The electronics industry covers an array of products and components, which includes semiconductors and passive/electromechanical products and systems, computer components, portable power supplies such as batteries and related products. The electronics industry is one of the largest industries in the United States and is growing. According to the Freedonia Group, a leading international market research firm, the global market for batteries, non-rechargeable as well as rechargeable, is estimated at $50 billion and is projected to increase 6.5% annually through 2008 to $65.1 billion. According to a recent article in the New York Times, portable rechargeable batteries are expected to be a $6.2 billion market this year and more than one billion batteries will be manufactured by some of the largest electronics companies in the world such as Sony, Sanyo, Matsushita and Samsung.

Supply chain managers have become an integral part of the electronics industry. OEMs and many small contract electronic manufacturers that use electronic components choose to outsource their procurement, inventory and materials management processes to third parties in order to concentrate their resources, including management, personnel costs and capital investment, on their core competencies, which include product development and sales and marketing. Many large distribution companies not only fill these procurement and materials management roles but further serve as a single supply source for original equipment manufacturers and contract electronic manufacturers and retailers, offering a much broader line of products, rapid or scheduled deliveries, incremental quality control measures and more support and supply chain management services than individual electronic component manufacturers.

The Company also stocks and distributes a broad range of branded and private-labeled batteries including nickel-cadmium, lithium, nickel metal hydride, alkaline and carbon-zinc batteries, which are used primarily in consumer electronic products. The Company also stocks components used in custom battery pack assembly.

The Company has an expanding line of power supply inverters, battery chargers and maintainers for various applications such as automotive, marine, hunting, motorcycle and medical scooters.

The Company’s line of jump-starters, called Starter-Up and Starter-Up Marine, are portable sources of 12-volt DC power used primarily as emergency starting power sources on failed automobile and marine batteries. These jump-starters may be used to power many accessories including cellular phones, laptops and radios. The Company has also added its own expanding 12-volt DC accessory line which includes electric auto jacks, impact wrenches, handheld vacuums, cordless air compressors, warmers/coolers, spotlights, electric mugs and others that plug into cigarette lighter sockets or any 12-volt DC power source.

The Company stocks and distributes electronic components, such as resistors carbon or metal film, capacitors of varying types and relays for use in the manufacture, repair, and modification of electronic equipment.

The Company offers offers engineering design assistance services for product lines, such as battery assembly systems, security and battery powered products as well as custom battery pack assembly and kitting.

The Company offers branding, packaging design and marketing services to assist customers in bringing their product from development to finished product.

Cost of sales totaled $38.0 million for the six month period ended June 30, 2006, compared to $33.1 million in the similar period in 2005, an increase of $5.0 million, or 15.0%.

Selling, general and administrative expenses were $4.6 million for the six month period ending June 30, 2006, compared to $3.8 million in 2005, an increase of $0.8 million, or 21.5%.

Interest expense totaled $403,000 for the six month period ended June 30, 2006 compared to $220,000 for the similar period in 2005, an increase of $183,000, or 83.2%.