QUARTERLY OPERATING RESULTS (UNAUDITED)

12 Months Ended

Dec. 31, 2011

QUARTERLY OPERATING RESULTS (UNAUDITED) [Abstract]

QUARTERLY OPERATING RESULTS (UNAUDITED)

NOTE 14 – QUARTERLY OPERATING RESULTS (UNAUDITED)

Quarterly operating results for 2011 and 2010 were as follows:

	1st			2nd			3rd			4th
2011
Revenues	$	2,816,578		$	1,022,765		$	611,206		$	619,607
Gross profit (loss)		144,464			95,037			(22,662	)		60,136
Operating loss		(1,361,263	)		(1,595,495	)		(1,764,984	)		(1,637,682	)
Net loss attributable to common	$	(1,407,262	)	$	(1,641,365	)	$	(1,811,499	)	$	(1,666,019	)
Weighted average number of shares outstanding, basic and diluted		91,058,783			91,096,836			91,100,100			91,101,106
Basic and diluted net loss per share	$	(0.02	)	$	(0.02	)	$	(0.02	)	$	(0.02	)

2010
Revenues	$	3,594,778		$	2,879,932		$	3,260,087		$	3,354,339
Gross profit		226,102			85,239			273,447			229,589
Operating loss		(955,646	)		(676,472	)		(329,580	)		(974,309	)
Net loss attributable to common	$	(1,012,835	)	$	(745,064	)	$	(374,456	)	$	(1,019,137	)
Weighted average number of shares outstanding, basic and diluted		89,000,884			89,687,321			89,791,303			89,941,160
Basic and diluted net loss per share	$	(0.01	)	$	(0.01	)	$	(0.004	)	$	(0.01	)

During 2011, revenues were approximately $5.1 million. Revenues from our counter-IED product line generated approximately $2.2 million during the first half of the year as we completed our contract with the US Marine Corps (“USMC”). Revenues from our LGE product line for 2011 totaled approximately $2.1 million mostly from our contract with the US Army's Research, Development and Engineering Command (“ARDEC”).

During 2010, 69% of our revenues were derived from supporting our USMC customer's counter-IED requirements. During the first half of 2010, the support efforts for the USMC customer involved building and delivering systems and spares to our customer and field services support and training. In the second half of 2010, support efforts involved developing a smaller version of the technology for installation on other military platforms and vehicles, and upgrading the engineering documentation of the system; while continuing field services, support and training for our customer. The decrease of $700,000 in revenues from the first quarter to the second quarter of 2010 was largely due to completion and delivery of our USP laser to our Navy customer in the early part of the second quarter.