Here are some key excerpts from the MD&A (Source: Sedar):

Results of Operations

The Company generated revenues of $1,030,612 during the year ended July 31, 2008 as compared to $711,528 during the comparable period in 2007. The increase in sales is attributable to the commencement of sales of the Company’s ActiveMine™ product.

Cost of sales for the year ended July 31, 2008 were $1,024,145 compared to $609,596 in the year ended July 31, 2007. The gross margin in the year decreased compared to the same period last year due to high labour costs and an aggressive discount program for first time installation of the ActiveMine™ product. Selling, general and administrative costs (not including interest expense) for the year ended July 31, 2008 were $4,137,706 compared to $2,051,117 for the comparable period in 2007. The increase can be attributed to higher marketing costs of $298,773 ($192,680 - 2007), salary increases in line with growth of the ActiveMine™ product to $913,862 ($352,863 - 2007), stock based compensation expense increasing to $606,104 ($319,021 - 2007)), higher professional fees of $240,052 ($171,424 - 2007), increased insurance premiums due to increased cross border liability issues and in particular expenditures related to the development of the ActiveMine™ product. The Company has adopted a policy of expensing its development costs as they are incurred. During the year, the Company invested a total of $1,196,801 in the development of its products, including $160,850 in new product extensions for its Quick-Kee™ technology platform and $1,035,951 in the development of ActiveMine™.

Interest on capital leases and promissory notes for the year ended July 31, 2008 was $2,425 (2007 - $4,094).

The net loss for the year ended July 31, 2008 was $4,133,664 or $0.031 per share compared to a net loss of

$1,953,279 or $0.022 for the year ended July 31, 2007. While the loss for the year is significantly higher than the previous year it should be noted that the Company continues to invest substantially in the development of its ActiveMine™ product. All amounts incurred in product development are expensed as incurred.

Quarterly Information

Liquidity

Outlook

For its new ActiveMine™ product line, the Company is building momentum after receiving its first purchase orders in November 2007, December 2007 and February 2008 from three significant coal mining operators. ActiveMine was certified by the State of West Virginia in June 2007. The Company has conducted several in-mine demonstrations in that state and also in Central and Western USA and has made proposals to a number of US coal operators. The Company is working to achieve safety certification of ActiveMine™ by the U.S. Mine Safety and Health Administration (MSHA). The US Mine Safety and Health Administration (MSHA) has approved ActiveMine's RFID Wi-Fi tracking tags as intrinsically safe. The RFID Wi-Fi tracking tags are a key component of the system that enable accurate and real-time tracking of people and assets and also offer auxiliary two-way messaging capability.

The Company expects to have all components approved by MSHA by the end of the second quarter of the Company’s fiscal year. After achieving this milestone, the Company will pursue further commercialization of this product line starting with the U.S. coal mine market. The Company has initiated sales to provide wireless networks for the automation of a major international mining equipment manufacturer and is also targeting certain non-coal underground mines in the USA, which are non-gassy and do not require MSHA approval.

The Company recently announced that it has signed a binding framework agreement with a major coal mining

group in China, which establishes a beachhead for the entry into China’s coal mining communications and

tracking market. The Company has also announced the appointment of Dr. Annie Wang as the President of

ACT's new Asia, Pacific and Far East operations.

The Company will continue to market its ActiveSecure™ technology products, which have been redesigned to meet RoHS, FCC, IC, UL and CE standards.

The Company developed its new wireless ActiveMesh™ product line with the guidance of its major access control OEM customers. QuikMesh™ provides significant cost savings as compared to hard-wired installation of access control peripherals and systems and is generating strong early interest from the market.

Overall, we expect the investments made to date in redesigning the ActiveSecure™ technology, our investments in the ActiveMine™ system and the ActiveMesh™ family of products will deliver on our key financial objectives.