Exhibit 99.1

UNITED STATES BANKRUPTCY COURT

DISTRICT OF NEW HAMPSHIRE

In re	Robotic Vision Systems, Inc.	Case No.	04-14151-JMD
		Reporting Period	Feb. 28, 2005

MONTHLY OPERATING REPORT

Complete and submit to the United States Trustee within 15 days after end of month

Submit copy of report to any official committee appointed in the case

REQUIRED DOCUMENTS	Form No.	Document Attached	Explanation Attached
Monthly Reporting Questionnaire	MOR-1	X
Schedule of Cash Receipts and Disbursements	MOR-2	X
Copies of Debtor’s Bank Reconciliations		X
Copies of Debtor’s Bank Statements		X
Copies of Cash Disbursements Journals		X
Statement of Operations	MOR-3	X
Balance Sheet	MOR-4	X
Schedule of Post-Petition Liabilities	MOR-5	X
Copies of IRS Form 6123 or payment receipt		N/A
Copies of tax returns filed during reporting period		N/A
Detailed listing of aged accounts payables		X
Accounts Receivable Reconciliation and Aging	MOR-6	X

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and all attachments are true and correct to the best of my knowledge and belief.

	________
Signature of Debtor	Date
	________
Signature of Joint Debtor	Date
/s/    FREDERICK VAN ALSTYNE	3/31/05
Signature of Authorized Individual*	Date
/s/    FREDERICK VAN ALSTYNE	Chief Financial Officer
Printed Name of Authorized Individual	Title of Authorized Individual

* Authorized individual must be an officer, director or shareholder if the debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

COVER PAGE

9/04

Robotic Vision Systems, Inc.	Case No.	04-14151-JMD
Debtor	Reporting Period	Feb. 28, 2005

MONTHLY REPORTING QUESTIONNAIRE

Must be completed each month	Yes	No
1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.		X
2. Have any funds been disbursed from any account other than a debtor-in-possession account this reporting period? If yes, provide an explanation below.		X
3. Have any payments been made on pre-petition debt, other than payments in the normal course to secured creditors or lessors? If yes, attach listing including date of payment, amount of payment, and name of payee. (See below)	X
4. Have any payments been made to professionals? If yes, attach listing including date of payment, amount of payment, and name of payee. (See listing below.)	X
5. If the answer to question 3 and/or 4 is yes, were all such payments approved by the Court?	X
6. Have any payments been made to officers, insiders, shareholders, or relatives? If yes, attach listing including date of payment, amount and reason for payment, and name of payee.		X
7. Have all postpetition tax returns been timely filed? If no, provide an explanation below.	N/A
8. Is the estate current on the payment of post-petition taxes?	X
9. Is the estate insured for the replacement cost of assets and for general liability? If no, provide an explanation below.	X
10. Is workers’ compensation insurance in effect?	X
11. Have all current insurance payments been made? Attach copies of all new and renewed insurance policies.	X
12. Are a plan and disclosure statement on file?		X
13. Was there any post-petition borrowing during this reporting period?		X

Payments to Professionals and expenses:

2/4/05 - Jeff Lucas - $15,985.33

2/18/05 - Jeff Lucas - $15,095.33

2/10/05 - Marotta Gund Budd & Dzera, LLC - $13,762.47

2/16/05 - Marotta Gund Budd & Dzera, LLC - $150,000

Pre-Petition payments:

Earned time - $17,892.41 2/3-2/10-2/17-2/24/05

Sick time - $2,054.83 2/10-2/24/05

MOR-1

9/04

Robotic Vision Systems, Inc.	Case No.	04-14151-JMD
Debtor	Reporting Period	Feb. 28, 2005

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

Amounts reported should be per the debtor’s books, not the bank statement. The beginning cash should be the ending cash from the prior month or, if this is the first report, the amount should be the balance on the date the petition was filed. Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page.

A bank reconciliation must be attached for each account.

	BANK ACCOUNTS
(IN THOUSANDS)	Operational		Payroll	Tax	Other	Total
CASH BEGINNING OF MONTH	2,588					2,588
RECEIPTS
CASH SALES	—					—
ACCOUNTS RECEIVABLE	1,916					1,916
LOANS AND ADVANCES	—					—
SALE OF ASSETS	—					—
OTHER (ATTACH LIST)	—					—
TRANSFERS (FROM DIP ACCTS)	—					—
TOTAL RECEIPTS	1,916					1,916
DISBURSEMENTS
NET PAYROLL	1,056					1,056
PAYROLL TAXES	147					147
SALES, USE & OTHER TAXES						—
INVENTORY PURCHASES	1,041					1,041
SECURED/RENTAL/LEASES	375					375
INSURANCE	294					294
ADMINISTRATIVE	86					86
SELLING	—					—
OTHER (ATTACH LIST) - see below	332					332
OWNER DRAW *	—					—
TRANSFERS (TO DIP ACCTS)	—					—
PROFESSIONAL FEES	195					195
U.S. TRUSTEE QUARTERLY FEES	—					—
COURT COSTS	—					—
TOTAL DISBURSEMENTS	3,526					3,526
NET CASH FLOW
(RECEIPTS LESS DISBURSEMENTS)	(1,610	)				(1,610	)
CASH - END OF MONTH	978					978

* COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE

THE FOLLOWING SECTION MUST BE COMPLETED

DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES
TOTAL DISBURSEMENTS
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts)
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES	—

Other Disbursements:
Intercompany Payments (Singapore, China, Abante)	212
401K	120
Total	332

MOR-2

9/04

Robotic Vision Systems, Inc.	Case No.	04-14151-JMD
Debtor	Reporting Period	Feb. 28, 2005

STATEMENT OF OPERATIONS (IN THOUSANDS)

(Income Statement)

The Statement of Operations is to be prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid.

REVENUES	Month		Cumulative Filing to Date
Gross Revenues	3,251		8,142
Less: Returns and Allowances	—		—
Net Revenue	3,251		8,142
COST OF GOODS SOLD
Beginning Inventory	9,587		10,758
Add: Purchases	1,114		2,490
Add: Cost of Labor	89		268
Add: Other Cost (attach schedule)	175		760
Less: Ending Inventory	9,102		9,102
Cost of Goods Sold	1,863		5,174
Gross Profit	1,388		2,968
OPERATING EXPENSES
Sales and Marketing Support	64		180
Auto and Truck Expense	1		3
Bad Debts			46
Contributions	—		—
Employee Benefits Programs	138		431
Insider Compensation*	—		—
Insurance	82		274
Management Fees/Bonuses	—		—
Office Expense			17
Pension & Profit-Sharing Plans	—		—
Repairs and Maintenance	5		9
Rent and Lease Expense	135		528
Salaries/Commissions/Fees	966		3,380
Supplies	11		27
Taxes - Payroll	26		51
Taxes - Real Estate	—		—
Taxes - Other	2		185
Travel and Entertainment	50		223
Utilities	37		137
Other (attach schedule)	247		594
Total Operating Expenses Before Depreciation	1,764		6,085
Depreciation/Depletion/Amortization	89		391
Net Protit(Loss) Before Other Income & Expenses	(465	)	(3,508	)
OTHER INCOME AND EXPENSES
Other Income (attach schedule)			(85	)
Interest Expense	550		1,924
Other Expense (attach schedule)	—		—
Net Profit (Loss) Before Reorganization Items	(1,015	)	(5,517	)
REORGANIZATION ITEMS
Professional Fees	674		2,181
U.S. Trustee Quarterly Fees	—		—
Interest Earned on Accumulated Cash from Chapter 11 (se	—		—
Gain(Loss) from Sale of Equipment	—		—
Other Reorganization Expenses (attach schedule)	—		—
Total Reorganization Expenses	674		2,181
Income Taxes	—		—
Net Profit(Loss)	(1,689	)	(7,698	)

* “Insider” is defined in 11 U.S.C. Section 101(31).

MOR-3

9/04

Robotic Vision Systems, Inc.	Case No.	04-14151-JMD
Debtor	Reporting Period	Feb. 28, 2005

STATEMENT OF OPERATIONS (IN THOUSANDS) - continuation sheet

BREAKDOWN OF “OTHER” CATEGORY	Month	Cumulative Filing to Date
Other Costs
Overhead portion of cost of sales	175	760
Other Operational Expenses
cap software adds-reduction to R&D expense	205	87
various	4	(17	)
Audit accrual	—	54
Bank Charges	6	298
Director Fees	—	6
Stock Admin Fees	2	6
Legal Expenses	9	37
Public Reporting	2	9
Freight	—	18
Consulting accrual	19	96
Total	247	594
Other Income
Royalty Payment		(85	)
Other Expenses
Other Reorganization Expenses

Reorganization Items - Interest Earned on Accumulated Cash from Chapter 11:

Interest earned on cash accumulated during the chapter 11 case, which would not have been earned but for the bankruptcy proceeding, should be reported as a reorganization item.

MOR-3

9/04

Robotic Vision Systems, Inc.	Case No.	04-14151-JMD
Debtor	Reporting Period	Feb. 28, 2005

BALANCE SHEET (IN THOUSANDS)

The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from postpetition obligations.

	BOOK VALUE AT END OF CURRENT REPORTING MONTH		BOOK VALUE ON PETITION DATE
ASSETS
CURRENT ASSETS
Unrestricted Cash and Equivalents	978		166
Restricted Cash and Cash Equivalents	—		—
Accounts Receivable (Net)	8,207		10,056
Notes Receivable	—		—
Inventories	9,102		10,758
Prepaid Expenses	876		1,115
Professional Retainers	—		—
Other current Assets (attach schedule)	—		—
TOTAL CURRENT ASSETS	19,163		22,095
PROPERTY AND EQUIPMENT
Real Property and Improvements	—		—
Machinery and Equipment	5,626		5,853
Furniture, Fixtures and Office Equipment	6,134		6,236
Leasehold Improvements	2,621		2,621
Vehicles	—		—
Less Accumulated Depreciation	(12,127	)	(11,879	)
TOTAL PROPERTY & EQUIPMENT	2,254		2,831
OTHER ASSETS
Loans to Insiders	—		—
Other Assets (attach schedule)	24,589		26,345
TOTAL OTHER ASSETS	24,589		26,345
TOTAL ASSETS	46,006		51,271
	BOOK VALUE AT END OF CURRENT REPORTING MONTH		BOOK VALUE ON PETITION DATE
LIABILITIES AND OWNER EQUITY
LIABILITIES NOT SUBJECT TO COMPROMISE (Post Petition)
Accounts Payable	583		—
Taxes Payable (refer to...)	—		—
Wages Payable	634		—
Notes Payable	—		—
Rent / Leases - Building/Equipment	—		—
Secured Debt / Adequate Protection Payments	—		—
Professional Fees	—		—
Amounts Due to Insiders	—		—
Other Postpetition Liabilities (attach schedule) :	122		—
TOTAL POST-PETITION LIABILITIES	1,339		—
LIABILITIES SUBJECT TO COMPROMISE (Pre Petition)
Secured Debt	17,883		15,883
Priority Debt	—		—
Unsecured Debt Including intercompany	12,368		13,301
Unsecured Debt Payable to subsidiaries	8,147		8,147
Subsidiaries Investment	16,699		16,699
TOTAL PRE-PETITION LIABILITIES	55,097		54,030
TOTAL LIABILITIES	56,436		54,030
OWNER EQUITY
Capital Stock	214		214
Additional Paid-In Capital	317,122		317,116
Partners’ Capital Account	—		—
Owner’s Equity Account	—		—
Retained Earnings - Pre-Petition	(318,775	)	(318,775	)
Retained Earnings - Postpetition	(7,698	)	—
Adjustments to Owner Equity (attach schedule)	(1,293	)	(1,314	)
Post-Petition Contributions (Distributions) (Draws)	—		—
Net Owner Equity	(10,430	)	(2,759	)
TOTAL LIABILITIES AND OWNERS’ EQUITY	46,006		51,271

Insider is defined in 11 U.S.C. Section 101(31)

MOR-4

9/04

Robotic Vision Systems, Inc.	Case No.	04-14151-JMD
Debtor	Reporting Period	Feb. 28, 2005

BALANCE SHEET (IN THOUSANDS) - continuation sheet

	BOOK VALUE AT END OF CURRENT REPORTING MONTH		BOOK VALUE ON PETITION DATE
ASSETS
Other Current Assets
_______________________________
_______________________________
_______________________________
Other Assets
Capitalized software	3,341		3,684
Patents	192		202
Deposits	159		153
Employee Loans			2
Other Non Current Assets	620		620
Loan refinance closing cost	3,988		5,313
Goodwill	990		990
Investment in subsidiaries	15,299		15,381
Total	24,589		26,345
	BOOK VALUE AT END OF CURRENT REPORTING MONTH		BOOK VALUE ON PETITION DATE
LIABILITIES AND OWNER EQUITY
Other Postpetition Liabilities
Received not invoiced	30
Accrued Warranty
Accrued Royalty
Accrued Sales Return
Customer Advances
Other AP
Other Accrued Liability
Other- Fringe benefit	92
Deferred Gross Profit
Total	122
Adjustments to Owner Equity
Minimum pension obligation	(583	)	(583	)
Cumulative Translation Adjustment	(710	)	(731	)
Total	(1,293	)	(1,314	)

Postpetition Contributions (Distributions)(Draws)

Restricted Cash: cash that is restricted for a specific use and not available to fund operations.

Typically, restricted cash is segregated into a separate account, such as an escrow account.

MOR-4

9/04

Robotic Vision Systems, Inc.	Case No.	04-14151-JMD
Debtor	Reporting Period	Feb. 28, 2005

STATUS OF POST-PETITION TAXES

The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero. Attach photocopies of IRS Form 6123 and all applicable state and local forms and/or all federal, state, and local payment receipts to verify payment of taxes. Attach photocopies of any tax returns filed during the reporting period.

	Beginning Tax Liability	Amount Withheld or Accrued	Amount Paid	Date Paid	Check No. or EFT	Ending Tax Liability
Federal
Income Tax Withholding	—	52,209	52,209	2/23/05	Filed by ADP	—
FICA-Employee	—	31,411	31,411	2/23/05	Filed by ADP	—
FICA-Employer	—	31,411	31,411	2/23/05	Filed by ADP	—
Unemployment	—	1,031	1,031	2/23/05	Filed by ADP	—
Income	—	—	—			—
Other:	—	—	—			—
Total Federal Taxes	—	116,062	116,062			—
State and Local
Income Tax Withholding	—	14,304	14,304	2/23/05	Filed by ADP	—
Sales	—	—	—			—
Excise	—	—	—			—
Unemployment	—	16,987	16,987	2/23/05	Filed by ADP	—
Real Property	—	—	—			—
Personal Property	—	—	—			—
Other:	—	—	—			—
Total State and Local	—	31,292	31,292			—
Withholding for Employee Healthcare	—	—	—			—
Premiums, Pensions & Other Benefits	—	50,185				50,185
Total Taxes	—	81,476	31,292			50,185
SUMMARY OF UNPAID POST-PETITION DEBTS (IN THOUSANDS) Attach aged listing of accounts payables
	Number of Days Past Due
	Current	0-30	31-60	61-90	Over 90	Total
Accounts Payable	303	83	83	113	—	583
Wages Payable	634	—	—	—	—	634
Taxes Payable	—	—	—	—	—	—
Rent/Leases-Building	—	—	—	—	—	—
Rent/Leases-Equipment	—	—	—	—	—	—
Secured Debt/Adequate Protection Payments	—	—	—	—	—	—
Professional Fees	—	—	—	—	—	—
Amounts Due to Insiders*	—	—	—	—	—	—
Other:	—	—	—	—	—	—
Other:	—	—	—	—	—	—
Total Postpetition Debts	937	83	83	113	—	1,216

Explain how and when the Debtor intends to pay any past-due post-petition debts.

We intend to pay past-due amounts within the next month out of operating cash.

* “Insider” is defined in 11 U.S.C. Section 101(31).

MOR-5

9/04

Robotic Vision Systems, Inc.	Case No.	04-14151-JMD
Debtor	Reporting Period	Feb. 28, 2005

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING (IN THOUSANDS)

ACCOUNTS RECEIVABLE RECONCILIATION	Amount
Total Accounts Receivable at the beginning of the reporting period	8,191
+ Amounts billed during the period*	2,735
- Amounts collected during the period**	2,059
Total Accounts Receivable at the end of the reporting period	8,867
Accounts Receivable Aging	Amount
Current	3,748
31 - 60 days old	423
61 - 90 days old	430
91+ days old	4,266
Total Accounts Receivable	8,867
Amount considered uncollectible (Bad Debt)	(660	)
Accounts Receivable (Net)	8,207

* Include vendor activity

** Include intercompany non cash payments $140K

MOR-6

9/04

UNITED STATES BANKRUPTCY COURT

DISTRICT OF NEW HAMPSHIRE

In re	Auto Image ID, Inc.	Case No.	04-14152-JMD
		Reporting Period	Feb. 28, 2005

MONTHLY OPERATING REPORT

Complete and submit to the United States Trustee within 15 days after end of month

Submit copy of report to any official committee appointed in the case

REQUIRED DOCUMENTS	Form No.	Document Attached	Explanation Attached
Monthly Reporting Questionnaire	MOR-1	X
Schedule of Cash Receipts and Disbursements	MOR-2	X
Copies of Debtor’s Bank Reconciliations		N/A
Copies of Debtor’s Bank Statements		N/A
Copies of Cash Disbursements Journals		N/A
Statement of Operations	MOR-3	X
Balance Sheet	MOR-4	X
Schedule of Post-Petition Liabilities	MOR-5	X
Copies of IRS Form 6123 or payment receipt		N/A
Copies of tax returns filed during reporting period		N/A
Detailed listing of aged accounts payables		N/A
Accounts Receivable Reconciliation and Aging	MOR-6	X

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and all attachments are true and correct to the best of my knowledge and belief.

	________
Signature of Debtor	Date
	________
Signature of Joint Debtor	Date
/s/    FREDERICK VAN ALSTYNE	3/31/05
Signature of Authorized Individual*	Date
/s/    FREDERICK VAN ALSTYNE	Chief Financial Officer
Printed Name of Authorized Individual	Title of Authorized Individual

* Authorized individual must be an officer, director or shareholder if the debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

COVER PAGE

9/04

Auto Image ID, Inc.	Case No.	04-14152-JMD
Debtor	Reporting Period	Feb. 28, 2005

MONTHLY REPORTING QUESTIONNAIRE

Must be completed each month	Yes	No
1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.		X
2. Have any funds been disbursed from any account other than a debtor-in-possession account this reporting period? If yes, provide an explanation below.		X
3. Have any payments been made on pre-petition debt, other than payments in the normal course to secured creditors or lessors? If yes, attach listing including date of payment, amount of payment, and name of payee.		X
4. Have any payments been made to professionals? If yes, attach listing including date of payment, amount of payment, and name of payee.		X
5. If the answer to question 3 and/or 4 is yes, were all such payments approved by the Court?	N/A
6. Have any payments been made to officers, insiders, shareholders, or relatives? If yes, attach listing including date of payment, amount and reason for payment, and name of payee.		X
7. Have all postpetition tax returns been timely filed? If no, provide an explanation below.	N/A
8. Is the estate current on the payment of post-petition taxes?	X
9. Is the estate insured for the replacement cost of assets and for general liability? If no, provide an explanation below.	X
10. Is workers’ compensation insurance in effect?	N/A
11. Have all current insurance payments been made? Attach copies of all new and renewed insurance policies.	X
12. Are a plan and disclosure statement on file?		X
13. Was there any post-petition borrowing during this reporting period?		X

MOR-1

9/04

Auto Image ID, Inc.	Case No.	04-14152-JMD
Debtor	Reporting Period	Feb. 28, 2005

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

Amounts reported should be per the debtor’s books, not the bank statement. The beginning cash should be the ending cash from the prior month or, if this is the first report, the amount should be the balance on the date the petition was filed. Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page. A bank reconciliation must be attached for each account.

	BANK ACCOUNTS
	Operational	Payroll	Tax	Other	Total
CASH BEGINNING OF MONTH	0				0
RECEIPTS
CASH SALES
ACCOUNTS RECEIVABLE
LOANS AND ADVANCES
SALE OF ASSETS
OTHER (ATTACH LIST)
TRANSFERS (FROM DIP ACCTS)
TOTAL RECEIPTS
DISBURSEMENTS
NET PAYROLL
PAYROLL TAXES
SALES, USE & OTHER TAXES
INVENTORY PURCHASES
SECURED/RENTAL/LEASES
INSURANCE
ADMINISTRATIVE
SELLING
OTHER (ATTACH LIST)
OWNER DRAW *
TRANSFERS (TO DIP ACCTS)
PROFESSIONAL FEES
U.S. TRUSTEE QUARTERLY FEES
COURT COSTS
TOTAL DISBURSEMENTS
NET CASH FLOW
(RECEIPTS LESS DISBURSEMENTS)
CASH - END OF MONTH	0				0

* COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE

THE FOLLOWING SECTION MUST BE COMPLETED

DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES
TOTAL DISBURSEMENTS	0
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS	0
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts)	0
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES	0

MOR-2

9/04

Auto Image ID, Inc.	Case No.	04-14152-JMD
Debtor	Reporting Period	Feb. 28, 2005

STATEMENT OF OPERATIONS (IN THOUSANDS)

(Income Statement)

The Statement of Operations is to be prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid.

REVENUES	Month		Cumulative Filing to Date
Gross Revenues
Less: Returns and Allowances
Net Revenue
COST OF GOODS SOLD
Beginning Inventory
Add: Purchases
Add: Cost of Labor
Add: Other Costs (attach schedule)
Less: Ending Inventory
Cost of Goods Sold
Gross Profit
OPERATING EXPENSES
Advertising
Auto and Truck Expense
Bad Debts
Contributions
Employee Benefits Programs
Insider Compensation*
Insurance
Management Fees/Bonuses
Office Expense
Pension & Profit-Sharing Plans
Repairs and Maintenance
Rent and Lease Expense
Salaries/Commissions/Fees
Supplies
Taxes - Payroll
Taxes - Real Estate
Taxes - Other
Travel and Entertainment
Utilities
Other (attach schedule)
Total Operating Expenses Before Depreciation
Depreciation/Depletion/Amortization	15		44
Net Profit(Loss) Before Other Income & Expenses	(15	)	(44	)
OTHER INCOME AND EXPENSES
Other Income (attach schedule)
Interest Expense	79		286
Other Expense (attach schedule)
Net Profit (Loss) Before Reorganization Items	(94	)	(330	)
REORGANIZATION ITEMS
Professional Fees
U.S. Trustee Quarterly Fees
Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet)
Gain(Loss) from Sale of Equipment
Other Reorganization Expenses (attach schedule)
Total Reorganization Expenses
Income Taxes
Net Profit(Loss)

* “Insider” is defined in 11 U.S.C. Section 101(31).

MOR-3

9/04

Auto Image ID, Inc.	Case No.	04-14152-JMD
Debtor	Reporting Period	Feb. 28, 2005

STATEMENT OF OPERATIONS (IN THOUSANDS) - continuation sheet

BREAKDOWN OF “OTHER” CATEGORY	Month	Cumulative Filing Date
Other Costs
Other Operational Expenses
Other Income
Other Expenses
Other Reorganization Expenses

Reorganization Items - Interest Earned on Accumulated Cash from Chapter 11:

Interest earned on cash accumulated during the chapter 11 case, which would not have been earned but for the bankruptcy proceeding, should be reported as a reorganization item.

MOR-3

9/04

Auto Image ID, Inc.	Case No.	04-14152-JMD
Debtor	Reporting Period	Feb. 28, 2005

BALANCE SHEET (IN THOUSANDS)

The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from postpetition obligations.

	BOOK VALUE AT END OF CURRENT REPORTING MONTH	BOOK VALUE ON PETITION DATE
ASSETS
CURRENT ASSETS
Unrestricted Cash and Equivalents
Restricted Cash and Cash Equivalents
Accounts Receivable (Net)
Notes Receivable
Inventories
Prepaid Expenses
Professional Retainers
Other Current Assets (attach schedule)
TOTAL CURRENT ASSETS	—	—
PROPERTY AND EQUIPMENT
Real Property and Improvements
Machinery and Equipment
Furniture, Fixtures and Office Equipment
Leasehold Improvements
Vehicles
Less Accumulated Depreciation
TOTAL PROPERTY & EQUIPMENT		—
OTHER ASSETS
Loans to Insiders
Other Assets (attach schedule)	794	839
TOTAL OTHER ASSETS	794	839
TOTAL ASSETS	794	839

	BOOK VALUE AT END CURRENT REPORTING MONTH		BOOK VALUE ON PETITION DATE
LIABILITIES AND OWNER EQUITY
LIABILITIES NOT SUBJECT TO COMPROMISE (Post Petition)
Accounts Payable
Taxes Payable (refer to...)
Wages Payable
Notes Payable
Rent / Leases - Building/Equipment
Secured Debt / Adequate Protection Payments
Professional Fees
Amounts Due to Insiders
Other Postpetition Liabilities (attach schedule)	285
TOTAL POST-PETITION LIABILITIES	285		—
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt
Priority Debt
Unsecured Debt *	9,534		9,534
TOTAL PRE-PETITION LIABILITIES	9,534		9,534
TOTAL LIABILITIES	9,819		9,534
OWNER EQUITY
Capital Stock
Additional Paid-In Capital
Partners’ Capital Account
Owner’s Equity Account
Retained Earnings - Pre-Petition	(8,695	)	(8,695	)
Retained Earnings - Postpetition	(330	)
Adjustments to Owner Equity (attach schedule)
Post-Petition Contributions (Distributions) (Draws) (attach schedule)
Net Owner Equity	(9,025	)	(8,695	)
TOTAL LIABILITIES AND OWNERS’ EQUITY	794		839

Insider is defined in 11 U.S.C. Section 101(31)

* Includes $4,451,193 of Robotic Vision Systems, Inc. debt incurred in the acquisition of Auto Image ID, Inc. For accounting purposes, this debt has been reflected in the books and records of Auto Image ID, Inc.

MOR-4

9/04

Auto Image ID, Inc.	Case No.	04-14152-JMD
Debtor	Reporting Period	Feb. 28, 2005

BALANCE SHEET (IN THOUSANDS) - continuation sheet

	BOOK VALUE AT END OF CURRENT REPORTING MONTH	BOOK VALUE ON PETITION DATE
ASSETS
Other Current Assets
______________________________
______________________________
______________________________
Other Assets
Goodwill	343	343
Technology	451	496
	BOOK VALUE AT END OF CURRENT REPORTING MONTH	BOOK VALUE ON PETITION DATE
LIABILITIES AND OWNER EQUITY	286
Other Postpetition Liabilities
Accrued Interest
Intercompany
Intercompany investment in subs
Adjustments to Owner Equity
______________________________
______________________________
______________________________
Postpetition Contributions (Distributions) (Draws)

Restricted Cash: cash that is restricted for a specific use and not available to fund operations.

Typically, restricted cash is segregated into a separate account, such as an escrow account.

MOR-4

9/04

Auto Image ID, Inc.	Case No.	04-14152-JMD
Debtor	Reporting Period	Feb. 28, 2005

STATUS OF POST-PETITION TAXES

The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero. Attach photocopies of IRS Form 6123 and all applicable state and local forms and/or all federal, state, and local payment receipts to verify payment of taxes. Attach photocopies of any tax returns filed during the reporting period.

Federal	Beginning Tax Liability	Amount Withheld or Accrued	Amount Paid	Date Paid	Check No. or EFT	Ending Tax Liability
Income Tax Withholding
FICA-Employee
FICA-Employer
Unemployment
Income
Other:
Total Federal Taxes
State and Local
Income Tax Withholding
Sales
Excise
Unemployment
Real Property
Personal Property
Other:
Total State and Local
Withholding for Employee Healthcare
Premiums, Pensions & Other Benefits
Total Taxes	0					0
SUMMARY OF UNPAID POST-PETITION DEBTS Attach aged listing of accounts payables
	Number of Days Past Due
	Current	0-30	31-60	61-90	Over 90	Total
Accounts Payable
Wages Payable
Taxes Payable
Rent/Leases-Building
Rent/Leases-Equipment
Secured Debt/Adequate Protection Payments
Professional Fees
Amounts Due to Insiders*
Other:
Other:
Total Postpetition Debts	0					0

Explain how and when the Debtor Intends to pay any past-due post-petition debts.

* “Insider” is defined in 11 U.S.C. Section 101(31).

MOR-5

9/04

Auto Image ID, Inc.,	Case No.	04-14152-JMD
Debtor	Reporting Period	Feb. 28, 2005

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING (IN THOUSANDS)

ACCOUNTS RECEIVABLE RECONCILIATION	AMOUNT
Total Accounts Receivable at the beginning of the reporting period	0
+ Amounts billed during the period
- Amounts collected during the period
Total Accounts Receivable at the end of the reporting period	0

Accounts Receivable Aging	Amount
0 - 30 days old
31 - 60 days old
61 - 90 days old
91+ days old
Total Accounts Receivable	0
Amount considered uncollectible (Bad Debt)
Accounts Receivable (Net)	0

MOR-6

9/04