Replies to post #7 on eRoom System Technologies Inc. (fka ERMS)

[10 bagger]

ERMS.. DD Insider buying.. #1

FORM 4 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940 OMB APPROVAL
OMB Number: 3235-0287
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hours per response 0.5



Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
1. Name and Address of Reporting Person*SAVAS JAMES

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(Last) (First) (Middle)
6405 SOUTH 3000 EAST, SUITE 201


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(Street)SALT LAKE CITY UT US 84121

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(City) (State) (Zip)
2. Issuer Name and Ticker or Trading Symbol
EROOMSYSTEM TECHNOLOGIES INC [ERMS.OB] 5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)X Director X 10% Owner
Officer (give title below) Other (specify below)


3. Date of Earliest Transaction (Month/Day/Year)
06/04/2010
4. If Amendment, Date of Original Filed (Month/Day/Year)
6. Individual or Joint/Group Filing (Check Applicable Line)X Form filed by One Reporting Person
Form filed by More than One Reporting Person



Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8) 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4) 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 06/04/2010 A 25,000 (1) A $ 0.15 148,321 D
Common Stock 3,704,680 I holding company


Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date
(Month/Day/Year) 7. Title and Amount of Underlying Securities
(Instr. 3 and 4) 8. Price of Derivative Security
(Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4) 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Explanation of Responses:
1. On May 11, 2010, the Issuer's Board of Directors approved an issuance of 25,000 shares of common stock to the reporting person for services rendered in his capacity as director.
James C. Savas 06/07/2010

[10 bagger]

ERMS.. $0.16 DD 10Q 8/16/10

eROOMSYSTEM TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


June 30, December 31,
2010 2009
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 2,021,820 $ 2,302,620
Investment in certificate of deposit 104,403 -
Investment in equity securities available for sale 85,000 -
Investment in real property tax liens, at cost, net of $5,000 loan loss allowance 82,280 -
Accounts receivable, net of allowance for doubtful accounts of $20,765 at June 30, 2010 and $19,087 at December 31, 2009 117,669 105,826
Inventory 86,133 75,911
Advance to supplier 51,025 53,011
Note receivable 522,438 522,685
Prepaid expenses 11,404 18,716
Total Current Assets 3,082,172 3,078,769

PROPERTY AND EQUIPMENT
Computer and office equipment, net of accumulated depreciation of $19,111 at June 30, 2010 and $11,971 at December 31, 2009 72,561 4,801
INTANGIBLE ASSETS, net of accumulated amortization of $2,532 at June 30, 2010 and $1,688 at December 31, 2009 2,532 3,376
DEPOSITS 4,950 4,950

Total Assets $ 3,162,215 $ 3,091,896

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 10,450 $ 25,037
Accrued liabilities 63,900 94,640
Customer deposits 2,004 2,004

Total Current Liabilities 76,354 121,681

Total Liabilities 76,354 121,681

STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value; 5,000,000 shares authorized; none outstanding - -
Common stock, $0.001 par value; 50,000,000 shares authorized; 23,907,865 shares
outstanding at June 30, 2010 and 23,832,865 shares at December 31, 2009 23,908 24,123
Additional paid-in capital 34,156,703 34,079,467
Treasury stock at cost; 0 shares at June 30, 2010 and 290,300
shares at December 31, 2009 - (38,453 )
Warrants and options outstanding - 103,123
Accumulated deficit (31,179,750 ) (31,148,045 )
Accumulated other comprehensive income (loss) 85,000 (50,000 )

Total Stockholders' Equity 3,085,861 2,970,215

Total Liabilities and Stockholders' Equity $ 3,162,215 $ 3,091,896



See accompanying notes to condensed consolidated financial statements


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eROOMSYSTEM TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)


For the Three Months
Ended June 30, For the Six Months
Ended June 30,
2010 2009 2010 2009

REVENUE AND INVESTMENT INCOME (LOSSES)
Product sales $ 219,106 $ 23,073 $ 409,986 $ 40,106
Maintenance fees 49,668 33,372 99,552 75,828
Revenue-sharing arrangements - 67,199 - 148,815
Interest income 22,638 35,942 53,052 73,735
Loss from other-than-temporary decline in equity securities (50,000 ) - (50,000 ) -

Total Revenue and Investment Income (Losses) 241,412 159,586 512,590 338,484

COST OF REVENUE
Product sales 117,703 17,361 251,770 32,755
Maintenance 7,378 - 23,135 7,623
Revenue-sharing arrangements - 21,449 - 46,951

Total Cost of Revenue 125,081 38,810 274,905 87,329

OPERATING EXPENSES
Selling, general and administrative expense, including non-cash
compensation of $11,250, $16,207, $12,351 and $19,096,
respectively 117,421 114,628 236,367 243,217
Research and development expense 31,295 5,085 33,023 5,085

Net Operating Expenses 148,716 119,713 269,390 248,302

Net Income (Loss) (32,385 ) 1,063 (31,705 ) 2,853

OTHER COMPREHENSIVE INCOME
Unrealized holding gains on investment in equity securities 85,000 - 85,000 -
Reclassification adjustment for losses included in operations 50,000 - 50,000 -

Comprehensive Income $ 102,615 $ 1,063 $ 103,295 $ 2,853

Basic Earnings (Loss) per Common Share $ - $ - $ - $ -

Diluted Earnings (Loss) per Common Share $ - $ - $ - $ -