View Systems, Inc - Consolidated Statements of Stockholders’...

View Systems, Inc - Recent Material Event

Item 1.	Financial Statements (Unaudited)	4
	Condensed Consolidated Balance Sheet as of September 30, 2007 and December 31, 2006	5
	Consolidated Statements of Operations for three months ended September 30, 2007	6
	Consolidated Statements of Stockholders’ Equity (Deficit) for the three months ended September 30, 2007	7
	Condensed Consolidated Statements of Cash Flows for the three months ended September 30, 2007	8
	Notes to the Consolidated Financial Statements as of September 30, 2007	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	11
Item 3.	Controls and Procedures	23
PART II. OTHER INFORMATION		23
Item 1	Legal Proceedings	23
Item 2	Unregistered Sales of Equity Securities and use of Proceeds	23
Item 3	Defaults Upon Senior Securities	23
Item 4	Submission of Matters to a Vote of Security Holders	23
Item 5.	Other information	23
Item 6.	Exhibits	24
SIGNATURES		24

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

The Securities and Exchange Commission (“SEC”) encourages companies to disclose forward-looking information so that investors can better understand future prospects and make informed investment decisions. This report contains these types of statements. Words such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “project,” or “continue” or comparable terminology used in connection with any discussion of future operating results or financial performance identify forward-looking statements. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. All forward-looking statements reflect our present expectation of future events and are subject to a number of important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

In this report references to “View Systems,” “we,” “us,” and “our” refer to View Systems, Inc. and its subsidiaries.

PART I: FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

The financial information set forth below with respect to our statements of operations for the three month period ended September 30, 2007 and the year ended December 31, 2006 is unaudited. This financial information, in the opinion of management, includes all adjustments consisting of normal recurring entries necessary for the fair presentation of such data. The results of operations for the three month period ended September 30, 2006 are not necessarily indicative of results to be expected for any subsequent period.


View Systems, Inc. and Subsidiaries
Consolidated Balance Sheets

ASSETS
		September 30,	December 31,
		2007	2006

Current Assets
Cash		$ 17,026	$ 48,233
Accounts Receivable (Net of Allowance of $1,000)		295,416	306,247
Inventory		159,259	23,865

Total Current Assets		471,701	378,345

Property & Equipment (Net)		26,392	30,742

Other Assets
Licenses		1,128,302	1,207,022
Due from Affiliates		147,507	122,476
Deposits		4,087	7,328

Total Other Assets		1,279,896	1,336,826

Total Assets		$ 1,777,989	$ 1,745,913

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
Accounts Payable	$ 511,311		$ 421,908
Accrued Expenses	26,963		35,452
Accrued Interest	143,388		100,860
Accrued Royalties	131,250		75,000
Loans from Shareholder	548,897		113,175
Notes Payable	587,996		592,296

Total Current Liabilities	1,949,805		1,338,691

Long-term Debt
Accounts payable	30,000		90,000

Total Liabilities	1,979,805		1,428,691

Stockholders' Equity
Preferred Stock, Authorized 10,000,000 Shares, $.01 Par Value,
Issued and outstanding 7,171,725	71,717		71,717
Common Stock, Authorized 100,000,000 Shares, $.001 Par Value,
Issued and Outstanding 99,107,995	99,108		-
Issued and Outstanding 98,398,422	-		98,399
Additional Paid in Capital	19,745,194		19,662,903
Retained Earnings (Deficit)	(20,117,835)		(19,515,797)

Total Stockholders' Equity	(201,816)		317,222

Total Liabilities and Stockholders' Equity	$ 1,777,989		$ 1,745,913

The accompany notes are an integral part of these consolidated financial statements


View Systems, Inc. and Subsidiaries
Consolidated Statements of Operations


	For the Three Months Ended		For the Nine Months Ended
	September 30,		September 30,
	2007	2006	2007	2006


Revenues, Net	$ 128,138	$ 177,950	$ 1,089,907	$ 802,928

Cost of Sales	67,107	90,754	445,888	409,493

Gross Profit	61,031	87,196	644,019	393,435

Operating Expenses
Business Development	22,742	34,330	76,689	147,707
General & Administrative	136,118	92,097	474,143	339,324
Professional Fees	44,231	19,375	173,540	122,807
Salaries & Benefits	153,381	156,106	471,240	572,977

Total Operating Expenses	356,472	301,908	1,195,612	1,182,815

Net Operating Income (Loss)	(295,441)	(214,712)	(551,593)	(789,380)

Other Income(Expense)
Interest Expense	(20,365)	(10,725)	(50,445)	(24,740)

Total Other Income(Expense)	(20,365)	(10,725)	(50,445)	(24,740)

Net Income (Loss)	$ (315,806)	$ (225,437)	$ (602,038)	$ (814,120)

Net Income (Loss) Per Share	$ (0.00)	$ (0.00)	$ (0.01)	$ (0.01)

Weighted Average Shares Outstanding	98,701,410	92,004,089	98,668,293	91,271,864

The accompany notes are an integral part of these consolidated financial statements


View Systems, Inc. and Subsidiaries
Consolidated Statements of Stockholders' Equity (Deficit)
					Additional	Retained
	Preferred		Common		Paid-in	Earnings
	Shares	Amount	Shares	Amount	Capital	(Deficit)

Balance, December 31, 2005	7,171,725	$ 71,717	90,775,752	$ 90,776	$ 19,293,804	$ (18,375,345)

January - March 2006 -shares issued for cash	-	-	100,000	100	9,900	-

January - March 2006 - shares issued for services	-	-	160,000	160	15,840	-

April - June 2006 - shares issued for cash	-	-	60,000	60	5,940	-

April - June 2006 - shares issued for services	-	-	1,075,000	1,075	121,125	-

Reclassification of a receipt of proceeds from a loan
which was previously reflected as a payment for stock	-	-	(333,330)	(333)	(33,000)	-

July - September 2006 - shares issued for cash	-	-	500,000	500	24,500	-

October - December 2006 - shares issued for cash	-	-	5,611,000	5,611	266,189	-

October - December 2006 - shares issued for services	-	-	120,000	120	5,880	-

October - December 2006 - shares issued as payment
of a note payable including accrued interest	-	-	330,000	330	35,107	-

Costs associated with raising capital	-	-	-	-	(82,382)	-

Net loss for the year ended December 31, 2006	-	-	-	-	-	(1,140,452)

Balance, December 31, 2006	7,171,725	71,717	98,398,422	98,399	19,662,903	(19,515,797)

April - June 2007 - shares issued for cash	-	-	100,000	100	4,900	-

July - September 2007 - shares issued for cash	-	-	6,000	6	494	-

July - September 2007 - shares issued as payment
of notes payable	-	-	603,573	603	76,897	-

Net loss for the period ended September 30, 2007	-	-	-	-	-	(602,038)

Balance, September 30, 2007	7,171,725	$ 71,717	99,107,995	$ 99,108	$ 19,745,194	$ (20,117,835)

The accompany notes are an integral part of these consolidated financial statements


View Systems, Inc. and Subsidiaries
Consolidated Statements of Cash Flows

	For the Nine Months Ended
	September 30,
	2007	2006
Cash Flows from Operating Activities:
Net Income (Loss)	$ (602,038)	$ (814,120)
Adjustments to Reconcile Net Loss to Net Cash
Provided (Used) by Operations:
Depreciation & Amortization	85,170	87,719
Adjustment to allowance for doubtful accounts	-	(47,811)
Stock issued for services	-	138,200

Change in Operating Assets and Liabilities:
(Increase) Decrease in:
Accounts Receivable	10,831	168,367
Inventories	(135,394)	(83,703)
Deposits	3,241	(2,355)
Increase (Decrease) in:
Accounts Payable	29,403	161,357
Accrued Expenses	(8,489)	14,906
Accrued Interest	42,528	21,502
Accrued Royalties	56,250	(18,750)

Net Cash Provided (Used) by Operating Activities	(518,498)	(374,688)

Cash Flows from Investing Activities:
Purchases of equipment	(2,100)	(18,924)
Funds advanced (to) from affiliated entities	(25,031)	(21,766)
Purchase of licenses	-	(50,000)

Net Cash Used In Investing Activities	(27,131)	(90,690)

Cash Flows from Financing Activities: