OTC Bulletin Board S & P Company Insight for TITANIUM GROUP LTD
Profile
	Business Summary: Titanium Group Limited and its subsidiaries focus on the development of biometric technology, and installation and implementation of facial based biometric identification and security projects for law enforcement, mass transportation, and other government and private sector customers.   Address   15/F, Kennedy Town Commercial Tower   23 Belchers Street, Kennedy Town   Hong Kong   Phone: 852-3427-3177   Website: http://www.titanium-tech.com Auditor   Zhong Yi (Hong Kong) C.P.A. Co. Ltd.   Hong Kong   China Transfer Agent   Computershare Trust Co., Inc. Employees:  45 ShareHolders:  38 Founded:  2001
Background
	Titanium Group Limited and its subsidiaries focus on the development of biometric technology, and installation and implementation of facial based biometric identification and security projects for law enforcement, mass transportation, and other government and private sector customers. Its products include ProAccess FaceOK, which enables the users to sign-on to their computers through face recognition; ProAccess FaceGuard, a biometric physical access control system for physical access controls to areas, such as office premises, data centers, and server rooms; and ProAccess FaceAttend, which is face recognition- based time attendance recorder. The company also offers ProFacer iDVR, a digital video recorder with face image detection and capture for use at airports, banks, casinos, public buildings, subways, factories, and schools; ProFacer iWatchGuard that adds automatic full time face recognition, matching, and active warning alerts to any new or existing surveillance system; ProFacer iMugShot, a surveillance solution for law enforcement units; and ProFacer iDControl that utilizes facial recognition technology in the airline industry for national security. In addition, it provides professional and technical support services, including the design, development, and integration services of biometric identification and security solutions to customers using the products, as well as information security consulting, remote monitoring system consulting, security integration/development consulting, and security audit consulting services. Further, the company distributes various third party software products. Titanium Group markets its products through distributors in Hong Kong, the People's Republic of China, Macau, Japan, Europe, and the United States. The company was founded in 2001 and is based in Hong Kong. History:  INCORPORATED in British Virgin Islands May 17, 2004; and on June 22, 2005, acquired all of the issued share capital of Titanium Technology Ltd. (incorporated in Hong Kong Feb. 14, 2001). The company issued 47,000,000 shares in the acquisition.   Subsidiaries: Titanium Technology (Shenzhen) Co., Ltd. Titanium Technology Ltd.   Backlog Year Currency Amount 2006b1 Hong Kong Dollars 14,820(thousand) 2005b2 Hong Kong Dollars 7,800(thousand) 2004b3 Hong Kong Dollars 2,500(thousand)   Capital Expenditures, thousand. Hong Kong Dollars   Year   Amount   2006   2,875   2005   784   2004   122   Research and Development Expenditures, thousand. Hong Kong Dollars   Year   Amount   2006   750   2005   190   2004   0   b1Reported as of Mar. 31. b2Reported as of Dec. 31. b3Reported as of Dec. 31.
Management
	Management Officers Position  Kit Chong  Ng Chairman & Chief Financial Officer  Wai Hung  Tang Acting Chief Executive Officer Directors  Kit Chong  Ng  Wai Hung  Tang  Siu Shan  Wong
Annual Report
	Annual Report   Income Statement   2007 2007 2006 2005 REVENUE US$ HK$ HK$ Projects Products $1,443,607 $11,260,136 $15,074,036 Services 634,204 4,946,790 4,303,315 * 2,077,811 16,206,926 19,377,351 Maintenance Services 65,248 508,937 288,620 Total revenue 2,143,059 16,715,863 19,665,971 COST OF REVENUE Projects Cost of products sold 890,756 6,947,894 10,145,559 Cost of services 458,860 3,579,110 2,387,795 * 1,349,616 10,527,004 12,533,354 Maintenance Cost of services 7,051 55,000 67,378 Total cost of sales 1,356,667 10,582,004 12,600,732 GROSS PROFIT 786,392 6,133,859 7,065,239 OPERATING EXPENSES: Selling, general and administrative 1,391,926 10,857,021 7,962,186 Research and development - - 750,000 Stock-based compensation 118,939 927,724 2,188,409 Total operating expenses 1,510,865 11,784,745 10,900,595 (LOSS) INCOME FROM OPERATIONS (724,473) (5,650,886) (3,835,356) OTHER INCOME (EXPENSE): Government grant income 3,085 24,066 - Other income - - - Interest income 7,202 56,179 22,537 Interest expense (91,952) (717,223) (77,000) Amortization cost on discount of convertible debenture (47,300) (368,940) - Total other (expense) income (128,965) (1,005,918) (54,463) See accompanying notes to consolidated financial statements. * US$ HK$ HK$ (LOSS) INCOME BEFORE INCOME TAXES AND MINORITY INTEREST $(853,438) $(6,656,804) $(3,889,819) Income tax benefit (expense) 47,501 370,507 493,666 (LOSS) INCOME BEFORE MINORITY INTEREST (805,937) (6,286,297) (3,396,153) Minority interest (3,408) (26,583) 67,159 NET (LOSS) INCOME $(809,345) $(6,312,880) $(3,328,994) Net (loss) income per share Basic and diluted (0.02) (0.13) (0.07) Weighted average number of shares outstanding Basic and diluted 50,053,652 50,053,652 50,000,000 NET (LOSS) INCOME (809,345) (6,312,880) (3,328,994) Other comprehensive (loss) income: - Foreign currency translation (loss) gain (892) (6,960) 10,130 COMPREHENSIVE (LOSS) INCOME $(810,237) $(6,319,840) $(3,318,864) Operating Income As Calculated Depr. and Amort. Fixed Charges Coverage: Available for Fixed Charges Gross Fixed Charges Fixed Charges Times Earnings Fixed Charges Coverages and Preferred Dividends Times Earnings Capital Expenditures Research & Development Expenditures   Balance Sheet   2007 2007 2006 ASSETS US$ HK$ HK$ Current assets: Cash and cash equivalents $149,786 $1,168,331 $1,164,528 Restricted cash 51,282 400,000 - Accounts receivable, net 1,501,516 11,711,828 4,728,648 Inventories 190,380 1,484,962 71,156 Deposits and other receivables 50,277 392,159 342,347 Deferred tax assets 87,633 683,534 300,401 Income tax recoverable - - 118,442 Total current assets 2,030,874 15,840,814 6,725,522 Plant and equipment Cost 976,567 7,617,219 3,941,296 Less: accumulated depreciation (282,493) (2,203,449) (996,232) * 694,074 5,413,770 2,945,064 Intangible assets, net 476,692 3,718,194 2,642,055 TOTAL ASSETS $3,201,640 $24,972,778 $12,312,641 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Bank overdraft $154,949 $1,208,606 $1,712,024 Short-term bank loan 3,378 26,347 - Accounts payable and accrued liabilities 1,210,050 9,438,388 3,302,651 Deferred revenue 9,855 76,867 291,084 Income tax payable 1,619 12,626 - Total current liabilities 1,379,851 10,762,834 5,305,759 Long-term liabilities: Debenture payable 1,306,882 10,193,679 - Warrants liability 190,418 1,485,261 - Total long-term liabilities 1,497,300 11,678,940 - Total liabilities 2,877,151 22,441,774 5,305,759 Minority interest in net loss of consolidated subsidiaries 9,690 75,583 (67,159) Stockholders' equity: Common stock, US$0.01 (HK$0.078) par value, 100,000,000 shares authorized, 50,912,677 and 50,000,000 shares issued and outstanding 509,127 3,971,189 3,900,000 Additional paid-in capital 808,364 6,305,237 4,675,206 Accumulated deficit (1,002,524) (7,819,691) (1,506,811) Accumulated other comprehensive (loss) income (168) (1,314) 5,646 Total stockholders' equity 314,799 2,455,421 7,074,041 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $3,201,640 $24,972,778 $12,312,641 Net Working Capital Equity per Share Depr. and Amort. Reserve Preferred Shares Issued Common Shares Issued Treasury Shares - Preferred Treasury Shares - Common
Interim Report
	Interim Report      Data Not Available
Pro Forma Report
	Pro Forma Report      Data Not Available
Quarterly Report
	Quarterly Report Information      Quarterly Revenue, US$ Year Quarter Revenue   2008   1 500,000   2008   2 360,000   2008   3 360,000   2007   3 430,000   2007   4 1,000,000   2007   Full Year 2,140,000   2006   Full Year 2,520,000   2005   Full Year 13,300,000     Quarterly Net Income, US$ Year Quarter Revenue   2008   1 (200,000)   2008   2 (170,000)   2008   3 10,000   2007   3 (290,000)   2007   4 (130,000)   2007   Full Year (810,000)   2006   Full Year (3,329,000)   2005   Full Year 795,000   2004   Full Year 260,000   2003   Full Year 10,000     Quarterly EPS, US$ Year Quarter Revenue   2008   1 Nil   2008   2 Nil   2008   3 Nil   2007   3 (.01)   2007   4 Nil   2007   Full Year (.02)   2006   Full Year (.01)   2005   Full Year .02
Stock Data
	Capitalization as of 09/30/2008:     Authorized Shares Outstanding Shares Common $0.01 par 100,000,000 51,644,399   LONG TERM DEBT: Hong Kong Dollar 11,197,766.   Common $0.01 par   Stockholders:  02/28/2008, 38. PRINCIPAL STOCKHOLDERS: February 29, 2008, Golden Mass Technologies Ltd. (controlled by Johnny Ng) owned 73.7% of the Common.   Transfer Agent:  Computershare Trust Co., Inc.   Golden , CO   OTC Bulletin Board( Primary): TTNUF   Exchange Year High Low OTC Bulletin Board 2008 0.0900 0.0100 OTC Bulletin Board 2007 0.5000 0.0800 OTC Bulletin Board 2006 0.7500 0.3600   DIVIDENDS: Common $0.01 par: None.