UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington , D.C. 20549

FORM 10-Q

(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: June 30, 2008
or
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from:  ______________________ to __________________________________
                                                     
Commission File Number:   000-28739
 
                                               
MOBICOM CORPORATION
(Exact name of registrant as specified in its charter)


Nevada
 
91-1903590
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
3328 Granada Ave, San Diego, California
 
92104
(Address of principal executive offices)
 
(Zip Code)
     

(619) 977-1515
(Registrant’s telephone number, including area code)

Satellite Security Corporation
(Former name, former address and former fiscal year, if changed since last report)


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   x   No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o
Accelerated filer o
Non- accelerated filer o
Smaller reporting company x
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   o No x

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date:
 
Class
 
Outstanding at August 15, 2008
Common Stock
 
52,222,034 shares
 
 
 
 

T AB LE OF CONTENTS


 
PART I — FINANCIAL INFORMATION
 
I TE M 1.                      FINANCIAL STATEMENTS


Mobicom Corporation
and its sole subsidiary
Mobicom Korea
Consolidated Balance Sheet


   
Six Months Ended June 30, 2008
   
Year Ended December 31, 2007
 
   
(unaudited)
   
(audited)
 
   
United States
   
South Korean
   
United States
   
South Korean
 
   
Dollars
   
Won
   
Dollars
   
Won
 
Assets
                       
                         
Current assets
                       
Cash and cash equivalents
  $ 10,211     $ 10,690,344     $ 41,303     $ 38,959,764  
Accounts receivable
    2,362,433       2,473,444,051       29,462       27,790,666  
Prepayments
    61,763       64,665,018       10,320       9,734,822  
Loan to related party
    15,282       16,000,000       11,026       10,400,000  
Other current assets
    1,144       1,198,217       178       167,967  
Total current assets
    2,450,833       2,565,997,630       92,289       87,053,219  
                                 
Property and equipment, net
    642,496       672,686,643       752,321       709,638,488  
Deposits
    217,356       227,569,592       39,829       37,569,592  
                                 
Total assets
  $ 3,310,685     $ 3,466,253,865     $ 884,440     $ 834,261,299  
                                 
Liabilities and Stockholders' Deficit
                               
                                 
Current liabilities
                               
Accounts payable and accrued expenses
  $ 1,794,275     $ 1,878,587,546     $ 70,460     $ 66,462,904  
Advances from related parties
    339,066       354,999,000       221,570       208,999,000  
Other current liabilities
    3,820       4,000,000       -       -  
Total current liabilities
    2,137,161       2,237,586,546       292,030       275,461,904  
                                 
Total liabilities
    2,137,161       2,237,586,546       292,030       275,461,904  
                                 
Stockholders' equity
                               
Common stock, 250,000,000 shares authorized, par value $.001, 52,222,034 shares issued and outstanding
    50       52,222       55       52,222  
Additional paid in capital
    889,166       930,947,778       986,942       930,947,778  
Other comprehensive loss
    (3,033 )     -       -       -  
Accumulated earnings
    287,341       297,667,319       (394,587 )     (372,200,605 )
Total stockholders' equity
    1,173,524       1,228,667,319       592,410       558,799,395  
                                 
Total liabilities and stockholders' equity
  $ 3,310,685     $ 3,466,253,865     $ 884,440     $ 834,261,299  
 

Mobicom Corporation
and its sole subsidiary
Mobicom Korea
Consolidated Statements of Operations
(Unaudited)


   
Three Months Ended
   
Three Months Ended
   
Six Months Ended
   
Six Months Ended
 
   
June 30, 2008
   
June 30, 2007
   
June 30, 2008
   
June 30, 2007
 
   
United States
   
South Korean
   
United States
   
South Korean
   
United States
   
South Korean
   
United States
   
South Korean
 
   
Dollars
   
Won
   
Dollars
   
Won
   
Dollars
   
Won
   
Dollars
   
Won
 
                                                 
Revenues
  $ 1,659,430     $ 1,737,406,124     $ 11,491     $ 10,596,874     $ 2,861,058     $ 2,995,498,788     $ 65,709     $ 60,596,874  
                                                                 
Expenses
                                                               
Depreciation and amortization
    38,360       40,162,497       -       -       75,781       79,341,845       -       -  
Salaries, wages and benefits
    189,801       198,720,203       48,970       45,159,700       331,657       347,241,503       49,855       45,976,440  
Commissions and fees
    891,571       933,466,223       70,664       65,165,617       1,636,000       1,712,875,876       72,983       67,304,736  
Occupancy expenses
    39,560       41,419,057       18,993       17,515,400       64,452       67,480,471       25,233       23,270,169  
Interest expense
    -       -       -       -       -       -       -       -  
Supplies and server maintenance
    14,444       15,122,790       3,102       2,861,084       32,149       33,659,280       3,482       3,210,749  
Research and development
    -       -       -       -       -       -       5,422       5,000,000  
Taxes and dues
    5,465       5,722,140       760       700,800       7,603       7,960,760       4,280       3,947,400  
Freight expense
    407       426,070       -       121,500.00       2,420       2,534,070       999       921,500.00  
Other expenses
    48,524       50,804,578       3,616       3,334,208       70,133       73,428,313       5,035       4,642,902  
                                                                 
Total expenses
    1,228,134       1,285,843,558       146,104       134,858,309       2,220,195       2,324,522,118       167,290       154,273,896  
                                                                 
Operating profit
    431,296       451,562,566       (134,614 )     (124,261,435 )     640,863       670,976,670       (101,580 )     (93,677,022 )
                                                                 
Other expenese, net of other income
    (961 )     (1,006,010 )     1.42       1,310.00       (1,059 )     (1,108,746 )     1.42       1,310.00  
                                                                 
Net profit
  $ 430,335     $ 450,556,556     $ (134,612 )   $ (124,260,125 )   $ 639,804     $ 669,867,924     $ (101,579 )   $ (93,675,712 )
                                                                 
Basic and diluted loss per common share
    0.008       8.628       (0.072 )     (66.735 )     0.012       12.827       (0.055 )     (50.309 )
                                                                 
                                                                 
Weighted average number of common shares used in per share calculations
    52,222,034       52,222,034       1,862,000       1,862,000       52,222,034       52,222,034       1,862,000       1,862,000  
 

Mobicom Corporation
and its sole subsidiary
Mobicom Korea
Consolidated Statements of Cash Flows
(Unaudited)


   
Six Months Ended
   
Six Months Ended
 
   
June 30, 2008
   
June 30, 2007
 
   
United States
   
South Korean
   
United States
   
South Korean
 
   
Dollars
   
Won
   
Dollars
   
Won
 
Cash flows used for operating activities
                       
Net profit/(loss)
  $ 639,804     $ 669,867,924     $ (101,579 )   $ (93,675,712 )
Adjustments to reconcile net loss to net cash provided by operating activities:
                               
Depreciation and amortization
    75,781       79,341,845       -       -  
Changes in operating assets and liabilities
    -       -       -       -  
Increase in accounts receivable
    (2,335,890 )     (2,445,653,385 )     (7,947 )     (7,328,280 )
Increase in prepayments
    (52,304 )     (54,762,229 )     (4,165 )     (3,841,108 )
Increase in other current assets
    (1,144 )     (1,198,217 )     -       -  
Increase in other current liabilities
    3,820       4,000,000       1,623       1,497,020  
Increase in accounts payable and accrued expenses
    1,730,795       1,812,124,642       9,174       8,460,298  
                                 
Cash flows used for operating activities
    60,861       63,720,580       (102,893 )     (94,887,782 )
                                 
Cash flows from financing activities
                               
Advances from related parties
    139,447       146,000,000       43,375       40,000,000  
Proceeds from issuance of common stock
    -       -       216,874       200,000,000  
                                 
Cash flows from financing activities
    139,447       146,000,000       260,249       240,000,000  
                                 
Cash flows from investing activities
                               
Purchase of property and equipment
    (40,487 )     (42,390,000 )     (30,963 )     (28,553,637 )
Increase in deposits
    (181,473 )     (190,000,000 )     (33,182 )     (30,600,000 )
Loan to related party
    (5,349 )     (5,600,000 )     -       -  
                                 
Cash flows from investing activities
    (227,309 )     (237,990,000 )     (64,144 )     (59,153,637 )
                                 
Increase/(decrease) in cash and cash equivalents
    (27,001 )     (28,269,420 )     93,211       85,958,581  
                                 
Cash and cash equivalents - Beginning of period
    37,211       38,959,764       -       -  
                                 
Cash and cash equivalents - End of period
  $ 10,211     $ 10,690,344     $ 93,211     $ 85,958,581  
 

MOBICOM CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1- Basis of Presentation
 
The accompanying consolidated financial statements of Mobicom Corporation, a Nevada corporation, and its wholly-owned subsidiary, Mobicom Korea, a Korean corporation (together, the "Company," "us," "we," or "our"), as of June 30, 2008 and for the three and six months ended June 30, 2008 and 2007, respectively, are unaudited.  The official accounting records of the Company are expressed in Korean won and are maintained in accordance with the relevant laws and regulations of the Republic of Korea.  The accounting principles and reporting practices followed by the Company and generally accepted in Korea ("Korean GAAP") may differ in certain respects from accounting principles and reporting practices generally accepted in the United States ("US GAAP").  To conform more closely to presentations customary in filings with the Securities and Exchange Commission of the United States of America ("SEC"), the accompanying financial statements have been restructured and translated into English for the convenience of the readers of financial statements.  The conversion into U.S. dollars was made at the rate of W1046.9901 to US$1 effective as of the last business day of the period ended June 30, 2008.  Such conversion into U.S. dollars should not be construed as representations that the Korean won amounts could be converted into U.S. dollars at the above or any other rate.
 
In the opinion of management, the consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the consolidated financial position, operating results and cash flows for the periods presented.  Certain prior year amounts may have been reclassified to conform to current period presentation.
 
The information contained in the following condensed notes to the consolidated financial statements is condensed from that which would appear in the annual consolidated financial statements; accordingly, the consolidated financial statements should be reviewed in conjunction with the consolidated financial statements and related notes thereto contained in the Annual Report on Form 10-KSB for the year ended December 31, 2007 of the Company. It should be understood that the accounting measurements at an interim date inherently involve greater reliance on estimates than at year-end.  The results of operations for interim periods presented are not necessarily indicative of operating results for the entire year.
 
Note 2-Going Concern
 
The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  As shown in the financial statements, although the Company had increased revenues and a net profit of $639,804 for the six months ended June 30, 2008; during the period from February 17, 2007 through December 31, 2007 the Company incurred losses from operations of $393,972.  The financial statements do not include any adjustments relating to the recoverability and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
 
Note 3-Summary of Significant Accounting Policies
 
Use of Estimates
 
In preparing consolidated financial statements in conformity with US GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported periods.  Actual results could differ from those estimates.
 
Cash and Cash Equivalents
 
The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. As of June 30, 2008, the Company did not have any cash equivalents.
 
Property and Equipment
 
Property and equipment are stated at cost. Major renewals and betterments, which prolong the useful life or enhance the value of assets, are capitalized; expenditures for maintenance and repairs are charged to expenses as incurred.
 
Depreciation is provided principally by use of the straight-line method over the useful lives of the related assets, except for leasehold properties, which are depreciated over the terms of their related leases or their estimated useful lives, whichever is less.
 
The estimated useful lives are as follows:
 
Office equipment
5 years
Computer equipment
5 years
 

The gain or loss on disposal of property, plant and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets, and, if any, is recognized in the statement of operations.
 
Intangible Assets
 
Intangible assets are stated at cost less amortization computed using the straight-line method over useful lives.
 
Impairment of Assets
 
In accordance with Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting for Impairment or Disposal of Long-Lived Assets", the Company evaluates its long-lived assets to determine whether later events and circumstances warrant revised estimates of useful lives or a reduction in carrying value due to impairment. If indicators of impairment exist and if the value of the assets is impaired, an impairment loss would be recognized.  As of June 30, 2008, no impairment loss has been recognized.
 
Income Taxes
 
Income tax expense is determined by adding or deducting the total income tax and surtaxes to be paid for the current period and the changes in deferred income tax assets and liabilities.
 
Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profits.  Deferred tax liabilities are generally recognized for all taxable temporary differences with some exceptions and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which the deductible temporary differences can be utilized.  The carrying amount of deferred tax assets is reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered.  Deferred income tax assets and liabilities are classified into current and non-current based on the classification of related assets or liabilities for financial reporting purposes.
 
Revenue Recognition
 
Revenue is recognized in accordance with SEC Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements".  The Company recognizes revenue when the significant risks and rewards of ownership have been transferred to the customer pursuant to applicable laws and regulations, including factors such as when there has  been evidence of a sales arrangement, the performance has occurred, or service have been rendered, the price to the buyer is fixed or determinable, and collectability is reasonably assured.
 
Foreign Currency Transactions
 
The Company's functional currency is the Korean won and its reporting currency is U.S. dollars. The Company's consolidated, balance sheet accounts are translated into U.S. dollars at the year-end exchange rates and all revenue and expenses are translated into U.S. dollars at the average exchange rates prevailing during the periods in which these items arise.  Translation gains and losses are deferred and accumulated as a component of other comprehensive income in stockholders' equity.  Transaction gains and losses that arise from exchange rate fluctuations from transactions denominated in a currency other than the functional currency are included in the statement of operations as incurred.
 
Fair Value of Financial Instruments
 
SFAS No. 107, "Disclosures about Fair Values of Financial Instruments", requires disclosing fair value to the extent practicable for financial instruments that are recognized or unrecognized in the balance sheet.  The fair value of the financial instruments disclosed herein is not necessarily representative of the amount that could be realized or settled, nor does the fair value amount consider the tax consequences of realization or settlement.
 
For certain financial instruments, including cash, accounts and other receivables, accounts payable, accruals and other payables, it was assumed that the carrying amounts approximate fair value because of the near term maturities of such obligations. The carrying amounts of long-term loans approximate fair value as the interest on these loans is minimal.
 
Earnings/(Losses) Per Share
 
Basic earnings (loss) per share is computed by dividing the earnings for the year by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution of securities by including other potential common stock, including stock options and warrants, in the weighted average number of common shares outstanding for a period, if dilutive.


Accumulated Other Comprehensive Income
 
Accumulated other comprehensive income represents the change in equity of the Company during the periods presented from foreign currency translation adjustments.
 
Research and Development Costs
 
The Company charges substantially all research and development costs to expense as incurred.
 
Stock-Based Compensation
 
In December 2004, the Financial Accounting Standards Board ("FASB") issued SFAS No. 123(R), Share-Based Payment, which is a revision of SFAS No. 123. Generally, the approach in SFAS No. 123(R) is similar to the approach described in SFAS No. 123. However, SFAS No. 123(R) requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their grant-date fair values. Pro forma disclosure is no longer an alternative.
 
The Company has adopted SFAS No. 123(R)'s fair value method of accounting for share based payments. Accordingly, the adoption of SFAS No. 123(R)'s fair value method may have a significant impact on the Company's results of operations as we are required to recognize the cost of employee services received in exchange for awards of equity instruments based on the grant-date fair value of those awards. SFAS No. 123(R) permits public companies to adopt its requirements using either the "modified prospective" method or the "modified retrospective" method.
 
The impact of the adoption of SFAS No. 123(R) cannot be predicted at this time because it will depend on levels of share-based payments granted in the future.
 
New Accounting Pronouncements
 
In February 2008, FASB issued FASB Staff Position ("FSP") No. FAS 157-2, "Effective Date of FASB Statement No. 157" ("FSP FAS 157-2"), which delays the effective date SFAS No. 157, "Fair Value Measurements" for all non-financial assets and non-financial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually) for fiscal years beginning after November 15, 2008, and interim periods within those fiscal years for items within the scope of this FSP. We are currently evaluating the impact of adopting FSP FAS 157-2 for non-financial assets and non-financial liabilities on our financial position, cash flows, and results of operations.
 
We have considered all other recently issued accounting pronouncements and do not believe the adoption of such pronouncements will have a material impact on our consolidated financial statements.
 
Provisions, Contingent Liabilities and Contingent Assets
 
The Company recognizes a provision when 1) it has a present obligation as a result of a past event, 2) it is probable that a disbursement of economic resources will be required to settle the obligation, and 3) a reliable estimate can be made of the amount of the obligation.  When a possible range of loss in connection with a probable loss contingency as of the balance sheet date is estimable with reasonable certainty, and some amount within that range appears at the time to be a better estimate than any other amount within the range, the Company accrues such amount.  When no amount within the range appears to be a better estimate than any other amount, the minimum amount in that range is recorded.
 
The Company does not recognize the following contingent obligations as liabilities:
 
 
·
Possible obligations related to past events, for which the existence of a liability can only be confirmed upon occurrence of uncertain future event or events outside the control of the Company.
 
·
Present obligations arising out of past events or transactions, for which 1) a disbursement of economic resources to fulfill such obligations is not probable or 2) a disbursement of economic resources is probable, but the related amount cannot be reasonably estimated.

In addition, the Company does not recognize potential assets related to past events or transactions, for which the existence of an asset or future benefit can only be confirmed upon occurrence of uncertain future event or events outside the control of the Company.


Note 4- Plant and Equipment, net
 
   
June 30, 2008
 
   
US$
 
Cost
     
Office equipment
    55,031  
Computer equipment
    713,852  
      768,884  
         
Accumulated depreciation
       
Office equipment
    7,432  
Computer equipment
    118,956  
      126,388  
Carrying value
       
Office equipment
    47,599  
Computer equipment
    594,897  
    $ 642,496  

Depreciation expense for the six months ended June 30, 2008 was approximately $75,781.
 
Note 6-Loans to Related Party
 
The Company has a short term loan receivable from two employees of the Company.  From September 2007 through June 30, 2008, the Company loaned $15,282 to these two employees.  These loans are secured by the employees' salary.
 
Note 7-Related Party Transactions
 
As of June 30, 2008, the Company has the following transactions and balances with related parties.
 
The Company purchased computer hardware in 2007 from its major shareholder totaling $774,968 in exchange for 1,462,000 shares of its common stock.
 
An officer of the Company advanced $339,066 from September 2007 through June 30, 2008 for operating expenses.
 
Note 8-Subsequent Events
 
None.
 
 
I TE M 2.                      MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
 
This report contains forward-looking statements.  These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or anticipated results, including those set forth under "ITEM 1A. RISK FACTORS," below, and elsewhere in this report.  In some cases, you can identify forward looking statements by terms such as "may," "intend," "might," "should," "could," "would," "expect," "believe," "anticipate," "estimate," "predict," "potential," or the negative of these terms, and similar expressions are intended to identify forward-looking statements.  Such statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.  We undertake no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.  The forward-looking statements in this report are based upon management's current expectations and beliefs, which management believes are reasonable.
 
In this report, unless the context indicates otherwise, the terms "Company," "we," "us," and "our" refer to Mobicom Corporation, a Nevada corporation, and its subsidiary, Mobicom Korea, a Korean corporation.
 
The following discussion and analysis of the consolidated financial condition and results of operations should be read with our consolidated financial statements and related notes appearing elsewhere in this report.
 
Overview
 
Mobicom Corporation acquired all of the outstanding shares of Mobicom Korea in a share exchange transaction that closed on December 31, 2007.  Prior to this acquisition and since March 7, 2007, Mobicom Corporation did not have any business operations. Since the share exchange transaction, our primary business has been the operations conducted by Mobicom Korea in the development and sale of proprietary, interactive applications and services for the mobile telephone industry that generate transaction based revenue and aggregate end user data. Specifically, Mobicom Korea provides mobile membership marketing services, customized data base services, data indexed services and online marketing and promotional services to its customers.
 
Mobicom Korea established its current business on February 17, 2007.  At June 30, 2008, Mobicom Korea was generating monthly cash flow from operations sufficient to meet its operating expenses.
 
Management believes that there are significant opportunities to cross sell the products and services offered by Mobicom Korea into other markets and to sell new products and services into the Korean market. Management also believes that critical mass is a significant factor in the growth and sustainability of service providers in the mobile phone and Internet markets and to be successful we must clearly define strategies to achieve critical mass and to reach installed user bases.  From time to time, we evaluate opportunities to consolidate and aggregate marketing activities and databases in the mobile phone and Internet markets, particularly by offering brand owners tangible and measurable channels to market.
 
Management also believes that in order to grow our business, both merger and or acquisition opportunities need to be identified and explored. In this regard, management continues to evaluate prospects for acquisitions and subject to availability of resources, management intends pursuing such prospects in the near future.
 
RESULTS OF OPERATIONS
 
Mobicom Korea did not establish its current business until February 17, 2007.  Therefore, the comparison of our results of operations for the three and six month periods ended June 30, 2007 with our results of operations for the three and six month periods ended June 30, 2008, are generally not meaningful.
 
Revenues
 
Revenues were $1,659,430 for the three months ended June 30, 2008, compared to $11,491 for the same period in 2007.  Revenues were $2,861,058 for the six months ended June 30, 2007 compared to $65,709 for the same period in 2007.  Revenues increased $2,795,348 or 4,254% for the six months ended June 30, 2008, compared to the same period in 2007.  The increases in revenue were due to the successful launch of full scale operations after the initial period which began February 17, 2007.
 
Revenues were derived primarily from the Consulting Division of Mobicom Korea which provides clients with strategic marketing services, such as Decision Support Systems, which are designed to assist clients in the development of their mobile marketing campaigns. The Decision Support System is then used to analyze the client's position in the market place and in turn to design predictive modeling and consumer purchase programs which are then implemented by our clients.
 

We have submitted several proposals to potential customers that, if obtained, may increase our revenues.  Initial indications are that these proposals have been well received; however we have no agreements or understandings related to these proposals in place at this time and we cannot assure you that we will be successful in securing these projects.
 
General and Administrative
 
General and administrative expenses include payroll and related employee benefits, and other headcount-related costs associated with finance, sales, marketing, facilities, and legal and other administrative fees.  General and administrative costs were $1,228,134 for the three months ended June 30, 2008 compared with $146,104 for the same period in 2007.  General and administrative costs were $2,220,195 for the six months ended June 30, 2008 compared with $161,868 for the same period in 2007.  General and administrative expenses increased $2,047,484 or 1,265%, for the six months ended June 30, 2008 compared to the same period a year ago.  The increases in general and administrative expenses were primarily due to the launch of full scale operations after the initial period which began February 17, 2007.
 
Research and Development
 
Research and development expenses include payroll and other costs associated with software development, product design and outsourcing.  Research and development expenses were $0 for the three months ended June 30, 2008, compared to $0 for the same period in 2007.  Research and development expenses were $0 for the six months ended June 30, 2008, compared to $5,422 for the same period in 2007.  The decrease was due to the completion of research and development projects in 2007 and no such projects during the same period in 2008.
 
Other Income (Expense)
 
Other expense was $961 for the three months ended June 30, 2008 compared to $1 in other income for the same period in 2007.  Other expense was $1,059 for the six months ended June 30, 2008 compared to $1 in other income for the same period in 2007.  Other expense increased $1,060 for the six months ended June 30, 2008 compared to the same period a year ago.
 
Net Income
 
Net income includes income from operations and other expense.  We recorded net income of $430,335 for the three months ended June 30, 2008 compared to net loss of $134,612 for the same period in 2007.  We recorded net income of $639,804 for the six months ended June 30, 2008 compared to net loss of $101,579 for the same period in 2007.  The increase in net profit for the six months ended June 30, 2008 as compared to the same period of 2007 was due to an increase in revenue of $2,795.348 offset by an increase in operating costs of $2,052,905.
 
Liquidity and Capital Resources
 
On June 30, 2008, we had cash of $10,211 and accounts receivable, net of allowance for doubtful accounts, of $2,362,433.  Our working capital as of June 30, 2008 was $313,672 compared to a working capital deficit of $199,741 at December 31, 2007.
 
Net cash used in operating activities during the six months ended June 30, 2008 was $60,861.  The primary source of cash from operating activities was our net income of $639,804 and the increase in accounts payable of $1,730,795. The primary use of cash from operating activities was an increase in accounts receivable of $2,335,890.
 
There was $139,447 net cash from financing activities during the six months ended June 30, 2008.  The source of cash from financing activities was an advance from a related party.
 
Net cash used in investing activities during the six months ended June 30, 2008 was $227,309.  The primary uses of cash from investing activities were $40,487 for the purchase of property and equipment; $181,473 in new deposits, primarily related to a new facility lease; and $5,349 in loans to an employee.  There are no significant capital expenditures planned by the Company within the foreseeable future.
 
Our current source of liquidity is cash flows from operations.  We have no other credit facilities or other sources of liquidity available to us at this time.


At June 30, 2008 our operations were generating nominal positive cash flow on a monthly basis.  Based on the current budget forecasts, management believes that Mobicom Korea will not require substantial outside funding in the near future.  We intend to manage our expenses and cover our monthly costs from operations on an ongoing basis.  As the scope of our activities expands, new personnel will be hired. Because the mobile phone and Internet markets are primarily service and not fixed asset based, people will play an increasingly important role in our operations. Nonetheless, we will endeavor to manage operating expenses so they are commensurate with the growth of our business.
 
However, we do not have the capital resources to sustain a significant disruption in our revenues or overcome a substantial unexpected operating expense.  There are no agreements or arrangements for a financing in place at this time, and no assurances can be given concerning whether we will receive additional financing or as to the terms of any financing.
 
I TE M 3.                      QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 
Intentionally omitted pursuant to Item 305(e) of Regulation S-K.
 
ITE M 4.                        CONTROLS AND PROCEDURES
 
Disclosure controls and procedures are designed to ensure (i) that information we are required to disclose in the reports we file or submit under the Exchange Act are recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms; and (ii) that information we are required to disclose in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
 
Under the supervision of our chief executive officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report.  Based upon that evaluation, our chief executive officer concluded that as of June 30, 2008, the design and operation of such disclosure controls and procedures were not effective at the reasonable assurance level because of material weaknesses in our internal controls and procedures.
 
Material Weaknesses.
 
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.
 
Because we did not have any material operations from the period of March 3, 2007 until our acquisition of Mobicom Korea on December 31, 2007, we did not have material financial operations and our requirements for internal controls were limited during our fiscal year ended December 31, 2007.  In connection with our acquisition of Mobicom Korea, we acquired substantial new operations, including international operations, new accounting systems, new financial personnel, and new financial procedures for which we had not fully implemented our internal controls as of June 30, 2008.  Accordingly, our chief executive officer identified the following internal control deficiencies during his assessment of our internal control over financial reporting as of June 30, 2008: (i) we have not instituted all elements of an effective program to help prevent and detect fraud by Company employees; (ii) we did not maintain adequate segregation of duties for staff members responsible for recording revenue; and (iii) we have not completed a comprehensive test of material high risk internal controls to confirm these controls are effective.
 
If the identified material weaknesses are not remediated, one or more of those material weaknesses could result in a material misstatement in our reported financial statements in a future interim or annual period.  We are in the process of attempting to remediate the above noted weaknesses, but that remediation was not complete as of June 30, 2008.  We anticipate that we will complete the implementation of our internal controls and testing against a standardized framework over the next few fiscal quarters.   We will assess the need to take additional actions including, but not limited, to the following: evaluate accounting and control systems to identify opportunities for enhanced controls;  recruit and hire additional staff to provide greater segregation of duty;  evaluate the need for other employee changes; expand executive management's ongoing communications regarding the importance of adherence to internal controls and company policies;  implement an internal auditing function at the Company and its subsidiaries; and evaluate such other actions as our advisors may recommend.
 
Management does not believe any of its financial statements contain a material error as a result of any material weakness in internal controls.


Changes In Internal Controls Over Financial Reporting.
 
No changes were made in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during our most recent fiscal quarter that has materially affected, or is likely to materially affect, our internal control over financial reporting.
 
Limitations On Disclosure Controls And Procedures.
 
Our management does not expect that our disclosure controls or internal controls over financial reporting will prevent all errors or all instances of fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and any design may not succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures. Because of the inherent limitation of a cost-effective control system, misstatements due to error or fraud may occur and not be detected.


PART II — OTHER INFORMATION

I TE M 1.                      LEGAL PROCEEDINGS
 
In the course of business, we have been, and may continue to be, involved in various claims seeking monetary damages and other relief.  The amount of the ultimate liability, if any, from such claims cannot be determined. However, in the opinion of our management, the ultimate liability for any legal claims currently pending against us will not have a material adverse affect on our financial position, results of operations or cash flows.
 
I TE M 1A.                      RISK FACTORS
 
There have not been any material changes to the risk factors previously disclosed in our Annual Report on Form 10-KSB.
 
I TE M 2.                      UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 
None.
 
I TE M 3.                      DEFAULTS UPON SENIOR SECURITIES
 
None.
 
I TE M 4.                      SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
 
On April 28, 2008, the Company mailed a consent solicitation statement to each of the holders of record of the Company’s common stock as of the close of business on April 25, 2008.  The consent solicitation statement solicited the consent of the Company's stockholders to (i) elect each of Kyung Hoon Ahn, Young Jae Lee, Michael Levinsohn and Sung Hwan Park to the board of directors; and (ii) change the Company's name from "Satellite Security Corporation" to "Mobicom Corporation."  On May 6, 2008, the Company received consents from its stockholders representing the requisite number of shares of the Company’s outstanding common stock as of the record date to approve both actions.  Accordingly, on May 7, 2008, the Company filed a certificate of amendment to its article of incorporation with the Secretary of State of Nevada to change the name of the corporation to Mobicom Corporation.  For more information regarding the consent solicitation statement, please see the Definitive Schedule 14A filed by the Company with the Securities and Exchange Commission on April 28, 2008.
 
I TE M 5.                      OTHER INFORMATION
 
None.
 
I TE M 6.                      EXHIBITS
 
Exhibit No.
 
Description
     
 
Certification of Periodic Report by the Chief Executive Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
 
Certification of Periodic Report by the Chief Financial Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
 
Certification of Chief Executive Officer pursuant to 18 U.S.C, Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
Certification of Chief Financial Officer pursuant to 18 U.S.C, Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
*  Filed as an exhibit to this report
 

SIGNATURES
 
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 

 
Mobicom Corporation
     
Dated: August 19, 2008
By:
/s/ Michael Levinsohn
   
Michael Levinsohn
   
Chief Executive Officer
   
(Principal Executive and Principal Financial Officer)
 

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