----

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----

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|   | [ x ] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|-------|-----------------------------------------------------------------------------------------|

|   | [   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|----------------------|------------------------------------------------------------------------------------------|

| Utah                                                  | 87-0454148                           |
|-------------------------------------------------------|--------------------------------------|
|  ( State or other jurisdiction of incorporation) | (IRS Employer Identification Number) |

----

----

| PART I.  FINANCIAL INFORMATION |                                                                               |
|------------------------------------------|------------------------------------------------------------------------------------|
|                                     |                                                                               |   |
|                                     |                                                                               |   |
| Item 1.                                  | Financial Statements                                                               |   |
|                                     |                                                                               |   |
|                                     | Condensed Consolidated Balance Sheets as of June 30, 2010 (unaudited)              |   |
|                                     | and December 31, 2009                                                              | 3 |
|                                     |                                                                               |   |
|                                     | Condensed Consolidated Statements of Operations for the Three and Six Months Ended |   |
|                                     | June 30, 2010 and 2009 (unaudited)                                                 | 4 |
|                                     |                                                                               |   |
|                                     | Condensed Consolidated Statements of Cash Flows for the Six Months Ended           |   |
|                                     | June 30, 2010 and 2009 (unaudited)                                                 | 5 |
|                                     |                                                                               |   |
|                                     | Notes to Condensed Consolidated Financial Statements                               | 6 |
|                                     |                                                                               |   |
| Item 2.                                  | Management’s Discussion and Analysis of Financial Condition and              |   |
|                                     | Results of Operations                                                              | 13 |
|                                     |                                                                               |   |
| Item 4.                                  | Controls and Procedures                                                            | 16 |
|                                     |                                                                               |   |
|                                     |                                                                               |   |
|                                     |                                                                               |   |
| PART II.  OTHER INFORMATION    |                                                                               |
|                                     |                                                                               |   |
|                                     |                                                                               |   |
| Item 2.                                  | Unregistered Sales of Equity Securities and Use of Proceeds                        | 17 |
|                                     |                                                                               |   |
| Item 4.                                  | Submission of Matters to a Vote of Security Holders                                | 17 |
|                                     |                                                                               |   |
| Item 6.                                  | Exhibits                                                                           | 17 |
|                                     |                                                                               |   |
|                                     |                                                                               |   |
|                                     |                                                                               |   |
| SIGNATURES                               | 18                                                                                 |

----

|                                                                                                                     |   | June 30,    |   |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------|--------|--------------|--------|
|                                                                                                                     |   | 2010        |   |   | 2009         |   |
|                                                                                                                     |   | (unaudited) |   |   | *            |   |
| Assets                                                                                                                   |   |        |   |   |         |   |   |
| Current assets:                                                                                                          |   |        |   |   |         |   |   |
| Cash and equivalents                                                                                                     |   | $           | 11,166 |   |         | $      | 11,785 |   |
| Accounts receivable – trade, net                                                                                   |   |        | 363    |   |         |   | 476 |   |
| Inventory, net                                                                                                           |   |        | 900    |   |         |   | 1,019 |   |
| Other current assets                                                                                                     |   |        | 61     |   |         |   | 36 |   |
| Total current assets                                                                                                     |   |        | 12,490 |   |         |   | 13,316 |   |
|                                                                                                                     |   |        |   |   |         |   |   |   |
| Property and equipment, net                                                                                              |   |        | 324    |   |         |   | 358 |   |
|                                                                                                                     |   |        |   |   |         |   |   |   |
| Other assets:                                                                                                            |   |        |   |   |         |   |   |   |
| Intangible assets, net                                                                                                   |   |        | 122    |   |         |   | 122 |   |
| Deposits                                                                                                                 |   |        | 47     |   |         |   | 52 |   |
| Total assets                                                                                                             |   | $           | 12,983 |   |         | $      | 13,848 |   |
|                                                                                                                     |   |        |   |   |         |   |   |   |
| Liabilities and stockholders’ equity                                                                               |   |        |   |   |         |   |   |   |
| Current liabilities:                                                                                                     |   |        |   |   |         |   |   |   |
| Accounts payable                                                                                                         |   | $           | 346    |   |         | $      | 504 |   |
| Accrued expenses                                                                                                         |   |        | 283    |   |         |   | 518 |   |
| Current portion of capital lease obligations                                                                             |   |        | 104    |   |         |   | 110 |   |
| Total current liabilities                                                                                                |   |        | 733    |   |         |   | 1,132 |   |
|                                                                                                                     |   |        |   |   |         |   |   |   |
| Capital lease obligations, less current portion                                                                          |   |        | -      |   |         |   | 13 |   |
| Total liabilities                                                                                                        |   |        | 733    |   |         |   | 1,145 |   |
|                                                                                                                     |   |        |   |   |         |   |   |   |
|                                                                                                                     |   |        |   |   |         |   |   |   |
| Stockholders’ equity:                                                                                              |   |        |   |   |         |
| Preferred stock, $.001 par value, 2,000,000 authorized, none issued and outstanding                                      |   |        | -      |   |         |   | - |   |
| Common stock, $.0005 par value, 250,000,000 authorized,  3,091,000 outstanding in 2010 and 2009, respectively. |   |        | 2      |   |         |   | 2 |   |
| Additional paid-in capital                                                                                               |   |        | 20,783 |   |         |   | 20,767 |   |
| Accumulated deficit                                                                                                      |   |        | (8,535 | )      |         |   | (8,066 | ) |
| Total stockholders’ equity                                                                                         |   |        | 12,250 |   |         |   | 12,703 |   |
| Total liabilities and stockholders’ equity                                                                         |   | $           | 12,983 |   |         | $      | 13,848 |   |

----

|                                                                                  |   | Three Months Ended June 30, |      |   | Six Months Ended June 30, |   |
|---------------------------------------------------------------------------------------|--------|-----------------------------|-----------|--------|---------------------------|--------|
|                                                                                  |   | 2010                        |      |   | 2009                      |   |   | 2010 |   |   | 2009 |   |
|                                                                                  |   |                        |      |   |                      |   |   |   |   |   |   |   |
| Sales, net                                                                            |   | $                           | 942       |   |                      | $      | 1,226 |   |   | $ | 2,084 |   |   | $ | 2,313 |   |
| Cost of sales                                                                         |   |                        | 593       |   |                      |   | 707 |   |   |   | 1,438 |   |   |   | 1,357 |   |
|       Gross profit                                      |   |                        | 349       |   |                      |   | 519 |   |   |   | 646 |   |   |   | 956 |   |
|                                                                                  |   |                        |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                                                   |   |                        |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|    Selling, general and administrative expenses                        |   |                        | 564       |   |                      |   | 531 |   |   |   | 1,136 |   |   |   | 1,273 |   |
|       Loss from continuing operations                   |   |                        | (215      | )      |                      |   | (12 | ) |   |   | (490 | ) |   |   | (317 | ) |
|                                                                                  |   |                        |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Other income:                                                                         |   |                        |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                      |   |                        | (1        | )      |                      |   | (6 | ) |   |   | (2 | ) |   |   | (9 | ) |
| Other income                                                                          |   |                        | 12        |   |                      |   | 15 |   |   |   | 23 |   |   |   | 48 |   |
|      Total other income                                      |   |                        | 11        |   |                      |   | 9 |   |   |   | 21 |   |   |   | 39 |   |
|                                                                                  |   |                        |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations before income taxes                                   |   |                        | (204      | )      |                      |   | (3 | ) |   |   | (469 | ) |   |   | (278 | ) |
| Loss from continuing operations                                                       |   |                        | (204      | )      |                      |   | (3 | ) |   |   | (469 | ) |   |   | (278 | ) |
|                                                                                  |   |                        |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Loss from discontinued operations                                                     |   |                        | -         |   |                      |   | (2 | ) |   |   | - |   |   |   | (14 | ) |
| Net loss                                                                              |   | $                           | (204      | )      |                      | $      | (5 | ) |   | $ | (469 | ) |   | $ | (292 | ) |
|                                                                                  |   |                        |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per share – continuing operations – Basic and Diluted            |   | $                           | (0.07     | )      |                      | $      | - |   |   | $ | (0.15 | ) |   | $ | (0.09 | ) |
| Net income (loss) per share – discontinued operations – Basic and Diluted |   | $                           | -         |   |                      | $      | - |   |   | $ | - |   |   | $ | - |   |
| Net loss per share – Basic and Diluted                                          |   | $                           | (0.07     | )      |                      | $      | - |   |   | $ | (0.15 | ) |   | $ | (0.09 | ) |
| Weighted average shares – Basic and Diluted                                     |   |                        | 3,091,000 |   |                      |   | 3,091,000 |   |   |   | 3,091,000 |   |   |   | 3,091,000 |   |

----

|                                                                                               |   | Six Months Ended June 30, |   |
|----------------------------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                                               |   | 2010                      |   |   | 2009 |   |
| Operating activities                                                                               |   |                      |   |   |   |   |
| Loss from continuing operations                                                                    |   | $                         | (469   | ) |   | $ | (278 | ) |
| Adjustments to reconcile loss from continuing operations to net cash used in operating activities: |   |
|   Depreciation and amortization                                                          |   |                      | 100    |   |   |   | 114 |   |
|   Non-cash expense for issuance of stock and options                                     |   |                      | 16     |   |   |   | 16 |   |
|   Changes in operating assets and liabilities:                                           |   |                      |   |   |   |   |   |   |
|      Accounts receivable, trade                                           |   |                      | 112    |   |   |   | 175 |   |
|      Inventory                                                            |   |                      | 119    |   |   |   | 76 |   |
|      Prepaids and other current assets                                    |   |                      | (25    | ) |   |   | (24 | ) |
|      Other assets                                                         |   |                      | 5      |   |   |   | (35 | ) |
|      Accounts payable and accrued expenses                                |   |                      | (412   | ) |   |   | (985 | ) |
| Net cash used in continuing operations                                                             |   |                      | (554   | ) |   |   | (941 | ) |
| Net cash provided by discontinued operations                                                       |   |                      | -      |   |   |   | - |   |
| Net cash used in operating activities                                                              |   |                      | (554   | ) |   |   | (941 | ) |
|                                                                                               |   |                      |   |   |   |   |   |   |
| Investing activities                                                                               |   |                      |   |   |   |   |   |   |
| Patent acquisition costs                                                                           |   |                      | (7     | ) |   |   | (3 | ) |
| Purchase of plant and equipment                                                                    |   |                      | (58    | ) |   |   | (83 | ) |
|                                                                                               |   |                      |   |   |   |   |   |   |
| Net cash used in investing activities, continuing operations                                       |   |                      | (65    | ) |   |   | (86 | ) |
| Net cash used in investing activities, discontinued operations                                     |   |                      | -      |   |   |   | - |   |
| Net cash used in investing activities                                                              |   |                      | (65    | ) |   |   | (86 | ) |
|                                                                                               |   |                      |   |   |   |   |   |   |
| Financing activities                                                                               |   |                      |   |   |   |   |   |   |
| Net repayment of line of credit and capital lease obligations                                      |   |                      | -      |   |   |   | (24 | ) |
| Net cash used in financing activities, continuing operations                                       |   |                      | -      |   |   |   | (24 | ) |
| Net cash used in financing activities, discontinued operations                                     |   |                      | -      |   |   |   | - |   |
| Net cash used in financing activities                                                              |   |                      | -      |   |   |   | (24 | ) |
|                                                                                               |   |                      |   |   |   |   |   |   |
| Net decrease in cash                                                                               |   |                      | (619   | ) |   |   | (1,051 | ) |
| Cash and cash equivalents, beginning of period                                                     |   |                      | 11,785 |   |   |   | 12,943 |   |
| Cash and cash equivalents, end of period                                                           |   | $                         | 11,166 |   |   | $ | 11,892 |   |
| Supplemental cash flow information:                                                                |   |                      |   |   |   |   |   |   |
| Cash paid for interest, continuing operations                                                      |   | $                         | -      |   |   | $ | 9 |   |

----

----

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|                                   |   | Three Months Ended |   |   | Six Months Ended |   |
|----------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                   |   | June 30, 2010      |   |   | June 30, 2009    |   |   | June 30, 2010 |   |   | June 30, 2009 |   |
| Stock options                          |   |               | $8     |   |             |   | $8 |   |   |   | $16 |   |   |   | $16 |   |
| Total share-based compensation expense |   |               | $8     |   |             |   | $8 |   |   |   | $16 |   |   |   | $16 |   |

|                       |   | Number ofShares |   |   | Weighted AverageExercise Price ($) |   |
|----------------------------|--------|-----------------|--------|--------|------------------------------------|--------|
|                       |   |            |   |   |                               |   |
| Balance at January 1, 2010 |   |            | 40,000 |   |                               |   | $5.40 |   |
| Granted                    |   |            | -      |   |                               |   | - |   |
| Exercised                  |   |            | -      |   |                               |   | - |   |
| Forfeited or expired       |   |            | -      |   |                               |   | - |   |
| Balance at June 30, 2010   |   |            | 40,000 |   |                               |   | $5.40 |   |

----

| Weighted average contractual remaining term - options outstanding |   | 7.23 years |   |
|-------------------------------------------------------------------|--------|------------|--------|
| Aggregate intrinsic value - options outstanding                   |   |       | -      |   |
| Options exercisable                                               |   |       | 24,000 |   |
| Weighted average exercise price – options exercisable       |   |       | $5.40  |   |
| Aggregate intrinsic value - options exercisable                   |   |       | -      |   |
| Weighted average contractual remaining term - options exercisable |   | 7.23 years |   |

|                            |   | For the Three Months Ended June 30, |   |
|---------------------------------|--------|-------------------------------------|--------|
|                            |   | 2010                                |   |   | 2009 |   |
|                            |   | Net Loss Attributed to Common Stock |   |   | Weighted-Average Shares |   |   | Per Share Loss |   |   | Net Loss Attributed to Common Stock |   |   | Weighted-Average Shares |   |   | Per Share Loss |   |
| Basic EPS:                      |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing            |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                      |   | $                                   | (204   | ) |   |   | 3,091 |   |   | $ | (0.07 | ) |   | $ | (3 | ) |   |   | 3,091 |   |   | $ | (0.00 | ) |
| Effect of dilutive securities   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Employee stock options          |   |                                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Common stock warrants           |   |                                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Diluted earnings per share      |   | $                                   | (204   | ) |   |   | 3,091 |   |   | $ | (0.07 | ) |   | $ | (3 | ) |   |   | 3,091 |   |   | $ | (0.00 | ) |
|                            |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic EPS:                      |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from discontinued |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                      |   | $                                   | -      |   |   |   | 3,091 |   |   | $ | - |   |   | $ | (2 | ) |   |   | 3,091 |   |   | $ | (0.00 | ) |
| Effect of dilutive securities   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Employee stock options          |   |                                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Common stock warrants           |   |                                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Diluted earnings per share      |   | $                                   | -      |   |   |   | 3,091 |   |   | $ | - |   |   | $ | (2 | ) |   |   | 3,091 |   |   | $ | (0.00 | ) |
|                            |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic EPS:                      |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                        |   | $                                   | (204   | ) |   |   | 3,091 |   |   | $ | (0.07 | ) |   | $ | (5 | ) |   |   | 3,091 |   |   | $ | (0.00 | ) |
| Effect of dilutive securities   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Employee stock options          |   |                                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Common stock warrants           |   |                                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Diluted earnings per share      |   | $                                   | (204   | ) |   |   | 3,091 |   |   | $ | (0.07 | ) |   | $ | (5 | ) |   |   | 3,091 |   |   | $ | (0.00 | ) |

----

|                            |   | For the Six Months Ended June 30,   |   |
|---------------------------------|--------|-------------------------------------|--------|
|                            |   | 2010                                |   |   | 2009 |   |
|                            |   | Net Loss Attributed to Common Stock |   |   | Weighted-Average Shares |   |   | Per Share Loss |   |   | Net Loss Attributed to Common Stock |   |   | Weighted-Average Shares |   |   | Per Share Loss |   |
| Basic EPS:                      |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing            |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                      |   | $                                   | (469   | ) |   |   | 3,091 |   |   | $ | (0.15 | ) |   | $ | (278 | ) |   |   | 3,091 |   |   | $ | (0.09 | ) |
| Effect of dilutive securities   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Employee stock options          |   |                                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Common stock warrants           |   |                                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Diluted earnings per share      |   | $                                   | (469   | ) |   |   | 3,091 |   |   | $ | (0.15 | ) |   | $ | (278 | ) |   |   | 3,091 |   |   | $ | (0.09 | ) |
|                            |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic EPS:                      |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from discontinued |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                      |   | $                                   | -      |   |   |   | 3,091 |   |   | $ | - |   |   | $ | (14 | ) |   |   | 3,091 |   |   | $ | (0.00 | ) |
| Effect of dilutive securities   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Employee stock options          |   |                                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Common stock warrants           |   |                                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Diluted earnings per share      |   | $                                   | -      |   |   |   | 3,091 |   |   | $ | - |   |   | $ | (14 | ) |   |   | 3,091 |   |   | $ | (0.00 | ) |
|                            |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic EPS:                      |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                        |   | $                                   | (469   | ) |   |   | 3,091 |   |   | $ | (0.15 | ) |   | $ | (292 | ) |   |   | 3,091 |   |   | $ | (0.09 | ) |
| Effect of dilutive securities   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Employee stock options          |   |                                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Common stock warrants           |   |                                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Diluted earnings per share      |   | $                                   | (469   | ) |   |   | 3,091 |   |   | $ | (0.15 | ) |   | $ | (292 | ) |   |   | 3,091 |   |   | $ | (0.09 | ) |

|             |   | June 30, |   |   | December 31, |   |
|------------------|--------|----------|--------|--------|--------------|--------|
|             |   | 2010     |   |   | 2009         |   |
| Raw materials    |   | $        | 404    |   |         | $      | 315 |   |
| Work in progress |   |     | -      |   |         |   | - |   |
| Finished goods   |   |     | 496    |   |         |   | 704 |   |
| Net inventory    |   | $        | 900    |   |         | $      | 1,019 |   |

----

----

----

----

----

|                        |   | June 30,   |   |   | December 31, |   |
|-----------------------------|--------|------------|--------|--------|--------------|--------|
| (Thousands of dollars)      |   | 2010       |   |   | 2009         |   |
|                        |   |       |   |   |         |   |
| Current ratio (1)           |   | 17.04 to 1 |   |   | 11.76 to 1   |   |
|                        |   |       |   |   |         |   |
| Working capital (2)         |   | $          | 11,757 |   |         | $      | 12,184 |   |
|                        |   |       |   |   |         |   |   |   |
| Total debt                  |   | $          | -      |   |         | $      | - |   |
|                        |   |       |   |   |         |   |   |   |
| Total cash less debt        |   | $          | 11,166 |   |         | $      | 11,785 |   |
|                        |   |       |   |   |         |   |   |   |
| Stockholders' equity        |   | $          | 12,250 |   |         | $      | 12,703 |   |
|                        |   |       |   |   |         |   |   |   |
| Total liabilities to equity |   | 0.06 to 1  |   |   | 0.09 to 1    |   |

----

----

| Exhibit Number | Description                                                                                                                        |
|----------------|------------------------------------------------------------------------------------------------------------------------------------|
| 3.1            | Amended and Restated Articles of Incorporation dated October 11, 2000 (1)                                                          |
| 3.2            | Bylaws of the Company as amended and restated on March 25, 1998 (2)                                                                |
|           |                                                                                                                               |
| 10.2           | Stock Purchase Agreement, by and among Bluecoral limited, Winncom Technologies Corp. and the Company dated as of July 28, 2006 (3) |
| 10.3           | Escrow Agreement, dated July 28, 2006, by and among the Company, Bluecoral Limited and Consumer Title Services, LLC (3)            |
| 10.4           | Employment Agreement effective January 31, 2008 between the Company and Randall P. Marx (4)                                        |
| 10.5           | Employment Agreement effective November 1, 2007 between the Company and Monty R. Lamirato (5)                                      |
| 10.6           | Employment Agreement effective November 1, 2007 between the Company and Steve C. Olson (5)                                         |
| 10.7           | Employment Agreement effective November 1, 2007 between the Company and Richard L. Anderson (5)                                    |
|           |                                                                                                                               |
| 31.1 *         | Officers’ Certifications of Periodic Report pursuant to Section 302 of Sarbanes-Oxley Act of 2002                            |
| 31.2 *         | Officers’ Certifications of Periodic Report pursuant to Section 302 of Sarbanes-Oxley Act of 2002                            |
| 32.1 *         | Officers’ Certifications of Periodic Report pursuant to Section 906 of Sarbanes-Oxley Act of 2002                            |

| (1) | Incorporated by reference from the Company’s Form 10-KSB for December 31, 2000 filed on April 2, 2001. |
|-----|--------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated by reference from the Company’s Form 10-KSB for December 31, 1997 filed on March 31, 1998. |
|-----|---------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated by reference from the Company’s Form 8-K/A filed on August 2, 2006. |
|-----|----------------------------------------------------------------------------------------|

| (4) | Incorporated by reference from the Company’s Form 8-K filed on February 7, 2008. |
|-----|----------------------------------------------------------------------------------------|

| (5) | Incorporated by reference from the Company’s Form 8-K filed on November 8, 2007. |
|-----|----------------------------------------------------------------------------------------|

----

|                                         | ARC WIRELESS SOLUTIONS, INC. |                 |
|----------------------------------------------|------------------------------|----------------------|
|                                         |                         |                 |   |
| Date:  August 11, 2010   | By:                          | /s/ Jason Young |   |
|                                         | Jason Young                  |                 |
|                                         | Chief Executive Officer      |                 |

| Date:  August 11, 2010   | By:                                | /s/ Steve Olson |   |
|----------------------------------------------|------------------------------------|----------------------|--------|
|                                         | Steve Olson                        |                 |
|                                         | Chief Technology Officer and       |                 |
|                                         | Acting Principal Financial Officer |                 |