
              (102,926
              )
              
              (27,996
              )
              
              (156,543
              )**Investing
                  Activities:**Cash
                  provided by investing activities
              
              
              —
              
              
              —
              
              
              —**Net
                  Cash Provided by Investing Activities**
              
              
              —
              
              
              —
              
              
              —**Financing
                  Activities:**Issuance
                  of common stock for cash
              
              
              995,700
              
              
              30,000
              
              
              1,099,400Stock
                  subscriptions paid
              
              
              (212,250
              )
              
              —
              
              
              177,501Deferred
                  acquisition costs
              
              
              (299,500
              )
              
              —
              
              
              (375,000
              )Due
                  from Related Party - SDS
              
              
              (15,500
              )
              
              —
              
              
              (15,500
              )Due
                  to Director and stockholder
              
              
              —
              
              
              —
              
              
              200**Net
                  Cash Provided by Financing Activities**
              
              
              468,450
              
              
              30,000
              
              
              886,601**Net
                  Increase (Decrease) in Cash**
              
              
              365,524
              
              
              2,004
              
              
              730,058**Cash
                  - Beginning of Period**
              
              
              364,534
              
              
              13,595
              
              
              —**Cash
                  - End of Period**
              
              $
              730,058
              
              $
              15,599
              
              $
              730,058**Supplemental
                  Disclosure of Cash Flow Information:**Cash
                  paid during the period for:Interest
              
              $
              —
              
              $
              —
              
              $
              —Income
                  taxes
              
              $
              —
              
              $
              —
              
              $
              —


On
        November 3, 2006, PCMT issued 2,500,000 (post forward stock split) shares
        of its
        common stock to its Director and Corporate Secretary at par value for services
        rendered. The transaction was valued at $250.
  On
        December 5, 2007, PCMT issued 100,000 (post forward stock split) shares of
        its
        common stock to an attorney for legal services rendered. The transaction
        was
        valued at $10,500.
  On
        April
        20, 2007, PCMT issued 666,6666 (post forward stock split) shares of its common
        stock to a third-party for marketing and promotional services and assistance
        for
        one year. The transaction was valued at $100,000.




The
      accompanying notes to the financial statements are


an
      integral part of these statements.




F-5
 *Table
          of Contents*


**PCMT
        CORPORATION**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **JUNE
        30, 2008, AND 2007**
 **(Unaudited)**
   **1)**
              **Summary
                  of Significant Accounting
                  Policies**




*Basis
      of Presentation and Organization*





PCMT
      Corporation (“PCMT” or the “Company”) is a Delaware corporation in the
      development stage and has not commenced operations. The Company was incorporated
      under the laws of the State of Delaware on October 5, 2006. The proposed
      business plan of the Company is to establish a niche market by building up
      a
      chain of computer stores that provide products and services in Israel, focusing
      on cities with large ultra-orthodox Jewish religious communities, and then
      applying the same model to service similar and other religious communities
      in
      other countries. The accompanying financial statements of PCMT were prepared
      from the accounts of the Company under the accrual basis of
      accounting.





In
      November 2006, PCMT began a capital formation activity through a Private
      Placement Offering (“PPO #1”), exempt from registration under the Securities Act
      of 1933, to raise up to $50,000 through the issuance of 20,000,000  (post
      forward stock split) shares of its common stock, par value $0.0001 per share,
      at
      an offering price of $0.0025 per share. As of February 5, 2007, the Company
      had
      received $50,000 in proceeds from the PPO #1. PCMT also commenced an activity
      to
      submit a Registration Statement on Form SB-2 to the SEC to register 20,000,000
      shares (post forward stock split) of its outstanding common stock on behalf
      of
      selling stockholders. PCMT will not receive any of the proceeds of this
      registration activity once the shares of common stock are sold. The Registration
      Statement on Form SB-2 was filed with the SEC on March 12, 2007, and declared
      effective on March 29, 2007.





In
      October 2007, PCMT began a second capital formation activity through a Private
      Placement Offering (“PPO #2”), exempt from registration under the Securities Act
      of 1933, to raise up to $100,000 through the issuance of 25,000,000 (post
      forward stock split) shares of its common stock, par value $0.0001 per share,
      at
      an offering price of $0.004 per share. The PPO #2 has an offering period of
      180
      days. As of June 30, 2008, the Company had subscribed 16,300,000 (post forward
      stock split) shares related to the PPO #2 to 15 foreign investors, resulting
      in
      gross proceeds of $65,200. As of July 30, 2008, the Company was continuing
      with
      the PPO #2.





In
      November 2007, PCMT began a third capital formation activity through a Private
      Placement Offering (“PPO #3”), exempt from registration under the Securities Act
      of 1933, to raise up to $2,500,000 through the issuance of 16,666,666 (post
      forward stock split) units. The purchase price of each unit is $0.15. Each
      unit
      contains one share of common stock, one warrant giving the holder the right
      to
      purchase one share of common stock for $0.25, which is exercisable for one
      year,
      and one warrant giving the holder the right to purchase one share of common
      stock for $0.375, which is exercisable for three years from the date of
      issuance. As of June 30, 2008, the Company had subscribed 8,190,003 units and
      had received approximately $1,161,500 in proceeds from PPO #3, and a stock
      subscription receivable of $67,000. As of June 30, 2008, PCMT had issued
      6,636,670 shares (post forward stock split) of common stock subscribed. As
      of
      July 30, 2008, the Company had issued an additional 1,553,000 (post forward
      stock split) shares of common stock subscribed. As of July 30, 2008, the Company
      was continuing with the PPO #3.





F-6
 *Table
            of Contents*




**PCMT
        CORPORATION**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **JUNE
        30, 2008, AND 2007**
 **(Unaudited)**


*Unaudited
      Interim Financial Statements*





The
      interim financial statements of PCMT as of June 30, 2008, and for the three
      months and six months ended June 30, 2008, and 2007, and cumulative from
      inception, are unaudited. However, in the opinion of management, the interim
      financial statements include all adjustments, consisting only of normal
      recurring adjustments, necessary to present fairly PCMT’s financial position as
      of June 30, 2008, and the results of its operations and its cash flows for
      the
      three months and six months ended June 30, 2008, and 2007, and cumulative from
      inception. These results are not necessarily indicative of the results expected
      for the calendar year ending December 31, 2008. The accompanying financial
      statements and notes thereto do not reflect all disclosures required under
      accounting principles generally accepted in the United States of America. Refer
      to the Company’s audited financial statements as of December 31, 2007, filed
      with the SEC for additional information, including significant accounting
      policies.




*Cash
      and Cash Equivalents*





For
      purposes of reporting within the statement of cash flows, the Company considers
      all cash on hand, cash accounts not subject to withdrawal restrictions or
      penalties, and all highly liquid debt instruments purchased with a maturity
      of
      three months or less to be cash and cash equivalents.




*Revenue
      Recognition*





The
      Company is in the development stage and has yet to realize revenues from
      operations. Once PCMT has commenced operations, it will recognize revenues
      when
      delivery of goods or completion of services has occurred provided there is
      persuasive evidence of an agreement, acceptance has been approved by its
      customers, the fee is fixed or determinable based on the completion of stated
      terms and conditions, and collection of any related receivable is
      probable.




*Loss
      per Common Share*





Basic
      loss per share is computed by dividing the net loss attributable to the common
      stockholders by the weighted average number of shares of common stock
      outstanding during the periods. Diluted loss per share is computed similar
      to
      basic loss per share except that the denominator is increased to include the
      number of additional common shares that would have been outstanding if the
      potential common shares had been issued and if the additional common shares
      were
      dilutive. There were no dilutive financial instruments issued or outstanding
      for
      the three months and six months ended June 30, 2008.




*Income
      Taxes*





The
      Company accounts for income taxes pursuant to SFAS No. 109, “ *Accounting
      for Income Taxes”* (“SFAS
      No. 109”). Under SFAS No. 109, deferred tax assets and liabilities are
      determined based on temporary differences between the bases of certain assets
      and liabilities for income tax and financial





F-7
 *Table
            of Contents*




**PCMT
        CORPORATION**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **JUNE
        30, 2008, AND 2007**
 **(Unaudited)**


reporting
      purposes. The deferred tax assets and liabilities are classified according
      to
      the financial statement classification of the assets and liabilities generating
      the differences.





The
      Company maintains a valuation allowance with respect to deferred tax assets.
      PCMT establishes a valuation allowance based upon the potential likelihood
      of
      realizing the deferred tax asset and taking into consideration PCMT’s financial
      position and results of operations for the current period. Future realization
      of
      the deferred tax benefit depends on the existence of sufficient taxable income
      within the carryforward period under the Federal tax laws.





Changes
      in circumstances, such as the Company generating taxable income, could cause
      a
      change in judgment about the realizability of the related deferred tax asset.
      Any change in the valuation allowance will be included in income in the year
      of
      the change in estimate.




*Fair
      Value of Financial Instruments*





The
      Company estimates the fair value of financial instruments using the available
      market information and valuation methods. Considerable judgment is required
      in
      estimating fair value. Accordingly, the estimates of fair value may not be
      indicative of the amounts PCMT could realize in a current market exchange.
      As of
      June 30, 2008, the carrying value of accounts receivable, prepaid expenses,
      accounts payable, accrued liabilities, accrued officer’s salary, accrued office
      rent - related party, and a loan from a Director and stockholder approximated
      fair value due to the short-term nature and maturity of these
      instruments.




*Deferred
      Offering Costs*





The
      Company defers as other assets the direct incremental costs of raising capital
      until such time as the offering is completed. At the time of the completion
      of
      the offering, the costs are charged against the capital raised. Should the
      offering be terminated, deferred offering costs are charged to operations during
      the period in which the offering is terminated.




*Deferred
      Acquisition Costs*





The
      Company defers as other assets the direct incremental costs of acquiring a
      company until such time as the acquisition is completed. At the time of the
      completion of the acquisition, the costs are charged against the goodwill of
      the
      acquired company. Should the acquisition be terminated, deferred acquisition
      costs are charged to operations during the period in which the agreement is
      terminated. As of June 30, 2008, PCMT had $375,000 of deferred acquisition
      costs.




*Concentration
      of Risk*





As
      of
      June 30, 2008, the Company maintained its cash account at two commercial banks.
      The balances in the accounts are subject to FDIC coverage.








F-8
 *Table
            of Contents*




**PCMT
      CORPORATION**


**NOTES
        TO FINANCIAL STATEMENTS**
 **JUNE
        30, 2008, AND 2007**
 **(Unaudited)**


*Common
      Stock Registration Expenses*





The
      Company considers incremental costs and expenses related to the registration
      of
      equity securities with the SEC, whether by contractual arrangement as of a
      certain date or by demand, to be unrelated to original issuance transactions.
      As
      such, subsequent registration costs and expenses are reflected in the
      accompanying financial statements as general and administrative expenses, and
      are expensed as incurred.




*Lease
      Obligations*





All
      noncancellable leases with an initial term greater than one year are categorized
      as either capital or operating leases. Assets recorded under capital leases
      are
      amortized according to the methods employed for property and equipment or over
      the term of the related lease, if shorter.




*Estimates*





The
      financial statements are prepared on the basis of accounting principles
      generally accepted in the United States of America. The preparation of financial
      statements in conformity with generally accepted accounting principles requires
      management to make estimates and assumptions that affect the reported amounts
      of
      assets and liabilities as of June 30, 2008, and expenses for the three months
      and six months ended June 30, 2008, 2007, and cumulative from inception. Actual
      results could differ from those estimates made by management.




**(2)**
            **Development
                Stage Activities and Going
                Concern**





The
      Company is currently in the development stage, and has no operations. The
      proposed business plan of PCMT is to establish a niche market by building up
      a
      chain of computer stores that provide products and services in Israel, focusing
      on cities with large ultra-orthodox Jewish religious communities, and then
      applying the same model to service similar and other religious communities
      in
      other countries.





During
      the period from inception (October 5, 2006) through June 30, 2008, the Company
      was incorporated, received initial working capital through a loan from a
      Director and stockholder, and commenced a capital formation activity through
      PPO
      #1, exempt from registration under the Securities Act of 1933, to raise up
      to
      $50,000 through the issuance of 20,000,000  (post
      forward stock split) shares of its common stock, par value $0.0001 per share,
      at
      an offering price of $0.0025 per share. As of February 5, 2007, PCMT had
      received $50,000 in proceeds from PPO #1. The Company also commenced an activity
      to submit a Registration Statement on Form SB-2 to the SEC to register
      20,000,000 shares (post forward stock split) of common stock on behalf of
      selling stockholders. PCMT will not receive any of the proceeds of this
      registration activity once the shares of common stock are sold. The Registration
      Statement on Form SB-2 was filed with the SEC on March 12, 2007, and declared
      effective on March 29, 2007.





In
      October 2007, the Company began a second capital formation activity through
      PPO
      #2, exempt from registration under the Securities Act of 1933, to raise up
      to
      $100,000 through the issuance of





F-9
 *Table
            of Contents*




**PCMT
        CORPORATION**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **JUNE
          30, 2008, AND 2007**
 **(Unaudited)**


25,000,000
      shares (post forward stock split) of its common stock, par value $0.0001 per
      share, at an offering price of $0.004 per share. The PPO #2 has an offering
      period of 180 days. As of June 30, 2008, the Company had subscribed 16,300,000
      (post forward stock split) shares related to PPO #2 to 15 foreign investors,
      resulting in gross proceeds of $65,200. As of July 30, 2008, the Company was
      continuing with the PPO #2.





In
      November 2007, the Company began a third capital formation activity through
      PPO
      #3, exempt from registration under the Securities Act of 1933, to raise up
      to
      $2,500,000 through the issuance of 16,666,666 (post forward stock split) units.
      The purchase price of each unit is $0.15. Each unit contains one share of common
      stock, one warrant giving the holder the right to purchase one share of common
      stock for $0.25, which is exercisable for one year, and one warrant giving
      the
      holder the right to purchase one share of common stock for $0.375, which is
      exercisable for three years from the date of issuance. As of June 30, 2008,
      the
      Company had subscribed 8,190,003 units and had received approximately $1,161,500
      in proceeds from PPO #3, and a stock subscription receivable of $67,000. As
      of
      June 30, 2008, the Company had issued 6,636,670 shares (post forward stock
      split) of common stock subscribed. As of July 30, 2008, the Company had issued
      an additional 1,553,000 shares (post forward stock split) of common stock
      subscribed. As of July 30, 2008, the Company was continuing with PPO
      #3.





The
      accompanying financial statements have been prepared in conformity with
      accounting principles generally accepted in the United States of America, which
      contemplate continuation of the Company as a going concern. PCMT has not
      established any source of revenue to cover its operating costs, and as such,
      has
      incurred an operating loss since inception. Further, as of June 30, 2008, the
      cash resources of the Company were insufficient to meet its current business
      plan. These and other factors raise substantial doubt about PCMT’s ability to
      continue as a going concern. The accompanying financial statements do not
      include any adjustments to reflect the possible future effects on the
      recoverability and classification of assets or the amounts and classification
      of
      liabilities that may result from the possible inability of the Company to
      continue as a going concern.





**(3)**
            **Loan
                from Director and Stockholder**





As
      of
      June 30, 2008, a loan from an individual who is a Director, officer, and
      stockholder of the Company amounted to $200. The loan was provided for working
      capital purposes, and is unsecured, non-interest bearing, and has no terms
      for
      repayment.





**(4)**
            **Appointment
                of Officers**





On
      October 18, 2007, PCMT appointed an individual as Chief Financial Officer
      (“CFO”). On October 23, 2007, an employment agreement was entered into with the
      CFO. This agreement provides that the CFO will receive a base salary of $3,000
      per quarter and $5,000 per annual audit. This agreement is effective until
      the
      next annual general meeting of the stockholders of the Company or until his
      successor is elected or appointed.





F-10
 *Table
            of Contents*




**PCMT
        CORPORATION**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **JUNE
          30, 2008, AND 2007**
 **(Unaudited)**


On
      January 23, 2008, the Company appointed an individual as Treasurer. This office
      will be held by the individual until the next annual general meeting of the
      stockholders of PCMT or until a successor is elected or appointed.





On
      April
      30, 2008, Mr. Bernstein resigned as the Company’s Secretary and tendered his
      resignation as Director, effective May 31, 2008.





Mr.
      Kohen
      resigned as a Director of PCMT and tendered his resignation as the Company’s
      President, effective May 5, 2008.





Mr.
      Zwebner was appointed as the Company’s interim Chief Executive Officer, and
      elected as a Director of PCMT.





**(5)**
            **Common
                Stock**





On
      October 10, 2006, the Company issued 100,000 (post forward stock split) shares
      of its common stock to its Director, president, and treasurer at par value.
      The
      transaction was valued at $1.




On
      November 3, 2006, PCMT issued 25,000,000 (post forward stock split) of its
      common stock to its Director and corporate secretary for services rendered.
      The
      transaction was valued at the par value of the common stock, or
      $250.





On
      November 5, 2006, the Board of Directors of the Company approved PPO #1, exempt
      from registration under the Securities Act of 1933, to raise up to $50,000
      through the issuance of 20,000,000 (post forward stock split) shares of its
      common stock, par value $0.0001 per share, at an offering price of $0.0025
      per
      share. The PPO #1 had an offering period of 180 days. As of February 5, 2007,
      the Company had received cash proceeds from the PPO #1 amounting to $50,000
      related to the issuance of 20,000,000 shares of common stock.




The
      Company also commenced an activity to submit a Registration Statement on Form
      SB-2 to the SEC to register 20,000,000 shares (post forward stock split) of
      common stock on behalf of selling stockholders. PCMT will not receive any of
      the
      proceeds of this registration activity once the shares of common stock are
      sold.
      The Registration Statement on Form SB-2 was filed with the SEC on March 12,
      2007, and declared effective on March 29, 2007.





In
      October 2007, the Company began a second capital formation activity through
      PPO
      #2, exempt from registration under the Securities Act of 1933, to raise up
      to
      $100,000 through the issuance of 25,000,000 (post forward stock split) shares
      of
      its common stock, par value $0.0001 per share, at an offering price of $0.004
      per share. The PPO #2 has an offering period of 180 days. As of June 30, 2008,
      the Company had subscribed 16,300,000 shares (post forward stock split) related
      to the PPO #2 to 15 foreign investors, resulting in gross proceeds of $65,200.
      As of July 30, 2008, the Company was continuing with the PPO #2.





In
      November 2007, the Company began a third capital formation activity through
      a
      PPO #3, exempt from registration under the Securities Act of 1933, to raise
      up
      to $2,500,000 through the issuance of





F-11
 *Table
            of Contents*




**PCMT
        CORPORATION**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **JUNE
          30, 2008, AND 2007**
 **(Unaudited)**


16,666,666
      units. The purchase price of each unit is $0.15. Each unit contains one share
      of
      common stock, one warrant giving the holder the right to purchase one share
      of
      common stock for $0.25, which is exercisable for one year, and one warrant
      giving the holder the right to purchase one share of common stock for $0.375,
      which is exercisable for three years from the date of issuance. As of June
      30,
      2008, the Company had subscribed 8,190,003 units and had received approximately
      $1,161,500 in proceeds from PPO #3, and a stock subscription receivable of
      $67,000. As of June 30, 2008, the Company had issued 6,636,670 shares (post
      forward stock split) of common stock subscribed. As of July 30, 2008, the
      Company had issued an additional 1,553,000 shares (post forward stock split)
      of
      common stock subscribed. As of July 30, 2008, the Company was continuing with
      the PPO #3.





On
      November 14, 2007, the Company notified the NASD of its intention to implement
      a
      10-for-1 forward stock split of its issued and outstanding common stock to
      the
      holders of record as of November 23, 2007. Such forward stock split was
      effective as of November 26, 2007. The accompanying financial statements and
      related notes thereto have been adjusted accordingly to reflect this forward
      stock split.





On
      December 5, 2007, the Company entered into a written commitment with a
      third-party attorney to provide legal services and assistance with required
      SEC
      filings. As part of this agreement, PCMT issued to the attorney 100,000 shares
      (post forward stock split) of common stock on said date valued at
      $10,500.





On
      April
      20, 2008, PCMT entered into a written agreement with an unrelated third-party
      consulting company to provide advisory services for corporate development,
      acquisitions, and management assistance for one year. As payment for the
      consultant’s services, the Company issued 666,666 shares (post forward stock
      split) of its unregistered common stock on said date valued at
      $100,000.





**(6)**
            **Income
                Taxes**





The
      provision (benefit) for income taxes for the six months ended June 30, 2008,
      and
      2007 was as follows (assuming a 23% effective tax rate):





F-12
 *Table
            of Contents*




**PCMT
        CORPORATION**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **JUNE
          30, 2008, AND 2007**
 **(Unaudited)**
   **Six
                      Months Ended****June
                      30,****2008**
                  
                  **2007**Current
                      Tax Provision:Federal
                      and state-Taxable
                      income
                  
                  $
                  —
                  
                  $
                  —Total
                      current tax provision
                  
                  $
                  —
                  
                  $
                  —Deferred
                      Tax Provision:Federal
                      and state-Loss
                      carryforwards
                  
                  $
                  24,314
                  
                  $
                  8,161Change
                      in valuation allowance
                  
                  
                  (24,314
                  )
                  
                  (8,161
                  )Total
                      deferred tax provision
                  
                  $
                  —
                  
                  $
                  —


PCMT
      had
      deferred income tax assets as of June 30, 2008, as follows:




**2008**Loss
                  carryforwards
              
              $
              44,840Less
                  - Valuation allowance
              
              
              (44,840
              )Total
                  net deferred tax assets
              
              $
              —


The
      Company provided a valuation allowance equal to the deferred income tax assets
      for the three months and six months ended June 30, 2008, because it is not
      presently known whether future taxable income will be sufficient to utilize
      the
      loss carryforwards.





As
      of
      June 30, 2008, the Company had approximately $194,900 in tax loss carryforwards
      that can be utilized in future periods to reduce taxable income, and expire
      in
      the year 2028.





**(7)**
            **Related
                Party Transactions**





As
      described in Note 3, as of June 30, 2007, PCMT owed $200 to an individual who
      is
      a Director, president, treasurer, and stockholder of PCMT.





As
      described in Note 5, the Company has issued 100,000 shares (post forward stock
      split) of its common stock to its Director, president, and treasurer at par
      value. The transaction was valued at $1.





As
      described in Note 5, PCMT has entered into a transaction with an officer and
      Director of the Company for his services, and has issued a total of 25,000,000
      shares (post forward stock split) of its common stock at a value of $250.





F-13
 *Table
            of Contents*




**PCMT
        CORPORATION**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **JUNE
          30, 2008, AND 2007**
 **(Unaudited)**


Effective
      October 5, 2006, PCMT entered into a verbal agreement with an individual who
      is
      a Director, president, treasurer, and stockholder of the Company to lease 250
      square feet of office space for operations in Jerusalem, Israel. The monthly
      lease rental amount is $300, and the term of the lease arrangement is
      month-to-month. As of June 30, 2008, PCMT had accrued $6,252 in office rent
      expense related to the lease.





**(8)**
            **Commitments**





As
      discussed in Note 7, the Company entered into a verbal agreement for the lease
      of office space on a month-to-month basis with an individual who is a Director,
      officer, and stockholder. The monthly lease amount is $300.





As
      discussed in Note 4, on October 18, 2007, PCMT appointed an individual as CFO.
      On October 23, 2007, an employment agreement was entered into with the CFO.
      This
      agreement provides that the CFO will receive a base salary of $3,000 per
      calendar quarter and $5,000 per annual audit. The employment agreement is
      effective until the next annual general meeting of the stockholders of the
      Company or until his successor is elected or appointed.





As
      discussed in Note 5, on December 5, 2007, the Company entered into a written
      commitment with a third-party attorney to provide legal services and assistance
      with required SEC filings. Legal services under the arrangement principally
      commenced during the period ended December 31, 2007. The attorney will receive
      $3,000 per month and miscellaneous reimbursement of expenses incurred on PCMT’s
      behalf.





On
      March
      15, 2008, PCMT entered into a written commitment with a third-party consultant
      to provide marketing and promotional assistance for up to 50 hours per month,
      beginning April 2008. In return for these services, the consultant will receive
      a monthly service fee of $7,000, a stock option for purchasing 100,000 shares
      of
      common stock at $0.15 per share, and an annual performance-based bonus at the
      discretion of PCMT. In May 2008, this agreement was put on hold. As of June
      30,
      2008, the options were not issued and may not be issued in the future depending
      on the resolution of the agreement.





As
      described in Note 5, on April 20, 2008, PCMT entered into a written agreement
      with an unrelated third-party consulting company to provide advisory services
      for corporate development, acquisitions, and management assistance for one
      year.
      As payment for the consultant’s services, the Company issued 666,666 shares
      (post forward stock split) of its unregistered common stock on said date valued
      at $100,000.





**(9)**
            **Business
                Combination**





On
      October 18, 2007, PCMT entered into a Letter Agreement with Suspect Detection
      Systems Ltd., an Israeli Corporation (“SDS”). The Letter Agreement allows the
      Company to conduct a due diligence review of SDS and its technology for the
      purpose of entering into a future business combination transaction on terms
      and
      conditions to be negotiated. As part of the Letter Agreement, PCMT committed
      to
      raise $1,500,000 and agreed to advance proceeds of $60,000 to SDS. As
      of





F-14
 *Table
            of Contents*




**PCMT
        CORPORATION**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **JUNE
          30, 2008, AND 2007**
 **(Unaudited)**


December
      31, 2007, PCMT had paid SDS $60,000. In January 2008, PCMT and SDS amended
      the
      Letter Agreement such that the Company agreed to advance SDS $30,000 each month
      commencing January 2008 until the consummation or termination of the Letter
      Agreement. The amount of $60,000 previously paid by PCMT to SDS as well as
      each
      monthly payment of $30,000 will reduce the $1,500,000 which PCMT has committed
      to raise. In May 2008, PCMT and SDS again amended the Letter Agreement such
      that
      the Company agreed to advance SDS $80,000 each month commencing May 2008 until
      the consummation or termination of the Letter Agreement. During the period
      from
      January 1, 2008, through June 30, 2008, PCMT paid SDS a total of $280,000.
      As of
      June 30, 2008, PCMT had paid SDS a cumulative total of $375,000.





On
      November 14, 2007, the Company entered into a Letter of Intent with SDS,
      pursuant to which PCMT intends to acquire all of the issued and outstanding
      capital stock of SDS. In consideration thereof, PCMT will issue to the
      stockholders of SDS no less than 28,600,000 (post forward stock split) shares
      of
      PCMT’s common stock, or such number of shares of PCMT’s common stock
      representing not less than 31% of PCMT’s issued and outstanding shares of common
      stock at the time of closing. The closing of the transaction will take place
      after PCMT has raised a minimum of $500,000 from PPO #3. PCMT has also agreed
      to
      pay up to $20,000 in accounting fees to obtain Israel Tax Authority approval
      of
      the transaction, and up to $15,000 in legal fees. As of June 30, 2008, PCMT
      had
      paid $15,000 in legal fees, and $20,000 in accounting fees in addition to the
      $340,000 described above for a total of $375,000. During the six months ended
      June 30, 2008, the Company paid $7,500 and $15,000 on behalf of SDS for
      additional accounting and legal expenses, respectively. As of June 30, 2008,
      the
      Company reflected a receivable in the accompanying financial statements in
      the
      amount of $15,500 related to the accounting and legal fees paid on behalf of
      SDS.





On
      April
      30, 2008, the Company entered into a Share Exchange Agreement (the “Agreement”)
      between PCMT and Suspect Detection Systems, Ltd., an Israeli corporation
      (“SDS”). Pursuant to the Agreement, PCMT will acquire on the closing date of the
      agreement 100 percent of the outstanding capital stock of SDS (1,170,295
      shares), in exchange for 21,768,032 newly issued shares of its common stock,
      and
      options to purchase 6,831,968 shares of its common stock at an exercise price
      of
      $0.0001 per share at any time on or before the tenth anniversary of issuance
      of
      PCMT’s options. The parties agreed that the fair value of the transaction was
      $4,290,000. On the closing date of the Agreement, SDS will become a wholly
      owned
      subsidiary of PCMT. As a result of the Agreement, the stockholders of SDS will
      become the beneficial owners of approximately 31 percent of PCMT’s outstanding
      common stock on the closing date of the Agreement. As of July 30, 2008, the
      Agreement had not closed, pending pre-rulings from the Israeli Tax Authority
      as
      addressed in the Agreement.





**(10)**
            **Recent
                Accounting Pronouncements**




In
      February 2007, the FASB issued SFAS No. 159, “ *The
      Fair Value Option for Financial Assets and Financial Liabilities - Including
      an
      amendment of FASB Statement No. 115* ”
(“SFAS
      No. 159”), which permits entities to measure many financial instruments and
      certain other items at fair value that are not currently required to be measured
      at fair value. An entity would report unrealized gains and losses on items
      for
      which the fair value option has been elected in earnings at each subsequent
      reporting date. The objective is to improve financial reporting by providing
      entities with the




F-15
 *Table
            of Contents*




**PCMT
        CORPORATION**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **JUNE
          30, 2008, AND 2007**
 **(Unaudited)**


opportunity
      to mitigate volatility in reported earnings caused by measuring related assets
      and liabilities differently without having to apply complex hedge accounting
      provisions. The decision about whether to elect the fair value option is applied
      instrument by instrument, with a few exceptions; the decision is irrevocable;
      and it is applied only to entire instruments and not to portions of instruments.
      SFAS No. 159 requires disclosures that facilitate comparisons (a) between
      entities that choose different measurement attributes for similar assets and
      liabilities and (b) between assets and liabilities in the financial statements
      of an entity that selects different measurement attributes for similar assets
      and liabilities. SFAS No. 159 is effective for financial statements issued
      for
      fiscal years beginning after November 15, 2007. Early adoption is permitted
      as
      of the beginning of a fiscal year, provided the entity also elects to apply
      the
      provisions of SFAS No. 157. Upon implementation, an entity shall report the
      effect of the first re-measurement to fair value as a cumulative-effect
      adjustment to the opening balance of retained earnings. Since the provisions
      of
      SFAS No. 159 are applied prospectively, any potential impact will depend on
      the
      instruments selected for fair value measurement at the time of implementation.
      The management of PCMT does not believe that this new pronouncement will have
      a
      material impact on its financial statements.





In
      December 2007, the FASB issued SFAS No. 141R, “ *Business
      Combinations - Revised 2007* ”
(“SFAS
      No. 141R”), which replaces FASB Statement No. 141, “ *Business
      Combinations* .”
SFAS
      No. 141R ** establishes
      principles and requirements intending to improve the relevance, representational
      faithfulness, and comparability of information that a reporting entity provides
      in its financial reports about a business combination and its effects. This
      is
      accomplished through requiring the acquirer to recognize assets acquired and
      liabilities assumed arising from contractual contingencies as of the acquisition
      date, measured at their acquisition-date fair values. This includes contractual
      contingencies only if it is more likely than not that they meet the definition
      of an asset of a liability in FASB Concepts Statement No. 6, “ *Elements
      of Financial Statements* - *a
      replacement of FASB Concepts Statement No. 3.* ” ** This
      statement also requires the acquirer to recognize goodwill as of the acquisition
      date, measured as a residual. However, this statement improves the way in which
      an acquirer’s obligations to make payments conditioned on the outcome of future
      events are recognized and measured, which in turn improves the measure of
      goodwill. This statement also defines a bargain purchases as a business
      combination in which the total acquisition-date fair value of the consideration
      transferred plus any noncontrolling interest in the acquiree, and it requires
      the acquirer to recognize that excess in earnings as a gain attributable to
      the
      acquirer. This, therefore, improves the representational faithfulness and
      completeness of the information provided about both the acquirer’s earnings
      during the period in which it makes a bargain purchase and the measures of
      the
      assets acquired in the bargain purchase. PCMT does not expect the adoption
      of
      this pronouncement to have a material impact on its financial statements.




In
      December 2007, the FASB issued SFAS No. 160, “ *Noncontrolling
      Interests in Consolidated Financial Statements - an amendment of ARB No.
      51* ”
(“SFAS
      No. 160”), ** which
      establishes accounting and reporting standards to improve the relevance,
      comparability, and transparency of financial information in its consolidated
      financial statements. This is accomplished by requiring all entities, except
      not-for-profit organizations, that prepare consolidated financial statements
      to
      (a) clearly identify, label, and present ownership interests in subsidiaries
      held by parties other than the parent in the consolidated statement of financial
      position within equity, but separate from the parent’s equity; (b) clearly
      identify and present both the parent’s and the noncontrolling
      interest’s




F-16
 *Table
            of Contents*




**PCMT
        CORPORATION**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **JUNE
          30, 2008, AND 2007**
 **(Unaudited)**


attributable
      consolidated net income on the face of the consolidated statement of income;
      (c)
      consistently account for changes in parent’s ownership interest while the parent
      retains it controlling financial interest in subsidiary and for all transactions
      that are economically similar to be accounted for similarly; (d) measure of
      any
      gain, loss, or retained noncontrolling equity at fair value after a subsidiary
      is deconsolidated; and (e) provide sufficient disclosures that clearly identify
      and distinguish between the interests of the parent and the interests of the
      noncontrolling owners. This Statement also clarifies that a noncontrolling
      interest in a subsidiary is an ownership interest in the consolidated entity
      that should be reported as equity in the consolidated financial statements.
      SFAS
      No. 160 is effective for fiscal years and interim periods on or after December
      15, 2008. The management of PCMT does not expect the adoption of this
      pronouncement to have a material impact on its financial
      statements.





In
      March
      2008, the FASB issued FASB Statement No. 161, *“Disclosures
      about Derivative Instruments and Hedging Activities - an amendment of FASB
      Statement 133”* (“SFAS
      No. 161”). SFAS No. 161 enhances required disclosures regarding derivatives and
      hedging activities, including enhanced disclosures regarding how: (a) an entity
      uses derivative instruments; (b) derivative instruments and related hedged
      items
      are accounted for under SFAS No. 133, *“Accounting
      for Derivative Instruments and Hedging Activities”* ;
      and (c)
      derivative instruments and related hedged items affect an entity’s financial
      position, financial performance, and cash flows. Specifically, SFAS No. 161
      requires:





●
            Disclosure
                of the objectives for using derivative instruments be disclosed in
                terms
                of underlying risk and accounting
                designation;


●
            Disclosure
                of the fair values of derivative instruments and their gains and
                losses in
                a tabular format;


●
            Disclosure
                of information about credit-risk-related contingent features;
                and


●
            Cross-reference
                from the derivative footnote to other footnotes in which
                derivative-related information is
                disclosed.





SFAS
      No.
      161 is effective for fiscal years and interim periods beginning after November
      15, 2008. Earlier application is encouraged. The management of PCMT does not
      expect the adoption of this pronouncement to have a material impact on its
      financial statements.





In
      May
      2008, the FASB issued FASB Statement No. 162, “ *The
      Hierarchy of Generally Accepted Accounting Principles* ”
(“SFAS
      No. 162”). SFAS No. 162 identifies the sources of accounting principles and the
      framework for selecting the principles used in the preparation of financial
      statements of nongovernmental entities that are presented in conformity with
      generally accepted accounting principles in the United States of America. The
      sources of accounting principles that are generally accepted are categorized
      in
      descending order as follows:





a)
            FASB
                Statements of Financial Accounting Standards and Interpretations,
                FASB
                Statement 133 Implementation Issues, FASB Staff Positions, and American
                Institute of Certified Public Accountants (AICPA) Accounting Research
                Bulletins and Accounting Principles Board Opinions that are not superseded
                by actions of the FASB.





F-17
 *Table
            of Contents*




**PCMT
        CORPORATION**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **JUNE
          30, 2008, AND 2007**
 **(Unaudited)**
   b)
                FASB
                    Technical Bulletins and, if cleared by the FASB, AICPA Industry
                    Audit and
                    Accounting Guides and Statements of
                    Position.





c)
            AICPA
                Accounting Standards Executive Committee Practice Bulletins that
                have been
                cleared by the FASB, consensus positions of the FASB Emerging Issues
                Task
                Force (EITF), and the Topics discussed in Appendix D of EITF Abstracts
                (EITF D-Topics).





d)
            Implementation
                guides (Q&As) published by the FASB staff, AICPA Accounting
                Interpretations, AICPA Industry Audit and Accounting Guides and Statements
                of Position not cleared by the FASB, and practices that are widely
                recognized and prevalent either generally or in the
                industry.





On
      May
      26, 2008, the FASB issued FASB Statement No. 163, “ *Accounting
      for Financial Guarantee Insurance Contracts* ”
(“SFAS
      No. 163”). SFAS No. 163 clarifies how FASB Statement No. 60, “ *Accounting
      and Reporting by Insurance Enterprises* ”
(“SFAS
      No. 60”), applies to financial guarantee insurance contracts issued by insurance
      enterprises, including the recognition and measurement of premium revenue and
      claim liabilities. It also requires expanded disclosures about financial
      guarantee insurance contracts.





The
      accounting and disclosure requirements of SFAS No. 163 are intended to improve
      the comparability and quality of information provided to users of financial
      statements by creating consistency. Diversity exists in practice in accounting
      for financial guarantee insurance contracts by insurance enterprises under
      SFAS
      No. 60, “ *Accounting
      and Reporting by Insurance Enterprises.* ”
That
      diversity results in inconsistencies in the recognition and measurement of
      claim
      liabilities because of differing views about when a loss has been incurred
      under
      FASB Statement No. 5, “ *Accounting
      for Contingencies* ”
(“SFAS
      No. 5”). SFAS No. 163 requires that an insurance enterprise recognize a claim
      liability prior to an event of default when there is evidence that credit
      deterioration has occurred in an insured financial obligation. It also requires
      disclosure about (a) the risk-management activities used by an insurance
      enterprise to evaluate credit deterioration in its insured financial obligations
      and (b) the insurance enterprise’s surveillance or watch list.





SFAS
      No.
      163 is effective for financial statements issued for fiscal years beginning
      after December 15, 2008, and all interim periods within those fiscal years,
      except for disclosures about the insurance enterprise’s risk-management
      activities. Disclosures about the insurance enterprise’s risk-management
      activities are effective the first period beginning after issuance of SFAS
      No.
      163. Except for those disclosures, earlier application is not permitted.
      Management of PCMT does not expect the adoption of this pronouncement to have
      material impact on its financial statements.





**(11)**
            **Subsequent
                Events**





On
      July
      21, 2008, the Company issued 1,553,000 shares (post forward stock split) of
      common stock previously subscribed.







F-18
 *Table
          of Contents*




**PART
      II**


**OTHER
      INFORMATION**





**Item
                2.**
            **Management’s
                Discussion and Analysis or Financial Condition and Results of
                Operations****.**





As
      used
      in this Form 10-Q, references to the “PCMT,” “the Company,” “we,” “our,” or “us”
refer to PCMT Corporation unless the context otherwise indicates.





**Forward-Looking
      Statements**





The
      following discussion should be read in conjunction with our financial
      statements, which are included elsewhere in this Quarterly Report on Form 10-Q
      (this “Report”). This Report contains forward-looking statements which relate to
      future events or our future financial performance. In some cases, you can
      identify forward-looking statements by terminology such as “may,” “should,”
“expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,”
“potential” or “continue” or the negative of these terms or other comparable
      terminology. These statements are only predictions and involve known and unknown
      risks, uncertainties, and other factors that may cause our or our industry’s
      actual results, levels of activity, performance or achievements to be materially
      different from any future results, levels of activity, performance or
      achievements expressed or implied by these forward-looking
      statements.





For
      a
      description of such risks and uncertainties refer to our Annual Report on Form
      10-KSB, as filed with the Securities and Exchange Commission on March 13, 2008.
      While these forward-looking statements, and any assumptions upon which they
      are
      based, are made in good faith and reflect our current judgment regarding the
      direction of our business, actual results will almost always vary, sometimes
      materially, from any estimates, predictions, projections, assumptions or other
      future performance suggested herein. Except as required by applicable law,
      including the securities laws of the United States, we do not intend to update
      any of the forward-looking statements to conform to actual results.





**Corporate
      Background**





We
      were
      incorporated in the State of Delaware under the name PCMT Corporation on October
      5, 2006, to engage in any lawful corporate undertaking. We are a development
      stage company and have not generated any revenues or commenced operations.
      Our
      initial intent was to focus on offering computer hardware and software products
      to religious consumers, with an emphasis on ultra-orthodox Jewish communities
      in
      Israel. On April 30, 2008, we executed a stock purchase agreement providing,
      among other things, that at closing we will issue 21,768,032 shares of our
      common stock and options to purchase up to 6,831,968 additional shares to the
      owners of Suspect Detection Systems, Ltd. (“SDS”), an Israeli corporation that
      specializes in the development and application of proprietary technologies
      for
      law enforcement and border control. Upon consummation of the transactions
      contemplated by the stock purchase agreement, SDS will become our wholly-owned
      subsidiary.


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          4 -
 *Table
          of Contents*




We
      do not
      currently have sufficient capital to fund the development and marketing of
      SDS’s
      products. We hope to raise not less than $1,500,000 before December 1, 2008,
      though the issuance of equity securities in private placements, and have raised
      an aggregate of $1,276,700 of gross proceeds from private placements through
      June 30, 2008. However, there can be no assurance that we will be able to raise
      such funds.





**Plan
      of Operation**





Within
      the next 12 months, the Company intends to complete the acquisition of SDS
      and
      raise the funds required in order to fund the development and marketing of
      SDS’s
      products.




**Going
      Concern Consideration**





We
      are a
      development stage company with no operations and no revenues to date. Our
      registered independent auditors issued a going concern opinion, in their report
      dated March 6, 2008, with respect to our audited 2007 year-end financial
      statements. This means that our registered independent auditors believe there
      is
      substantial doubt that we can continue as an on-going business for the next
      12
      months. We do not anticipate that we will generate significant revenues until
      we
      have completed our business plan. Accordingly, we must raise additional capital
      from sources other than our operations in order to implement our business
      plan. Our 2007
      year-end financial statements contain additional note disclosures describing
      the
      circumstances that lead to this disclosure by our registered independent
      auditors.





**Material
      Changes in Financial Condition**




On
      June
      30, 2008 we had $730,058 in cash and cash equivalents, an increase of
      approximately 100% as compared to cash and escrowed proceeds from the sale
      of
      our securities of $364,534 on December 31, 2008. The increase reflects the
      receipt of proceeds from the issuance and sale of our securities.





Total
      assets on June 30, 2008, amounted to $1,205,940, as compared to $440,534 on
      December 31, 2008, and included, $375,500 in deferred acquisition costs relating
      to professional fees incurred for the acquisition of SDS , $80,583 in prepaid
      expenses relating to equity compensation recorded for the issuance of 666,666
      shares in the framework of a business consulting agreement , $15,500 due from
      SDS relating to professional fees paid on their behalf and $4,299 in
      miscellaneous receivables.





In
      the
      event we consummate the transaction with SDS, we will require approximately
      $1.5
      million for the next 12 months of operations. Accordingly, we will have to
      raise the funds required to fund our operations. We may have to borrow money
      from shareholders or issue debt or equity or enter into a strategic arrangement
      with a third party. There can be no assurance that additional capital will
      be
      available to us. We currently have no agreements, arrangements, or
      understandings with any person to obtain funds through bank loans, lines of
      credit, or any other sources. Since we have no such arrangements or plans
      currently in effect, our inability to raise funds for a marketing program will
      have a severe negative impact on our ability to remain a viable
      company.




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          5 -
 *Table
          of Contents*





**Material
      Changes in Results of Operations**




In
      the
      six months ended June 30, 2008, we incurred a net loss of $105,713, as compared
      to a net loss of $35,484 in the six months ended June 30, 2007. In the three
      months ended June 30, 2008 we incurred a net loss of $66,928, as compared to
      a
      net loss of $27,891 in the three months ended June 30, 2007. These increases
      in
      losses resulted primarily from new travel, advertising and promotion expenses,
      in an aggregate amount $51,261 in the six months ended June 30, 2008 and $40,601
      in the three months ended June 30, 2008, as compared to no travel, advertising
      and promotion expenses in the six and three-month periods ended June 30, 2007.
      Legal fees increased to $28,740 and $12,355, respectively, for the six and
      three-month periods ended June 30, 2008, as compared to $6,688 and $3,188,
      respectively, for the six and three-month periods ended June 30, 2007,
      reflecting the costs associated with the negotiation and preparation of our
      agreement with the owners of SDS. Our cumulative net loss from October 5, 2006
      (inception) through June 30, 2008, is $194,957.





**Off
      Balance Sheet Arrangements**





We
      do not
      have any off-balance sheet arrangements that have or are reasonably likely
      to
      have a current or future effect on our financial condition, changes in financial
      condition, revenues or expenses, results of operations, liquidity, capital
      expenditures, or capital resources that are material to investors.





**Item
              3.**
            **Quantitative
                and Qualitative Disclosure About Market
                Risk.**





Smaller
      reporting companies are not required to provide information in response to
      this
      Item.





**Item
              4.**
            **Controls
                and Procedures.**





**Evaluation
      of Disclosure Controls and Procedures**





As
      required by Rules 13a-15(b) and 15d-15(b) of the Securities Exchange Act of
      1934, we have evaluated, with the participation of our principal executive
      and
      financial officer, the effectiveness of our "disclosure controls and procedures"
      (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) and
      15d-15(e)) as of the end of the period covered by this Quarterly Report on
      Form
      10-Q and have concluded that our disclosure controls and procedures are
      effective to ensure that information required to be disclosed in the reports
      that we file or submit under the Securities Exchange Act of 1934 is accumulated
      and communicated to our management, including our principal executive and
      financial officer, as appropriate to allow timely decisions regarding required
      disclosure.





**Changes
      in Internal Controls over Financial Reporting**





There
      have been no changes in the Company's internal control over financial reporting
      during the period covered by this Quarterly Report on Form 10-Q that have
      materially affected, or are reasonably likely to materially affect, the
      Company's internal control over financial reporting.




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          6 -
 *Table
          of Contents*




**PART
      II**


**OTHER
      INFORMATION**





**Item
              1.**
            **Legal
                Proceedings.**




There
      are
      no pending legal proceedings to which the Company is a party or in which any
      director, officer or affiliate of the Company, any owner of record or
      beneficially of more than 5% of any class of voting securities of the Company,
      or security holder is a party adverse to the Company or has a material interest
      adverse to the Company. The Company’s property is not the subject of any pending
      legal proceedings.





**Item
              1A.**
            **Risk
                Factors.**





Smaller
      reporting companies are not required to provide information in response to
      this
      Item.





**Item
              2.**
            **Unregistered
                Sales of Equity Securities and Use of
                Proceeds.**





**Unregistered
      Sales of Equity Securities**





On
      April
      20, 2008, we executed a corporate advisory services agreement, pursuant to
      which
      we agreed to issue 666,666 shares of common stock as consideration for certain
      consulting services. The shares were offered pursuant to an exemption from
      the
      registration requirements of the Securities Act of 1933 provided by Regulation
      D
      promulgated under such Act. The consultant represented that it is an accredited
      investor, as defined in Regulation D, that it acquired the shares for its own
      account as principals, not as a nominee or agent, for investment purposes only
      and not with a view to or for resale or distribution.





On
      May 1,
      2008, we sold 120,000 units for $18,000 and on May 9, 2008, we sold 100,000
      units for $15,000. Each unit consists of one share of common stock, one warrant
      giving the holder the right to purchase one share of common stock for $0.25
      for
      a term of one year from the date of issuance, and one warrant giving the holder
      the right to purchase one share of common stock for $0.375 for a term of one
      year from the date of issuance. The units were offered and sold pursuant to
      an
      exemption from the registration requirements of the Securities Act of 1933
      provided by Regulation D promulgated under such Act. The subscribers represented
      that they are accredited investors, as defined in Regulation D, that they
      acquired the units for their own accounts as principals, not as nominees or
      agents, for investment purposes only and not with a view to or for resale or
      distribution.





On
      July
      10, 2008, we sold 1,333,333 units for $200,000. Each unit consists of one share
      of common stock, one warrant giving the holder the right to purchase one share
      of common stock for $0.25 for a term of one year from the date of issuance,
      and
      one warrant giving the holder the right to purchase one share of common stock
      for $0.375 for a term of one year from the date of issuance. The units were
      offered and sold pursuant to an exemption from the registration requirements
      of
      the Securities Act of 1933 provided by Regulation S promulgated under such
      Act.
      The subscriber represented that it is not a United States person (as defined
      in
      Regulation S), it is not an affiliate of the Company and it did not acquire
      the
      units for the account or benefit of a United States person. The subscriber
      further represented that at the time of the origination of the contact
      concerning its subscriptions for the units and on the date of the execution
      and
      delivery of the subscription agreement for the units it was outside of the
      United States.





**Item
              3.**
            **Defaults
                Upon Senior Securities.**





None.





**Item
              4.**
            **Submission
                of Matters to a Vote of Security
                Holders.**


There
      was
      no matter submitted to a vote of security holders during the fiscal quarter
      ended June 30, 2008.




-
          7 -
 *Table
          of Contents*






**Item
              5.**
            **Other
                Information.**





None.




**Item
              6.**
            **Exhibits.**





Exhibit
                No.
            
            Description31.1
            
            Rule
                13a-14(a)/15d14(a) Certification32.1
            
            Section
                1350 Certification





-
          8 -
 *Table
          of Contents*




**SIGNATURES**





In
      accordance with to requirements of the Exchange Act, the registrant caused
      this
      report to be signed on its behalf by the undersigned, thereunto duly
      authorized.






**PCMT
      CORPORATION**


Dated: 
      August 4, 2008




By: 
      /s/


Name: 
      Asher Zwebner


Title: Interim
      Chief Executive Officer and Chief
      Financial Officer






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      9
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