Here is the gist of what happened in the qurter just reported...

From the 10Q on Yahoo...

"Results of Operations"

"Three months ended June 30, 2007 compared to the three months ended June 30, 2006

For the first quarter of fiscal 2008, we reported total revenues of $1,304,634 an increase from total revenues of $21,105 for the first quarter of fiscal 2007. Product revenues were $1,189,630 from selling eVU players and related equipment for use by airline customers. In the prior year's first quarter we were transitioning from an older product to our new eVU product that was introduced in the third quarter of fiscal 2007.

Service revenues for the first quarter of fiscal 2008 were $115,004 compared to $-0- for the comparable period of the prior year. These revenues resulted from billable contract and support services provided to airline customers.

Cost of sales for the three months ended June 30, 2007 consisted of $1,021,850 of product costs and related installation labor and services for in-flight entertainment devices sold in the period. Service cost of sales of $36,669 related to the direct costs of providing separately billed contract and support services to customers. Cost of sales for the three months ended June 30, 2006 consisted of $16,612 of product costs.

Gross profit for the first quarter of fiscal 2008 was $246,115 compared to a gross profit of $4,493 for the first quarter of fiscal 2007. Gross profit as a percent of sales for the first quarter of fiscal 2008 was 19%. The gross profit increase was due primarily to the sale of eVU products in the current period whereas we had no new product for sale in the prior year.

Selling, general and administrative costs for the three months ended June 30, 2007, was $471,097 compared to $335,569 for the first quarter of fiscal 2007. The $135,528 increase is attributed primarily to an increase of $100,000 in professional services related to litigation, patent enforcement and audits and an increase of $52,000 in sales commissions due to increased revenues.

Research and related expenditures for the three months ended June 30, 2007 were $280,312, as compared to $352,609 for the three months ended June 30, 2006. The decrease resulted primarily to reassigning engineers and technicians to customer support and service roles during the first quarter.

We reported an operating loss of $505,294 for the three months ended June 30, 2007, as compared to an operating loss of $683,685 for the three months ended June 30, 2006. The decrease in operating loss resulted primarily from the increase in revenue and gross margins from eVU sales offset by an increase in total operating expenses.

We reported interest expense of $68,672 for the three months ended June 30, 2007 versus $447,410 for the prior comparable period. This included non-cash amortization of debt discount of $16,735 and $367,677 for the three months ended June 30, 2007 and 2006, respectively. Other expenses of $19,599 for the most recent quarter included financing royalties of $18,780."...

OZ, this all sounds good to me. Will you please give your input!?...

Thanks...

Gil...