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Valentec Systems, Inc. operates as a holding company with one wholly owned subsidiary, Recticon Enterprises, Inc. (Recticon). Its principal business is the derivation of earnings from the operation of Recticon. Recticon manufactured two, three, four, five and six-inch monocrystalline silicon wafers, which were used by university research departments and microelectronic manufacturers. Valentec Operating Corp., the Company’s Subsidiary designs, develops, manufactures, and sells ammunition and light weapons for military use. Its Subsidiary’s business involved manufacturing armaments and providing property management services to the United States Army. Valentec’s business pursuits are categorized into three product lines: Systems Management/System Integration, Energetic Manufacturing, and Metal Parts Manufacturing. These product lines are operated by Valentec Operating Corp.(Source: 10KSB)