Principles of Consolidation

9 Months Ended

Sep. 30, 2011

Principles of Consolidation/Condensed Consolidated Financial Statements [Abstract]

PRINCIPLES OF CONSOLIDATION

NOTE 2 — PRINCIPLES OF CONSOLIDATION

As of September 30, 2011, the consolidated financial statements of the Company include the accounts of Allied and its wholly-owned subsidiaries, which are as follows:

• ARC Europe, a Belgian company,

• Allied Research BV (“BV”), a Dutch company,

• Allied Research Cooperative (“Coop”) and,

• ADG Sub USA, Inc. (“Mecar USA”)

On September 1, 2010, Chemring acquired the assets of Mecar USA and the stock of Mecar, a wholly-owned subsidiary of ARC Europe. As a result of the acquisition, the net income (loss) for Mecar and Mecar USA has been reclassified to net income (loss) from discontinued operations on the Statement of Operations for the period from January 1, 2010 to September 30, 2010.