Exhibit 99.1

UNITED STATES BANKRUPTCY COURT

DISTRICT OF NEW HAMPSHIRE

In re	Robotic Vision Systems, Inc.	Case No.	04-14151-JMD
		Reporting Period	July 31, 2005

MONTHLY OPERATING REPORT

Complete and submit to the United States Trustee within 15 days after end of month

Submit copy of report to any official committee appointed in the case

REQUIRED DOCUMENTS	Form No.	Document Attached	Explanation Attached
Monthly Reporting Questionnaire	MOR-1	X
Schedule of Cash Receipts and Disbursements	MOR-2	X
Copies of Debtor’s Bank Reconciliations		X
Copies of Debtor’s Bank Statements		X
Copies of Cash Disbursements Journals		X
Statement of Operations	MOR-3	X
Balance Sheet	MOR-4	X
Schedule of Post-Petition Liabilities	MOR-5	X
Copies of IRS Form 6123 or payment receipt		N/A
Copies of tax returns filed during reporting period		N/A
Detailed listing of aged accounts payables		X
Accounts Receivable Reconciliation and Aging	MOR-6	X

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and all attachments are true and correct to the best of my knowledge and belief.

Signature of Debtor	Date
Signature of Joint Debtor	Date
/s/ Frederick Van Alstyne	August 31, 2005
Signature of Authorized Individual*	Date
Frederick Van Alstyne	CFO
Printed Name of Authorized Individual	Title of Authorized Individual

* Authorized individual must be an officer, director or shareholder if the debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

COVER PAGE

9/04

Robotic Vision Systems, Inc.	Case No.	04-14151-JMD
Debtor	Reporting Period	July 31, 2005

MONTHLY REPORTING QUESTIONNAIRE

Must be completed each month	Yes	No
1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below*.		X
2. Have any funds been disbursed from any account other than a debtor-in-possession account this reporting period? If yes, provide an explanation below.		X
3. Have any payments been made on pre-petition debt, other than payments in the normal course to secured creditors or lessors? If yes, attach listing including date of payment, amount of payment, and name of payee. (See below)	X
4. Have any payments been made to professionals? If yes, attach listing including date of payment, amount of payment, and name of payee. (See listing below.)	X
5. If the answer to question 3 and/or 4 is yes, were all such payments approved by the Court?	X
6. Have any payments been made to officers, insiders, shareholders, or relatives? If yes, attach listing including date of payment, amount and reason for payment, and name of payee.		X
7. Have all postpetition tax returns been timely filed? If no, provide an explanation below.	N/A
8. Is the estate current on the payment of post-petition taxes?	X
9. Is the estate insured for the replacement cost of assets and for general liability? If no, provide an explanation below.	X
10. Is workers’ compensation insurance in effect?	X
11. Have all current insurance payments been made? Attach copies of all new and renewed insurance policies.	X
12. Are a plan and disclosure statement on file?		X
13. Was there any post-petition borrowing during this reporting period?		X

*    Sale of the SEG division and Vanguard

Payments to Professionals and expenses:

7/16/05 - Marotta Gund Budd & Dzera, LLC - $165,501.00 Previous month charges

7/26/05 - Morris Pollack - $5,265.00

7/22/05 - Hoffman Watson - $1,000.00

7/13/05 - PNC Bank Atty - $40,226.00

7/27/05 - Davis and Bujold - $5,416.00

7/22/05 - Bankruptcy Services, Inc. - $1,436.25

Pre-Petition payments:

Earned time - $19,404.91 paid on 7/7, 7/14, 7/21, 7/28

MOR-1

9/04

Robotic Vision Systems, Inc.	Case No.	04-14151-JMD
Debtor	Reporting Period	July 31, 2005

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

Amounts reported should be per the debtor’s books, not the bank statement. The beginning cash should be the ending cash from the prior month or, if this is the first report, the amount should be the balance on the date the petition was filed. Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page.

A bank reconciliation must be attached for each account.

	BANK ACCOUNTS
(IN THOUSANDS)	Operational		Payroll	Tax	Other	Total
CASH BEGINNING OF MONTH	777					777
RECEIPTS
CASH SALES						—
ACCOUNTS RECEIVABLE	1,417					1,417
LOANS AND ADVANCES						—
SALE OF ASSETS*						—
OTHER (ATTACH LIST)	15					15
TRANSFERS (FROM DIP ACCTS)						—
TOTAL RECEIPTS	1,432					1,432
DISBURSEMENTS
NET PAYROLL	431					431
PAYROLL TAXES	177					177
SALES, USE & OTHER TAXES						—
INVENTORY PURCHASES	447					447
SECURED/RENTAL/LEASES	96					96
INSURANCE	78					78
ADMINISTRATIVE	56					56
SELLING						—
OTHER (ATTACH LIST) - see below	120					120
OWNER DRAW *						—
TRANSFERS (TO DIP ACCTS)						—
PROFESSIONAL FEES	219					219
U.S. TRUSTEE QUARTERLY FEES	10					10
COURT COSTS						—
TOTAL DISBURSEMENTS	1,634					1,634
NET CASH FLOW (RECEIPTS LESS DISBURSEMENTS)	(202	)				(202	)
CASH - END OF MONTH	575					575

* COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE

THE FOLLOWING SECTION MUST BE COMPLETED

DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES:

TOTAL DISBURSEMENTS

LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS

PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts)

TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES

Other Receipts

COBRA/ Refunds	15
Total	15
Other Disbursements
Credit Card payments	7
Freight	22
Legal	15
R&D related	10
Other-includes petty cash	2
Bank fees	1
401k	42
SEG	15
Bank fees	6
Total	120

MOR-2

9/04

Robotic Vision Systems, Inc.	Case No.	04-14151-JMD
Debtor	Reporting Period	July 31, 2005

STATEMENT OF OPERATIONS (IN THOUSANDS)

(Income Statement)

The Statement of Operations is to be prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid.

REVENUES	Month		Cumulative Filing to Date
Gross Revenues	1,557		17,506
Less: Returns and Allowances			—
Net Revenue	1,557		17,506
COST OF GOODS SOLD
Beginning Inventory	2,599		18,420
Add: Purchases	539		5,619
Add: Cost of Labor	34		510
Add: Other Costs (attach schedule)	120		1,861
Less: Ending Inventory	2,482		16,730
Cost of Goods Sold	810		9,680
Gross Profit	747		7,826
OPERATING EXPENSES
Sales and Marketing Support	26		393
Auto and Truck Expense			3
Bad Debts			46
Contributions			—
Employee Benefits Programs	108		950
Insider Compensation*			—
Insurance	47		439
Management Fees/Bonuses			—
Office Expense	6		26
Pension & Profit-Sharing Plans			—
Repairs and Maintenance	5		42
Rent and Lease Expense	49		851
Salaries/Commissions/Fees	456		6,254
Supplies	24		100
Taxes - Payroll	7		81
Taxes - Real Estate			—
Taxes - Other	(0	)	185
Travel and Entertainment	28		412
Utilities	32		273
Other (attach schedule)	(51	)	909
Total Operating Expenses Before Depreciation	736		10,964
Depreciation/Depletion/Amortization	21		634
Net Profit(Loss) Before Other Income & Expenses	(10	)	(3,772	)
OTHER INCOME AND EXPENSES
Other Income (attach schedule)			(85	)
Interest Expense	554		4,646
Other Expense (attach schedule)	267		801
Net Profit (Loss) Before Reorganization Items	(831	)	(9,304	)
REORGANIZATION ITEMS
Professional Fees	351		4,372
U.S. Trustee Quarterly Fees	—		—
Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet)	—		—
(Gain) Loss from Sale of Equipment	—		12,774
Other Reorganization Expenses (attach schedule)	—		—
Total Reorganization Expenses	351		17,146
Income Taxes	—		—
Net Profit(Loss)	(1,182	)	(26,450	)

* “Insider” is defined in 11 U.S.C. Section 101(31).

MOR-3

9/04

Robotic Vision Systems, Inc.	Case No.	04-14151-JMD
Debtor	Reporting Period	July 31, 2005

STATEMENT OF OPERATIONS (IN THOUSANDS) - continuation sheet

BREAKDOWN OF “OTHER” CATEGORY	Month		Cumulative Filing to Date
Other Costs
Overhead portion of cost of sales	120		1,860
Other Operational Expenses
cap software adds-reduction to R&D expense	(74	)	(147	)
various	(15	)	(23	)
Audit accrual			379
Bank Charges	5		371
Director Fees			6
Stock Admin Fees	2		12
Legal Expenses	27		125
Public Reporting	3		34
Relocation			3
Freight	0		29
Consulting accrual	0		119
Total	(51	)	908
Other Income
Royalty Payment			(85	)
Other Expenses
Corporate Cross Charge	267		801
Other Reorganization Expenses

Reorganization Items - Interest Earned on Accumulated Cash from Chapter 11:

Interest earned on cash accumulated during the chapter 11 case, which would not have been earned but for the bankruptcy proceeding, should be reported as a reorganization item.

MOR-3

9/04

Robotic Vision Systems, Inc.	Case No.	04-14151-JMD
Debtor	Reporting Period	July 31, 2005

BALANCE SHEET (IN THOUSANDS)

The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from postpetition obligations.

ASSETS	BOOK VALUE AT END OF CURRENT REPORTING MONTH		BOOK VALUE ON PETITION DATE
CURRENT ASSETS
Unrestricted Cash and Equivalents	569		166
Restricted Cash and Cash Equivalents			—
Accounts Receivable (Net)	3,252		10,056
Notes Receivable			—
Inventories	2,482		10,758
Prepaid Expenses	325		1,115
Professional Retainers			—
Other Current Assets (attach schedule)			—
TOTAL CURRENT ASSETS	6,628		22,095
PROPERTY AND EQUIPMENT
Real Property and Improvements			—
Machinery and Equipment	984		5,853
Furniture, Fixtures and Office Equipment	1,874		6,236
Leasehold Improvements	857		2,621
Vehicles			—
Less Accumulated Depreciation	(3,512	)	(11,879	)
TOTAL PROPERTY & EQUIPMENT	203		2,831
OTHER ASSETS
Loans to Insiders	—		—
Other Assets (attach schedule)	19,770		26,345
TOTAL OTHER ASSETS	19,770		26,345
TOTAL ASSETS	26,601		51,271
LIABILITIES AND OWNER EQUITY	BOOK VALUE AT END OF CURRENT REPORTING MONTH		BOOK VALUE ON PETITION DATE
LIABILITIES NOT SUBJECT TO COMPROMISE (Post-Petition)
Accounts Payable	288		—
Taxes Payable (refer to ...)			—
Wages Payable	129		—
Notes Payable			—
Rent / Leases - Building/Equipment	—		—
Secured Debt / Adequate Protection Payments	—		—
Professional Fees			—
Amounts Due to Insiders			—
Other Postpetition Liabilities (attach schedule)	246		—
TOTAL POST-PETITION LIABILITIES	663		—
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt	18,600		15,883
Priority Debt			—
Unsecured Debt Including intercompany	(304,038	)	13,301
Unsecured Debt Payable to subsidiaries	103,952		8,147
Subsidiaries Investment	16,946		16,699
TOTAL PRE-PETITION LIABILITIES	(164,540	)	54,030
TOTAL LIABILITIES	(163,877	)	54,030
OWNER EQUITY
Capital Stock	214		214
Additional Paid-in Capital	432,786		317,116
Partners’ Capital Account			—
Owner’s Equity Account			—
Retained Earnings - Pre-Petition	(232,947	)	(318,775	)
Retained Earnings - Postpetition	(9,574	)	—
Adjustments to Owner Equity (attach schedule)			(1,314	)
Post-Petition Contributions (Distributions) (Draws)	—		—
Net Owner Equity	190,479		(2,759	)
TOTAL LIABILITIES AND OWNERS’ EQUITY	26,601		51,271
Insider is defined in 11 U.S.C. Section 101(31)	0

Please Note that the Decrease in AR, Inventory, Prepaids, Fixed Assets and other assets is due to the sale of SEG

Also the unsecured Debt dropped because of the Sale of SEG and them assuming some cure liability

MOR-4

9/04

Robotic Vision Systems, Inc.	Case No.	04-14151-JMD
Debtor	Reporting Period	July 31, 2005

BALANCE SHEET (IN THOUSANDS) - continuation sheet

ASSETS	BOOK VALUE AT END OF CURRENT REPORTING MONTH	BOOK VALUE ON PETITION DATE
Other Current Assets
Other Assets
Capitalized software	2,281	3,684
Patents	124	202
Deposits	12	153
Employee Loans		2
Other Non Current Assets	14,348	620
Loan refinance closing cost	2,015	5,313
Goodwill	990	990
Investment in subsidiaries		15,381
Total	19,770	26,345
LIABILITIES AND OWNER EQUITY	BOOK VALUE AT END OF CURRENT REPORTING MONTH	BOOK VALUE ON PETITION DATE
Other Postpetition Liabilities
Received not invoiced	13
Accrued Warranty
Accrued Royalty
Accrued Sales Return
Customer Advances
Other AP
Other Accrued Liability
Other- Fringe benefit	233
Deferred Gross Profit
Total	246
Adjustments to Owner Equity
Minimum pension obligation		(583	)
Cumulative Translation Adjustment		(731	)
Total	246	(1,314	)

Postpetition Contributions (Distributions) (Draws)

Restricted Cash: cash that is restricted for a specific use and not available to fund operations.

Typically, restricted cash is segregated into a separate account, such as an escrow account.

MOR-4

9/04

Robotic Vision Systems, Inc.	Case No.	04-14151-JMD
Debtor	Reporting Period	July 31, 2005

STATUS OF POST-PETITION TAXES

The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero. Attach photocopies of IRS Form 6123 and all applicable state and local forms and/or all federal, state, and local payment receipts to verify payment of taxes. Attach photocopies of any tax returns filed during the reporting period.

	Beginning Tax Liability	Amount Withheld or Accrued	Amount Paid	Date Paid	Check No. or EFT	Ending Tax Liability
Federal
Income Tax Withholding	—	22,195	22,195	7/28/05	Filed by ADP	—
FICA-Employee	—	9,776	9,776	7/28/05	Filed by ADP	—
FICA-Employer	—	9,776	9,776	7/28/05	Filed by ADP	—
Unemployment	—	3	3	7/28/05	Filed by ADP	—
Income	—	—	—			—
Other:	—	—	—			—
Total Federal Taxes	—	41,751	41,751			—
State and Local
Income Tax Withholding	—	3,882	3,882	7/28/05	Filed by ADP	—
Sales	—	—	—			—
Excise	—	—	—			—
Unemployment	—	60	60	7/28/05	Filed by ADP	—
Real Property	—	—	—			—
Personal Property	—	—	—			—
Other:	—	—	—			—
Total State and Local	—	3,942	3,942			—
Withholding for Employee Healthcare	—	—	—			—
Premiums, Pensions & Other Benefits	—	11,761	11,761	7/28/05		—
Total Taxes	—	15,703	15,703			—
SUMMARY OF UNPAID POST-PETITION DEBTS (IN THOUSANDS)
Attach aged listing of accounts payables
	Number of Days Past Due
	Current	0-30	31-60	61-90	Over 90	Total
Accounts Payable	81			102	104	288
Wages Payable	129					129
Taxes Payable						—
Rent/Leases-Building						—
Rent/Leases-Equipment						—
Secured Debt/Adequate Protection Payments						—
Professional Fees						—
Amounts Due to Insiders*						—
Other: Accrued vacation	219					219
Other:	27					27
Total Postpetition Debts	456	—	—	102	104	662

Explain how and when the Debtor intends to pay any past-due post-petition debts.

We intend to pay past-due amounts within the next month out of operating cash.

* “Insider” is defined in 11 U.S.C. Section 101(31).

MOR-5

9/04

Robotic Vision Systems, Inc.	Case No.	04-14151-JMD
Debtor	Reporting Period	July 31, 2005

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING (IN THOUSANDS)

ACCOUNTS RECEIVABLE RECONCILIATION	Amount
Total Accounts Receivable at the beginning of the reporting period	3,494
+ Amounts billed during the period*	1,566
- Amounts collected during the period**	1,482
Total Accounts Receivable at the end of the reporting period	3,578

Accounts Receivable Aging	Amount
Current	2,674
31 - 60 days old	541
61 - 90 days old	140
91+ days old	222
Total Accounts Receivable	3,577
Amount considered uncollectible (Bad Debt)	(325	)
Accounts Receivable (Net)	3,252

* Include vendor activity

** Include intercompany non cash payments $140K

MOR-6

9/04

UNITED STATES BANKRUPTCY COURT

DISTRICT OF NEW HAMPSHIRE

In re	Auto Image ID, Inc.	Case No.	04-14152-JMD
		Reporting Period	July 31, 2005

MONTHLY OPERATING REPORT

Complete and submit to the United States Trustee within 15 days after end of month

Submit copy of report to any official committee appointed in the case

REQUIRED DOCUMENTS	Form No.	Document Attached	Explanation Attached
Monthly Reporting Questionnaire	MOR-1	X
Schedule of Cash Receipts and Disbursements	MOR-2	X
Copies of Debtor’s Bank Reconciliations		N/A
Copies of Debtor’s Bank Statements		N/A
Copies of Cash Disbursements Journals		N/A
Statement of Operations	MOR-3	X
Balance Sheet	MOR-4	X
Schedule of Post-Petition Liabilities	MOR-5	X
Copies of IRS Form 6123 or payment receipt		N/A
Copies of tax returns filed during reporting period		N/A
Detailed listing of aged accounts payables		N/A
Accounts Receivable Reconciliation and Aging	MOR-6	X

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and all attachments are true and correct to the best of my knowledge and belief.

Signature of Debtor	Date
Signature of Joint Debtor	Date
/s/ Frederick Van Alstyne	August 31, 2005
Signature of Authorized Individual*	Date
Frederick Van Alstyne	CFO
Printed Name of Authorized Individual	Title of Authorized Individual

* Authorized individual must be an officer, director or shareholder if the debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

COVER PAGE

9/04

Auto Image ID, Inc.	Case No.	04-14152-JMD
Debtor	Reporting Period	July 31, 2005

MONTHLY REPORTING QUESTIONNAIRE

Must be completed each month	Yes	No
1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.		X
2. Have any funds been disbursed from any account other than a debtor-in-possession account this reporting period? If yes, provide an explanation below.		X
3. Have any payments been made on pre-petition debt, other than payments in the normal course to secured creditors or lessors? If yes, attach listing including date of payment, amount of payment, and name of payee.		X
4. Have any payments been made to professionals? If yes, attach listing including date of payment, amount of payment, and name of payee.		X
5. If the answer to question 3 and/or 4 is yes, were all such payments approved by the Court?	N/A
6. Have any payments been made to officers, insiders, shareholders, or relatives? If yes, attach listing including date of payment, amount and reason for payment, and name of payee.		X
7. Have all postpetition tax returns been timely filed? If no, provide an explanation below.	N/A
8. Is the estate current on the payment of post-petition taxes?	X
9. Is the estate insured for the replacement cost of assets and for general liability? If no, provide an explanation below.	X
10. Is workers’ compensation insurance in effect?	N/A
11. Have all current insurance payments been made? Attach copies of all new and renewed insurance policies.	X
12. Are a plan and disclosure statement on file?		X
13. Was there any post-petition borrowing during this reporting period?		X

MOR-1

9/04

Auto Image ID, Inc.	Case No.	04-14152-JMD
Debtor	Reporting Period	July 31, 2005

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

Amounts reported should be per the debtor’s books, not the bank statement. The beginning cash should be the ending cash from the prior month or, if this is the first report, the amount should be the balance on the date the petition was filed. Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page.

A bank reconciliation must be attached for each account.

	BANK ACCOUNTS
	Operational	Payroll	Tax	Other	Total
CASH BEGINNING OF MONTH	0				0
RECEIPTS
CASH SALES
ACCOUNTS RECEIVABLE
LOANS AND ADVANCES
SALE OF ASSETS
OTHER (ATTACH LIST)
TRANSFERS (FROM DIP ACCTS)
TOTAL RECEIPTS
DISBURSEMENTS
NET PAYROLL
PAYROLL TAXES
SALES, USE & OTHER TAXES
INVENTORY PURCHASES
SECURED/RENTAL/LEASES
INSURANCE
ADMINISTRATIVE
SELLING
OTHER (ATTACH LIST)
OWNER DRAW *
TRANSFERS (TO DIP ACCTS)
PROFESSIONAL FEES
U.S. TRUSTEE QUARTERLY FEES
COURT COSTS
TOTAL DISBURSEMENTS
NET CASH FLOW (RECEIPTS LESS DISBURSEMENTS)
CASH - END OF MONTH	0				0

* COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE

THE FOLLOWING SECTION MUST BE COMPLETED

DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES:
TOTAL DISBURSEMENTS	0
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS	0
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts)	0
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES	0

MOR-2

9/04

Auto Image ID, Inc.	Case No.	04-14152-JMD
Debtor	Reporting Period	July 31, 2005

STATEMENT OF OPERATIONS (IN THOUSANDS)

(Income Statement)

The Statement of Operations is to be prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid.

REVENUES	Month		Cumulative Filing to Date
Gross Revenues
Less: Returns and Allowances
Net Revenue
COST OF GOODS SOLD
Beginning Inventory
Add: Purchases
Add: Cost of Labor
Add: Other Costs (attach schedule)
Less: Ending Inventory
Cost of Goods Sold
Gross Profit
OPERATING EXPENSES
Advertising
Auto and Truck Expense
Bad Debts
Contributions
Employee Benefits Programs
Insider Compensation*
Insurance
Management Fees/Bonuses
Office Expense
Pension & Profit-Sharing Plans
Repairs and Maintenance
Rent and Lease Expense
Salaries/Commissions/Fees
Supplies
Taxes - Payroll
Taxes - Real Estate
Taxes - Other
Travel and Entertainment
Utilities
Other (attach schedule)
Total Operating Expenses Before Depreciation
Depreciation/Depletion/Amortization	14		117
Net Profit(Loss) Before Other Income & Expenses	(14	)	(117	)
OTHER INCOME AND EXPENSES
Other Income (attach schedule)
Interest Expense	81		692
Other Expense (attach schedule)
Net Profit (Loss) Before Reorganization Items	(95	)	(809	)
REORGANIZATION ITEMS
Professional Fees
U.S. Trustee Quarterly Fees
Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet)
Gain(Loss) from Sale of Equipment
Other Reorganization Expenses (attach schedule)
Total Reorganization Expenses
Income Taxes
Net Profit(Loss)

* “Insider” is defined in 11 U.S.C. Section 101(31).

MOR-3

9/04

Auto Image ID, Inc.	Case No.	04-14152-JMD
Debtor	Reporting Period	July 31, 2005

STATEMENT OF OPERATIONS (IN THOUSANDS) - continuation sheet

BREAKDOWN OF “OTHER” CATEGORY	Month	Cumulative Filing to Date
Other Costs
Other Operational Expenses
Other Income
Other Expenses
Other Reorganization Expenses

Reorganization Items - Interest Earned on Accumulated Cash from Chapter 11:

Interest earned on cash accumulated during the chapter 11 case, which would not have been earned but for the bankruptcy proceeding, should be reported as a reorganization item.

MOR-3

9/04

Auto Image ID, Inc.	Case No.	04-14152-JMD
Debtor	Reporting Period	July 31, 2005

BALANCE SHEET (IN THOUSANDS)

The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from postpetition obligations.

ASSETS	BOOK VALUE AT END OF CURRENT REPORTING MONTH		BOOK VALUE ON PETITION DATE
CURRENT ASSETS
Unrestricted Cash and Equivalents
Restricted Cash and Cash Equivalents
Accounts Receivable (Net)
Notes Receivable
Inventories
Prepaid Expenses
Professional Retainers
Other Current Assets (attach schedule)
TOTAL CURRENT ASSETS	—		—
PROPERTY AND EQUIPMENT
Real Property and Improvements
Machinery and Equipment
Furniture, Fixtures and Office Equipment
Leasehold Improvements
Vehicles
Less Accumulated Depreciation
TOTAL PROPERTY & EQUIPMENT			—
OTHER ASSETS
Loans to Insiders
Other Assets (attach schedule)	722		839
TOTAL OTHER ASSETS	722		839
TOTAL ASSETS	722		839
LIABILITIES AND OWNER EQUITY	BOOK VALUE AT END OF CURRENT REPORTING MONTH		BOOK VALUE ON PETITION DATE
LIABILITIES NOT SUBJECT TO COMPROMISE (Post-Petition)
Accounts Payable
Taxes Payable (refer to ...)
Wages Payable
Notes Payable
Rent / Leases - Building/Equipment
Secured Debt / Adequate Protection Payments
Professional Fees
Amounts Due to Insiders
Other Postpetition Liabilities (attach schedule)	691
TOTAL POST-PETITION LIABILITIES	691		—
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt
Priority Debt
Unsecured Debt*	9,534		9,534
TOTAL PRE-PETITION LIABILITIES	9,534		9,534
TOTAL LIABILITIES	10,225		9,534
OWNER EQUITY
Capital Stock
Additional Paid-in Capital
Partners’ Capital Account
Owner’s Equity Account
Retained Earnings - Pre-Petition	(8,695	)	(8,695	)
Retained Earnings - Postpetition	(808	)
Adjustments to Owner Equity (attach schedule)
Post-Petition Contributions (Distributions) (Draws) (attach schedule)
Net Owner Equity	(9,503	)	(8,695	)
TOTAL LIABILITIES AND OWNERS’ EQUITY	722		839

Insider is defined in 11 U.S.C. Section 101(31)

* Includes $4,451,193 of Robotic Vision Systems, Inc. debt incurred in the acquisition of Auto Image ID, Inc. For accounting purposes, this debt has been reflected in the books and records of Auto Image ID, Inc.

MOR-4

9/04

Auto Image ID, Inc.	Case No.	04-14152-JMD
Debtor	Reporting Period	July 31, 2005

BALANCE SHEET (IN THOUSANDS) - continuation sheet

ASSETS	BOOK VALUE AT END OF CURRENT REPORTING MONTH	BOOK VALUE ON PETITION DATE
Other Current Assets
Other Assets
Goodwill	343	343
Technology	379	496
Total	722	839
LIABILITIES AND OWNER EQUITY	BOOK VALUE AT END OF CURRENT REPORTING MONTH	BOOK VALUE ON PETITION DATE
Other Postpetition Liabilities
Accrued Interest	691
Intercompany
Intercompany investment in subs
Adjustments to Owner Equity

Postpetition Contributions (Distributions) (Draws)

Restricted Cash: cash that is restricted for a specific use and not available to fund operations.

Typically, restricted cash is segregated into a separate account, such as an escrow account.

MOR-4

9/04

Auto Image ID, Inc.	Case No.	04-14152-JMD
Debtor	Reporting Period	July 31, 2005

STATUS OF POST-PETITION TAXES

The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero. Attach photocopies of IRS Form 6123 and all applicable state and local forms and/or all federal, state, and local payment receipts to verify payment of taxes. Attach photocopies of any tax returns filed during the reporting period.

	Beginning Tax Liability	Amount Withheld or Accrued	Amount Paid	Date Paid	Check No. or EFT	Ending Tax Liability
Federal
Income Tax Withholding
FICA-Employee
FICA-Employer
Unemployment
Income
Other:
Total Federal Taxes
State and Local
Income Tax Withholding
Sales
Excise
Unemployment
Real Property
Personal Property
Other:
Total State and Local
Withholding for Employee Healthcare
Premiums, Pensions & Other Benefits
Total Taxes	0					0
SUMMARY OF UNPAID POST-PETITION DEBTS
Attach aged listing of accounts payables
	Number of Days Past Due
	Current	0-30	31-60	61-90	Over 90	Total
Accounts Payable
Wages Payable
Taxes Payable
Rent/Leases-Building
Rent/Leases-Equipment
Secured Debt/Adequate Protection Payments
Professional Fees
Amounts Due to Insiders*
Other:
Other:
Total Postpetition Debts	0					0

Explain how and when the Debtor intends to pay any past-due post-petition debts.

* “Insider” is defined in 11 U.S.C. Section 101(31).

MOR-5

9/04

Auto Image ID, Inc.	Case No.	04-14152-JMD
Debtor	Reporting Period	July 31, 2005

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING (IN THOUSANDS)

ACCOUNTS RECEIVABLE RECONCILIATION	Amount
Total Accounts Receivable at the beginning of the reporting period	0
+ Amounts billed during the period
- Amounts collected during the period
Total Accounts Receivable at the end of the reporting period	0
Accounts Receivable Aging	Amount
0 - 30 days old
31 - 60 days old
61 - 90 days old
91+ days old
Total Accounts Receivable	0
Amount considered uncollectible (Bad Debt)
Accounts Receivable (Net)	0

MOR-6

9/04