----

----

----

----

| x            | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------------|-----------------------------------------------------------------------------------|
|    | For the quarterly period ended  July 31, 2009                           |
|    |                                                                         |
|  ̈       | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT        |
|    | For the transition period from ______________ to _____________                    |
|    |                                                                         |
|    | Commission file number     000-27397                     |

| Nevada                                                         | 98-0204280                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

| 89146         | (310) 857-6666              |
|---------------|-----------------------------|
| (Postal Code) | (Issuer's telephone number) |

----

Table of Contents

Table of Contents

|       | PART I                                                                             | Page   |
|------------|------------------------------------------------------------------------------------|--------|
| Item 1.    | Financial Statements                                                               | 3      |
| Item 2.    | Management Discussion and Analysis of Financial Condition and Result of Operations | 11     |
| Item 4.    | Submission of Matters to a Vote of Security Holders                                | 12     |
|       |                                                                               |   |
|       | PART II                                                                            |   |
| Item 1.    | Legal Proceedings                                                                  | 12     |
| Item 2     | Unregistered Sales of Equity Securities and Use of Proceeds                        | 12     |
| Item 3.    | Defaults Upon Senior Securities                                                    | 12     |
| Item 4.    | Other Information                                                                  | 12     |
| Item 5.    | Exhibits                                                                           | 12     |
|       |                                                                               |   |
| Signatures | 13                                                                                 |

----

Table of Contents

Item 1. Financial Statements

|                                                                                            |   | 7/31/2009 |       |   | 4/30/2009 |   |
|-------------------------------------------------------------------------------------------------|--------|-----------|------------|--------|-----------|--------|
| ASSETS                                                                                          |   |      |       |   |      |   |
| Current assets                                                                                  |   |      |       |   |      |   |
| Cash                                                                                            |   | $         | 505,048    |   |      | $      | 1,087,894 |   |
| Accounts receivables, net                                                                       |   |      | -          |   |      |   | 262,734 |   |
| Contracts receivable, net                                                                       |   |      | 2,654,618  |   |      |   | 1,818,482 |   |
| Inventory                                                                                       |   |      | 72,515     |   |      |   | 71,725 |   |
| Cost in excess of billings                                                                      |   |      | 361,126    |   |      |   | 38,324 |   |
| Prepaid and other current assets                                                                |   |      | 12,862     |   |      |   | 64,781 |   |
| Total current assets                                                                            |   |      | 3,606,169  |   |      |   | 3,343,940 |   |
|                                                                                            |   |      |       |   |      |   |   |   |
| Fixed assets, net                                                                               |   |      | 1,674,456  |   |      |   | 1,886,955 |   |
| Intangible assets, net                                                                          |   |      | 1,038,183  |   |      |   | 1,218,140 |   |
| Goodwill                                                                                        |   |      | 8,164,342  |   |      |   | 8,164,342 |   |
| Other Assets                                                                                    |   |      | 53,474     |   |      |   | 42,212 |   |
| Total assets                                                                                    |   | $         | 14,536,624 |   |      | $      | 14,655,589 |   |
|                                                                                            |   |      |       |   |      |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                                           |   |      |       |   |      |   |   |   |
| Current liabilities                                                                             |   |      |       |   |      |   |   |   |
| Accounts payable                                                                                |   | $         | 2,935,805  |   |      | $      | 2,022,593 |   |
| Accrued liabilities                                                                             |   |      | 620,688    |   |      |   | 705,169 |   |
| Deferred income                                                                                 |   |      | 385,697    |   |      |   | 404,190 |   |
| Current maturities of long-term debt (net of unamortized discount of $2,155,442 and $1,047,015) |   |      | 2,650,700  |   |      |   | 3,589,814 |   |
|                                                                                            |   |      |       |   |      |   |   |   |
| Current maturities of long-term debt (related party)                                            |   |      | 1,601,721  |   |      |   | 1,590,985 |   |
|                                                                                            |   |      |       |   |      |   |   |   |
| Total current liabilities                                                                       |   |      | 8,194,611  |   |      |   | 8,312,751 |   |
|                                                                                            |   |      |       |   |      |   |   |   |
| Long term debt (related party)                                                                  |   |      | 142,532    |   |      |   | 142,532 |   |
| Long term debt (net of unamortized discount of $610,169 and $183,514)                           |   |      | 1,465,144  |   |      |   | 2,267,782 |   |
|                                                                                            |   |      |       |   |      |   |   |   |
| Total liabilities                                                                               |   |      | 9,802,287  |   |      |   | 10,723,065 |   |
|                                                                                            |   |      |       |   |      |   |   |   |
| Stockholders' equity                                                                            |   |      |       |   |      |   |   |   |
| Convertible preferred stock, $0.001 par value; 25,000,000                                       |   |      | 1,500      |   |      |   | 1,500 |   |
| shares authorized; 1,500,000 and 1,500,000                                                      |   |      |       |   |      |   |   |   |
|  issued and outstanding, respectively                                                      |   |      |       |   |      |   |   |   |
| Common stock, $0.001 par value; 7,500,000 and 600,000                                           |   |      | 2,462      |   |      |   | 2,427 |   |
| shares authorized; 2,462,060 and 2,427,060 shares                                               |   |      |       |   |      |   |   |   |
| outstanding, respectively                                                                       |   |      |       |   |      |   |   |   |
| Additional paid-in capital                                                                      |   |      | 10,257,611 |   |      |   | 7,966,774 |   |
| Non-controlling interest in consolidated subsidiaries                                           |   |      | 2,748,744  |   |      |   | - |   |
| Accumulated deficit                                                                             |   |      | (8,275,980 | )      |      |   | (4,038,177 | ) |
| Total stockholders' equity                                                                      |   |      | 4,734,337  |   |      |   | 3,932,524 |   |
| Total liabilities and stockholders' equity                                                      |   | $         | 14,536,624 |   |      | $      | 14,655,589 |   |

----

Table of Contents

|                                                   |   | 2009   |             |   | 2008   |   |
|--------------------------------------------------------|--------|--------|------------------|--------|--------|--------|
|                                                   |   |   |             |   |   |   |
| Revenues                                               |   | $      | 4,934,674        |   |   | $      | 5,892,315 |   |
|                                                   |   |   |             |   |   |   |   |   |
| Cost of revenues                                       |   |   |  (3,122,758 | )      |   |   |  (4,040,229 | ) |
| Selling, general and administrative                    |   |   |  (1,863,352 | )      |   |   |  (1,287,347 | ) |
|                                                   |   |   |             |   |   |   |   |   |
|                                                   |   |   |             |   |   |   |   |   |
| Operating income (loss)                                |   |   |  (51,436    | )      |   |   | 564,739 |   |
|                                                   |   |   |             |   |   |   |   |   |
| Other income (expense):                                |   |   |             |   |   |   |   |   |
| Loss on derivatives                                    |   |   |  (2,344,340 | )      |   |   | - |   |
| Other income                                           |   |   | 690              |   |   |   | - |   |
| Interest expense                                       |   |   |  (739,519   | )      |   |   |  (262,923 | ) |
|                                                   |   |   |             |   |   |   |   |   |
|                                                   |   |   |             |   |   |   |   |   |
| Net income (loss)                                      |   | $      | (3,134,605       | )      |   | $      | 301,816 |   |
|                                                   |   |   |             |   |   |   |   |   |
|                                                   |   |   |             |   |   |   |   |   |
|     Income (loss) per share        |   |   |             |   |   |   |   |   |
|     -Basic                         |   | $      | (1.29            | )      |   | $      | 0.13 |   |
|     -Diluted                       |   | $      | (1.29            | )      |   | $      | 0.09 |   |
|     Weighted average common shares |   |   |             |   |   |   |   |   |
| -Basic                                                 |   |   | 2,436,675        |   |   |   | 2,382,581 |   |
| -Diluted                                               |   |   | 2,436,675        |   |   |   | 3,535,994 |   |

----

Table of Contents

|                                                                     |   | 2009   |            |   | 2008   |   |
|--------------------------------------------------------------------------|--------|--------|-----------------|--------|--------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES                                     |   |   |            |   |   |   |
| Net income (loss)                                                        |   | $      | (3,134,605      | )      |   | $      | 301,816 |   |
| Adjustments to reconcile net income (loss) to net cash provided by       |   |   |            |   |   |   |   |   |
| operating activities:                                                    |   |   |            |   |   |   |   |   |
| Accrued management fees                                                  |   |   | -               |   |   |   | 30,000 |   |
| Depreciation expense                                                     |   |   | 201,965         |   |   |   | 9,214 |   |
| Amortization expense                                                     |   |   | 674,579         |   |   |   | 277,875 |   |
| Loss on derivatives                                                      |   |   | 2,344,340       |   |   |   | - |   |
| Loss on sale of assets                                                   |   |   | 7,459           |   |   |   | - |   |
| Stock issued for services                                                |   |   | 70,000          |   |   |   | - |   |
| Interest expense                                                         |   |   | -               |   |   |   | 126,340 |   |
| Changes in operating assets and liabilities:                             |   |   |            |   |   |   |   |   |
|   Increase (decrease) in accounts receivable                   |   |   | (573,402        | )      |   |   | (64,700 | ) |
|   Increase (decrease) in inventory                             |   |   | (790            | )      |   |   | 15,718 |   |
|   Increase (decrease) in cost in excess of billing             |   |   | (322,802        | )      |   |   | - |   |
|   Increase (decrease) in prepaid assets                        |   |   | 43,733          |   |   |   | (346,126 | ) |
|   Increase (decrease) in accounts payable and accrued expenses |   |   | 828,730         |   |   |   | 649,024 |   |
|   Increase (decrease) in deferred income                       |   |   | (18,493         | )      |   |   | 116,683 |   |
| Net cash provided by operating activities of operations                  |   |   | 120,714         |   |   |   | 1,115,844 |   |
|                                                                     |   |   |            |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                     |   |   |            |   |   |   |   |   |
|   Purchase of fixed assets                                     |   |   | -               |   |   |   | (11,556 | ) |
| Net cash used in investing activities                                    |   |   | -               |   |   |   | (11,556 | ) |
|                                                                     |   |   |            |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                     |   |   |            |   |   |   |   |   |
| Proceeds from notes payable                                              |   |   | 579,841         |   |   |   | 671,125 |   |
| Proceeds from notes payable - related parties                            |   |   | 10,736          |   |   |   | - |   |
| Repayments made on notes payable                                         |   |   | (1,294,137      | )      |   |   | (1,493,075 | ) |
| Repayments made on notes payable - related parties                       |   |   | -               |   |   |   | (37,700 | ) |
| Capital contributions made by related party                              |   |   | -               |   |   |   | - |   |
| Net cash used in financing activities                                    |   |   | (703,560        | )      |   |   | (859,650 | ) |
| NET CHANGE IN CASH                                                       |   |   | (582,846        | )      |   |   | 244,638 |   |
| CASH AT BEGINNING OF PERIOD                                              |   |   | 1,087,894       |   |   |   | 12,167 |   |
| CASH AT END OF PERIOD                                                    |   | $      | 505,048         |   |   | $      | 256,805 |   |
|                                                                     |   |   |            |   |   |   |   |   |
| SUPPLEMENTAL INFORMATION:                                                |   |   |            |   |   |   |   |   |
| Interest paid                                                            |   | $      | 259,042         |   |   | $      | 42,209 |   |
| Income taxes paid                                                        |   |   | 55,000          |   |   |   | - |   |
|                                                                     |   |   |            |   |   |   |   |   |
| NON-CASH INVESTING AND FINANCING ACTIVITIES:                             |   |   |            |   |   |   |   |   |
| Common stock issued for partial payment of notes payable                 |   | $      | -               |   |   | $      | 1,087,247 |   |
| Cumulative effect of change in accounting principle - reclassification   |   |   |            |   |   |   |   |   |
| of derivative liabilities                                                |   |   | 3,952,920       |   |   |   | - |   |
| Discount to notes payable on fair value of warrants                      |   |   | 1,016,696       |   |   |   | - |   |
| Reclass to non-controlling interest for                                  |   | $      |  2,748,744 |   |   |   |  - |   |
| Beneficial conversion feature discount on notes payable                  |   |   | -               |   |   |   | 280,942 |   |
| Discount to notes payable on relative fair value of warrants             |   |   | -               |   |   |   | 166,183 |   |
| Preferred stock converted to common stock                                |   |   | -               |   |   |   | 120,573 |   |

----

Table of Contents

----

Table of Contents

----

Table of Contents

| Notes payable to Boone/Ascendiant/Agile                    |   | $      | 364,674   |   |
|------------------------------------------------------------|--------|--------|-----------|--------|
| Notes payable to IBM                                       |   |   | 860,359   |   |
| Notes payable to Other                                     |   |   | 28,877    |   |
| Notes payable to Desert/Trakkers/Right Tag previous owners |   |   | 40,227    |   |
|                                                  |   |   |      |   |
| Total cash paid                                            |   | $      | 1,294,137 |   |

----

Table of Contents

|           |   | Corporate |       |   | Edgetech |   |     | RFID   |   |    | DCI       |   |   | Total     |      |
|----------------|--------|-----------|------------|--------|----------|--------|----------|--------|--------|---------|-----------|--------|--------|-----------|-----------|
|           |   |      |       |   |     |   |     |   |   |    |      |   |   |      |      |
| Net sales      |   |      |       |   |     | 86,849 |     |   |   | 368,331 |      |   |   | 4,479,494 |      |   |   | 4,934,674 |   |
|           |   |      |       |   |     |   |     |   |   |    |      |   |   |      |      |   |   |   |   |
| Net loss       |   |      | (2,474,853 | )      |     |   | (232,409 | )      |   |    | (619,214  | )      |   |      | 191,871   |   |   |   | (3,134,605 | ) |
|           |   |      |       |   |     |   |     |   |   |    |      |   |   |      |      |   |   |   |   |   |
| Assets (gross) |   |      | 5,155,572  |   |     |   | 138,030  |   |   |    | 5,781,174 |   |   |      | 3,461,848 |   |   |   | 14,536,624 |   |

| Warrants to purchase Inova common stock:                                                    |   |   |      |
|---------------------------------------------------------------------------------------------|--------|--------|-----------|
| Outstanding at April 30, 2009                                                               |   |   | 2,033,541 |   |
| Granted                                                                                     |   |   | 235,331   |   |
| Exercised                                                                                   |   |   | -         |   |
| Expired                                                                                     |   |   | -         |   |
| Outstanding at July 31, 2009                                                                |   |   | 2,268,872 |   |
|                                                                                        |   |   |      |   |
| Warrants to purchase Desert Communications, Inc. common stock: 743 total shares outstanding |   |   |      |   |
| Outstanding at April 30, 2009                                                               |   |   | 92        |   |
| Granted                                                                                     |   |   | 6         |   |
| Exercised                                                                                   |   |   | -         |   |
| Expired                                                                                     |   |   | -         |   |
| Outstanding at July 31, 2009                                                                |   |   | 98        |   |
|                                                                                        |   |   |      |   |
| Warrants to purchase Trakkers, LLC common stock:                                            |   |   |      |   |
| Outstanding at April 30, 2009                                                               |   |   | 19.44%    |   |
| Granted                                                                                     |   |   | 13.50%    |   |
| Exercised                                                                                   |   |   | -         |   |
| Expired                                                                                     |   |   | -         |   |
| Outstanding at July 31, 2009                                                                |   |   | 32.94%    |   |

----

Table of Contents

----

Table of Contents

Item 2. Management Discussion and Analysis of Financial Condition and Result of Operations.

| Net income                |   | $      | (3,134,605 | )      |
|---------------------------|--------|--------|------------|--------|
|                      |   |   |       |   |
| Interest                  |   |   | 739,519    |   |
|                      |   |   |       |   |
| Tax                       |   |   | 15,000     |   |
|                      |   |   |       |   |
| Depreciation/amortization |   |   | 381,922    |   |
|                      |   |   |       |   |
| Loss on Derivatives       |   |   | 2,344,340  |   |
|                      |   |   |       |   |
| EBITDA                    |   | $      | 346,176    |   |

----

Table of Contents

Item 4. Controls and Procedures

Item 1. Legal Proceedings.

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

Item 3. Defaults Upon Senior Securities

Item 4. Other Information

Item 5. Exhibits

| Exhibit Number | Description                                                                                                                                                                                                 |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1           | Certification  of  the  Chief  Executive Officer required by Rule  13a  -  14(a)  or  Rule  15d  -  14(a).        |
| 31.2           | Certification  of  the  Chief  Financial Officer required by Rule  13a  -  14(a)  or  Rule  15d  -  14(a).        |
| 32.1           | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes- Oxley Act of 2002                                                          |
| 32.2           | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes- Oxley Act of 2002                                                          |

----

Table of Contents

SIGNATURES

|                      |         |                                                                                                                              |
|---------------------------|--------------|-----------------------------------------------------------------------------------------------------------------------------------|
| Dated: September 18, 2009 | By:          | /s/ Adam Radly                               |
|                 |    | Adam Radly                                                                                                                        |
|                 |    | Chief Executive Officer                                                                                                           |
|                 |    |                                                                                                                         |
| Dated: September 18, 2009 | By:          | /s/ Bob Bates                      |
|                 |    | Bob Bates                                                                                                                         |
|                 |    | Chief Financial Officer                                                                                                           |

----

Table of Contents