OTC Bulletin Board S & P Company Insight for MSTI HOLDINGS INC
Profile
	Business Summary: MSTI Holdings, Inc., a communications technology company provides true quadruple play (Quad-Play) services to multi-tenant unit and multi-dwelling unit residential, hospitality, and commercial properties.   Address   259-263 Goffle Road   Hawthorne , NJ 07506   Phone: 973-304-6080   Fax: 973-304-6081   Website: http://www.mst-online.com Auditor   RBSM   New York Transfer Agent   Signature Stock Transfer, Inc. Employees:  36 ShareHolders:  101 Founded:  2006 Domicile:  Delaware
Background
	MSTI Holdings, Inc., a communications technology company provides true quadruple play (Quad-Play) services to multi-tenant unit and multi-dwelling unit residential, hospitality, and commercial properties. Its Quad-Play services include video, voice, high-speed Internet, and wireless fidelity access. The company provides digital television service through DISH Network, a national satellite television provider under the NuVisions brand of services, including approximately 500 channels of video and audio programming; NuVisions broadband high speed Internet service using terrestrial fiber optic links; and NuVisions digital voice telephone service. It also provides NuVisions Wi-Fi footprint and NuVisions Wi-Fi service, as well as Internet protocol television services that distribute television content over IP. In addition, MSTI Holdings operates as an Internet service provider, as well as offers a suite of ancillary services, including the design, installation, and service of satellite and Internet protocol based video conferencing and surveillance systems. The company was founded in 1982 and is based in Hawthorne, New Jersey. MSTI Holdings, INC. formerly operated as a subsidiary of Telkonet Inc. History:  INCORPORATED in Delaware May 18, 2007 as Fitness Xpress Software Inc., and on that date, merged a Nevada concern of the same name incorporated on Feb. 10, 2006. Name changed to MSTI Holdings, Inc. on May 24, 2007. May 22, 2007, merged its wholly owned Delaware subsidiary Microwave Acquisition Corp. into Microwave Satellite Technologies, Inc. (MST), a New Jersey corporation formed in 1982, which, as the surviving concern, became a wholly owned subsidiary of the company. Under the terms of the merger agreement, each MST common share was exchanged for 120,000 shares of the company's common stock. In connection with the merger, the company completed a private placement of common stock and warrants in units, which resulted in the issuance of 5,597,664 common shares and five-year warrants to buy 2,798,836 common shares at a price of $1.00 per share, for gross proceeds of $3,078,716.50 in the aggregate. July 18, 2007, Microwave Satellite Technologies, Inc., the company's wholly owned operating subsidiary, acquired substantially all the assets of Newport Telecommunications Co., a New Jersey general partnership, for a total consideration of $2,550,000.   Subsidiaries: Microwave Satellite Technologies, Inc.
Management
	Management Officers Position  Warren V. Musser Chairman  Frank T. Matarazzo Secretary & Chief Executive Officer  Ownkar  Persaud Chief Financial Officer & Chief Accounting Officer  Keith V. Scarzafava Chief Operating Officer  Alan  Kurian Chief Technology Officer  Harrison  Wise Investor Relations Contact Directors  Thomas C. Lynch  Frank T. Matarazzo  Warren V. Musser
Annual Report
	Annual Report   Income Statement   2007 Revenue, net $2,675,750 Cost of Sales 3,405,599 Gross Profit (Loss) (729,849) Operating Expenses: Selling, General and Administrative 4,108,077 Impairment write-down in Goodwill 1,958,198 Impairment write-down in Long Lived Assets 493,512 Non-Employee stock based compensation 337,500 Employee stock based compensation 40,500 Employee stock options 308,634 Depreciation and Amortization 466,142 Total Operating Expense 7,712,563 Loss from Operations (8,442,412) Other Income (Expense): Registration rights liquidated damage (500,000) Interest Income 71,480 Interest Expense (1,139,952) Total Other (Expenses) (1,568,472) Loss Before Provision for Income Taxes (10,010,884) Provision for Income Taxes - Net Loss $(10,010,884 Loss per common share (basic and diluted) ($0.43) Weighted average common shares for computation 23,439,567 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 $1,022,965 $114,468 Accounts receivable, net of allowance for doubtful accounts of $10,000 at December 31, 2007 and December 31, 2006 241,487 100,146 Deferred income tax - current - 261,517 Other current assets 222,872 76,056 Total current assets 1,487,324 552,187 Property and equipment, at cost (Note D): Furniture and equipment 382,214 268,514 Less: accumulated depreciation 82,385 37,683 Total property and equipment, net 299,829 230,831 Cable equipment and installations, at cost (Note E): Cable equipment and installations, at cost 5,286,580 3,684,237 Less: accumulated depreciation 930,607 344,045 Total Cable equipment and installations, net 4,355,973 3,340,192 Other assets: Intangible assets, net of accumulated amortization of $703,764 and $282,325 at December 31, 2007 and December 31, 2006, respectively (Note C) 3,740,350 2,181,602 Goodwill (Note B) - 1,958,198 Financing costs, net of accumulated amortization of $168,353 697,461 - Investment in affiliates (Note F) 54,803 54,803 Deposits 12,600 12,600 Total other assets 4,505,214 4,207,203 Total Assets $10,648,340 $8,330,413 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $1,862,918 $955,803 Current portion of long-term debt (Note H) 547 6,555 Registration rights liability (Note G) 500,000 - Note Payable officer - 80,444 Income tax refund due to officer (Note K) 291,000 291,000 Due to Parent Company (Note K) 1,270,287 5,603,310 Deferred revenue 116,851 96,463 Total current liabilities 4,041,603 7,033,575 Long-term liabilities: Long-term debt - less current portion (Note G and H) 4,432,344 547 Total long-term liabilities 4,432,344 547 Total Liabilities 8,473,947 7,034,122 Commitments and contingencies (Note N) - - Stockholders' equity (Note I) Preferred stock, par value $.001 per share; 10,000,000 shares authorized; none issued and outstanding at December 31, 2007 and December 31, 2006 - - Common stock, $0.001 par value, 90,000,000 shares authorized; 29,816,552 and 15,000,000 shares issued and outstanding as of December 31, 2007 and December 31, 2006 29,817 15,000 Additional paid-in capital 14,377,130 3,502,961 Accumulated deficit (12,232,554) (2,221,670) Total Stockholders' equity 2,174,393 1,296,291 Total Liabilities and Stockholders' Equity $10,648,340 $8,330,413 See accompanying notes to consolidated financial statements Net Working Capital Equity per Share Depr. and Amort. Reserve Preferred Shares Issued Common Shares Issued Treasury Shares - Preferred Treasury Shares - Common
Interim Report
	Interim Report      Data Not Available
Pro Forma Report
	Pro Forma Report      Data Not Available
Quarterly Report
	Quarterly Report Information      Quarterly Revenue, US$ Year Quarter Revenue   2008   1 920,000   2008   2 1,020,000   2008   3 990,000   2007   1 490,000   2007   2 500,000   2007   3 770,000   2007   4 910,000   2007   Full Year 2,680,000   2006   1 440,000   2006   2 440,000   2006   3 480,000   2006   4 490,000   2006   Full Year 1,900,000   2005   1 1,070,000   2005   2 1,090,000   2005   3 690,000   2005   4 690,000   2005   Full Year 3,530,000     Quarterly Net Income, US$ Year Quarter Revenue   2008   1 (1,380,000)   2008   2 (1,860,000)   2008   3 (2,180,000)   2007   2 (1,390,000)   2007   3 (2,460,000)   2007   4 (4,860,000)   2007   Full Year (10,010,000)   2006   Full Year (3,690,000)   2005   Full Year (60,000)     Quarterly EPS, US$ Year Quarter Revenue   2008   1 (.05)   2008   2 (.06)   2008   3 (.07)   2007   1 (.08)   2007   2 (.07)   2007   3 (.08)   2007   4 (.16)   2007   Full Year (.43)   2006   3 (.04)   2006   4 (.05)   2006   Full Year (.25)
Stock Data
	Capitalization as of 06/30/2008:     Authorized Shares Outstanding Shares Preferred $0.001 par 10,000,000 None Common $0.001 par 90,000,000 29,816,552   LONG TERM DEBT: $4,442,788.   Common $0.001 par   Stockholders:  04/01/2008, 101. PRINCIPAL STOCKHOLDERS: March 30, 2008, Telkonet, Inc. owned or controlled 62.0% of the Common and Frank T. Matarazzo 6.7%.   Transfer Agent:  Signature Stock Transfer, Inc.   Plano , TX   OTC Bulletin Board( Primary): MSHI   Exchange Year High Low OTC Bulletin Board 2008 0.9500 0.0100 OTC Bulletin Board 2007 1.9700 0.4000   DIVIDENDS: Common $0.001 par: None to public; 2008, None.