"We have carefully invested significant resources in building a strong and dynamic technology development team that we believe places us on the leading edge of new products in the mobile DVR market place," stated Dave Desormeaux VP of Engineering at A4S. "Within the next few months, we expect to officially introduce ShiftWatch TVS 3.0, an advanced product configuration with greater benefits and features including wireless download and additional management features. We believe we will be in a position to develop additional proprietary products from this platform, reducing time to market and cost of development. Our core architecture has broad applications beyond the specific use for which it was originally created. Furthermore, our value proposition is focused on superior security information integration and management. We believe we will continue to meet the challenge of staying ahead of the competition by offering effective management of large amounts of video data coming from multiple vehicle based recorders while intelligently accessing that information in a fast and useful manner," he concluded.
A4S Security reported a net loss for the second quarter of 2006 of $1,477,792, or a loss of $0.37 per basic and diluted share, compared to a net loss of $853,640, or a loss of $5.79 per basic and diluted share in the same quarter of 2005. For the first six months ended June 30, 2006, net loss was $2,601,350, or a loss of $0.66 per basic and diluted share, compared to a net loss of 1,408,096, or a loss of $9.55 per share for the same period in 2005. Both 2005 comparative periods include a significant change in shares outstanding, from 147,389 in 2005 to 3,961,498 in 2006, following the July 2005 completion of the Company's initial public offering. Cash balance as of June 30, 2006 was approximately $1.9 million.