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OMB APPROVAL OMB Number: 3235-0060 Expires: April 30, 2009, Estimated average burden hours per response ...............5.0 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM

) (IRS Employer Identification No.) 1008 OPERATIC PARK SUITE 300, ARLINGTON, VA 22210 (Address of principal executive offices) (Zip Code) (Registrant's telephone number, including area code) (Registrant's designated agent) N/A 10 Report of Independent Registered Public Accounting Firm The Board of Directors and Stockholders of PROTECT CORPORATION We have addressed and discussed the matters described below with our CEO, Bill Gates, and Chief Financial Officer, John P. Huggins, in a meeting held on June 20, 2008, and on another occasion on October 27, 2008. We agree with the SEC's findings and conclusions as a whole and consider the information provided in this report to be fully and fairly presented. As a result of this meeting we have been advised that the SEC may, in its discretion, require the Company to file a report in connection with its investigation regarding a potential breach of Section 10.5(a) of the Exchange Act. We are submitting the information included herein in their entirety for the reader's consideration. Item 3. Quantitative and Qualitative Disclosures About Market Risk. The market for our securities has been volatile for several reasons including an extreme downturn as indicated by the recent drop in the company's stock price, the inability to generate revenue from the Company's new online retail initiatives, the inability to generate revenue from our online businesses, the failure to grow our online business, and our continued investment and expansion in research and development to enhance our online businesses. The following quantitative and qualitative disclosures concerning market risk are incorporated herein by reference and are intended to assist readers in understanding the material financial information discussed in this report and the accompanying notes. We have a policy of disclosing information as it becomes available. While we feel that the information provided in this report is sufficiently detailed and fully discloses the material financial information regarding risks and uncertainties about our business, our management is under no obligation to publicly update these disclosures. A more complete discussion concerning risks and uncertainties may be found in our annual report on Form 10-K and other SEC filings. Item 6. Selected Financial Data. The following table sets forth selected financial data for PROTECT CORPORATION for the years ended December 31, 2008, 2007, and 2006. Prior periods have been reclassified to conform to the current period presentation because the reclassification did not necessitate a change in presentation.

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