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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As filed with the
Securities and Exchange Commission on June 19, 2006 </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>SECURITIES AND
EXCHANGE COMMISSION                                         <BR>      Washington, D.C. 20549 </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>FORM S-8 </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>REGISTRATION STATEMENT<BR>
                                                       UNDER<BR>
                                            THE SECURITIES ACT OF 1933 </FONT></H1>




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     <TD WIDTH="100%" ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="5"><B>A4S Security, Inc.
</B></FONT></TD></TR>
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     <TD WIDTH="100%" ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Exact name of registrant as specified in its charter)
</FONT></TD></TR>
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     <TD WIDTH="50%" ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Colorado            <BR>
(State or other jurisdiction of<BR>
incorporation or organization)
</FONT></TD>
     <TD WIDTH="50%" ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">20-1978398<BR>
(I.R.S. Employer<BR>
identification No.)
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>489 North Denver Avenue<BR>
                                                Loveland, CO 80537<BR>
                   (Address, including zip code, of the registrant's principal executive
offices) </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A4S Security, Inc. 2004
Stock Incentive Plan, as amended       <BR>                                          (Full
title of plan) </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Thomas R. Marinelli<BR>
                                              Chief Executive Officer<BR>
                                                A4S Security, Inc.<BR>
                                              489 North Denver Avenue<BR>
                                                Loveland, CO 80537<BR>
                                                  (970) 461-0071<BR>
                             (Name, address and telephone number of agent for service) </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Copies to: </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Adam J. Agron, Esq.<BR>
                                          Brownstein Hyatt &amp; Farber, P.C.<BR>
                                        410 Seventeenth Street, 22nd Floor<BR>
                                               Denver, CO 80202-4437<BR>
                                                  (303) 223-1134 </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>CALCULATION OF
REGISTRATION FEE </FONT></H1>






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     <TH COLSPAN="1" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title of<BR>
Securities to be<BR>
Registered</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH COLSPAN="1" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amount to be<BR>
Registered <SUP>(1)</SUP></FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH COLSPAN="1" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proposed Maximum<BR>
Offering Price<BR>
Per Share</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>

     <TH COLSPAN="1" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proposed Maximum<BR>
Aggregate Offering Price</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH COLSPAN="1" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proposed Maximum<BR>
Registration Fee</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=1><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH></TR>
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     <TD WIDTH="26%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Common Stock</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="13%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
        <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="13%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
        <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="13%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
        <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="13%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(no par value)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>950,178</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$4.47 <SUP>(2)</SUP></FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$4,247,295.60</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$454.46</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

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     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>



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     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Common Stock</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(no par value)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>49,822</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$3.62 <SUP>(3)</SUP></FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$180,355.64</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$19.30</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

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     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>



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     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;<B>Total:</B> </FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,000,000 </FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$473.76</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)&nbsp;&nbsp;&nbsp;&nbsp;
          This Registration Statement shall also cover any additional shares of common
          stock which become issuable under the Registrant&#146;s 2004 Stock Incentive
          Plan, as amended, by reason of any stock dividend, stock split, recapitalization
          or other similar transaction effected without the receipt of consideration which
          results in an increase in the number of outstanding shares of common stock of
          the Registrant. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)&nbsp;&nbsp;&nbsp;&nbsp;
          Estimated solely for the purpose of determining the amount of registration fee
          pursuant to Rule 457(h) of the General Rules and Regulations under the
          Securities Act of 1993, as amended, based upon the weighted average exercise
          price of options outstanding under the Registrant&#146;s 2004 Stock Incentive
          Plan, as amended. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3)&nbsp;&nbsp;&nbsp;&nbsp;
          Estimated solely for the purpose of determining the amount of registration fee
          pursuant to Rules 457(c) and 457(h) of the General Rules and Regulations under
          the Securities Act of 1993, as amended, based upon the average of the high and
          low prices of the Registrant&#146;s common stock as reported on The Nasdaq
          SmallCap Market on June 16, 2006, equal to $3.62 per share. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INFORMATION REQUIRED
IN THE SECTION 10(a) PROSPECTUS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Note to Part I of Form S-8 and Rule 428(b)(1) of the Rules
under the Securities Act of 1933, as amended, the information required by Part I of Form
S-8 is included in the resale prospectus which follows. The resale prospectus together
with the documents incorporated by reference pursuant to Item 3 of Part II of this
Registration Statement constitute the Section 10(a) prospectus. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>RESALE PROSPECTUS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
material which follows, up to but not including the page beginning Part II of this
Registration Statement, constitutes a prospectus, prepared on Form S-3, in accordance with
General Instruction C to Form S-8, to be used in connection with resales of securities
acquired under the Registrant&#146;s 2004 Stock Incentive Plan, as amended, by officers
and directors of the Registrant, as defined in Rule 405 under the Securities Act of 1933,
as amended. </FONT></P>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>RESALE PROSPECTUS </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,000,000 Shares of <BR>Common Stock </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A4S Security, Inc. </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2004 Stock Incentive
Plan, as amended </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
should read this prospectus carefully before investing. We are offering on behalf of
certain of our employees, officers, directors and consultants up to 1,000,000 shares of
our no par value common stock purchasable by such employees, officers, directors and
consultants pursuant to common stock options and shares of restricted common stock granted
under our 2004 Stock Incentive Plan, as amended (the &#147;Plan&#148;). As of this date,
950,178 options and no shares of restricted common stock are issued and outstanding
under the Plan. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
prospectus will be used by our non-affiliates as well as persons who are
&#147;affiliates&#148; to resell the shares. We will not receive any part of the proceeds
of such sales although we will receive the exercise price for the stock options and any
purchase price for the shares of restricted common stock. Please see &#147;Selling
Stockholders&#148; for a list of our affiliates who may offer their shares for sale. We
refer to these individuals as &#147;selling stockholders.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
selling stockholders may offer their common stock through public or private transactions,
at prevailing market prices or at privately negotiated prices. These future market prices
are not currently known. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
common stock and warrants to purchase our common stock are quoted on The Nasdaq SmallCap
Market and the NYSE &#151; ARCA Exchange under the symbols &#147;SWAT&#148; and
&#147;SWATW&#148;, respectively. On June 16, 2006, the last reported sale price for the
common stock on the Nasdaq National Market System was $3.99 per share. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
&#147;Risk Factors&#148; beginning on page 1 to read about factors you should consider
before buying shares of our common stock. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NEITHER
THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR
DISAPPROVED OF THE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THE PROSPECTUS.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
person is authorized to give any information or to make any representation regarding the
securities we are offering and investors should not rely on any such information. The
information provided in the prospectus is as of this date only. </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
date of this prospectus is June 19, 2006. </FONT></P>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AVAILABLE INFORMATION </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are subject to the informational requirements of the Securities Exchange Act of 1934, as
amended, including Sections 14(a) and 14(c) relating to proxy and information statements,
and in accordance therewith we file reports and other information with the Securities and
Exchange Commission. Reports and other information which we file can be inspected and
copied at the public reference facilities maintained by the Securities and Exchange
Commission at 100 F Street, N.E., Washington, D.C. 20549. Our common stock and warrants to
purchase our common stock are quoted on The Nasdaq SmallCap Market and the NYSE &#151;
ARCA Exchange under the symbols &#147;SWAT&#148; and &#147;SWATW&#148;, respectively.
Reports, proxy and information statements may also be inspected at the Securities and
Exchange Commission&#146;s website at www.sec.gov. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INCORPORATION BY
REFERENCE </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
documents have been incorporated by reference into this prospectus, either in whole or in
part, including but no limited to an Annual Report on Form 10-KSB for the year ended
December 31, 2005, the Quarterly Report on Form 10-QSB for the quarter ended March 31, 2006, and any Current Reports on Form 8-K filed after December 31, 2005. We
will provide without charge (1) to each person to whom a prospectus is delivered, upon
written or oral request, a copy of any and all of the information that has been
incorporated by reference (not including exhibits to the information unless such exhibits
are specifically incorporated by reference into the information), and (2) documents and
information required to be delivered to directors pursuant to Rule 428(b). Requests for
any information shall be addressed to us at 489 North Denver Avenue, Loveland, CO 80537,
telephone (970) 461-0071. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TABLE OF CONTENTS </FONT></H1>


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<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=88% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INTRODUCTION</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=3% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>RISK FACTORS</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SELLING STOCKHOLDERS</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PLAN OF DISTRIBUTION</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SEC POSITION REGARDING INDEMNIFICATION</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DESCRIPTION OF THE PLAN</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>APPLICABLE SECURITIES LAW RESTRICTIONS</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TAX CONSEQUENCES</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>LEGAL MATTERS</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXPERTS</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>
<BR><BR><BR><BR>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INTRODUCTION </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
were organized as a partnership in September 1999 and subsequently incorporated in
Montana in January 2000. In December 2004, we reincorporated in Colorado. Our principal
executive offices are located at 489 North Denver Avenue, Loveland, Colorado 80537, and
our telephone number is (970) 461-0071. We maintain a website at www.shiftwatch.com. The
information on our website is not part of this filing. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following
our formation we initially pursued the development of our technology for use by the
United States Air Force. We were engaged by the Air Force to develop digital technology
capable of capturing multiple feeds of video, audio and data, including the utilization
of Global Positioning Satellite Time, to provide simultaneous time and location
synchronized views of multiple video, audio and data streams of flight and weapons
systems. We retained the proprietary commercial rights to our software development, which
today is the core technology of our commercial transportation and police evidence video
recorder products. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
May 2005, we affected a 1 to 18.4 split of our common stock and changed our name from A4S
Technologies, Inc. to A4S Security, Inc. Unless otherwise indicated, all information in
this prospectus, including share and per share data, gives effect to this reverse stock
split and the name change. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have a history of net operating losses and an accumulated deficit in excess
of $9 million as of March 31, 2006 and our independent registered public
accounting firm has issued an opinion indicating substantial doubt about our
ability to continue as a going concern. Our operating losses, accumulated
deficit and audit opinion could negatively affect our ability to raise capital.
 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
completed our initial public offering in July 2005 in which we sold 1,380,000 units of
our securities at $6.00 per unit for gross proceeds of $8,280,000. Each unit consisted of
one share of our common stock and one warrant. The warrants issued in our public offering
are exercisable at $9.00 per share. The common stock and warrants are quoted on The
Nasdaq SmallCap Market and the NYSE &#151; ARCA Exchange under the symbols SWAT and SWATW,
respectively. </FONT></P>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>RISK FACTORS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
shares of common  stock  offered by this  prospectus  involve a high  degree of risk and
 represent  a highly  speculative  investment.  You should not purchase these shares if
you cannot afford the loss of your entire investment.  In addition to the other
information  contained in this prospectus,  you should carefully consider the following
 risk factors in  evaluating  our company,  our business  prospects  and an  investment
 in our shares of common stock. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Risks Related to Our Business and
Industry</B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>We have a limited history
of product sales and have incurred substantial losses since inception, which makes it
difficult to evaluate our prospects and the merits of investing in our securities.</B> </FONT> </P>



<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1 </FONT></P>

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<DIV STYLE="page-break-after:always"></DIV>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
were incorporated in December 1999. For approximately four years, we were primarily
engaged in the research and development of our initial product the MIL-4000, under a
contract with the United States Air Force, which was our only product until 2003, when we
commercially released ShiftWatch(R)TVSTM, which has only minimal sales to date. As a
result of our limited operating history, we have a limited amount of sales and financial
data that you can use to evaluate our business. You must consider our prospects in light
of the risks, expenses and challenges of attempting to introduce new products in new and
developing markets. We may not address these risks, and our business strategy may not
prove successful. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2004, we had revenues of $268,500 and incurred a net loss of $1,326,000. In 2005 we had
revenues of $108,500 and incurred a net loss of $4,193,000. We expect to continue to
incur significant sales, marketing, general and administrative and product development
expenses in connection with the development of our business. Although we believe our
sales will begin to increase and as of May 2006 we had open orders of approximately $425,000
in process, we expect to incur a net loss for the most if not all of 2006. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Historically our revenues have been
generated by only one principal customer, and we will be unable to operate profitably
unless we expand our customer base.</B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
success depends on our ability to market and enhance our products to meet and maintain
our current customers' and potential customers' needs. We have successfully produced
products which have been installed in buses operated by the Kansas City Area
Transportation Authority, or KCATA. KCATA accounted for substantially all of our sales in
2005 and 2004, and is our current principal customer. We believe our ability to
substantially increase our revenues and generate net income is contingent on successfully
expanding our sales and marketing efforts and our consummation of additional sales orders
and contracts. We have encountered in the past, and may again encounter in the future,
delays on the part of customers in making purchase decisions and issuing purchase orders
as they evaluate our products and technology. If we are unable to expand our customer
base, we will be unable to operate profitably. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Our marketing efforts are focused
primarily on municipalities or quasi governmental agencies, such as mass transit
authorities, which can have prolonged buying cycles and operate under voter mandated
budget constraints. As a result, sales to these potential customers could be delayed or
not achieved.</B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
anticipate that our primary customers in the near future will be municipalities or quasi
governmental agencies, such as mass transit authorities. Municipalities generally have
prolonged purchase and buying cycles and generally require compliance with specified
proposal and Request for Proposal conditions. They typically have budget considerations
and buying patterns frequently tied to fiscal year considerations. In order to do
business with certain customers we may also be subject to a number of public policies
covering procurement procedures. As a result of these prolonged buying cycles and
particular procurement procedures as well as voter mandated budgetary constraints, our
sales to these potential customers could be delayed or not achieved. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>We may not achieve substantial
business from governmental agencies because of our brief operating history and absence of
a prior relationship.</B> </FONT> </P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2 </FONT></P>

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<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
expect to derive a significant amount of our future revenues from sales made to
municipalities and other governmental agencies. Governmental agencies or quasi
governmental agencies are more likely than private sector clients to provide business
based on our reputation and our relationship with the agency. We have a brief operating
history and only one principal customer, the KCATA. Accordingly, it may be more difficult
for us to establish substantial business with agencies. Also, if for any reason our
reputation or relationship with a governmental agency is impaired, or if levels of
government expenditures and authorizations for security related programs do not increase
or shift to programs in areas where we do not provide products, our business generated
from governmental sources may be materially and adversely affected. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Our growth plans will be hindered if
the markets for our products do not develop as anticipated.</B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
markets for our security and surveillance products are still emerging. Our growth is
dependent on, among other things, the size and pace at which the markets for our products
develop. If the markets do not grow as we anticipate, our growth plans will not be
realized. Continued growth may be hindered, for many reasons, including products deemed
to be superior to ours that are offered by our competitors, our customers experiencing
technical difficulty in utilizing our products, or our customers achieving their security
objectives by using alternative solutions. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Product modifications, upgrades and
enhancements may affect our ability to successfully market our products.</B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
software, like any software product, will require modifications. We are also continually
engaged in seeking product upgrades and enhancements. As we move forward with these
changes, we may experience delays due to programming or product development. Such delays
may impact our ability to meet delivery schedules or other commitments to customers or
prospective customers and may ultimately result in our inability to successfully market
our products. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
products, exclusive of the software, are currently produced and assembled with generally
available off-the-shelf components. Should technological changes in the product be
necessary that would make such off-the-shelf components no longer workable, it could have
an impact on our ability to deliver finished products, as well as our costs to have such
products manufactured. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Changes in technology, product
features required by customers and product features offered by our competitors may affect
our ability to successfully market our products.</B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Technological
and software based products continue to evolve and change in the marketplace and will
require modifications to our products. We are also continually engaged in seeking product
upgrades and enhancements and future product development requirements may involve delays
in product advancement and additional costs. Such changes and additional costs may impact
our ability to successfully market our products. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Because of our limited resources,
for the foreseeable future, we will be dependent on our officers and key personnel for
sales and marketing and on a third party for manufacturing our products. As a result, our
sales may not increase rapidly and we may have less ability to control the manufacturing
and delivery of our products.</B> </FONT> </P>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3 </FONT></P>

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<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
ability to achieve revenue growth will depend to a large extent on our ability to bolster
the sales and marketing efforts of our existing sales personnel. Because of our limited
resources, we will rely primarily upon efforts of our officers and key personnel and we
will not have available to us a fully developed internal sales force. Accordingly, we may
be unable to achieve revenue growth. We also do not anticipate acquiring the substantial
facilities, equipment and personnel necessary to manufacture our products, but will rely
on third parties for these efforts. We do not have a written contract with our contract
manufacturer. Our reliance on a third party for manufacturing may limit our ability to
control the quality of the manufacturing and timing of the completion and delivery of our
products. Also, because of our limited sales, we have no experience with our manufacturer
in producing substantial quantities of products, and there may be production difficulties
or delays in the future. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>We rely upon patents, trademarks,
and trade secrets to protect our proprietary rights that we believe give us a competitive
advantage; however, such intellectual property protections may not be broad enough, could
be successfully challenged or may become useless as competitors independently develop
similar technologies. Enforcement of intellectual property rights is expensive and
involves a significant amount of management resources, which could decrease our revenues,
and, if we lose, defeat our competitive advantage.</B> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
ability to compete depends to a significant degree upon the protection of our software
and other proprietary technology rights. We may not be able to protect our proprietary
technology, and our proprietary rights may not provide us with a meaningful competitive
advantage. To protect our proprietary technology, we rely on a combination of patents,
trademarks, trade secrets and non-disclosure agreements, each of which affords only
limited protection. Any inability to protect our intellectual property rights could
seriously harm our business, operating results and financial condition. It is possible
that: </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      &#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>our
pending patent applications may not result in the issuance of patents;  </FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       &#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>any
patents issued to us may not be broad enough to protect our proprietary rights;  </FONT></TD>
</TR>
</TABLE>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       &#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>any
issued patent could be successfully challenged by one or more third parties, which could
result in             our loss of the right to prevent others from exploiting the
inventions claimed in those patents;  </FONT></TD>
</TR>
</TABLE>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       &#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>current
and future competitors may independently develop similar technologies, duplicate our
products             or design around any of our patents; and  </FONT></TD>
</TR>
</TABLE>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       &#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>former
employees, consultants or contractors may violate their confidentiality or non-compete
            agreements with us leading to a loss of proprietary intellectual property.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
an effort to protect our unpatented proprietary technology, processes and know-how, we
require our employees and consultants to execute confidentiality agreements. However,
these agreements may not provide us with adequate protection against improper use or
disclosure of confidential information. These agreements may be breached, and we may not
have adequate remedies for any such breach. In addition, in some situations, these
agreements may conflict with, or be subject to, the rights of third parties with whom our
employees or consultants have previous employment or consulting relationships. Also,
other companies may independently develop substantial proprietary information and
techniques or otherwise gain access to our trade secrets. We intend to market our
products in many different countries, some of which we will not have patents in or
applied for. Different countries have different patent rules and we may sell in countries
that do not honor patents and in which the risk that our products could be copied and we
would not be protected would be greater. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Claims that we infringe upon third
parties' intellectual property rights could be costly to defend or settle, and thus could
reduce our income or increase our net loss.</B> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
may from time to time encounter disputes over rights and obligations concerning
intellectual property. Although we believe that our intellectual property rights are
sufficient to allow us to market our products without incurring liability to third
parties, third parties may bring claims of infringement against us. Such claims may be
with or without merit. Any litigation to defend against claims of infringement or
invalidity could result in substantial costs and diversion of resources. Furthermore, a
party making such a claim could secure a judgment that requires us to pay substantial
damages. A judgment could also include an injunction or other court order that could
prevent us from selling our products. Our business, operating results and financial
condition could be harmed by a reduction in income or an increase in our net loss if any
of these events occurred. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, we may indemnify certain of our customers against certain claims that our
software infringes upon the intellectual property rights of others. We could incur
substantial costs in defending ourselves and such customers against infringement claims.
In the event of a claim of infringement, our customers and we may be required to obtain
one or more licenses from third parties. We, or our customers, may be unable to obtain
necessary licenses from third parties at a reasonable cost, if at all. An adverse
decision in a lawsuit or failure to obtain any such required licenses could limit our
ability to market our products resulting in a loss of revenues and could require us to
restructure our operations. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>We have limited human resources; we
need to attract and retain highly skilled personnel; and we may be unable to manage our
growth effectively with our limited resources.</B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
expect that the expansion of our business may place a strain on our limited managerial,
operational and financial resources. We will be required to expand our operational and
financial systems significantly and to expand, train and manage our work force in order
to manage the expansion of our operations. Our future success will depend in large part
on our ability to attract, train and retain additional highly skilled executive level
management, logistics and sales personnel. We may not be successful in attracting and
retaining qualified personnel on a timely basis, on competitive terms or at all. If we
are not successful in attracting and retaining these personnel, our business, prospects,
financial condition and operating results would be materially adversely affected.
Further, our ability to manage our growth effectively will require us to continue to
improve our operational, financial and management controls, reporting systems and
procedures, to install new management information and control systems and to train,
motivate and manage employees. If we are unable to manage growth effectively and new
employees are unable to achieve adequate performance levels, our operating results will
suffer. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Our competitors may have greater
resources or sales and marketing capabilities than we have, and we may not have the
resources necessary to successfully compete with them.</B> </FONT> </P>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5  </FONT></P>

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<DIV STYLE="page-break-after:always"></DIV>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
business strategy has been to create a niche in the digital recording system for mobile
and stationary security applications, specifically focused near-term in law enforcement,
mass transit and security/surveillance markets. The security business is highly
competitive, and we may face increasing competition. We expect that many of our
competitors will have greater financial and human resources, more experience in research
and development, and more established sales, marketing and distribution capabilities than
we have. Therefore, our efforts to increase sales may be unsuccessful. In addition, the
security market we are focused in is characterized by rapid technological change. New
product introductions or other technological advancements could make some or all of our
products obsolete. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Our operating results may fluctuate,
which makes results difficult to predict and could cause our results to fall short of
expectations.</B> </FONT> </P>



<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
operating results may fluctuate as a result of a number of factors, many of which are
outside of our control. For these reasons, comparing our operating results on a
period-to-period basis may not be meaningful, and you should not rely on our past results
as an indication of our future performance. Our quarterly and annual expenses as a
percentage of our revenues may be significantly different from our historical or
projected rates. Our operating results in future quarters may fall below expectations.
Any of these events could cause our stock price to fall. Each of the risk factors listed
in this Risk Factors section, and the following factors, may affect our operating results: </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       &#149;  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
ability to expand our customer base in the mass transit market; </FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       &#149;  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
ability to penetrate the law enforcement and the general security applications markets; </FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       &#149;  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
plans to increase our marketing personnel and other marketing costs to further our growth
            strategy; </FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       &#149;  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
plans to continue to develop new and improved product offerings; </FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       &#149;  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
intent to focus on long-term goals over short-term results; </FONT></TD>
</TR>
</TABLE>


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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       &#149;  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>General
economic conditions and those economic conditions which could specifically affect
purchasing             by our target customers; and </FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       &#149;  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Geo-political
events such as war, threat of war or terrorist actions. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Our auditors have added an emphasis
paragraph to their opinion raising a question of our ability to continue as a going
concern.</B> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due
to our continued losses and limited capital resources our independent registered public
accounting firm has issued an opinion that questions our ability to continue as a going
concern. The auditors' report discloses that we did not generate significant revenues in
2005, we incurred a net loss of approximately $4,193,000 and consumed net cash in
operations of approximately $3,346,000 in 2005. These conditions raise substantial doubt
about our ability to continue as a going concern and may make it difficult for us to
raise capital. The financial statements do not include any adjustments that might result
from the outcome of this uncertainty. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Our financial results could be
adversely affected by changes in accounting rules governing the recognition of
stock-based compensation expense, which would reduce our income or increase our losses.</B> </FONT> </P>




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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6  </FONT></P>


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<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Effective January 1, 2006, A4S
adopted Statement of Financial Accounting Standards (&#147;SFAS&#148;) No. 123 (revised
2004), &#147;Share-Based Payment&#148; (&#147;SFAS 123R&#148;), using the modified
prospective method. SFAS 123R requires the recognition of the cost of employee services
received in exchange for an award of equity instruments in the financial statements and is
measured based on the grant date fair value of the award. SFAS 123R also requires the
stock option compensation expense to be recognized over the period during which an
employee is required to provide service in exchange for the award (the vesting period).
Prior to A4S adopting SFAS 123R, the Company accounted for stock-based compensation plans
under Accounting Principles Board Opinion (&#147;APB&#148;) No. 25, &#147;Accounting for
Stock Issued to Employees&#148; (&#147;APB 25&#148;). Under APB 25, generally no
compensation expense is recorded when the terms of the award are fixed and the exercise
price of the employee stock option equals or exceeds the fair value of the underlying
stock on the date of grant. The Company had previously adopted the disclosure-only
provision of SFAS No. 123, &#147;Accounting for Stock-Based Compensation&#148; (&#147;SFAS
123&#148;). Through December 31, 2005, the Company had applied APB Opinion No. 25 and
related Interpretations in accounting for its stock-based employee compensation plans.
Accordingly, no compensation expense had been recognized for options granted to employees
at fair market value. For the three-month period ended March 31, 2006, share based
compensation of $100,000 was recorded in accordance with SFAS 123R and for the year ended
December 31, 2006, we anticipate an expense of approximately $480,000 in 2006 being
recorded under SFAS No. 123R.


 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>We substantially increased executive
compensation and other expenses in 2005 following the completion of our public offering.
As a result, our historical financial statements are not indicative of future results and
we must substantially increase revenues in order to become profitable.</B> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the year ended December 31, 2004, our officers received total compensation of $186,000.
We have bolstered our executive team and increased our officers' compensation in mid
2005. Many of our officers previously worked at reduced levels of compensation. The
aggregate annual compensation of our officers in 2005 approximated $500,000. We also
substantially increased our sales and marketing activities in an effort to increase
sales. Accordingly, our historical financial statements are not indicative of future
results. We will need to substantially increase revenues to become profitable. In
addition, because of our plans to substantially increase executive compensation and sales
and marketing activities as well as incur other expenditures, our business and operating
results will be materially adversely affected if our sales do not increase substantially. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Compliance with the new corporate
governance requirements to which we will be subject as a public company will cause us to
incur significant costs, and the failure to comply with such requirements will expose us
to investigations and sanctions by regulatory authorities.</B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
face new corporate governance requirements under the Sarbanes-Oxley Act of 2002, as well
as new rules and regulations subsequently adopted by the Securities and Exchange
Commission, the Public Company Accounting Oversight Board, The Nasdaq Stock Market and
the NYSE - ARCA Exchange. These laws, rules and regulations continue to evolve and may
become increasingly stringent in the future. </FONT></P>




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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
particular, we will be required to include the management and auditor reports on internal
control as part of our annual report for the year ending December 31, 2007 pursuant to
Section 404 of Sarbanes-Oxley. We are in the process of evaluating our internal control
systems in order (i) to allow management to report on, and our independent auditors to
attest to our internal controls, as required by these laws, rules and regulations, (ii)
to provide reasonable assurance that our public disclosure will be accurate and complete,
and (iii) to comply with the other provisions of Section 404 of Sarbanes-Oxley. We cannot
be certain as to the timing of the completion of our evaluation, testing and remediation
actions or the impact these may have on our operations. Furthermore, there is no
precedent available by which to measure compliance adequacy. If we are not able to
implement the requirements relating to internal controls and all other provisions of
Section 404 in a timely fashion or achieve adequate compliance with these requirements or
other requirements of Sarbanes-Oxley, we might become subject to sanctions or
investigation by regulatory authorities such as the Securities and Exchange Commission,
The Nasdaq Stock Market or the NYSE -- ARCA Exchange. Any such action may materially
adversely affect our reputation, financial condition and the value of our securities,
including our common stock. We expect that Sarbanes-Oxley and these other laws, rules and
regulations will increase legal and financial compliance costs and will make our
corporate governance activities more difficult, time-consuming and costly. We also expect
that these new requirements will make it more difficult and expensive for us to obtain
director and officer liability insurance. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>If we fail to maintain an effective
system of internal controls, we may not be able to accurately report our financial
results or prevent fraud. As a result, current and potential shareholders could lose
confidence in our financial reporting, which could harm our business and the trading
price of our stock.</B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
internal controls are necessary for us to provide reliable financial reports and
effectively prevent fraud. If we cannot provide financial reports or prevent fraud, our
business reputation and operating results could be harmed. Inferior internal controls
could also cause investors to lose confidence in our reported financial information,
which could have a negative effect on the trading price of our stock. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Our articles of incorporation and
bylaws contain provisions that could delay or prevent a change in control even if the
change in control would be beneficial to our shareholders.</B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
articles of incorporation and bylaws contain provisions that could delay or prevent a
change in control of our company, even if it were beneficial to our shareholders to do
so. These provisions could limit the price that investors might be willing to pay in the
future for shares of our common stock. Among other things, these provisions: </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      &#149;  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>authorize
the issuance of preferred stock that can be created and issued by the board of directors
            without prior shareholder approval and deter or prevent a takeover attempt; </FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      &#149;  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>authorize
shareholder action only by unanimous written consent, thereby effectively requiring all
            shareholder actions to be taken at a meeting of our shareholders; and </FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      &#149;  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>prohibit
cumulative voting in the election of directors, which would otherwise allow less than a
            majority of shareholders to elect director candidates. </FONT></TD>
</TR>
</TABLE>
<BR>



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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8  </FONT></P>



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<HR SIZE=5 COLOR=GRAY NOSHADE>
<DIV STYLE="page-break-after:always"></DIV>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Risks Related to our Securities</B> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>The public market for our securities
was recently established, and our stock price could be volatile and could decline,
resulting in a substantial loss in your investment.</B> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
completed our public offering in July 2005, so a trading market was only established
recently. An active trading market for our securities may not be sustained, which could
affect your ability to sell your securities and could depress the market price of your
securities. The stock market in general and the market for technology-related stocks in
particular, has been highly volatile. As a result, the market price of our common stock
is likely to be similarly volatile, and investors in our common stock may experience a
decrease in the value of their stock, including decreases unrelated to our operating
performance or prospects. The price of our common stock could be subject to wide
fluctuations in response to a number of factors, including those listed in this "Risk
Factors" section of this prospectus. In the past securities class action litigation has
often been instituted against companies following periods of volatility in their stock
price. This type of litigation against us could result in substantial costs and divert
our management's attention and resources. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Shares of common stock that are
issuable pursuant to our stock option plan and our outstanding warrants when issued,
could result in dilution to existing shareholders and could cause the market price of our
common stock to fall.</B> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have reserved shares of common stock that may be issuable pursuant to our stock option
plan and our outstanding warrants outside those plans. These securities when issued and
outstanding, may reduce earnings per share under accounting principles generally accepted
in the U.S., and, to the extent they are exercised and shares of our common stock are
issued, dilute percentage ownership to existing shareholders which could have an adverse
effect on the market price of our common stock. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>We have authorized, but unissued,
shares of preferred stock available for issuance, which could negatively affect the value
of our common shares.</B> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
articles of incorporation currently authorize the issuance of 5,000,000 shares of our
preferred stock. Our board of directors has the power to issue any or all of these
additional shares without shareholder approval, and such shares can be issued with such
rights, preferences, and limitations as may be determined by our board of directors. The
rights of the holders of common stock will be subject to, and may be adversely affected
by, the rights of any holders of preferred stock that may be issued in the future. We
presently have no commitments or contracts to issue any shares of preferred stock.
Authorized and unissued preferred stock could delay, discourage, hinder or preclude an
unsolicited acquisition of our company, could make it less likely that shareholders
receive a premium for their shares as a result of any such attempt, and could adversely
affect the market prices of, and the voting and other rights, of the holders of
outstanding shares of common stock. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>We do not intend to pay dividends on
our common stock.</B> </FONT> </P>




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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9  </FONT></P>


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<HR SIZE=5 COLOR=GRAY NOSHADE>
<DIV STYLE="page-break-after:always"></DIV>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have never declared or paid any cash dividends on our capital stock. We currently intend
to retain any future earnings and do not expect to pay any dividends in the foreseeable
future. </FONT></P>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SELLING STOCKHOLDERS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
prospectus covers possible sales by our officers, directors and affiliates of shares they
acquire through the exercise of stock options and the purchase of shares of restricted
common stock under our 2004 Stock Incentive Plan, as amended, which we refer to as the
"Plan." The address of each individual in the table is in care of
A4S Security, Inc. at 489 North Denver Avenue, Loveland, CO 80537. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table shows, as of June 16, 2006: </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
name of each selling stockholder; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>how
many shares the selling stockholder beneficially owns; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>how
many shares the selling stockholder can resell under this prospectus; and </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>assuming
a selling stockholder sells all shares listed next to his or her name, how many shares
the                   selling stockholder will beneficially own after completion of the
offering. </FONT></TD>
</TR>
</TABLE>
<BR>
<BR><BR><BR><BR><BR><BR><BR><BR>




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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10 </FONT></P>


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<DIV STYLE="page-break-after:always"></DIV>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
may amend or supplement this prospectus form time to time in the future to update or
change this list of selling stockholders and shares that may be resold. </FONT></P>











<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" BORDER="0">
<TR VALIGN=Bottom>
     <TH COLSPAN=1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Name</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH COLSPAN=1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total Shares<BR>
Beneficially<BR>
Owned <SUP>(1)</SUP></FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH COLSPAN=1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Shares<BR>
Registered<BR>
For Resale</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH COLSPAN=1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Shares<BR>
Owned<BR>
After<BR>
Offering</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=1><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Percentage<BR>
of Class<BR>
Owned After<BR>
the Offering</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=1><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="35%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Andrew McKennan</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD WIDTH="5%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,000</FONT></TD>
        <TD WIDTH="5%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD WIDTH="5%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="3%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>April Romska</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>800</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Barry Loder</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,057</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37,174</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Bob Williams</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Desormeaux</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>66,300</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Edmund Colgan</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,667</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8,500</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Francis Lefler</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,750</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gail Schoettler</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,057</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37,174</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gregory Pusey <SUP>(2)</SUP></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>384,569</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>96,087</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>360,112</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.1%</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Jeffrey McGonegal <SUP>(3)</SUP></FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>70,353</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>100,217</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42,935</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.1%</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Joe Baran</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,167</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Julie Antrim</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,900</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Justin Bulskov</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>333</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Kent Hayes</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>543</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,730</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Leonard Ponce</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Lorraine Fulwiler</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,600</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Matthew Siemens</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37,908</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>131,196</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Melissa Leaderbrand</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>833</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,700</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Michael Siemens <SUP>(4)</SUP></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>90,747</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>143,478</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>52,459</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.3%</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Nate Hammond</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>733</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,200</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Patricia O'Connor</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Richard VandePoll</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,500</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Rob Uhirich</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ronald Kronenberger</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Scott Green</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,100</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Scott Ruff</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>50,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sean Gabriel</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,333</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sharron Viger</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11,500</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Thomas Cox</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Thomas Marinelli</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>79,389</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>108,422</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34,101</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>*</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tim Fetter</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,666</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Timothy Kuhlman</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>333</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,700</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Yajie Zhu</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,900</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total:</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>701,939</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>950,178</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>489,607</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=3></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=3></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=3></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=3></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>* &nbsp;Denotes less than 1%. </FONT></P>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The number of shares &#147;beneficially owned&#148; by each selling stockholder
          has been calculated in accordance with Rule 13d-3 under the Securities Exchange
          Act of 1934, as amended. Beneficial ownership, as defined in Rule 13d-3, does
          not necessarily indicate beneficial ownership for any other purpose. Under Rule
          13d-3, a person beneficially owns all shares that he or she has either sole or
          shared voting power or sole or shared investment power, as well as shares which
          he or she has the right to acquire within 60 days of the date hereof. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Includes shares of common stock and warrants owned by the selling stockholder&#146;s spouse
          and children. Does not include warrants to purchase 12,133 shares of common
          stock held by Cambridge Holdings Ltd. Mr. Pusey is the President, a director and
          a principal stockholder of Cambridge Holdings Ltd. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Includes 1,087 shares of common stock owned by McGonegal Family Partnership. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Default" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Includes shares of common stock and options owned by the selling stockholder&#146;s spouse. </FONT></TD>
          </TR>
          </TABLE>
          <BR>







<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PLAN OF DISTRIBUTION </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have been advised by the selling stockholders that they intend to sell all or a portion
of the shares offered from time to time on The Nasdaq SmallCap Market or the NYSE -- ARCA
Exchange and that sales will be made at prices prevailing on such markets at the times of
sale. The selling stockholders may also make private sales directly or through brokers
who may act as agents or principals. Further, the selling stockholders may choose to
dispose of their shares by gift to a third party or as a donation to a charitable or
other non-profit entity. In connection with any sales, the selling stockholders and any
participating brokers may be deemed to be underwriters within the meaning of the
Securities Act of 1933, as amended. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
broker-dealer participating as agent for the selling stockholders or for the purchasers
may receive commissions. Broker-dealers may agree with the selling stockholders to sell a
specified number of shares at a stipulated price per share, and, to the extent such a
broker-dealer is unable to do so acting as agent for the selling stockholders, to
purchase as principal any unsold shares at the price required to fulfill the
broker-dealer commitment to the selling stockholders. Broker-dealers who acquire shares
as principal may thereafter resell such shares from time to time in transactions (which
may involve crosses and block transactions and which may involve sales to and through
other broker-dealers, including transactions of the nature described above), in the
over-the-counter market, in negotiated transactions or otherwise at market prices
prevailing at the time of sale or at negotiated prices, and in connection with these
resales may pay to or receive commissions from the purchasers. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have advised the selling stockholders that Regulation M promulgated under the Securities
Exchange Act of 1934, as amended, may apply to sales in the market and has informed them
of the possible need for delivery of copies of this prospectus. The selling stockholders
may indemnify any broker-dealer that participates in transactions involving the sale of
the shares against certain liabilities, including liabilities arising under the
Securities Act of 1933, as amended. Any commissions paid or any discounts or concessions
allowed to any broker-dealers, and, if any broker-dealers purchase shares as principal,
any profits received on the resale of shares, may be deemed to be underwriting discounts
and commissions under the Securities Act of 1933, as amended. </FONT></P>





<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11 </FONT></P>


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<HR SIZE=5 COLOR=GRAY NOSHADE>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
notification by a selling stockholder that any material arrangement has been entered into
with a broker-dealer for the sale of shares through a cross or block trade, a
supplemental prospectus will be filed under Rule 424(c) under the Securities Act of 1933,
as amended, setting forth the name of the participating broker-dealer(s), the number of
shares involved, the price at which the shares were sold by the selling stockholders, the
commissions paid or discounts or concessions allowed by the selling stockholders to such
broker-dealer(s), and where applicable, that the broker-dealer(s) did not conduct any
investigation to verify the information set forth in this resale prospectus. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
securities covered by this prospectus which qualify for sale pursuant to Rule 144 and 701
under the Securities Act of 1933, as amended, may be resold under Rule 144 rather than
pursuant to this prospectus. In general, under Rule 144 as currently in effect, a person
(or persons whose shares are aggregated), including any person who may be deemed to be
our "affiliate," is entitled to sell within any three month period "restricted shares"
beneficially owned by him or her in an amount that does not exceed the greater of (i) 1%
of the then outstanding shares of common stock or (ii) the average weekly trading volume
in shares of common stock during the four calendar weeks preceding such sale, provided
that at least one year has elapsed since such shares were acquired from us or our
affiliate. Sales are also subject to certain requirements as to the manner of sale,
notice and availability of current public information regarding us. A person who has not
been our "affiliate" at any time within three months prior to the sale is entitled to
sell his or her shares without regard to the volume limitations or the other requirements
of Rule 144, provided that at least one year has elapsed since the shares were acquired
from us or our affiliate. In general, under Rule 701 as currently in effect, any
employee, consultant or advisor of us who purchases shares from us in connection with a
compensatory stock or option plan or other written agreement related to compensation is
eligible to resell these shares in reliance on Rule 144, but without compliance with the
certain restrictions contained in Rule 144. </FONT></P>


<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SEC POSITION REGARDING
INDEMNIFICATION </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
Articles of Incorporation and Bylaws provide for indemnification of officers and
directors, among other things, in instances in which they acted in good faith and in a
manner they reasonably believed to be in, or not opposed to, our best interests and in
which, with respect to criminal proceedings, they had no reasonable cause to believe
their conduct was unlawful. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar
as indemnification for liabilities arising under the Securities Act of 1933, as amended,
may be permitted to our directors, officers or persons controlling us under the
provisions described above, we have been informed that in the opinion of the Securities
and Exchange Commission, indemnification is against public policy as expressed in that
Act and is therefore unenforceable. </FONT></P>




<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12 </FONT></P>


<!-- MARKER PAGE="sheet: 17; page: 17" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
<DIV STYLE="page-break-after:always"></DIV>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DESCRIPTION OF THE PLAN </FONT></H1>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
August 2004, our Board of Directors and shareholders adopted our 2004 Stock Incentive
Plan.  The purpose of the Plan is to promote our interests and the interests of our
shareholders by providing participants a significant stake in our performance and
providing an opportunity for the participants to increase their holdings of our Common
Stock. The Plan will be administered by the Board of Directors or a committee of the
Board of Directors, as the Board of Directors may from time to time designate. The Board
of Directors has the authority to select employees and consultants (which may include
directors) to receive awards, to determine the number of shares of common stock covered
by awards and to set the terms and conditions of awards. In addition to stock options, we
may also offer a participant the right to purchase shares of restricted common stock
subject to such restrictions and conditions as the Board of Directors may determine at
the time of grant. Such conditions may include continued services to us or the
achievement of specified performance goals or objectives. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Plan authorizes the grant of options or restricted common stock to purchase an aggregate
of 1,000,000 shares of our common stock. As of March 31, 2006, there were 950,178
options outstanding at exercise prices ranging from $3.50 to $18.40 per share.  No shares
of restricted common stock have been issued under the Plan.  Any unsold shares subject to
an option or restricted common stock grant that for any reason expires or otherwise
terminate may again be made subject to options or restricted common stock grants under
the Plan.  No person may be granted options or the right to purchase restricted common
stock under the Plan covering in excess of an aggregate of 275,000 shares in any calendar
year, subject to adjustment in accordance with the Plan. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
terms of the Plan provide that the price of options issued under the Plan as incentive
stock options must not be less than 100% of the fair market value on the date of grant.
Options must be exercised within 10 years following the date of grant (or sooner at the
discretion of the Board of Directors), and the optionee must exercise options during
service to us or within three months of termination of such service (six months in the
event of death on disability). The Board of Directors may extend the termination date of
an option granted under the Plan. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options
issued under the Plan may not be transferred, except by will or by the laws of intestate
succession.  However, there are no restrictions on the resale of the shares underlying
the options. The number of shares and price per share of the options under the Plan will
be proportionately adjusted to reflect forward and reverse stock splits. The holder of an
option under the Plan has none of the rights of a shareholder until shares underlying the
option are issued.  With respect to incentive stock options, no option may be granted to
an employee who, at the time the option is granted, owns stock possessing more than 10%
of the total combined voting power of all classes of stock of our company, unless at the
time the option is granted the purchase price for the shares underlying the option is at
least 110% of fair market value on the date of grant and such option by its terms is not
exercisable after the expiration of five years from the date of grant. </FONT></P>



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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13 </FONT></P>


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<DIV STYLE="page-break-after:always"></DIV>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares
of restricted common stock issued under the Plan may not be assigned, transferred,
pledged, hypothecated or otherwise encumbered or disposed of except as specifically
permitted by the Board of Directors. Recipients of restricted common stock grants shall
have the rights of a shareholder with respect to shares they purchase under the Plan,
including voting and dividend rights, subject to the terms, restrictions and conditions
as are set forth in the stock purchase agreement.  In the event a participant's service
to us terminates for any reason, the stock purchase agreement may provide, in the
discretion of the Board of Directors, that we shall have the right, exercisable at the
discretion of the Board of Directors, to repurchase any shares of restricted common
stock, on such terms as may determined by the Board of Directors. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event of a change in control of the company, the Board of Directors may accelerate
the time period relating to the exercise or realization of any options or restricted
common stock and take one or more of the following actions: (a) provide for the purchase
of an option or right to purchase restricted common stock for an amount of cash or other
property that could have been received upon the exercise of the option or right to
purchase restricted common stock, (b) adjust the terms of the options and rights to
purchase restricted common stock in a manner to reflect the change in control, (c) cause
the options and rights to purchase restricted common stock to be assumed, or new rights
substituted therefor, by another entity, through the continuance of the Plan and the
assumption of outstanding options and rights to purchase restricted common stock, or the
substitution for such options and rights to purchase restricted common stock of new
options and new rights to purchase of comparable value covering shares of a successor
corporation, with appropriate adjustments as to the number and kind of shares and
exercise prices, in which event the Plan and such options and rights to purchase
restricted common stock, or the new options and rights to purchase substituted therefor,
shall continue in the manner and under the terms so provided, (d) accelerate the time at
which options then outstanding may be exercised so that such options may be exercised for
a limited period of time on or before a specified date, after which specified date, all
unexercised options and all rights of optionees thereunder shall terminate, or (e) make
such other provision as the Board of Directors may consider equitable. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Plan will remain in effect until August 25, 2009 (except as to options previously granted
and outstanding under the Plan at that time) but may be terminated or extended by our
Board of Directors. Additional information concerning the Plan and its administrators may
be obtained from us at the address and telephone number indicated under "Incorporation by
Reference" above. </FONT></P>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>APPLICABLE SECURITIES
LAW RESTRICTIONS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the optionee or holder of restricted common stock is deemed to be an "affiliate" (as that
term is defined under the Securities Act of 1933, as amended), the resale of the shares
purchased upon exercise of options or the purchase of shares of restricted common stock
covered hereby will be subject to certain restrictions and requirements. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition to the requirements imposed by the Securities Act of 1933, as amended, the
antifraud provisions of the Securities Exchange Act of 1934, as amended, and the rules
thereunder (including, without limitation, Rule 10b-5) are applicable to any sale of
shares acquired pursuant to options or purchase rights for restricted common stock. </FONT></P>



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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14 </FONT></P>


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<DIV STYLE="page-break-after:always"></DIV>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Up
to 1,000,000 shares may be issued under the Plan. Common shares outstanding and those to
be issued upon exercise of options and the purchase of restricted common stock are fully
paid and nonassessable, and each share of stock is entitled to one vote at all
shareholders' meetings. All shares are equal to each other with respect to lien rights,
liquidation rights and dividend rights. There are no preemptive rights to purchase
additional shares by virtue of the fact that a person is a shareholder of our company.
Shareholders do not have the right to cumulate their votes for the election of directors. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
directors must comply with certain reporting requirements and resale restrictions
pursuant to Sections 16(a) and 16(b) of the Securities Exchange Act of 1934, as amended,
and the rules thereunder upon the receipt or disposition of any options. </FONT></P>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TAX CONSEQUENCES </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the exercise of an option, the optionee will be taxed, as ordinary income, on the
difference between the exercise price of the option and the fair market value of the
underlying shares on the date of exercise. Upon exercise of a right to purchase
restricted common stock, the participant will be taxed, as ordinary income, on the fair
market value of the underlying shares on the date of purchase.  In each case, the fair
market value then becomes the participant's basis in the underlying shares. </FONT></P>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>LEGAL MATTERS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
validity of the shares of common stock offered hereby will be passed on for us by
Brownstein Hyatt &amp; Farber, P.C., 410 Seventeenth Street, 22nd Floor, Denver, Colorado
80202. </FONT></P>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXPERTS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;


The financial statements of A4S Security, Inc., as of December 31, 2005 and for each of the years in the
two-year period ended December 31, 2005, incorporated herein by reference, in our Annual Report on Form 10-KSB
have been audited by GHP Horwath P.C., independent registered public accounting firm, for the periods and to the
extent set forth in their report incorporated herein by reference.  Such financial statements have been so
incorporated by reference in reliance upon the report of such firm given their authority as experts in auditing
and accounting.


 </FONT></P>



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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15 </FONT></P>


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<HR SIZE=5 COLOR=GRAY NOSHADE>
<DIV STYLE="page-break-after:always"></DIV>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I<BR>
                               INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 1.  &nbsp;&nbsp;&nbsp;&nbsp;     Plan
Information. </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
documents containing the information specified in Item 1 will be sent or given to
participants in the Registrant's 2004 Stock Incentive Plan, as amended as specified by
Rule 428(b)(1) of the Securities Act of 1933, as amended. Such documents are not required
to be and are not filed with the Securities and Exchange Commission either as part of
this Registration Statement or as prospectuses or prospectus supplements pursuant to Rule
424. These documents and the documents incorporated by reference in this Registration
Statement pursuant to Item 3 of Part II of this Form S-8, taken together, constitute a
prospectus that meets the requirements of Section 10(a) of the Securities Act of 1933, as
amended. </FONT></P>


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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 2.     &nbsp;&nbsp;&nbsp;&nbsp;  Registrant
Information and Employee Plan Annual Information. </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
written or oral request, any of the documents incorporated by reference in Item 3 of Part
II of this Registration Statement (which documents are incorporated by reference in this
Section 10(a) prospectus), other documents required to be delivered to eligible
employees, non-employee directors and consultants, pursuant to Rule 428(b) or additional
information about the 2004 Stock Incentive Plan, as amended, are available without charge
by contacting: </FONT></P>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Jeffrey G. McGonegal<BR>
                                              Chief Financial Officer<BR>
                                                A4S Security, Inc.<BR>
                                              489 North Denver Avenue<BR>
                                                Loveland, CO 80537 </FONT></P>




<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART II <BR>INFORMATION REQUIRED
IN THE REGISTRATION STATEMENT </FONT></H1>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 3.&nbsp;&nbsp;&nbsp;&nbsp; Incorporation of Documents
by Reference. </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Registrant hereby incorporates by reference into this Registration Statement the following
documents previously filed with the Securities and Exchange Commission. In addition, all
documents subsequently filed pursuant to Sections 13(a), 13(c), 14 and 15(d) of the
Securities Exchange Act of 1934, as amended, prior to the filing of a post-effective
amendment which indicates that all securities offered have been sold or which deregisters
all securities then remaining unsold, shall be deemed to be incorporated by reference into
this Registration Statement and to be a part hereof from the date of filing of such
documents: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                 The
Registrant&#146;s Annual Report on Form 10-KSB for the year ended December           31,
2005.  </FONT></TD>
</TR>
</TABLE>
<BR>





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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>             The Registrant's Quarterly Report on
Form 10-QSB for the quarter ended March 31, 2006.  </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                   All
of the Registrant&#146;s Current Reports on Form 8-K filed with the           Securities
and Exchange Commission subsequent to December 31, 2005.  </FONT></TD>
</TR>
</TABLE>
<BR>


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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16 </FONT></P>


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<HR SIZE=5 COLOR=GRAY NOSHADE>
<DIV STYLE="page-break-after:always"></DIV>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                     The
description of the Registrant&#146;s common stock contained in the           Registrant&#146;s
Registration Statement on Form 8-A, as amended, filed pursuant           to Section 12 of
the Securities Exchange Act of 1934, as amended, on July 11,           2005, including
any amendment filed for the purpose of updating such           description.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR"  -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 4.&nbsp;&nbsp;&nbsp;&nbsp; Description of
Securities. </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
Applicable. </FONT></P>


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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 5. &nbsp;&nbsp;&nbsp;&nbsp;Interests of
Named Experts and Counsel. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
Applicable. </FONT></P>


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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 6. &nbsp;&nbsp;&nbsp;&nbsp;Indemnification
of Directors and Officers. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Registrant&#146;s Articles of Incorporation, as amended (the &#147;Articles&#148;),
provide that the liability of the Registrant&#146;s directors for monetary damages for
breach of fiduciary duty is eliminated to the fullest extent permitted by Colorado law and
that the Registrant&#146;s officers and directors shall be indemnified by the Registrant
against any liability to the fullest extent permitted by Colorado law. Insofar as
indemnification for liabilities arising under the Securities Act of 1933, as amended, may
be permitted to directors, officers or persons controlling the Registrant pursuant to the
foregoing provisions, the Registrant has been informed that in the opinion of the
Securities and Exchange Commission, such indemnification is against public policy as
expressed in the Securities Act of 1933, as amended, and is therefore unenforceable. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Registrant&#146;s Amended and Restated Bylaws provide that the Registrant shall indemnify
any person (including the estate or personal representative of a director) who was or is a
party or is threatened to be made a party to any threatened, pending, or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative, and whether
formal or informal, by reason of the fact that he is or was a director, officer, employee,
fiduciary or agent of the Registrant, or is or was serving at the request of the
Registrant as a director, officer, partner, trustee, employee, fiduciary or agent of any
foreign or domestic profit or nonprofit corporation or of any partnership, joint venture,
trust, profit or nonprofit unincorporated association, limited liability company, or other
enterprise or employee benefit plan. The Registrant shall indemnify such persons against
reasonably incurred expenses (including attorneys&#146; fees), judgments, penalties, fines
(including any excise tax assessed with respect to an employee benefit plan) and amounts
paid in settlement reasonably incurred by him in connection with such action, suit or
proceeding if it is determined that he conducted himself in good faith and that he
reasonably believed (i) in the case of conduct in his official capacity with the
Registrant, that his conduct was in the Registrant&#146;s best interests, or (ii) in all
other cases (except criminal cases), that his conduct was at least not opposed to the
Registrant&#146;s best interests, or (iii) in the case of any criminal proceeding, that he
had no reasonable cause to believe his conduct was unlawful. </FONT></P>



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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17 </FONT></P>


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<HR SIZE=5 COLOR=GRAY NOSHADE>

<DIV STYLE="page-break-after:always"></DIV>

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<H1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 7.&nbsp;&nbsp;&nbsp;&nbsp; Exemption from
Registration Claimed. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None. </FONT></P>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 8. &nbsp;&nbsp;&nbsp;&nbsp;Exhibits. </FONT></H1>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Number </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>     4.1 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2004
Stock Incentive Plan, as amended (1) </FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>     5.1 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Opinion
of Brownstein Hyatt &amp; Farber, P.C. </FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>    23.1 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Consent
of GHP Horwath, P. C., Independent Registered Public Accounting Firm </FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>    23.2 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Consent
of Brownstein Hyatt &amp; Farber, P.C. (contained in Exhibit 5.1) </FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>    24.1 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Power
of Attorney (included on the signature page of this Registration Statement) </FONT></TD>
</TR>
</TABLE>









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<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=LEFT>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Incorporated by reference to the Registrant&#146;s Registration Statement on
          Form SB-2, File No. 333-124238. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 9. Undertakings. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The undersigned registrant hereby undertakes: </FONT></P>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          To
file, during any period in which offers or sales are being made, a
          post-effective amendment to this Registration Statement:  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;To
include any material information with respect to the plan of distribution not previously
disclosed in the Registration Statement or any material change to such information in the
Registration Statement. </FONT></P>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          That,
for the purpose of determining any liability under the Securities Act of           1933,
as amended, each such post-effective amendment shall be deemed to be a new
          Registration Statement relating to the securities offered therein, and the
          offering of such securities at that time shall be deemed to be the initial bona
          fide offering thereof.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          To
remove from registration by means of a post-effective amendment any of the
          securities being registered which remain unsold at the termination of the
          offering.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The undersigned registrant hereby undertakes that, for purposes of determining
          any liability under the Securities Act of 1933, as amended, each filing of the
          registrant&#146;s annual report pursuant to Section 13(a) or Section 15(d) of
          the Securities Exchange Act of 1934, as amended, that is incorporated by
          reference in the Registration Statement shall be deemed to be a new Registration
          Statement relating to the securities offered herein, and the offering of such
          securities at that time shall be deemed to be the initial bona fide offering
          thereof. </FONT></P>


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<DIV STYLE="page-break-after:always"></DIV>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Insofar as indemnification for liabilities arising under the Securities Act of
          1933, as amended may be permitted to directors, officers and controlling persons
          of the registrant pursuant to the foregoing provisions, or otherwise, the
          registrant has been advised that in the opinion of the Securities and Exchange
          Commission such indemnification is against public policy as expressed in the Act
          and is, therefore, unenforceable. In the event that a claim for indemnification
          against such liabilities (other than the payment by the registrant of expenses
          incurred or paid by a director, officer, or controlling person of the registrant
          in the successful defense of any action, suit or proceeding) is asserted by such
          director, officer or controlling person in connection with the securities being
          registered, the registrant will, unless in the opinion of its counsel the matter
          has been settled by controlling precedent, submit to a court of appropriate
          jurisdiction the question whether such indemnification by it is against public
          policy as expressed in the Act and will be governed by the final adjudication of
          such issue. </FONT></P>

<BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Act of 1933, as amended, the registrant certifies
that it has reasonable grounds to believe that it meets all of the requirements of an
amendment to a filing on Form S-8 and authorized this amendment to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of Loveland, Colorado on June
19, 2006. </FONT></P>










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<TR VALIGN="BOTTOM">
     <TH></TH>
     <TH></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>A4S Security, Inc.</B><BR>
<BR>
By: <U>/s/ Thomas R. Marinelli </U><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thomas R. Marinelli<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer </FONT>
</TD></TR>
</TABLE>


<BR><BR><BR><BR><BR><BR><BR><BR><BR><BR>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>POWER OF ATTORNEY </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KNOW
ALL MEN BY THESE PRESENTS, that each person whose signature appears below hereby
constitutes and appoints each of Thomas R. Marinelli and Jeffrey G. McGonegal, acting
together or individually, as his or her true and lawful attorney-in-fact and agent, with
full power of substitution and resubstitution, for him or her in his or her name, place
and stead, in any and all capacities, (i) to sign any and all amendments (including
post-effective amendments) to the Registration Statement on Form S-8 under the Securities
Act of 1933, as amended, relating to the shares issuable pursuant to the A4S Security,
Inc. 2004 Stock Incentive Plan and (ii) to file the same, with all exhibits thereto and
other documents in connection therewith, with the Securities and Exchange Commission under
the Securities Act of 1933, as amended. Each of the undersigned hereby ratifies and
confirms all that each such attorney-in-fact or his or her substitute may lawfully do or
cause to be done by virtue hereof. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Act of 1933, as amended, this Registration Statement
has been signed by the following persons in the capacities and on June 19, 2006. </FONT></P>





















<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH ALIGN="Left"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Name
</FONT></TH>
     <TH ALIGN="Left"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;Title
</FONT></TH></TR>
<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="25%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>/s/ Thomas R. Marinelli </U><BR>
Thomas R. Marinelli <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
<BR>
<U>/s/ Michael Siemens </U><BR>
Michael Siemens<BR>
<BR>
<U>/s/ Jeffrey G. McGonegal</U><BR>
Jeffrey G. McGonegal<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>

<U>/s/ Gregory Pusey </U><BR>
Gregory Pusey <BR>
<BR>
<U>/s/ Mathew Siemens </U><BR>
Mathew Siemens<BR>
<BR>
<u>/s/ Gail Shoettler </U><BR>
Gail Shoettler<BR>
<BR>
<U>/s/ Barry Loder </U><BR>
Barry Loder<BR>
<BR>
<U>/s/ Robert J. Williams </U><BR>
Robert J. Williams </FONT>
</TD>
     <TD WIDTH="75%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Chief Executive Officer<BR>
(Principal Executive Officer)<BR>
and Director<BR>
<BR>
President and Director<BR>
<BR>
<BR>
Chief Financial Officer<BR>
(Principal Executive Officer)<BR>
<BR>
<BR>
Chairman of the Board of Directors<BR>
and Director<BR>
<BR>
Executive Vice President<BR>
<BR>
<BR>
Director<BR>
<BR>
<BR>
Director<BR>
<BR>
<BR>
Director<BR>

</FONT></TD></TR>
</TABLE>



<BR><BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Number </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>     4.1 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2004
Stock Incentive Plan, as amended (1) </FONT></TD>
</TR>
</TABLE>


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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>     5.1 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Opinion
of Brownstein Hyatt &amp; Farber, P.C. </FONT></TD>
</TR>
</TABLE>


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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>    23.1 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Consent
of GHP Horwath, P. C., Independent Registered Public Accounting Firm </FONT></TD>
</TR>
</TABLE>


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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>    23.2 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Consent
of Brownstein Hyatt &amp; Farber, P.C. (contained in Exhibit 5.1) </FONT></TD>
</TR>
</TABLE>


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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>    24.1 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Power
of Attorney (included on the signature page of this Registration Statement) </FONT></TD>
</TR>
</TABLE>





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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Incorporated by reference to the Registrant&#146;s Registration Statement on
          Form SB-2, File No. 333-124238. </FONT></P>




<BR><BR><BR><BR><BR><BR>




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[{"type": "S-8", "sequence": "1", "filename": "a4s_s8-061906.htm", "description": "FORM S-8", "secsgml_size_bytes": 188761}]
{"company-data": {"conformed-name": "A4S SECURITY, INC.", "cik": "0001216199", "assigned-sic": "7373", "irs-number": "201978398", "state-of-incorporation": "CO", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-135142", "film-number": "06913693"}, "business-address": {"street1": "489 NORTH DENVER AVENUE", "city": "LOVELAND", "state": "CO", "zip": "80537", "phone": "970-461-0071"}, "mail-address": {"street1": "489 NORTH DENVER AVENUE", "city": "LOVELAND", "state": "CO", "zip": "80537"}, "former-company": {"former-conformed-name": "A4S TECHNOLOGIES INC", "date-changed": "20030128"}}
As filed with the
Securities and Exchange Commission on June 19, 2006
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
A4S Security, Inc.
(Exact name of registrant as specified in its charter)
Colorado
(State or other jurisdiction of
incorporation or organization)
20-1978398
(I.R.S. Employer
identification No.)
489 North Denver Avenue
Loveland, CO 80537
(Address, including zip code, of the registrant's principal executive
offices)
A4S Security, Inc. 2004
Stock Incentive Plan, as amended
(Full
title of plan)
Thomas R. Marinelli
Chief Executive Officer
A4S Security, Inc.
489 North Denver Avenue
Loveland, CO 80537
(970) 461-0071
(Name, address and telephone number of agent for service)
Copies to:
Adam J. Agron, Esq.
Brownstein Hyatt & Farber, P.C.
410 Seventeenth Street, 22nd Floor
Denver, CO 80202-4437
(303) 223-1134
CALCULATION OF
REGISTRATION FEE
Title of
Securities to be
Registered
Amount to be
Registered
(1)
Proposed Maximum
Offering Price
Per Share
Proposed Maximum
Aggregate Offering Price
Proposed Maximum
Registration Fee
Common Stock
(no par value)
950,178
$4.47
(2)
$4,247,295.60
$454.46
Common Stock
(no par value)
49,822
$3.62
(3)
$180,355.64
$19.30
Total:
1,000,000
$473.76
(1)    
          This Registration Statement shall also cover any additional shares of common
          stock which become issuable under the Registrant's 2004 Stock Incentive
          Plan, as amended, by reason of any stock dividend, stock split, recapitalization
          or other similar transaction effected without the receipt of consideration which
          results in an increase in the number of outstanding shares of common stock of
          the Registrant.
(2)    
          Estimated solely for the purpose of determining the amount of registration fee
          pursuant to Rule 457(h) of the General Rules and Regulations under the
          Securities Act of 1993, as amended, based upon the weighted average exercise
          price of options outstanding under the Registrant's 2004 Stock Incentive
          Plan, as amended.
(3)    
          Estimated solely for the purpose of determining the amount of registration fee
          pursuant to Rules 457(c) and 457(h) of the General Rules and Regulations under
          the Securities Act of 1993, as amended, based upon the average of the high and
          low prices of the Registrant's common stock as reported on The Nasdaq
          SmallCap Market on June 16, 2006, equal to $3.62 per share.
INFORMATION REQUIRED
IN THE SECTION 10(a) PROSPECTUS
Pursuant
to the requirements of the Note to Part I of Form S-8 and Rule 428(b)(1) of the Rules
under the Securities Act of 1933, as amended, the information required by Part I of Form
S-8 is included in the resale prospectus which follows. The resale prospectus together
with the documents incorporated by reference pursuant to Item 3 of Part II of this
Registration Statement constitute the Section 10(a) prospectus.
RESALE PROSPECTUS
The
material which follows, up to but not including the page beginning Part II of this
Registration Statement, constitutes a prospectus, prepared on Form S-3, in accordance with
General Instruction C to Form S-8, to be used in connection with resales of securities
acquired under the Registrant's 2004 Stock Incentive Plan, as amended, by officers
and directors of the Registrant, as defined in Rule 405 under the Securities Act of 1933,
as amended.
RESALE PROSPECTUS
1,000,000 Shares of
Common Stock
A4S Security, Inc.
2004 Stock Incentive
Plan, as amended
You
should read this prospectus carefully before investing. We are offering on behalf of
certain of our employees, officers, directors and consultants up to 1,000,000 shares of
our no par value common stock purchasable by such employees, officers, directors and
consultants pursuant to common stock options and shares of restricted common stock granted
under our 2004 Stock Incentive Plan, as amended (the "Plan"). As of this date,
950,178 options and no shares of restricted common stock are issued and outstanding
under the Plan.
This
prospectus will be used by our non-affiliates as well as persons who are
"affiliates" to resell the shares. We will not receive any part of the proceeds
of such sales although we will receive the exercise price for the stock options and any
purchase price for the shares of restricted common stock. Please see "Selling
Stockholders" for a list of our affiliates who may offer their shares for sale. We
refer to these individuals as "selling stockholders."
The
selling stockholders may offer their common stock through public or private transactions,
at prevailing market prices or at privately negotiated prices. These future market prices
are not currently known.
Our
common stock and warrants to purchase our common stock are quoted on The Nasdaq SmallCap
Market and the NYSE — ARCA Exchange under the symbols "SWAT" and
"SWATW", respectively. On June 16, 2006, the last reported sale price for the
common stock on the Nasdaq National Market System was $3.99 per share.
See
"Risk Factors" beginning on page 1 to read about factors you should consider
before buying shares of our common stock.
NEITHER
THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR
DISAPPROVED OF THE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THE PROSPECTUS.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
No
person is authorized to give any information or to make any representation regarding the
securities we are offering and investors should not rely on any such information. The
information provided in the prospectus is as of this date only.
The
date of this prospectus is June 19, 2006.
AVAILABLE INFORMATION
We
are subject to the informational requirements of the Securities Exchange Act of 1934, as
amended, including Sections 14(a) and 14(c) relating to proxy and information statements,
and in accordance therewith we file reports and other information with the Securities and
Exchange Commission. Reports and other information which we file can be inspected and
copied at the public reference facilities maintained by the Securities and Exchange
Commission at 100 F Street, N.E., Washington, D.C. 20549. Our common stock and warrants to
purchase our common stock are quoted on The Nasdaq SmallCap Market and the NYSE —
ARCA Exchange under the symbols "SWAT" and "SWATW", respectively.
Reports, proxy and information statements may also be inspected at the Securities and
Exchange Commission's website at www.sec.gov.
INCORPORATION BY
REFERENCE
Certain
documents have been incorporated by reference into this prospectus, either in whole or in
part, including but no limited to an Annual Report on Form 10-KSB for the year ended
December 31, 2005, the Quarterly Report on Form 10-QSB for the quarter ended March 31, 2006, and any Current Reports on Form 8-K filed after December 31, 2005. We
will provide without charge (1) to each person to whom a prospectus is delivered, upon
written or oral request, a copy of any and all of the information that has been
incorporated by reference (not including exhibits to the information unless such exhibits
are specifically incorporated by reference into the information), and (2) documents and
information required to be delivered to directors pursuant to Rule 428(b). Requests for
any information shall be addressed to us at 489 North Denver Avenue, Loveland, CO 80537,
telephone (970) 461-0071.
TABLE OF CONTENTS
INTRODUCTION
1
RISK FACTORS
1
SELLING STOCKHOLDERS
10
PLAN OF DISTRIBUTION
11
SEC POSITION REGARDING INDEMNIFICATION
12
DESCRIPTION OF THE PLAN
13
APPLICABLE SECURITIES LAW RESTRICTIONS
14
TAX CONSEQUENCES
15
LEGAL MATTERS
15
EXPERTS
15
INTRODUCTION
We
were organized as a partnership in September 1999 and subsequently incorporated in
Montana in January 2000. In December 2004, we reincorporated in Colorado. Our principal
executive offices are located at 489 North Denver Avenue, Loveland, Colorado 80537, and
our telephone number is (970) 461-0071. We maintain a website at www.shiftwatch.com. The
information on our website is not part of this filing.
Following
our formation we initially pursued the development of our technology for use by the
United States Air Force. We were engaged by the Air Force to develop digital technology
capable of capturing multiple feeds of video, audio and data, including the utilization
of Global Positioning Satellite Time, to provide simultaneous time and location
synchronized views of multiple video, audio and data streams of flight and weapons
systems. We retained the proprietary commercial rights to our software development, which
today is the core technology of our commercial transportation and police evidence video
recorder products.
In
May 2005, we affected a 1 to 18.4 split of our common stock and changed our name from A4S
Technologies, Inc. to A4S Security, Inc. Unless otherwise indicated, all information in
this prospectus, including share and per share data, gives effect to this reverse stock
split and the name change.
We have a history of net operating losses and an accumulated deficit in excess
of $9 million as of March 31, 2006 and our independent registered public
accounting firm has issued an opinion indicating substantial doubt about our
ability to continue as a going concern. Our operating losses, accumulated
deficit and audit opinion could negatively affect our ability to raise capital.
We
completed our initial public offering in July 2005 in which we sold 1,380,000 units of
our securities at $6.00 per unit for gross proceeds of $8,280,000. Each unit consisted of
one share of our common stock and one warrant. The warrants issued in our public offering
are exercisable at $9.00 per share. The common stock and warrants are quoted on The
Nasdaq SmallCap Market and the NYSE — ARCA Exchange under the symbols SWAT and SWATW,
respectively.
RISK FACTORS
The
shares of common  stock  offered by this  prospectus  involve a high  degree of risk and
 represent  a highly  speculative  investment.  You should not purchase these shares if
you cannot afford the loss of your entire investment.  In addition to the other
information  contained in this prospectus,  you should carefully consider the following
 risk factors in  evaluating  our company,  our business  prospects  and an  investment
 in our shares of common stock.
Risks Related to Our Business and
Industry
We have a limited history
of product sales and have incurred substantial losses since inception, which makes it
difficult to evaluate our prospects and the merits of investing in our securities.
1
We
were incorporated in December 1999. For approximately four years, we were primarily
engaged in the research and development of our initial product the MIL-4000, under a
contract with the United States Air Force, which was our only product until 2003, when we
commercially released ShiftWatch(R)TVSTM, which has only minimal sales to date. As a
result of our limited operating history, we have a limited amount of sales and financial
data that you can use to evaluate our business. You must consider our prospects in light
of the risks, expenses and challenges of attempting to introduce new products in new and
developing markets. We may not address these risks, and our business strategy may not
prove successful.
In
2004, we had revenues of $268,500 and incurred a net loss of $1,326,000. In 2005 we had
revenues of $108,500 and incurred a net loss of $4,193,000. We expect to continue to
incur significant sales, marketing, general and administrative and product development
expenses in connection with the development of our business. Although we believe our
sales will begin to increase and as of May 2006 we had open orders of approximately $425,000
in process, we expect to incur a net loss for the most if not all of 2006.
Historically our revenues have been
generated by only one principal customer, and we will be unable to operate profitably
unless we expand our customer base.
Our
success depends on our ability to market and enhance our products to meet and maintain
our current customers' and potential customers' needs. We have successfully produced
products which have been installed in buses operated by the Kansas City Area
Transportation Authority, or KCATA. KCATA accounted for substantially all of our sales in
2005 and 2004, and is our current principal customer. We believe our ability to
substantially increase our revenues and generate net income is contingent on successfully
expanding our sales and marketing efforts and our consummation of additional sales orders
and contracts. We have encountered in the past, and may again encounter in the future,
delays on the part of customers in making purchase decisions and issuing purchase orders
as they evaluate our products and technology. If we are unable to expand our customer
base, we will be unable to operate profitably.
Our marketing efforts are focused
primarily on municipalities or quasi governmental agencies, such as mass transit
authorities, which can have prolonged buying cycles and operate under voter mandated
budget constraints. As a result, sales to these potential customers could be delayed or
not achieved.
We
anticipate that our primary customers in the near future will be municipalities or quasi
governmental agencies, such as mass transit authorities. Municipalities generally have
prolonged purchase and buying cycles and generally require compliance with specified
proposal and Request for Proposal conditions. They typically have budget considerations
and buying patterns frequently tied to fiscal year considerations. In order to do
business with certain customers we may also be subject to a number of public policies
covering procurement procedures. As a result of these prolonged buying cycles and
particular procurement procedures as well as voter mandated budgetary constraints, our
sales to these potential customers could be delayed or not achieved.
We may not achieve substantial
business from governmental agencies because of our brief operating history and absence of
a prior relationship.
2
We
expect to derive a significant amount of our future revenues from sales made to
municipalities and other governmental agencies. Governmental agencies or quasi
governmental agencies are more likely than private sector clients to provide business
based on our reputation and our relationship with the agency. We have a brief operating
history and only one principal customer, the KCATA. Accordingly, it may be more difficult
for us to establish substantial business with agencies. Also, if for any reason our
reputation or relationship with a governmental agency is impaired, or if levels of
government expenditures and authorizations for security related programs do not increase
or shift to programs in areas where we do not provide products, our business generated
from governmental sources may be materially and adversely affected.
Our growth plans will be hindered if
the markets for our products do not develop as anticipated.
The
markets for our security and surveillance products are still emerging. Our growth is
dependent on, among other things, the size and pace at which the markets for our products
develop. If the markets do not grow as we anticipate, our growth plans will not be
realized. Continued growth may be hindered, for many reasons, including products deemed
to be superior to ours that are offered by our competitors, our customers experiencing
technical difficulty in utilizing our products, or our customers achieving their security
objectives by using alternative solutions.
Product modifications, upgrades and
enhancements may affect our ability to successfully market our products.
Our
software, like any software product, will require modifications. We are also continually
engaged in seeking product upgrades and enhancements. As we move forward with these
changes, we may experience delays due to programming or product development. Such delays
may impact our ability to meet delivery schedules or other commitments to customers or
prospective customers and may ultimately result in our inability to successfully market
our products.
Our
products, exclusive of the software, are currently produced and assembled with generally
available off-the-shelf components. Should technological changes in the product be
necessary that would make such off-the-shelf components no longer workable, it could have
an impact on our ability to deliver finished products, as well as our costs to have such
products manufactured.
Changes in technology, product
features required by customers and product features offered by our competitors may affect
our ability to successfully market our products.
Technological
and software based products continue to evolve and change in the marketplace and will
require modifications to our products. We are also continually engaged in seeking product
upgrades and enhancements and future product development requirements may involve delays
in product advancement and additional costs. Such changes and additional costs may impact
our ability to successfully market our products.
Because of our limited resources,
for the foreseeable future, we will be dependent on our officers and key personnel for
sales and marketing and on a third party for manufacturing our products. As a result, our
sales may not increase rapidly and we may have less ability to control the manufacturing
and delivery of our products.
3
Our
ability to achieve revenue growth will depend to a large extent on our ability to bolster
the sales and marketing efforts of our existing sales personnel. Because of our limited
resources, we will rely primarily upon efforts of our officers and key personnel and we
will not have available to us a fully developed internal sales force. Accordingly, we may
be unable to achieve revenue growth. We also do not anticipate acquiring the substantial
facilities, equipment and personnel necessary to manufacture our products, but will rely
on third parties for these efforts. We do not have a written contract with our contract
manufacturer. Our reliance on a third party for manufacturing may limit our ability to
control the quality of the manufacturing and timing of the completion and delivery of our
products. Also, because of our limited sales, we have no experience with our manufacturer
in producing substantial quantities of products, and there may be production difficulties
or delays in the future.
We rely upon patents, trademarks,
and trade secrets to protect our proprietary rights that we believe give us a competitive
advantage; however, such intellectual property protections may not be broad enough, could
be successfully challenged or may become useless as competitors independently develop
similar technologies. Enforcement of intellectual property rights is expensive and
involves a significant amount of management resources, which could decrease our revenues,
and, if we lose, defeat our competitive advantage.
Our
ability to compete depends to a significant degree upon the protection of our software
and other proprietary technology rights. We may not be able to protect our proprietary
technology, and our proprietary rights may not provide us with a meaningful competitive
advantage. To protect our proprietary technology, we rely on a combination of patents,
trademarks, trade secrets and non-disclosure agreements, each of which affords only
limited protection. Any inability to protect our intellectual property rights could
seriously harm our business, operating results and financial condition. It is possible
that:
•
our
pending patent applications may not result in the issuance of patents;
•
any
patents issued to us may not be broad enough to protect our proprietary rights;
•
any
issued patent could be successfully challenged by one or more third parties, which could
result in             our loss of the right to prevent others from exploiting the
inventions claimed in those patents;
•
current
and future competitors may independently develop similar technologies, duplicate our
products             or design around any of our patents; and
•
former
employees, consultants or contractors may violate their confidentiality or non-compete
            agreements with us leading to a loss of proprietary intellectual property.
In
an effort to protect our unpatented proprietary technology, processes and know-how, we
require our employees and consultants to execute confidentiality agreements. However,
these agreements may not provide us with adequate protection against improper use or
disclosure of confidential information. These agreements may be breached, and we may not
have adequate remedies for any such breach. In addition, in some situations, these
agreements may conflict with, or be subject to, the rights of third parties with whom our
employees or consultants have previous employment or consulting relationships. Also,
other companies may independently develop substantial proprietary information and
techniques or otherwise gain access to our trade secrets. We intend to market our
products in many different countries, some of which we will not have patents in or
applied for. Different countries have different patent rules and we may sell in countries
that do not honor patents and in which the risk that our products could be copied and we
would not be protected would be greater.
4
Claims that we infringe upon third
parties' intellectual property rights could be costly to defend or settle, and thus could
reduce our income or increase our net loss.
We
may from time to time encounter disputes over rights and obligations concerning
intellectual property. Although we believe that our intellectual property rights are
sufficient to allow us to market our products without incurring liability to third
parties, third parties may bring claims of infringement against us. Such claims may be
with or without merit. Any litigation to defend against claims of infringement or
invalidity could result in substantial costs and diversion of resources. Furthermore, a
party making such a claim could secure a judgment that requires us to pay substantial
damages. A judgment could also include an injunction or other court order that could
prevent us from selling our products. Our business, operating results and financial
condition could be harmed by a reduction in income or an increase in our net loss if any
of these events occurred.
In
addition, we may indemnify certain of our customers against certain claims that our
software infringes upon the intellectual property rights of others. We could incur
substantial costs in defending ourselves and such customers against infringement claims.
In the event of a claim of infringement, our customers and we may be required to obtain
one or more licenses from third parties. We, or our customers, may be unable to obtain
necessary licenses from third parties at a reasonable cost, if at all. An adverse
decision in a lawsuit or failure to obtain any such required licenses could limit our
ability to market our products resulting in a loss of revenues and could require us to
restructure our operations.
We have limited human resources; we
need to attract and retain highly skilled personnel; and we may be unable to manage our
growth effectively with our limited resources.
We
expect that the expansion of our business may place a strain on our limited managerial,
operational and financial resources. We will be required to expand our operational and
financial systems significantly and to expand, train and manage our work force in order
to manage the expansion of our operations. Our future success will depend in large part
on our ability to attract, train and retain additional highly skilled executive level
management, logistics and sales personnel. We may not be successful in attracting and
retaining qualified personnel on a timely basis, on competitive terms or at all. If we
are not successful in attracting and retaining these personnel, our business, prospects,
financial condition and operating results would be materially adversely affected.
Further, our ability to manage our growth effectively will require us to continue to
improve our operational, financial and management controls, reporting systems and
procedures, to install new management information and control systems and to train,
motivate and manage employees. If we are unable to manage growth effectively and new
employees are unable to achieve adequate performance levels, our operating results will
suffer.
Our competitors may have greater
resources or sales and marketing capabilities than we have, and we may not have the
resources necessary to successfully compete with them.
5
Our
business strategy has been to create a niche in the digital recording system for mobile
and stationary security applications, specifically focused near-term in law enforcement,
mass transit and security/surveillance markets. The security business is highly
competitive, and we may face increasing competition. We expect that many of our
competitors will have greater financial and human resources, more experience in research
and development, and more established sales, marketing and distribution capabilities than
we have. Therefore, our efforts to increase sales may be unsuccessful. In addition, the
security market we are focused in is characterized by rapid technological change. New
product introductions or other technological advancements could make some or all of our
products obsolete.
Our operating results may fluctuate,
which makes results difficult to predict and could cause our results to fall short of
expectations.
Our
operating results may fluctuate as a result of a number of factors, many of which are
outside of our control. For these reasons, comparing our operating results on a
period-to-period basis may not be meaningful, and you should not rely on our past results
as an indication of our future performance. Our quarterly and annual expenses as a
percentage of our revenues may be significantly different from our historical or
projected rates. Our operating results in future quarters may fall below expectations.
Any of these events could cause our stock price to fall. Each of the risk factors listed
in this Risk Factors section, and the following factors, may affect our operating results:
•
Our
ability to expand our customer base in the mass transit market;
•
Our
ability to penetrate the law enforcement and the general security applications markets;
•
Our
plans to increase our marketing personnel and other marketing costs to further our growth
            strategy;
•
Our
plans to continue to develop new and improved product offerings;
•
Our
intent to focus on long-term goals over short-term results;
•
General
economic conditions and those economic conditions which could specifically affect
purchasing             by our target customers; and
•
Geo-political
events such as war, threat of war or terrorist actions.
Our auditors have added an emphasis
paragraph to their opinion raising a question of our ability to continue as a going
concern.
Due
to our continued losses and limited capital resources our independent registered public
accounting firm has issued an opinion that questions our ability to continue as a going
concern. The auditors' report discloses that we did not generate significant revenues in
2005, we incurred a net loss of approximately $4,193,000 and consumed net cash in
operations of approximately $3,346,000 in 2005. These conditions raise substantial doubt
about our ability to continue as a going concern and may make it difficult for us to
raise capital. The financial statements do not include any adjustments that might result
from the outcome of this uncertainty.
Our financial results could be
adversely affected by changes in accounting rules governing the recognition of
stock-based compensation expense, which would reduce our income or increase our losses.
6
Effective January 1, 2006, A4S
adopted Statement of Financial Accounting Standards ("SFAS") No. 123 (revised
2004), "Share-Based Payment" ("SFAS 123R"), using the modified
prospective method. SFAS 123R requires the recognition of the cost of employee services
received in exchange for an award of equity instruments in the financial statements and is
measured based on the grant date fair value of the award. SFAS 123R also requires the
stock option compensation expense to be recognized over the period during which an
employee is required to provide service in exchange for the award (the vesting period).
Prior to A4S adopting SFAS 123R, the Company accounted for stock-based compensation plans
under Accounting Principles Board Opinion ("APB") No. 25, "Accounting for
Stock Issued to Employees" ("APB 25"). Under APB 25, generally no
compensation expense is recorded when the terms of the award are fixed and the exercise
price of the employee stock option equals or exceeds the fair value of the underlying
stock on the date of grant. The Company had previously adopted the disclosure-only
provision of SFAS No. 123, "Accounting for Stock-Based Compensation" ("SFAS
123"). Through December 31, 2005, the Company had applied APB Opinion No. 25 and
related Interpretations in accounting for its stock-based employee compensation plans.
Accordingly, no compensation expense had been recognized for options granted to employees
at fair market value. For the three-month period ended March 31, 2006, share based
compensation of $100,000 was recorded in accordance with SFAS 123R and for the year ended
December 31, 2006, we anticipate an expense of approximately $480,000 in 2006 being
recorded under SFAS No. 123R.
We substantially increased executive
compensation and other expenses in 2005 following the completion of our public offering.
As a result, our historical financial statements are not indicative of future results and
we must substantially increase revenues in order to become profitable.
During
the year ended December 31, 2004, our officers received total compensation of $186,000.
We have bolstered our executive team and increased our officers' compensation in mid
2005. Many of our officers previously worked at reduced levels of compensation. The
aggregate annual compensation of our officers in 2005 approximated $500,000. We also
substantially increased our sales and marketing activities in an effort to increase
sales. Accordingly, our historical financial statements are not indicative of future
results. We will need to substantially increase revenues to become profitable. In
addition, because of our plans to substantially increase executive compensation and sales
and marketing activities as well as incur other expenditures, our business and operating
results will be materially adversely affected if our sales do not increase substantially.
Compliance with the new corporate
governance requirements to which we will be subject as a public company will cause us to
incur significant costs, and the failure to comply with such requirements will expose us
to investigations and sanctions by regulatory authorities.
We
face new corporate governance requirements under the Sarbanes-Oxley Act of 2002, as well
as new rules and regulations subsequently adopted by the Securities and Exchange
Commission, the Public Company Accounting Oversight Board, The Nasdaq Stock Market and
the NYSE - ARCA Exchange. These laws, rules and regulations continue to evolve and may
become increasingly stringent in the future.
7
In
particular, we will be required to include the management and auditor reports on internal
control as part of our annual report for the year ending December 31, 2007 pursuant to
Section 404 of Sarbanes-Oxley. We are in the process of evaluating our internal control
systems in order (i) to allow management to report on, and our independent auditors to
attest to our internal controls, as required by these laws, rules and regulations, (ii)
to provide reasonable assurance that our public disclosure will be accurate and complete,
and (iii) to comply with the other provisions of Section 404 of Sarbanes-Oxley. We cannot
be certain as to the timing of the completion of our evaluation, testing and remediation
actions or the impact these may have on our operations. Furthermore, there is no
precedent available by which to measure compliance adequacy. If we are not able to
implement the requirements relating to internal controls and all other provisions of
Section 404 in a timely fashion or achieve adequate compliance with these requirements or
other requirements of Sarbanes-Oxley, we might become subject to sanctions or
investigation by regulatory authorities such as the Securities and Exchange Commission,
The Nasdaq Stock Market or the NYSE -- ARCA Exchange. Any such action may materially
adversely affect our reputation, financial condition and the value of our securities,
including our common stock. We expect that Sarbanes-Oxley and these other laws, rules and
regulations will increase legal and financial compliance costs and will make our
corporate governance activities more difficult, time-consuming and costly. We also expect
that these new requirements will make it more difficult and expensive for us to obtain
director and officer liability insurance.
If we fail to maintain an effective
system of internal controls, we may not be able to accurately report our financial
results or prevent fraud. As a result, current and potential shareholders could lose
confidence in our financial reporting, which could harm our business and the trading
price of our stock.
Effective
internal controls are necessary for us to provide reliable financial reports and
effectively prevent fraud. If we cannot provide financial reports or prevent fraud, our
business reputation and operating results could be harmed. Inferior internal controls
could also cause investors to lose confidence in our reported financial information,
which could have a negative effect on the trading price of our stock.
Our articles of incorporation and
bylaws contain provisions that could delay or prevent a change in control even if the
change in control would be beneficial to our shareholders.
Our
articles of incorporation and bylaws contain provisions that could delay or prevent a
change in control of our company, even if it were beneficial to our shareholders to do
so. These provisions could limit the price that investors might be willing to pay in the
future for shares of our common stock. Among other things, these provisions:
•
authorize
the issuance of preferred stock that can be created and issued by the board of directors
            without prior shareholder approval and deter or prevent a takeover attempt;
•
authorize
shareholder action only by unanimous written consent, thereby effectively requiring all
            shareholder actions to be taken at a meeting of our shareholders; and
•
prohibit
cumulative voting in the election of directors, which would otherwise allow less than a
            majority of shareholders to elect director candidates.
8
Risks Related to our Securities
The public market for our securities
was recently established, and our stock price could be volatile and could decline,
resulting in a substantial loss in your investment.
We
completed our public offering in July 2005, so a trading market was only established
recently. An active trading market for our securities may not be sustained, which could
affect your ability to sell your securities and could depress the market price of your
securities. The stock market in general and the market for technology-related stocks in
particular, has been highly volatile. As a result, the market price of our common stock
is likely to be similarly volatile, and investors in our common stock may experience a
decrease in the value of their stock, including decreases unrelated to our operating
performance or prospects. The price of our common stock could be subject to wide
fluctuations in response to a number of factors, including those listed in this "Risk
Factors" section of this prospectus. In the past securities class action litigation has
often been instituted against companies following periods of volatility in their stock
price. This type of litigation against us could result in substantial costs and divert
our management's attention and resources.
Shares of common stock that are
issuable pursuant to our stock option plan and our outstanding warrants when issued,
could result in dilution to existing shareholders and could cause the market price of our
common stock to fall.
We
have reserved shares of common stock that may be issuable pursuant to our stock option
plan and our outstanding warrants outside those plans. These securities when issued and
outstanding, may reduce earnings per share under accounting principles generally accepted
in the U.S., and, to the extent they are exercised and shares of our common stock are
issued, dilute percentage ownership to existing shareholders which could have an adverse
effect on the market price of our common stock.
We have authorized, but unissued,
shares of preferred stock available for issuance, which could negatively affect the value
of our common shares.
Our
articles of incorporation currently authorize the issuance of 5,000,000 shares of our
preferred stock. Our board of directors has the power to issue any or all of these
additional shares without shareholder approval, and such shares can be issued with such
rights, preferences, and limitations as may be determined by our board of directors. The
rights of the holders of common stock will be subject to, and may be adversely affected
by, the rights of any holders of preferred stock that may be issued in the future. We
presently have no commitments or contracts to issue any shares of preferred stock.
Authorized and unissued preferred stock could delay, discourage, hinder or preclude an
unsolicited acquisition of our company, could make it less likely that shareholders
receive a premium for their shares as a result of any such attempt, and could adversely
affect the market prices of, and the voting and other rights, of the holders of
outstanding shares of common stock.
We do not intend to pay dividends on
our common stock.
9
We
have never declared or paid any cash dividends on our capital stock. We currently intend
to retain any future earnings and do not expect to pay any dividends in the foreseeable
future.
SELLING STOCKHOLDERS
This
prospectus covers possible sales by our officers, directors and affiliates of shares they
acquire through the exercise of stock options and the purchase of shares of restricted
common stock under our 2004 Stock Incentive Plan, as amended, which we refer to as the
"Plan." The address of each individual in the table is in care of
A4S Security, Inc. at 489 North Denver Avenue, Loveland, CO 80537.
The
following table shows, as of June 16, 2006:
•
the
name of each selling stockholder;
•
how
many shares the selling stockholder beneficially owns;
•
how
many shares the selling stockholder can resell under this prospectus; and
•
assuming
a selling stockholder sells all shares listed next to his or her name, how many shares
the                   selling stockholder will beneficially own after completion of the
offering.
10
We
may amend or supplement this prospectus form time to time in the future to update or
change this list of selling stockholders and shares that may be resold.
Name
Total Shares
Beneficially
Owned
(1)
Shares
Registered
For Resale
Shares
Owned
After
Offering
Percentage
of Class
Owned After
the Offering
Andrew McKennan
—
2,000
—
—
April Romska
—
800
—
—
Barry Loder
9,057
37,174
—
—
Bob Williams
7,000
37,000
—
—
David Desormeaux
—
66,300
—
—
Edmund Colgan
1,667
8,500
—
—
Francis Lefler
1,750
9,000
—
—
Gail Schoettler
9,057
37,174
—
—
Gregory Pusey
(2)
384,569
96,087
360,112
9.1%
Jeffrey McGonegal
(3)
70,353
100,217
42,935
1.1%
Joe Baran
1,167
3,500
—
—
Julie Antrim
—
1,900
—
—
Justin Bulskov
333
1,000
—
—
Kent Hayes
543
5,730
—
—
Leonard Ponce
—
15,500
—
—
Lorraine Fulwiler
—
2,600
—
—
Matthew Siemens
37,908
131,196
—
—
Melissa Leaderbrand
833
4,700
—
—
Michael Siemens
(4)
90,747
143,478
52,459
1.3%
Nate Hammond
733
2,200
—
—
Patricia O'Connor
—
2,000
—
—
Richard VandePoll
—
7,500
—
—
Rob Uhirich
—
27,500
—
—
Ronald Kronenberger
—
4,000
—
—
Scott Green
—
1,100
—
—
Scott Ruff
—
50,000
—
—
Sean Gabriel
2,333
11,000
—
—
Sharron Viger
—
11,500
—
—
Thomas Cox
—
2,500
—
—
Thomas Marinelli
79,389
108,422
34,101
*
Tim Fetter
2,666
8,000
—
—
Timothy Kuhlman
333
3,700
—
—
Yajie Zhu
1,500
6,900
—
—
Total:
701,939
950,178
489,607
—
*  Denotes less than 1%.
(1)
The number of shares "beneficially owned" by each selling stockholder
          has been calculated in accordance with Rule 13d-3 under the Securities Exchange
          Act of 1934, as amended. Beneficial ownership, as defined in Rule 13d-3, does
          not necessarily indicate beneficial ownership for any other purpose. Under Rule
          13d-3, a person beneficially owns all shares that he or she has either sole or
          shared voting power or sole or shared investment power, as well as shares which
          he or she has the right to acquire within 60 days of the date hereof.
(2)
Includes shares of common stock and warrants owned by the selling stockholder's spouse
          and children. Does not include warrants to purchase 12,133 shares of common
          stock held by Cambridge Holdings Ltd. Mr. Pusey is the President, a director and
          a principal stockholder of Cambridge Holdings Ltd.
(3)
Includes 1,087 shares of common stock owned by McGonegal Family Partnership.
(4)
Includes shares of common stock and options owned by the selling stockholder's spouse.
PLAN OF DISTRIBUTION
We
have been advised by the selling stockholders that they intend to sell all or a portion
of the shares offered from time to time on The Nasdaq SmallCap Market or the NYSE -- ARCA
Exchange and that sales will be made at prices prevailing on such markets at the times of
sale. The selling stockholders may also make private sales directly or through brokers
who may act as agents or principals. Further, the selling stockholders may choose to
dispose of their shares by gift to a third party or as a donation to a charitable or
other non-profit entity. In connection with any sales, the selling stockholders and any
participating brokers may be deemed to be underwriters within the meaning of the
Securities Act of 1933, as amended.
Any
broker-dealer participating as agent for the selling stockholders or for the purchasers
may receive commissions. Broker-dealers may agree with the selling stockholders to sell a
specified number of shares at a stipulated price per share, and, to the extent such a
broker-dealer is unable to do so acting as agent for the selling stockholders, to
purchase as principal any unsold shares at the price required to fulfill the
broker-dealer commitment to the selling stockholders. Broker-dealers who acquire shares
as principal may thereafter resell such shares from time to time in transactions (which
may involve crosses and block transactions and which may involve sales to and through
other broker-dealers, including transactions of the nature described above), in the
over-the-counter market, in negotiated transactions or otherwise at market prices
prevailing at the time of sale or at negotiated prices, and in connection with these
resales may pay to or receive commissions from the purchasers.
We
have advised the selling stockholders that Regulation M promulgated under the Securities
Exchange Act of 1934, as amended, may apply to sales in the market and has informed them
of the possible need for delivery of copies of this prospectus. The selling stockholders
may indemnify any broker-dealer that participates in transactions involving the sale of
the shares against certain liabilities, including liabilities arising under the
Securities Act of 1933, as amended. Any commissions paid or any discounts or concessions
allowed to any broker-dealers, and, if any broker-dealers purchase shares as principal,
any profits received on the resale of shares, may be deemed to be underwriting discounts
and commissions under the Securities Act of 1933, as amended.
11
Upon
notification by a selling stockholder that any material arrangement has been entered into
with a broker-dealer for the sale of shares through a cross or block trade, a
supplemental prospectus will be filed under Rule 424(c) under the Securities Act of 1933,
as amended, setting forth the name of the participating broker-dealer(s), the number of
shares involved, the price at which the shares were sold by the selling stockholders, the
commissions paid or discounts or concessions allowed by the selling stockholders to such
broker-dealer(s), and where applicable, that the broker-dealer(s) did not conduct any
investigation to verify the information set forth in this resale prospectus.
Any
securities covered by this prospectus which qualify for sale pursuant to Rule 144 and 701
under the Securities Act of 1933, as amended, may be resold under Rule 144 rather than
pursuant to this prospectus. In general, under Rule 144 as currently in effect, a person
(or persons whose shares are aggregated), including any person who may be deemed to be
our "affiliate," is entitled to sell within any three month period "restricted shares"
beneficially owned by him or her in an amount that does not exceed the greater of (i) 1%
of the then outstanding shares of common stock or (ii) the average weekly trading volume
in shares of common stock during the four calendar weeks preceding such sale, provided
that at least one year has elapsed since such shares were acquired from us or our
affiliate. Sales are also subject to certain requirements as to the manner of sale,
notice and availability of current public information regarding us. A person who has not
been our "affiliate" at any time within three months prior to the sale is entitled to
sell his or her shares without regard to the volume limitations or the other requirements
of Rule 144, provided that at least one year has elapsed since the shares were acquired
from us or our affiliate. In general, under Rule 701 as currently in effect, any
employee, consultant or advisor of us who purchases shares from us in connection with a
compensatory stock or option plan or other written agreement related to compensation is
eligible to resell these shares in reliance on Rule 144, but without compliance with the
certain restrictions contained in Rule 144.
SEC POSITION REGARDING
INDEMNIFICATION
Our
Articles of Incorporation and Bylaws provide for indemnification of officers and
directors, among other things, in instances in which they acted in good faith and in a
manner they reasonably believed to be in, or not opposed to, our best interests and in
which, with respect to criminal proceedings, they had no reasonable cause to believe
their conduct was unlawful.
Insofar
as indemnification for liabilities arising under the Securities Act of 1933, as amended,
may be permitted to our directors, officers or persons controlling us under the
provisions described above, we have been informed that in the opinion of the Securities
and Exchange Commission, indemnification is against public policy as expressed in that
Act and is therefore unenforceable.
12
DESCRIPTION OF THE PLAN
In
August 2004, our Board of Directors and shareholders adopted our 2004 Stock Incentive
Plan.  The purpose of the Plan is to promote our interests and the interests of our
shareholders by providing participants a significant stake in our performance and
providing an opportunity for the participants to increase their holdings of our Common
Stock. The Plan will be administered by the Board of Directors or a committee of the
Board of Directors, as the Board of Directors may from time to time designate. The Board
of Directors has the authority to select employees and consultants (which may include
directors) to receive awards, to determine the number of shares of common stock covered
by awards and to set the terms and conditions of awards. In addition to stock options, we
may also offer a participant the right to purchase shares of restricted common stock
subject to such restrictions and conditions as the Board of Directors may determine at
the time of grant. Such conditions may include continued services to us or the
achievement of specified performance goals or objectives.
The
Plan authorizes the grant of options or restricted common stock to purchase an aggregate
of 1,000,000 shares of our common stock. As of March 31, 2006, there were 950,178
options outstanding at exercise prices ranging from $3.50 to $18.40 per share.  No shares
of restricted common stock have been issued under the Plan.  Any unsold shares subject to
an option or restricted common stock grant that for any reason expires or otherwise
terminate may again be made subject to options or restricted common stock grants under
the Plan.  No person may be granted options or the right to purchase restricted common
stock under the Plan covering in excess of an aggregate of 275,000 shares in any calendar
year, subject to adjustment in accordance with the Plan.
The
terms of the Plan provide that the price of options issued under the Plan as incentive
stock options must not be less than 100% of the fair market value on the date of grant.
Options must be exercised within 10 years following the date of grant (or sooner at the
discretion of the Board of Directors), and the optionee must exercise options during
service to us or within three months of termination of such service (six months in the
event of death on disability). The Board of Directors may extend the termination date of
an option granted under the Plan.
Options
issued under the Plan may not be transferred, except by will or by the laws of intestate
succession.  However, there are no restrictions on the resale of the shares underlying
the options. The number of shares and price per share of the options under the Plan will
be proportionately adjusted to reflect forward and reverse stock splits. The holder of an
option under the Plan has none of the rights of a shareholder until shares underlying the
option are issued.  With respect to incentive stock options, no option may be granted to
an employee who, at the time the option is granted, owns stock possessing more than 10%
of the total combined voting power of all classes of stock of our company, unless at the
time the option is granted the purchase price for the shares underlying the option is at
least 110% of fair market value on the date of grant and such option by its terms is not
exercisable after the expiration of five years from the date of grant.
13
Shares
of restricted common stock issued under the Plan may not be assigned, transferred,
pledged, hypothecated or otherwise encumbered or disposed of except as specifically
permitted by the Board of Directors. Recipients of restricted common stock grants shall
have the rights of a shareholder with respect to shares they purchase under the Plan,
including voting and dividend rights, subject to the terms, restrictions and conditions
as are set forth in the stock purchase agreement.  In the event a participant's service
to us terminates for any reason, the stock purchase agreement may provide, in the
discretion of the Board of Directors, that we shall have the right, exercisable at the
discretion of the Board of Directors, to repurchase any shares of restricted common
stock, on such terms as may determined by the Board of Directors.
In
the event of a change in control of the company, the Board of Directors may accelerate
the time period relating to the exercise or realization of any options or restricted
common stock and take one or more of the following actions: (a) provide for the purchase
of an option or right to purchase restricted common stock for an amount of cash or other
property that could have been received upon the exercise of the option or right to
purchase restricted common stock, (b) adjust the terms of the options and rights to
purchase restricted common stock in a manner to reflect the change in control, (c) cause
the options and rights to purchase restricted common stock to be assumed, or new rights
substituted therefor, by another entity, through the continuance of the Plan and the
assumption of outstanding options and rights to purchase restricted common stock, or the
substitution for such options and rights to purchase restricted common stock of new
options and new rights to purchase of comparable value covering shares of a successor
corporation, with appropriate adjustments as to the number and kind of shares and
exercise prices, in which event the Plan and such options and rights to purchase
restricted common stock, or the new options and rights to purchase substituted therefor,
shall continue in the manner and under the terms so provided, (d) accelerate the time at
which options then outstanding may be exercised so that such options may be exercised for
a limited period of time on or before a specified date, after which specified date, all
unexercised options and all rights of optionees thereunder shall terminate, or (e) make
such other provision as the Board of Directors may consider equitable.
The
Plan will remain in effect until August 25, 2009 (except as to options previously granted
and outstanding under the Plan at that time) but may be terminated or extended by our
Board of Directors. Additional information concerning the Plan and its administrators may
be obtained from us at the address and telephone number indicated under "Incorporation by
Reference" above.
APPLICABLE SECURITIES
LAW RESTRICTIONS
If
the optionee or holder of restricted common stock is deemed to be an "affiliate" (as that
term is defined under the Securities Act of 1933, as amended), the resale of the shares
purchased upon exercise of options or the purchase of shares of restricted common stock
covered hereby will be subject to certain restrictions and requirements.
In
addition to the requirements imposed by the Securities Act of 1933, as amended, the
antifraud provisions of the Securities Exchange Act of 1934, as amended, and the rules
thereunder (including, without limitation, Rule 10b-5) are applicable to any sale of
shares acquired pursuant to options or purchase rights for restricted common stock.
14
Up
to 1,000,000 shares may be issued under the Plan. Common shares outstanding and those to
be issued upon exercise of options and the purchase of restricted common stock are fully
paid and nonassessable, and each share of stock is entitled to one vote at all
shareholders' meetings. All shares are equal to each other with respect to lien rights,
liquidation rights and dividend rights. There are no preemptive rights to purchase
additional shares by virtue of the fact that a person is a shareholder of our company.
Shareholders do not have the right to cumulate their votes for the election of directors.
Our
directors must comply with certain reporting requirements and resale restrictions
pursuant to Sections 16(a) and 16(b) of the Securities Exchange Act of 1934, as amended,
and the rules thereunder upon the receipt or disposition of any options.
TAX CONSEQUENCES
Upon
the exercise of an option, the optionee will be taxed, as ordinary income, on the
difference between the exercise price of the option and the fair market value of the
underlying shares on the date of exercise. Upon exercise of a right to purchase
restricted common stock, the participant will be taxed, as ordinary income, on the fair
market value of the underlying shares on the date of purchase.  In each case, the fair
market value then becomes the participant's basis in the underlying shares.
LEGAL MATTERS
The
validity of the shares of common stock offered hereby will be passed on for us by
Brownstein Hyatt & Farber, P.C., 410 Seventeenth Street, 22nd Floor, Denver, Colorado
80202.
EXPERTS
The financial statements of A4S Security, Inc., as of December 31, 2005 and for each of the years in the
two-year period ended December 31, 2005, incorporated herein by reference, in our Annual Report on Form 10-KSB
have been audited by GHP Horwath P.C., independent registered public accounting firm, for the periods and to the
extent set forth in their report incorporated herein by reference.  Such financial statements have been so
incorporated by reference in reliance upon the report of such firm given their authority as experts in auditing
and accounting.
15
PART I
INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS
Item 1.           Plan
Information.
The
documents containing the information specified in Item 1 will be sent or given to
participants in the Registrant's 2004 Stock Incentive Plan, as amended as specified by
Rule 428(b)(1) of the Securities Act of 1933, as amended. Such documents are not required
to be and are not filed with the Securities and Exchange Commission either as part of
this Registration Statement or as prospectuses or prospectus supplements pursuant to Rule
424. These documents and the documents incorporated by reference in this Registration
Statement pursuant to Item 3 of Part II of this Form S-8, taken together, constitute a
prospectus that meets the requirements of Section 10(a) of the Securities Act of 1933, as
amended.
Item 2.           Registrant
Information and Employee Plan Annual Information.
Upon
written or oral request, any of the documents incorporated by reference in Item 3 of Part
II of this Registration Statement (which documents are incorporated by reference in this
Section 10(a) prospectus), other documents required to be delivered to eligible
employees, non-employee directors and consultants, pursuant to Rule 428(b) or additional
information about the 2004 Stock Incentive Plan, as amended, are available without charge
by contacting:
Jeffrey G. McGonegal
Chief Financial Officer
A4S Security, Inc.
489 North Denver Avenue
Loveland, CO 80537
PART II
INFORMATION REQUIRED
IN THE REGISTRATION STATEMENT
Item 3.     Incorporation of Documents
by Reference.
The
Registrant hereby incorporates by reference into this Registration Statement the following
documents previously filed with the Securities and Exchange Commission. In addition, all
documents subsequently filed pursuant to Sections 13(a), 13(c), 14 and 15(d) of the
Securities Exchange Act of 1934, as amended, prior to the filing of a post-effective
amendment which indicates that all securities offered have been sold or which deregisters
all securities then remaining unsold, shall be deemed to be incorporated by reference into
this Registration Statement and to be a part hereof from the date of filing of such
documents:
(a)
The
Registrant's Annual Report on Form 10-KSB for the year ended December           31,
2005.
(b)
The Registrant's Quarterly Report on
Form 10-QSB for the quarter ended March 31, 2006.
(c)
All
of the Registrant's Current Reports on Form 8-K filed with the           Securities
and Exchange Commission subsequent to December 31, 2005.
16
(d)
The
description of the Registrant's common stock contained in the           Registrant's
Registration Statement on Form 8-A, as amended, filed pursuant           to Section 12 of
the Securities Exchange Act of 1934, as amended, on July 11,           2005, including
any amendment filed for the purpose of updating such           description.
Item 4.     Description of
Securities.
Not
Applicable.
Item 5.     Interests of
Named Experts and Counsel.
Not
Applicable.
Item 6.     Indemnification
of Directors and Officers.
The
Registrant's Articles of Incorporation, as amended (the "Articles"),
provide that the liability of the Registrant's directors for monetary damages for
breach of fiduciary duty is eliminated to the fullest extent permitted by Colorado law and
that the Registrant's officers and directors shall be indemnified by the Registrant
against any liability to the fullest extent permitted by Colorado law. Insofar as
indemnification for liabilities arising under the Securities Act of 1933, as amended, may
be permitted to directors, officers or persons controlling the Registrant pursuant to the
foregoing provisions, the Registrant has been informed that in the opinion of the
Securities and Exchange Commission, such indemnification is against public policy as
expressed in the Securities Act of 1933, as amended, and is therefore unenforceable.
The
Registrant's Amended and Restated Bylaws provide that the Registrant shall indemnify
any person (including the estate or personal representative of a director) who was or is a
party or is threatened to be made a party to any threatened, pending, or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative, and whether
formal or informal, by reason of the fact that he is or was a director, officer, employee,
fiduciary or agent of the Registrant, or is or was serving at the request of the
Registrant as a director, officer, partner, trustee, employee, fiduciary or agent of any
foreign or domestic profit or nonprofit corporation or of any partnership, joint venture,
trust, profit or nonprofit unincorporated association, limited liability company, or other
enterprise or employee benefit plan. The Registrant shall indemnify such persons against
reasonably incurred expenses (including attorneys' fees), judgments, penalties, fines
(including any excise tax assessed with respect to an employee benefit plan) and amounts
paid in settlement reasonably incurred by him in connection with such action, suit or
proceeding if it is determined that he conducted himself in good faith and that he
reasonably believed (i) in the case of conduct in his official capacity with the
Registrant, that his conduct was in the Registrant's best interests, or (ii) in all
other cases (except criminal cases), that his conduct was at least not opposed to the
Registrant's best interests, or (iii) in the case of any criminal proceeding, that he
had no reasonable cause to believe his conduct was unlawful.
17
Item 7.     Exemption from
Registration Claimed.
None.
Item 8.     Exhibits.
Number
Exhibit
4.1
2004
Stock Incentive Plan, as amended (1)
5.1
Opinion
of Brownstein Hyatt & Farber, P.C.
23.1
Consent
of GHP Horwath, P. C., Independent Registered Public Accounting Firm
23.2
Consent
of Brownstein Hyatt & Farber, P.C. (contained in Exhibit 5.1)
24.1
Power
of Attorney (included on the signature page of this Registration Statement)
(1)       
          Incorporated by reference to the Registrant's Registration Statement on
          Form SB-2, File No. 333-124238.
Item 9. Undertakings.
(a)       
          The undersigned registrant hereby undertakes:
(1)                        To
file, during any period in which offers or sales are being made, a
          post-effective amendment to this Registration Statement:
To
include any material information with respect to the plan of distribution not previously
disclosed in the Registration Statement or any material change to such information in the
Registration Statement.
(2)                        That,
for the purpose of determining any liability under the Securities Act of           1933,
as amended, each such post-effective amendment shall be deemed to be a new
          Registration Statement relating to the securities offered therein, and the
          offering of such securities at that time shall be deemed to be the initial bona
          fide offering thereof.
(3)                        To
remove from registration by means of a post-effective amendment any of the
          securities being registered which remain unsold at the termination of the
          offering.
(b)       
          The undersigned registrant hereby undertakes that, for purposes of determining
          any liability under the Securities Act of 1933, as amended, each filing of the
          registrant's annual report pursuant to Section 13(a) or Section 15(d) of
          the Securities Exchange Act of 1934, as amended, that is incorporated by
          reference in the Registration Statement shall be deemed to be a new Registration
          Statement relating to the securities offered herein, and the offering of such
          securities at that time shall be deemed to be the initial bona fide offering
          thereof.
18
(c)       
          Insofar as indemnification for liabilities arising under the Securities Act of
          1933, as amended may be permitted to directors, officers and controlling persons
          of the registrant pursuant to the foregoing provisions, or otherwise, the
          registrant has been advised that in the opinion of the Securities and Exchange
          Commission such indemnification is against public policy as expressed in the Act
          and is, therefore, unenforceable. In the event that a claim for indemnification
          against such liabilities (other than the payment by the registrant of expenses
          incurred or paid by a director, officer, or controlling person of the registrant
          in the successful defense of any action, suit or proceeding) is asserted by such
          director, officer or controlling person in connection with the securities being
          registered, the registrant will, unless in the opinion of its counsel the matter
          has been settled by controlling precedent, submit to a court of appropriate
          jurisdiction the question whether such indemnification by it is against public
          policy as expressed in the Act and will be governed by the final adjudication of
          such issue.
19
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, as amended, the registrant certifies
that it has reasonable grounds to believe that it meets all of the requirements of an
amendment to a filing on Form S-8 and authorized this amendment to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of Loveland, Colorado on June
19, 2006.
A4S Security, Inc.
By:
/s/ Thomas R. Marinelli
Thomas R. Marinelli
Chief Executive Officer
20
POWER OF ATTORNEY
KNOW
ALL MEN BY THESE PRESENTS, that each person whose signature appears below hereby
constitutes and appoints each of Thomas R. Marinelli and Jeffrey G. McGonegal, acting
together or individually, as his or her true and lawful attorney-in-fact and agent, with
full power of substitution and resubstitution, for him or her in his or her name, place
and stead, in any and all capacities, (i) to sign any and all amendments (including
post-effective amendments) to the Registration Statement on Form S-8 under the Securities
Act of 1933, as amended, relating to the shares issuable pursuant to the A4S Security,
Inc. 2004 Stock Incentive Plan and (ii) to file the same, with all exhibits thereto and
other documents in connection therewith, with the Securities and Exchange Commission under
the Securities Act of 1933, as amended. Each of the undersigned hereby ratifies and
confirms all that each such attorney-in-fact or his or her substitute may lawfully do or
cause to be done by virtue hereof.
Pursuant
to the requirements of the Securities Act of 1933, as amended, this Registration Statement
has been signed by the following persons in the capacities and on June 19, 2006.
Name
Title
/s/ Thomas R. Marinelli
Thomas R. Marinelli
/s/ Michael Siemens
Michael Siemens
/s/ Jeffrey G. McGonegal
Jeffrey G. McGonegal
/s/ Gregory Pusey
Gregory Pusey
/s/ Mathew Siemens
Mathew Siemens
/s/ Gail Shoettler
Gail Shoettler
/s/ Barry Loder
Barry Loder
/s/ Robert J. Williams
Robert J. Williams
Chief Executive Officer
(Principal Executive Officer)
and Director
President and Director
Chief Financial Officer
(Principal Executive Officer)
Chairman of the Board of Directors
and Director
Executive Vice President
Director
Director
Director
21
Number
Exhibit
4.1
2004
Stock Incentive Plan, as amended (1)
5.1
Opinion
of Brownstein Hyatt & Farber, P.C.
23.1
Consent
of GHP Horwath, P. C., Independent Registered Public Accounting Firm
23.2
Consent
of Brownstein Hyatt & Farber, P.C. (contained in Exhibit 5.1)
24.1
Power
of Attorney (included on the signature page of this Registration Statement)
(1)       
          Incorporated by reference to the Registrant's Registration Statement on
          Form SB-2, File No. 333-124238.
22