OTC Bulletin Board S & P Company Insight for AXCESS INTL INC
Profile
	Business Summary: Axcess International, Inc. provides dual-active radio frequency identification (RFID) and real time location systems (RTLS) that locate, identify, track, monitor, count, and protect people, property, and vehicles in the United States.   Address   3208 Commander Drive   Carrollton , TX 75006   Phone: 972-407-6080   Fax: 972-407-9085   Website: http://www.axcessinc.com Transfer Agent   American Stock Transfer & Trust Co. Employees:  19 ShareHolders:  684 Founded:  1981 Domicile:  Delaware
Background
	Axcess International, Inc. provides dual-active radio frequency identification (RFID) and real time location systems (RTLS) that locate, identify, track, monitor, count, and protect people, property, and vehicles in the United States. The company offers ActiveTag, a multi-use, single-system solution that supports automatic monitoring and tracking applications, including electronic asset protection and asset management, automatic personnel and vehicle access control, and wireless sensing; and Onlinesupervisor software that provides management solutions through reporting, display, and decision and control functions. Its products have applications in automated workforce management solutions, automated fleet access control and data capture solutions, electronic asset protection and tracking, electronic inventory control and tracking, and automatic personnel identification. The company also engages in the development, design, manufacture, and marketing of video security technology and video storage products; and packaging, sale, and marketing of high technology security products. It provides its solutions for homeland security markets, such as air and ground transportation, water treatment facilities, oil and gas, power plants, as well as for data centers, retail/convenience stores, education, healthcare, and enterprise corporate offices. The company sells its products through system integrators, distributors, specialty dealers, catalog sales organizations, and original equipment manufacturers. Axcess International, Inc. was founded in 1981. The company was formerly known as Axcess, Inc. and changed its name to Axcess International, Inc. in 2003. Axcess International, Inc. is based in Carrollton, Texas. History:  INCORPORATED in Delaware in December 1982, as successor to a company incorporated in New Mexico June 7, 1982; business founded Oct. 26, 1981. Name changed from Lasertechnics, Inc. to AXCESS Inc. Apr. 2, 1998; and to AXCESS International, Inc. in April 2003.   Subsidiaries: Sandia Imaging Systems Corporation     Capital Expenditures, thousand. US Dollars   Year   Amount   2007   9   2006   8   2005   7   Research and Development Expenditures, thousand. US Dollars   Year   Amount   2007   3,168   2006   1,381   2005   935
Management
	Management Officers Position  Richard C.E. Morgan Chairman  Allan  Griebenow President & Chief Executive Officer  Allan L. Frank Secretary, Chief Accounting Officer & Chief Financial Officer  Jordan  Darrow Investor Relations Contact Directors  Robert J. Bertoldi  Paul J. Coleman, Jr.  Allan  Griebenow  Robert F. Hussey  David  Illingworth  Richard C.E. Morgan
Annual Report
	Annual Report   Income Statement   2007 2006 Sales $3,412,484 $1,501,296 Cost of sales 1,478,959 837,789 Inventory impairment 8,419 6,664 Gross profit 1,925,106 656,843 Expenses: Research and development 3,167,736 1,380,875 General and administrative 1,773,678 1,795,479 Selling and marketing 1,609,610 1,171,023 Depreciation, amortization and impairment 15,665 18,805 Operating expenses 6,566,689 4,366,182 Loss from operations (4,641,583) (3,709,339) Other income (expense): Interest expense (330,898) (351,791) Gain on vendor settlements, statuary write-off and other 25,799 102,516 Gain on sale of intellectual property ---------- 600,000 Other income (expense), net (305,099) 350,725 Net loss (4,946,682) (3,358,614) Preferred stock dividend requirements Recurring (318,357) (325,163) 2005 Preferred equity offering ---------- (1,489,245) 2006 Preferred equity offering ---------- (645,020) 2006B Preferred equity offering ---------- (750,000) 2006C Preferred equity offering (2,000,000) ---------- 2007 Preferred equity offering (2,050,000) ---------- Preferred stock dividend requirements (4,368,357) (3,209,428) Net loss applicable to common stock $(9,315,039) $(6,568,042) Basic and diluted net loss per share $(0.32) $(0.23) Weighted average shares of common stock outstanding 28,851,328 28,329,221 See accompanying notes. Operating Income As Calculated Depr. and Amort. Fixed Charges Coverage: Available for Fixed Charges Gross Fixed Charges Fixed Charges Times Earnings Fixed Charges Coverages and Preferred Dividends Times Earnings Capital Expenditures Research & Development Expenditures   Balance Sheet   2007 2006 ASSETS Current assets: Cash and cash equivalents $59,089 $347,361 Accounts receivable -- trade, net of allowance for doubtful accounts of $32,363 and $16,868 for 2007 and 2006, respectively. 257,957 252,230 Inventory, net 193,405 396,305 Prepaid expenses and other 77,506 92,090 Total current assets 587,957 1,087,986 Property, plant and equipment, net 12,003 18,369 Deferred debt issuance costs 30,421 168,963 Other assets 56,438 2,934 Total assets $686,819 $1,278,252 LIABILITIES AND STOCKHOLDERS DEFICIT Current liabilities: Accounts payable $172,278 $101,261 Accrued liabilities 1,309,979 1,121,350 Deferred revenue 42,060 25,665 Notes payable: Notes payable (includes $150,000 and $393,787 with a related party in 2007 and 2006, respectively) 150,000 3,365,500 Dividends payable 125,991 138,594 Total current liabilities 1,800,308 4,752,370 Notes payable to stockholders (includes $393,787 with a related party in 2007) 2,858,346 ------------ Total liabilities 4,658,654 4,752,370 Commitments and contingencies (Notes 2, 8 and 13) Stockholders deficit: Convertible preferred stock, 10,000,000 shares authorized in 2007 and 2006. Without liquidation preferences; $0.01 par value, 6,860,116 and 7,073,550 shares issued and outstanding in 2007 and 2006, respectively 68,601 70,735 Common stock, $.01 par value, 70,000,000 shares authorized in 2007 and 2006; 29,304,927 shares issued and outstanding in 2007 and 28,657,313 shares issued and outstanding in 2006. 293,050 286,573 Shares of common stock to be issued, 25,000 shares as of December 31, 2007 250 ------------ Additional paid-in capital 162,947,266 158,184,537 Accumulated deficit (167,281,002) (162,015,963) Total stockholders deficit (3,971,835) (3,474,118) Total liabilities and stockholders deficit $686,819 $1,278,252 See accompanying notes. Net Working Capital Equity per Share Depr. and Amort. Reserve Preferred Shares Issued Common Shares Issued Treasury Shares - Preferred Treasury Shares - Common
Interim Report
	Interim Report      Data Not Available
Pro Forma Report
	Pro Forma Report      Data Not Available
Quarterly Report
	Quarterly Report Information      Quarterly Revenue, US$ Year Quarter Revenue   2008   1 180,000   2008   2 490,000   2007   1 1,020,000   2007   2 1,660,000   2007   3 280,000   2007   4 450,000   2007   Full Year 3,410,000   2006   1 450,000   2006   2 350,000   2006   3 370,000   2006   Full Year 1,500,000   2005   1 240,000   2005   2 210,000   2005   3 210,000   2005   Full Year 1,080,000   2004   1 210,000   2004   2 230,000   2004   3 300,000   2004   Full Year 910,000   2003   1 290,000   2003   2 250,000   2003   3 180,000   2003   4 200,000   2003   Full Year 920,000     Quarterly Net Income, US$ Year Quarter Revenue   2008   1 (1,640,000)   2008   2 (1,160,000)   2007   1 (1,810,000)   2007   2 (860,000)   2007   3 (1,080,000)   2007   4 (1,200,000)   2007   Full Year (4,950,000)   2006   1 (630,000)   2006   2 (970,000)   2006   3 (870,000)   2006   Full Year (3,358,600)   2005   1 (740,000)   2005   2 (940,000)   2005   3 (790,000)   2005   Full Year (3,256,100)   2004   1 (980,000)   2004   2 (1,060,000)   2004   3 (740,000)   2004   4 0   2004   Full Year (3,416,600)   2003   1 (700,000)   2003   2 (740,000)   2003   3 (1,010,000)   2003   4 (7,120,000)   2003   Full Year (9,571,700)     Quarterly EPS, US$ Year Quarter Revenue   2008   1 (.06)   2008   2 (.06)   2007   1 (.14)   2007   2 (.03)   2007   3 (.11)   2007   4 (.04)   2007   Full Year (.32)   2006   1 (.08)   2006   2 (.06)   2006   3 (.03)   2006   Full Year (.23)   2005   1 (.11)   2005   2 (.04)   2005   3 (.03)   2005   Full Year (.24)   2004   1 (.05)   2004   2 (.05)   2004   3 (.03)   2004   4 .00   2004   Full Year (.16)   2003   1 (.05)   2003   2 (.07)   2003   3 (.06)   2003   4 (.70)   2003   Full Year (.62)
Stock Data
	Capitalization as of 03/31/2008:     Authorized Shares Outstanding Shares Common $0.01 par 70,000,000 29,489,927 Convertible Preferred $0.01 par 10,000,000 6,750,111so2 Non-Voting Convertible Common $0.01 par 2,250,000 None   LONG TERM DEBT: $2,858,346.   Common $0.01 par   Stockholders:  12/31/2007, 684. Transfer Agent:  American Stock Transfer & Trust Co.   New York , NY   OTC Bulletin Board( Primary): AXSI   Exchange Year High Low OTC Bulletin Board 2007 1.9600 1.0100 OTC Bulletin Board 2006 1.4700 0.8200 OTC Bulletin Board 2005 1.9500 0.7700 OTC Bulletin Board 2004 3.9000 1.4000 OTC Bulletin Board 2003 3.0000 0.3000 OTC Bulletin Board 2002 4.3900 0.2500 NASDAQ Small Cap 2001 8.4500 3.1900 NASDAQ Small Cap 2000 11.6300 3.5000 NASDAQ Small Cap 1999 6.0000 1.2500 NASDAQ Small Cap 1998 5.0000 1.2500   DIVIDENDS: Common $0.01 par: No cash. Common reverse split 1-for-20, Apr. 2, 1998.       so2Consists of shares of Series 2003B, shares of Series 2004 and shares of Series 2005. All series are convertible into Common on a share-for-share basis.