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 September 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 filer o
            
            
            Accelerated
                filer                    oNon-accelerated
                filer  o
            
            
            Smaller
                reporting company  x(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 x No o





Number
      of
      shares of common stock outstanding as of November 10, 2008: 71,689,668
      shares.










**TABLE
      OF CONTENTS**




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




2




**PART
      I**


**FINANCIAL
      INFORMATION**





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




**PCMT
        CORPORATION**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **INDEX
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        30, 2008, AND 2007**
 **(Unaudited)**
 Financial
                    Statements-Balance
                    Sheets as of September 30, 2008, and December 31, 2007
                F-2Statements
                    of Operations for the Three Months and Nine Months Ended September
                    30,
                    2008, and 2007, and Cumulative from Inception
                F-3Statement
                    of Stockholders’ Equity for the Period from Inception Through September
                    30, 2008
                F-4Statements
                    of Cash Flows for the Nine Months Ended September 30, 2008, 2007,
                    and
                    Cumulative from Inception
                F-5Notes
                    to Financial Statements September 30, 2008, and 2007
                F-6
  F-1
 
 **PCMT
        CORPORATION**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **BALANCE
        SHEETS (NOTE 2)**
 **AS
        OF SEPTEMBER 30, 2008, AND DECEMBER 31, 2007**
 **(Unaudited)**
 
 **September 30,**
              
              **December 31,****2008**
              
              **2007****ASSETS****Current
                  Assets:**Cash
                  in bank
              
              $
              690,133
              
              $
              6,245Restricted
                  cash
              
              
              -
              
              
              358,289Due
                  from Related Party - SDS
              
              
              28,000
              
              
              -Prepaid
                  expenses
              
              
              55,583
              
              
              -Total
                  current assets
              
              
              773,716
              
              
              364,534**Other
                  Assets:**Deferred
                  acquisition costs
              
              
              655,000
              
              
              75,500Security
                  deposit
              
              
              500
              
              
              500Total
                  other assets
              
              
              655,500
              
              
              76,000**Total
                  Assets**
              
              $
              1,429,216
              
              $
              440,534**LIABILITIES
                  AND STOCKHOLDERS' EQUITY****Current
                  Liabilities:**Accounts
                  payable - Trade
              
              $
              908
              
              $
              7,400Accrued
                  liabilities
              
              
              4,000
              
              
              8,525Accrued
                  officer's salary
              
              
              3,000
              
              
              5,000Accrued
                  office rent - Related party
              
              
              7,152
              
              
              4,452Due
                  to Director and stockholder
              
              
              200
              
              
              200Total
                  current liabilities
              
              
              15,260
              
              
              25,577Total
                  liabilities
              
              
              15,260
              
              
              25,577**Commitments
                  and Contingencies****Stockholders'
                  Equity:**Common
                  stock, par value $0.0001 per share, 100,000,000 shares authorized;
                  71,689,668 and 61,500,000 shares issued and outstanding in 2008
                  and 2007,
                  respectively
              
              
              7,169
              
              
              6,150Additional
                  paid-in capital
              
              
              1,647,402
              
              
              119,801Common
                  stock subscribed - Nil and 2,621,666 shares in 2008 and 2007,
                  respectively
              
              
              -
              
              
              393,250Less
                  - Common stock subscriptions receivable
              
              
              -
              
              
              (15,000
              )(Deficit)
                  accumulated during the development stage
              
              
              (240,615
              )
              
              (89,244
              )Total
                  stockholders' equity
              
              
              1,413,956
              
              
              414,957**Total
                  Liabilities and Stockholders' Equity**
              
              $
              1,429,216
              
              $
              440,534
 
 The
        accompanying notes to the financial statements are
 an
        integral part of these balance sheets.
  F-2
  **PCMT
        CORPORATION**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **STATEMENTS
        OF OPERATIONS (NOTE 2)**
 **FOR
        THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2008, AND
        2007,**
 **AND
        CUMULATIVE FROM INCEPTION (OCTOBER 5, 2006)**
 **THROUGH
        SEPTEMBER 30, 2008**
 **(Unaudited)**
 
 **Three Months Ended**
              
              **Nine Months Ended**
              
              **Cumulative****September 30,**
              
              **September 30,**
              
              **From****2008**
              
              **2007**
              
              **2008**
              
              **2007**
              
              **Inception****Revenues**
              
              $
              -
              
              $
              -
              
              $
              -
              
              $
              -
              
              $
              -**Expenses:**General
                  and administrative-Legal
                  fees
              
              
              9,449
              
              
              712
              
              
              38,189
              
              
              7,400
              
              
              56,089Accounting
                  and audit fees
              
              
              4,000
              
              
              2,500
              
              
              13,000
              
              
              11,500
              
              
              35,500Travel
                  expense
              
              
              3,501
              
              
              -
              
              
              28,345
              
              
              -
              
              
              30,535Advertising
                  and promotion
              
              
              25,000
              
              
              -
              
              
              51,417
              
              
              -
              
              
              51,417Transfer
                  agent fees
              
              
              1,442
              
              
              -
              
              
              6,397
              
              
              14,500
              
              
              23,242Officer's
                  compensation
              
              
              3,000
              
              
              -
              
              
              10,200
              
              
              -
              
              
              18,200Consulting
                  fees
              
              
              -
              
              
              -
              
              
              5,000
              
              
              -
              
              
              12,400Filing
                  fees
              
              
              573
              
              
              454
              
              
              2,649
              
              
              3,022
              
              
              7,800Office
                  rent
              
              
              900
              
              
              900
              
              
              2,700
              
              
              2,700
              
              
              7,152Other
              
              
              75
              
              
              -
              
              
              (130
              )
              
              928
              
              
              3,364Legal
                  fees - Organization costs
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              1,500Officers'
                  compensation paid by issued shares
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              250Total
                  general and administrative expenses
              
              
              47,940
              
              
              4,566
              
              
              157,767
              
              
              40,050
              
              
              247,449**(Loss)
                  from Operations**
              
              
              (47,940
              )
              
              (4,566
              )
              
              (157,767
              )
              
              (40,050
              )
              
              (247,449
              )-**Other
                  Income**
              
              
              2,282
              
              
              -
              
              
              6,396
              
              
              -
              
              
              6,834**Provision
                  for income taxes**
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -**Net
                  (Loss)**
              
              $
              (45,658
              )
              $
              (4,566
              )
              $
              (151,371
              )
              $
              (40,050
              )
              $
              (240,615
              )**(Loss)
                  Per Common Share:**(Loss)
                  per common share - Basic and Diluted
              
              $
              (0.00
              )
              $
              (0.00
              )
              $
              (0.00
              )
              $
              (0.01
              )**Weighted
                  Average Number of Common Shares****Outstanding
                  - Basic and Diluted**
              
              
              70,988,125
              
              
              4,510,000
              
              
              67,593,909
              
              
              4,462,601
 
 The
        accompanying notes to the financial statements are
 an
        integral part of these statements.
  F-3
  **PCMT
        CORPORATION**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **STATEMENT
        OF STOCKHOLDERS' EQUITY (NOTE 2)**
 **FOR
        THE PERIOD FROM INCEPTION (OCTOBER 5, 2006)**
 **THROUGH SEPTEMBER
        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
              
              
              9,523,002
              
              
              952
              
              
              1,427,668
              
              
              (995,500
              )
              
              -
              
              
              -
              
              
              433,120Common
                  stock issued for services
              
              
              666,666
              
              
              67
              
              
              99,933
              
              
              (233,000
              )
              
              67,000
              
              
              -
              
              
              (66,000
              )Net
                  (loss) for the period
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              (151,371
              )
              
              (151,371
              )**Balance
                  - September 30, 2008**
              
              
              71,689,668
              
              $
              7,169
              
              $
              1,647,402
              
              $
              -
              
              $
              -
              
              $
              (240,615
              )
              $
              1,413,956
 
 The
        accompanying notes to the financial statements are
 an
        integral part of this statement.
  F-4
  **PCMT
        CORPORATION**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **STATEMENTS
        OF CASH FLOWS (NOTE 2)**
 **FOR
        THE NINE MONTHS ENDED SEPTEMBER 30, 2008, AND 2007,**
 **AND
        CUMULATIVE FROM INCEPTION (OCTOBER 5, 2006)**
 **THROUGH
        SEPTEMBER 30, 2008**
 **(Unaudited)**
 
 **Nine Months Ended**
              
              **Cumulative****September 30,**
              
              **From****2008**
              
              **2007**
              
              **Inception****Operating
                  Activities:**Net
                  (loss)
              
              $
              (151,371
              )
              $
              (40,050
              )
              $
              (240,615
              )Adjustments
                  to reconcile net (loss) to net cash (used in) operating
                  activities:Common
                  stock issued for officers' compensation
              
              
              -
              
              
              -
              
              
              250Common
                  stock issued for services
              
              
              -
              
              
              -
              
              
              10,500Changes
                  in net liabilities-Prepaid
                  expenses
              
              
              (55,583
              )
              
              2,000
              
              
              (55,583
              )Security
                  deposit
              
              
              -
              
              
              (500
              )
              
              (500
              )Accounts
                  payable - Trade
              
              
              (6,492
              )
              
              (1,500
              )
              
              908Accrued
                  liabilities
              
              
              (4,525
              )
              
              2,500
              
              
              4,000Accrued
                  officer's salary
              
              
              (2,000
              )
              
              -
              
              
              3,000Accrued
                  office rent - Related party
              
              
              2,700
              
              
              2,700
              
              
              7,152**Net
                  Cash (Used in) Operating Activities**
              
              
              (217,271
              )
              
              (34,850
              )
              
              (270,888
              )**Investing
                  Activities:**Cash
                  provided by investing activities
              
              
              -
              
              
              -
              
              
              -**Net
                  Cash Provided by Investing Activities**
              
              
              -
              
              
              -
              
              
              -**Financing
                  Activities:**Issuance
                  of common stock for cash
              
              
              1,528,620
              
              
              30,000
              
              
              1,632,320Stock
                  subscriptions paid
              
              
              (378,250
              )
              
              -
              
              
              11,501Deferred
                  acquisition costs
              
              
              (579,500
              )
              
              -
              
              
              (655,000
              )Due
                  from Related Party - SDS
              
              
              (28,000
              )
              
              -
              
              
              (28,000
              )Due
                  to Director and stockholder
              
              
              -
              
              
              -
              
              
              200**Net
                  Cash Provided by Financing Activities**
              
              
              542,870
              
              
              30,000
              
              
              961,021**Net
                  Increase in Cash**
              
              
              325,599
              
              
              (4,850
              )
              
              690,133**Cash
                  - Beginning of Period**
              
              
              364,534
              
              
              13,595
              
              
              -**Cash
                  - End of Period**
              
              $
              690,133
              
              $
              8,745
              
              $
              690,133**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 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
 
 **PCMT
        CORPORATION**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        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 September 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 October 29, 2008, the Company
        was
        continuing with the PPO #2.
 
 In
        November 2007, the Company 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 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
        September 30, 2008, the Company had subscribed 9,523,000 units and had received
        approximately $1,428,450 in proceeds from PPO #3. As of September 30, 2008,
        the
        Company had issued 9,523,000 shares (post forward stock split) of common
        stock
        subscribed. As of October 29, 2008, the Company was continuing with the PPO
        #3.
  F-6
 
 **PCMT
        CORPORATION**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        30, 2008, AND 2007**
 **(Unaudited)**
  **  *Unaudited
        Interim Financial Statements*
 
 The
        interim financial statements of PCMT as of September 30, 2008, and for the
        three
        months and nine months ended September 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 September 30, 2008, and the results of its operations and its cash flows
        for
        the three months and nine months ended September 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 nine months ended September 30, 2008, and
        3008.
 
 *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 reporting purposes. The deferred
        tax assets and liabilities are classified according to the financial statement
        classification of the assets and liabilities generating the
        differences.
  F-7
 
 **PCMT
        CORPORATION**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **SEPTEMBER
        30, 2008, AND 2007**
 **(Unaudited)**
  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
        September 30, 2008, the carrying value of financial instruments 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 September 30, 2008, PCMT had $655,000 of deferred acquisition
        costs.
 
 *Concentration
        of Risk*
 
 As
        of
        September 30, 2008, the Company maintained its cash accounts at two commercial
        banks. The balances in the accounts are subject to FDIC coverage.
 
 F-8
 **PCMT
          CORPORATION**
 **(A
          DEVELOPMENT STAGE COMPANY)**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **SEPTEMBER
          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 September 30, 2008, and expenses for the three
        months and nine months ended September 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 September 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.
 
 F-9
 **PCMT
          CORPORATION**
 **(A
          DEVELOPMENT STAGE COMPANY)**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **SEPTEMBER
          30, 2008, AND 2007**
 **(Unaudited)**
 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 September
        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 October 29, 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 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 September 30, 2008, the Company had
        subscribed and issued 9,523,000 units and had received approximately $1,428,450
        in proceeds from PPO #3. As of October 29, 2008, the Company was continuing
        with
        the 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 September 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
        September 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
 **PCMT
          CORPORATION**
 **(A
          DEVELOPMENT STAGE COMPANY)**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **SEPTEMBER
          30, 2008, AND 2007**
 **(Unaudited)**
 On
        January 23, 2008, the Company appointed Mr. Stukalin 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 was
        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 (post forward stock split) 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 September
        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 October 29, 2008, the Company was continuing with the PPO
        #2.
 
 F-11
 **PCMT
          CORPORATION**
 **(A
          DEVELOPMENT STAGE COMPANY)**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **SEPTEMBER
          30, 2008, AND 2007**
 **(Unaudited)**
 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 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 September 30, 2008, the Company had
        subscribed and issued 9,523,000 units and had received approximately $1,428,450
        in proceeds from PPO #3. As of October 29, 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 nine months ended September
        30,
        2008, and 2007 was as follows (assuming a 23% effective tax rate):
 
 **Nine Months Ended****September 30,****2008**
              
              **2007**Current
                  Tax Provision:Federal
                  and state-Taxable
                  income
              
              $
              -
              
              $
              -Total
                  current tax provision
              
              $
              -
              
              $
              -Deferred
                  Tax Provision:Federal
                  and state-Loss
                  carryforwards
              
              $
              34,815
              
              $
              9,212Change
                  in valuation allowance
              
              
              (34,815
              )
              
              (9,212
              )Total
                  deferred tax provision
              
              $
              -
              
              $
              -
  F-12
 **PCMT
          CORPORATION**
 **(A
          DEVELOPMENT STAGE COMPANY)**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **SEPTEMBER
          30, 2008, AND 2007**
 **(Unaudited)**
 PCMT
        had
        deferred income tax assets as of September 30, 2008, as follows:
 
 **2008**Loss
                  carryforwards
              
              $
              55,341Less
                  - Valuation allowance
              
              
              (55,341
              )Total
                  net deferred tax assets
              
              $
              -
  The
        Company provided a valuation allowance equal to the deferred income tax assets
        for the three months and nine months ended September 30, 2008, and 2007,
        because
        it is not presently known whether future taxable income will be sufficient
        to
        utilize the loss carryforwards.
 
 As
        of
        September 30, 2008, the Company had approximately $240,615 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 September 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.
 
 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 September 30, 2008, and 2007, PCMT had accrued $7,152
        and
        $3,552, respectively, 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.
 
 F-13
 **PCMT
          CORPORATION**
 **(A
          DEVELOPMENT STAGE COMPANY)**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **SEPTEMBER
          30, 2008, AND 2007**
 **(Unaudited)**
 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 September
        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
        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. In August
        2008, PCMT and SDS again amended the Letter Agreement such that the Company
        agreed to advance SDS $100,000 each month commencing August 2008 until the
        consummation or termination of the Letter Agreement. During the period from
        January 1, 2008, through September 30, 2008, PCMT paid SDS a total of $544,500.
        As of September 30, 2008, PCMT had paid SDS a cumulative total of
        $620,000
 
 F-14
 **PCMT
          CORPORATION**
 **(A
          DEVELOPMENT STAGE COMPANY)**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **SEPTEMBER
          30, 2008, AND 2007**
 **(Unaudited)**
 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 September 30, 2008,
        PCMT
        had paid $15,000 in legal fees, and $20,000 in accounting fees in addition
        to
        the $620,000 described above for a total $655,000. During the nine months
        ended
        September 30, 2008, the Company paid $15,000 and $32,500 on behalf of SDS
        for
        additional accounting and legal expenses, respectively. As of September 30,
        2008, the Company reflected a receivable in the accompanying financial
        statements in the amount of $28,000 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 10th 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 September 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 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.
 
 F-15
 **PCMT
          CORPORATION**
 **(A
          DEVELOPMENT STAGE COMPANY)**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **SEPTEMBER
          30, 2008, AND 2007**
 **(Unaudited)**
 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
        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.
 
 F-16
 **PCMT
          CORPORATION**
 **(A
          DEVELOPMENT STAGE COMPANY)**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **SEPTEMBER
          30, 2008, AND 2007**
 **(Unaudited)**
 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.
 
 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).
  F-17
 **PCMT
          CORPORATION**
 **(A
          DEVELOPMENT STAGE COMPANY)**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **SEPTEMBER
          30, 2008, AND 2007**
 **(Unaudited)**
 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.
        The
        management of PCMT does not expect the adoption of this pronouncement to
        have
        material impact on its financial statements.
 
 **(11)**  **Subsequent
        Events**
 
 In
        October 22, 2008, PCMT began a fourth capital formation activity through
        a
        Private Placement Offering (“PPO #4”), exempt from registration under the
        Securities Act of 1933, to raise up to $600,000 through the issuance of units.
        Each Unit consists of a Promissory Note and shares of common stock of the
        Company in the amount of 250,000 shares for each $100,000 of principal amount
        related to each Promissory Note.
 
 F-18







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





As
      used
      in this Form 10-Q, references to “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.




3




We
      do not
      currently have sufficient capital to fund the development and marketing of
      SDS’s
      products. We have raised an aggregate of approximately$1.4 million in gross proceeds though the issuance of equity securities
      in private placements through October, 2008. However, there can be no assurance
      that we will be able to raise sufficient funds for the development and marketing
      of SDS’s products.





**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 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 independent registered
      auditors.





**Material
      Changes in Financial Condition**




On
      September 30, 2008, we had $690,133 in cash and cash equivalents, as compared
      to
      cash and escrowed proceeds from the sale of our securities of $364,534 on
      December 31, 2007. The increase reflects the receipt of proceeds from the
      issuance and sale of our securities.





Total
      assets on September 30, 2008, amounted to $1,429,216, as compared to $440,534
      on
      December 31, 2007, and included, $655,000 in deferred acquisition costs relating
      to the contemplated acquisition of SDS.





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 additional 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.





4




As
      reported in our Annual Report on Form 10-KSB filed March 13, 2008, on October
      18, 2007, we entered into a letter agreement with SDS providing, among other
      things, for payments in the aggregate amount of $60,000 to SDS. Said letter
      agreement was amended (i) on January 10, 2008, to provide for monthly payments
      of $30,000 to SDS commencing January 15, 2008, (ii) on May 18, 2008, to provide
      for monthly payments of $80,000 to SDS commencing May 18, 2008, and (iii) on
      October 20, 2008, to provide for monthly payments of $100,000 to SDS commencing
      August 15, 2008, and continuing until the earlier of the termination of said
      letter agreement or the consummation of the transaction with SDS.





**Material
      Changes in Results of Operations**





For the
      nine months ended September 30, 2008, we incurred a net loss of $151,371, as
      compared to a net loss of $40,050 in the nine months ended September 30, 2007.
      In the three months ended September 30, 2008, we incurred a net loss of $45,658,
      as compared to a net loss of $4,566 in the three months ended September 30,
      2007. These increases in losses resulted primarily from an increase in
      accounting, legal and other professional fees , and promotion and advertising
      expenses associated with the negotiation and preparation of our agreement with
      the owners of SDS. Our cumulative net loss from October 5, 2006 (inception),
      through September 30, 2008, is $240,615.





**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.




5




**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 five percent 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**





During
      the three-month period ended September 30, 2008, we issued an aggregate of
      2,886,332 units, each consisting of one share of common stock, one class A
      warrant entitling the holder to purchase a share of common stock for $0.25
      for a
      term of one year, and one class B warrant entitling the holder to purchase
      a
      share of common stock for $0.375 for a term of three years. Aggregate gross
      proceeds from the sale of the units amounted to $432,999.75. The units were
      offered and sold without registration pursuant to exemptions from the
      registration requirements of the Securities Act of 1933. 220,000 of the units
      were offered and sold pursuant to the registration exemption provided by Rule
      506 of Regulation D promulgated under the Securities Act, and the remaining
      2,666,665 units were issued and sold pursuant to the exemption provided by
      Regulation S promulgated under the Securities Act. The Company did not engage
      in
      any public solicitation in connection with these sales and, in connection with
      offers and sales pursuant to Regulation S, no offers were made to US persons,
      there were no directed selling efforts and all sales were made in offshore
      transactions. In each case the investors made the required representations
      concerning their investment purposes, restrictions on resales, and their status
      as “accredited investors” as defined in Regulation D or “non-US persons” as
      defined in Regulation S.




**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 September 30, 2008.





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





None.




6




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





ExhibitNo.
            
            Description10.7
            
            Letter
                Agreement, dated January 10, 2008, between PCMT Corporation and Suspect
                Detection Systems Ltd.10.8
            
            Letter
                Agreement, dated May 18, 2008, between PCMT Corporation and Suspect
                Detection Systems Ltd.10.9
            
            Letter
                Agreement, dated October 20, 2008, between PCMT Corporation and Suspect
                Detection Systems Ltd.31.1
            
            Rule
                13a-14(a)/15d14(a) Certification32.1
            
            Section
                1350 Certification





7


**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:
                November 10, 2008
            By:
            /s/
              Asher ZwebnerName:
            Asher
                ZwebnerTitle:
            Interim
                Chief Executive Officer andChief
                Financial Officer




8