YOUNGSVILLE, N.C. The acquisition of Audio Intelligence Devices and stock issued to directors help drive up losses for Law Enforcement Associates in the second quarter.

The surveillance and security technology company reported on-time charges of $622,000 for the issuing of stock in the acquisition of Audio Intelligence Devices and the compensation for directors, the company said. The losses offset a 10 percent increase in revenues from 2003 to $1.32 million.

LEA (LENF.OB) reported a loss of $440,000, up from $120,000 in 2003.

“The one time expense in the second quarter prevented us from continuing posting a profit in 2004,” said Paul Feldman, President of Law Enforcement Associates. “However, we continue to show strong operating performance, with no debt, consistent sales and we believe that we will return to profitability in the third quarter. This is especially true as we integrate the assets of AID into our operations.”