**UNITED
                STATES****SECURITIES
                AND EXCHANGE COMMISSION****Washington,
                DC 20549**







**FORM
                10-Q**QUARTERLY
                REPORT PURSUANT TO SECTION 13 OR 15(d) OFTHE
                SECURITIES EXCHANGE ACT OF 1934For
                the quarterly period ended June 30, 2006Commission
                File No. 0-29359




GoAmerica,
        Inc.
 (Exact
      Name of Registrant as Specified in Its Charter)






Delaware
            22-3693371(State
                or Other Jurisdiction of Incorporation
                or Organization)
            (I.R.S.
                Employer Identification No.)433
                Hackensack Avenue, Hackensack, New
                Jersey
            07601(Address
                of Principal Executive
                Offices)
            (Zip
                Code)




(201)
      996-1717


(Registrant's
        Telephone Number, Including
        Area Code)




Indicate
      by check mark whether the registrant: (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the
      preceding 12 months (or for such shorter period that the registrant was required
      to file such reports), and (2) has been subject to such filing requirements
      for
      the past 90 days.


Yes: x No:
o




Indicate
                by check mark whether the registrant is a large accelerated filer,
                an
                accelerated filer or a non-accelerated filer. See definition of
                “accelerated filer and large accelerated filer” in Rule 12b-2 of the
                Exchange Act. (Check one):




Large
                Accelerated Filer
            o
            Accelerated
                Filer
            o
            Non-accelerated
                filer
            x




Indicate
                by check mark whether the registrant is a shell company (as defined
                in
                Rule 12b-2 of the Exchange Act).Yes:o
            No:xIndicate
                the number of shares outstanding of each of the Registrant's classes
                of
                common stock, as of July 31, 2006:Class
            Number
              of SharesCommon
                Stock, $.01 par value
            2,338,451








GOAMERICA,
      INC.




TABLE
      OF CONTENTS




PagePART
                I.FINANCIAL
                INFORMATION
            1Item
                1.Financial
                Statements (June 30, 2006 and 2005 are unaudited)
            1Condensed
                Consolidated Balance Sheets as of June 30, 2006 and December 31,
                2005
            2Condensed
                Consolidated Statements of Operations for the Three and Six Months
                Ended
                June 30, 2006 and 2005
            3Condensed
                Consolidated Statements of Cash Flows for the Six Months Ended June
                30,
                2006 and 2005
            4Notes
                to Condensed Consolidated Financial Statements
            5Item
                2.Management's
                Discussion and Analysis of Financial Condition and Results of
                OperationsGeneral
            11Critical
                Accounting Policies and Estimates
            11Results
                of Operations
            12Liquidity
                and Capital Resources
            19Item
                3.Quantitative
                and Qualitative Disclosures About Market Risk
            21Item
                4. Controls and Procedures
            21PART
                II.OTHER
                INFORMATIONItem
                1.Legal
                Proceedings
            22Item
                6.Exhibits
            22SIGNATURES
            23








**PART
      I. FINANCIAL INFORMATION**




**Item
      1. Financial Statements**










**GOAMERICA,
      INC.**




**CONDENSED
      CONSOLIDATED BALANCE SHEETS**




**(In
      thousands, except share and per share data)**




**June
                30,****2006**
            
            
            **December
                31,****2005**(Unaudited)**Assets**Current
                assets:Cash
                and cash equivalents.
            
            $
            3,915
            
            $
            4,804Accounts
                receivable, net.
            
            
            1,967
            
            
            1,154Merchandise
                inventories, net.
            
            
            238
            
            
            161Prepaid
                expenses and other current assets.
            
            
            659
            
            
            135Total
                current assets.
            
            
            6,779
            
            
            6,254Restricted
                cash
            
            
            --
            
            
            300Property,
                equipment and leasehold improvements, net.
            
            
            467
            
            
            677Goodwill,
                net.
            
            
            6,000
            
            
            6,000Other
                assets.
            
            
            175
            
            
            844$
            13,421
            
            $
            14,075**Liabilities
                and stockholders' equity**Current
                liabilities:Accounts
                payable.
            
            $
            735
            
            $
            765Accrued
                expenses.
            
            
            1,282
            
            
            676Deferred
                revenue.
            
            
            97
            
            
            92Other
                current liabilities.
            
            
            20
            
            
            19Total
                current liabilities.
            
            
            2,134
            
            
            1,552Other
                long term liabilities.
            
            
            20
            
            
            25Commitments
                and contingenciesStockholders'
                equity:Common
                stock, $.01 par value, authorized: 200,000,000 shares in 2006 and
                2005;
                issued: 2,362,514 in 2006 and 2005
            24
            
            
            24Additional
                paid-in capital
            
            
            286,120
            
            
            287,137Deferred
                employee compensation
            
            
            --
            
            
            (1,230
            )Accumulated
                deficit
            
            
            (274,691
            )
            
            (273,247
            )Treasury
                stock, at cost, 24,063 shares in 2006 and 2005.
            
            
            (186
            )
            
            (186
            )Total
                stockholders' equity.
            
            
            11,267
            
            
            12,498$
            13,421
            
            $
            14,075






The
      accompanying notes are an integral part of these
      financial statements.







**GOAMERICA,
      INC.**




**CONDENSED
      CONSOLIDATED STATEMENTS OF OPERATIONS**




**(In
      thousands, except share and per share data)**




**(Unaudited)**




**Three
                Months Ended June 30,**
            
            
            **Six
                Months Ended June
                30****2006**
            
            
            **2005**
            
            
            **2006**
            
            
            **2005****Revenues:**Subscriber
            
            $
            316
            
            $
            632
            
            $
            606
            
            $
            1,419Prepaid
                services
            
            
            1,645
            
            
            534
            
            
            2,750
            
            
            1,425Relay
                services
            
            
            1,361
            
            
            312
            
            
            1,828
            
            
            445Commissions
            
            
            659
            
            
            291
            
            
            1,486
            
            
            294Equipment
            
            
            51
            
            
            139
            
            
            101
            
            
            241Other
            
            
            1
            
            
            --
            
            
            3
            
            
            1124,033
            
            
            1,908
            
            
            6,774
            
            
            3,936**Costs
                and expenses:**Cost
                of subscriber airtime
            
            
            166
            
            
            234
            
            
            305
            
            
            519Cost
                of equipment revenue
            
            
            122
            
            
            193
            
            
            202
            
            
            298Cost
                of network operations
            
            
            19
            
            
            71
            
            
            52
            
            
            165Cost
                of relay services
            
            
            647
            
            
            --
            
            
            692
            
            
            --Cost
                of prepaid services
            
            
            1,662
            
            
            581
            
            
            2,778
            
            
            1,411Sales
                and marketing
            
            
            479
            
            
            342
            
            
            1,021
            
            
            453General
                and administrative
            
            
            1,116
            
            
            1,108
            
            
            2,305
            
            
            2,352Research
                and development
            
            
            100
            
            
            105
            
            
            233
            
            
            159Depreciation
                and amortization
            
            
            131
            
            
            126
            
            
            299
            
            
            256Amortization
                of other intangibles
            
            
            --
            
            
            221
            
            
            --
            
            
            4424,442
            
            
            2,981
            
            
            7,887
            
            
            6,055Loss
                from operations
            
            
            (409
            )
            
            (1,073
            )
            
            (1,113
            )
            
            (2,119
            )**Other
                income (expense):**Terminated
                merger costst
            
            
            (12
            )
            
            --
            
            
            (431
            )
            
            --Interest
                income (expense), net
            
            
            55
            
            
            38
            
            
            100
            
            
            76Total
                other income (expense), net
            
            
            43
            
            
            38
            
            
            (331
            )
            
            76Net
                loss
            
            $
            (366
            )
            $
            (1,035
            )
            $
            (1,444
            )
            $
            (2,043
            )Basic
                net loss per share
            
            $
            (0.16
            )
            $
            (0.49
            )
            $
            (0.62
            )
            $
            (0.98
            )Diluted
                net loss per share
            
            $
            (0.16
            )
            $
            (0.49
            )
            $
            (0.62
            )
            $
            (0.98
            )Weighted
                average shares used incomputation of basic net loss pershare
            
            
            2,338,451
            
            
            2,093,451
            
            
            2,338,451
            
            
            2,093,441Weighted
                average shares used in computation
              of
                diluted net loss pershare
            
            
            2,338,451
            
            
            2,093,451
            
            
            2,338,451
            
            
            2,093,441





The
      accompanying notes are an integral part of these
      financial statements.





**GOAMERICA,
      INC.**




**CONDENSED
      CONSOLIDATED STATEMENTS OF CASH FLOWS**




**(In
      thousands)**




**(Unaudited)**










**Six
                Months Ended June 30,****2006**
            
            
            **2005****Operating
                activities**Net
                loss
            
            $
            (1,444
            )
            $
            (2,043
            )Adjustments
                to reconcile net loss to net cash used in operating
                activities:Depreciation
                and amortization of fixed assets
            
            
            299
            
            
            256Amortization
                of other intangible assets
            
            
            --
            
            
            442Provision
                for losses on accounts receivable
            
            
            90
            
            
            25Non
                cash employee compensation
            
            
            213
            
            
            --Write
                off of capitalized terminated merger costs
            
            
            431
            
            
            --Changes
                in operating assets and liabilities:Increase
                in accounts receivable
            
            
            (903
            )
            
            (212
            )Decrease
                in other receivables
            
            
            --
            
            
            732Increase
                in merchandise inventories
            
            
            (77
            )
            
            (193
            )Increase
                in prepaid expenses and other current assets
            
            
            (97
            )
            
            (128
            )(Decrease)
                increase in accounts payable
            
            
            (30
            )
            
            108Increase
                in accrued expenses
            
            
            606
            
            
            27Increase
                (decrease) increase in deferred revenue
            
            
            5
            
            
            (153
            )Net
                cash used in operating activities
            
            
            (907
            )
            
            (1,139
            )**Investing
                activities**Change
                in other assets and restricted cash
            
            
            111
            
            
            249Purchase
                of property, equipment and leasehold improvements
            
            
            (75
            )
            
            (132
            )Net
                cash provided by investing activities
            
            
            36
            
            
            117**Financing
                activities**Issuance
                of common stock for exercise of stock options and warrants
            
            
            --
            
            
            2Payments
                made on capital lease obligations
            
            
            (18
            )
            
            (1
            )Net
                cash (used in) provided by financing activities
            
            
            (18
            )
            
            1Net
                increase (decrease) in cash and cash equivalents
            
            
            (889
            )
            
            (1,021
            )Cash
                and cash equivalents at beginning of period
            
            
            4,804
            
            
            7,098Cash
                and cash equivalents at end of period
            
            $
            3,915
            
            $
            6,077**Supplemental
                Disclosure of Cash Flow Information****:**Cash
                Paid for Interest
            
            $
            5
            
            $
            --**Supplemental
                Disclosure of Non-Cash Investing Activities****:**Acquisition
                of equipment through capital leases
            
            $
            14
            
            $
            --


The
      accompanying notes are an integral part of
      these financial statements.







**GOAMERICA,
      INC.**




**NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**


**(Unaudited)**


**(In
      thousands, except share and per share data)**




**Note
      1 - Basis of Presentation:**




The
      accompanying unaudited condensed consolidated financial statements have been
      prepared in accordance with accounting principles generally accepted in the
      United States for interim financial information and with the instructions to
      Form 10-Q and Rule 10-01 of Regulation S-X and include the results of
      GoAmerica, Inc. and its wholly-owned subsidiaries (collectively, the “Company”).
      Accordingly, certain information and footnote disclosures required in financial
      statements prepared in accordance with accounting principles generally accepted
      in the United States have been condensed or omitted. In the opinion of the
      Company’s management, the accompanying unaudited financial statements contain
      all adjustments (consisting only of normal recurring adjustments except as
      otherwise disclosed herein) which the Company considers necessary for the fair
      presentation of its financial position as of June 30, 2006 and the results
      of
      its operations and its cash flows for the three and six month periods ended
      June
      30, 2006 and 2005. These financial statements should be read in conjunction
      with
      the Company's audited financial statements and notes thereto included in the
      Company’s Annual Report on Form 10-K (as amended) for the year ended December
      31, 2005.





The
      Company operates in a highly competitive environment subject to rapid
      technological change and emergence of new technology. Although management
      believes its services are transferable to emerging technologies, rapid changes
      in technology could have an adverse financial impact on the Company. In
      addition, a total of 28% and 37% of the Company’s revenue in their wireless data
      segment for the three and six months ended June 30, 2006 was earned through
      commissions derived from a master dealer agreement with T-Mobile.





The
      Company has incurred significant operating losses since its inception and,
      as of
      June 30, 2006, has an accumulated deficit of $274,691. During the six months
      ended June 30, 2006, the Company incurred a net loss of $1,444 and used $907
      of
      cash to fund operating activities. As of June 30, 2006, the Company had $3,915
      in cash and cash equivalents.





Results
      for the interim period are not necessarily indicative of results that may be
      expected for the entire year or for any other interim period. Certain
      reclassifications have been made to the previously filed June 30, 2005 financial
      statements in order to conform them to the current presentation. Such
      reclassifications had no effect on the Company’s reported net loss.





**Note
      2 - Significant Accounting Policies:**




*Revenue
      Recognition-Relay Services*




In
      June
      2006, the Federal Communications Commission certified the Company as an Internet
      Protocol Relay and Video Relay Service Provider.  As a result, the Company
      became eligible to be compensated directly from the Interstate
      Telecommunications Relay Services Fund for reimbursement of  their
      i711.com(R) minutes and began recognizing the full revenue from these minutes
      along with a related cost of revenue for the costs associated with these
      minutes, which is provided by Nordia. Previously, the Company relied on
      Nordia to obtain the reimbursement amounts on the Company’s behalf.





*Recent
      Accounting Pronouncements*





In
      July
      2006, the Financial Accounting Standards Board (“FASB”) has published FASB
      Interpretation No. 48 (“FIN No. 48”), Accounting for Uncertainty in Income
      Taxes, to address the noncomparability in reporting tax assets and liabilities
      resulting from a lack of specific guidance in FASB Statement of Financial
      Accounting Standards (“SFAS”) No. 109, Accounting for Income Taxes, on the
      uncertainty in income taxes recognized in an enterprise’s financial statements.
      FIN No. 48 will apply to fiscal years beginning after December 15, 2006, with
      earlier adoption permitted.  The adoption of FIN 48 is not expected to have
      a material effect on the Company’s financial condition or results of
      operations .





In
      November 2004, the FASB issued SFAS 151, "Inventory Costs - An Amendment of
      ARB
      No. 43, Chapter 4" ("SFAS 151"). SFAS 151 amends the guidance in ARB No. 43,
      Chapter 4 to clarify the accounting for abnormal amounts of idle facility
      expense, freight, handling costs, and wasted material (spoilage). The provisions
      of SFAS 151 are effective for inventory costs incurred during fiscal years
      beginning after June 15, 2005. The adoption of SFAS 151 did not have a material
      effect on the Company's financial condition or results of
      operations.









In
      December 2004, the FASB issued SFAS 153, "Exchanges of Nonmonetary Assets -
      an
      amendment of APB Opinion No. 29" ("SFAS 153"). SFAS 153 amends APB Opinion
      29 to
      eliminate the similar productive asset exception and establishes that exchanges
      of productive assets should be accounted for at fair value, rather than at
      carryover basis unless (1) neither the asset received nor the asset surrendered
      has a fair value that is determinable within reasonable limits, (2) the
      transaction is an exchange transaction to facilitate sales to customers, or
      (3)
      the transaction lacks commercial substance. A nonmonetary exchange has
      commercial substance if the future cash flows of the entity are expected to
      change significantly as a result of the exchange. The provisions of SFAS 153
      are
      effective for nonmonetary exchanges occurring in fiscal periods beginning after
      June 15, 2005. The adoption of SFAS 153 did not have a material effect on the
      Company's financial condition or results of operations.




In
      December 2004, the FASB issued SFAS 123R, "Share-Based Payment". SFAS 123R
      establishes that employee services received in exchange for share-based payment
      result in a cost that should be recognized in the income statement as an expense
      when the services are consumed by the enterprise. It further establishes that
      those expenses be measured at fair value determined as of the grant date. The
      provisions of SFAS 123R became effective as of the beginning of the first annual
      reporting period that begins after June 15, 2005. Furthermore, the Office of
      the
      Chief Accountant (OCA) of the Securities and Exchange Commission issued Staff
      Accounting Bulletin 107 to provide clarification of the OCA’s interpretation of
      SFAS 123R as it applies to share based compensation arrangements for both
      employees and non employees. The Company has evaluated the effect of the
      adoption of SFAS 123R and has concluded that its adoption did not have a
      material affect on the Company's financial condition and results of operations
      (see Note 5).





**Note
      3 - Earnings (Loss) Per Share:**




The
      Company computes net loss per share under the provisions of SFAS No. 128,
      "Earnings per Share" (“SFAS 128”), and SEC Staff Accounting Bulletin No. 98
      (“SAB 98”).




Under
      the
      provisions of SFAS 128 and SAB 98, basic loss per share is computed by dividing
      the Company’s net loss for the period by the weighted-average number of shares
      of common stock outstanding during the period. Diluted net loss per share
      excludes potential common shares if the effect is anti-dilutive. Diluted loss
      per share is determined in the same manner as basic loss per share except that
      the number of shares is increased assuming exercise of dilutive stock options
      and warrants using the treasury stock method. As the Company had a net loss,
      the
      impact of the assumed exercise of the stock options and warrants is
      anti-dilutive and as such, these amounts have been excluded from the calculation
      of diluted loss per share. For the six months ended June 30, 2006 and 2005,
      181,428 and 173,532 of common stock equivalent shares, respectively, were
      excluded from the computation of diluted net loss per share,
      respectively.




**Note
      4 - Goodwill:**




The
      Company follows SFAS No. 142, "Goodwill and Other Intangible Assets". Under
      SFAS
      No. 142, goodwill and other intangible assets with indefinite lives are no
      longer amortized but are reviewed for impairment annually or more frequently
      if
      impairment indicators arise. The Company’s goodwill is contained in its Wynd
      reporting unit, which is included in the wireless data solutions segment. The
      Company believes there are no such impairment indicators relative to this
      reporting unit at June 30, 2006.




**Note
      5 - Stock-based Compensation:**




The
      Company has a stock-based compensation program that provides our Board of
      Directors broad discretion in creating employee equity incentives. This program
      includes incentive and non-statutory stock options and nonvested stock awards
      (also known as restricted stock) granted under various plans, the majority
      of
      which are stockholder approved. As of June 30, 2006, the Company had
      approximately 455,443 shares of common stock reserved for future issuance under
      our stock option plans, stock purchase plans and restricted stock
      plans.




Effective
      January 1, 2006, the Company adopted the provisions of SFAS 123R, requiring
      us
      to recognize expense related to the fair value of our stock-based compensation
      awards. The Company elected to use the modified prospective transition method
      as
      permitted by SFAS 123R and, therefore, we have not restated our financial
      results for prior periods. Under this transition method, stock-based
      compensation expense for the three and six months ended June 30, 2006 includes
      compensation expense for all stock-based compensation awards granted prior
      to,
      but not yet vested as of December 31, 2005, based on the grant date fair value
      estimated in accordance with the original provisions of SFAS 123. The Company
      did not issue any new stock options during the six month period ended June
      30,
      2006. The Company recognizes compensation expense for stock option awards on
      a
      straight-line basis over the requisite service period of the award. The
      Company’s adoption of SFAS 123R had no effect on the Company’s basic and diluted
      loss per share for the three and six months ended June 30, 2006.










The
      following table sets forth the total stock-based compensation expense resulting
      from stock options and nonvested restricted stock awards included in the
      Company’s condensed consolidated statements of operations:




Three
                  Months Ended June 30, 2006
            
            
            Six
                    Months Ended June 30, 2006Selling,
                general and administrative
            
            $
            106
            
            $
            213Stock-based
                compensation expense before income taxes
            
            
            106
            
            
            213Income
                tax benefit
            
            
            --
            
            
            --Total
                stock-based compensation expense after income taxes
            
            $
            106
            
            $
            213








Prior
      to
      the adoption of SFAS 123R, the Company applied SFAS No. 123, as amended by
      SFAS
      No. 148, “Accounting for Stock-Based Compensation - Transition and Disclosure”
(“SFAS 148”), which allowed companies to apply the existing accounting rules
      under APB 25 and related Interpretations. In general, as the exercise price
      of
      options granted under these plans was equal to the market price of the
      underlying common stock on the grant date, no stock-based employee compensation
      cost was recognized in our net income (loss). As required by SFAS 148 prior
      to
      the adoption of SFAS 123R, the Company provided pro forma net income (loss)
      and
      pro forma net income (loss) per common share disclosures for stock-based awards,
      as if the fair-value-based method defined in SFAS 123 had been
      applied.





The
      following table illustrates the effect on net loss after tax and net loss per
      common share as if the Company had applied the fair value recognition provisions
      of SFAS 123 to stock-based compensation during the three and six month periods
      ended June 30, 2005:


Three
                  months ended June 30, 2005
            
            
            Six
                    months ended June 30, 2005Net
                loss, as reported
            
            $
            (1,035
            )
            $
            (2,043
            )Deduct:
                Stock-based employee compensation expense included in reported net
                loss
            
            
            --
            
            
            --Add:
                Total stock-based employee compensation expense determined under
                fair
                value based method for all awards
            
            
            (413
            )
            
            (826
            )Pro
                forma net loss
            
            $
            (1,448
            )
            $
            (2,869
            )Loss
                per share - basic, as reported
            
            $
            (0.49
            )
            $
            (0.98
            )Loss
                per share - diluted, as reported
            
            $
            (0.49
            )
            $
            (0.98
            )Pro
                forma loss per share - basic
            
            $
            (0.69
            )
            $
            (1.37
            )Pro
                forma loss per share - diluted
            
            $
            (0.69
            )
            $
            (1.37
            )






Prior
      to
      the adoption of SFAS 123R, the Company’s Board of Directors approved the
      acceleration of vesting of certain unvested and “out-of-the-money” stock options
      with exercise prices equal to or greater than $4.19 per share previously awarded
      to our employees, including our executive officers and directors, under our
      equity compensation plans. The acceleration of vesting was effective for stock
      options outstanding as of December 29, 2005.
      Options to purchase approximately 31,518 shares of common stock or 86% of our
      outstanding unvested options were subject to the acceleration. The weighted
      average exercise price of the options that were accelerated was $19.93. The
      Company believes that because the options that were accelerated had exercise
      prices in excess of the current market value of our common stock, the options
      had limited economic value and were not fully achieving their original objective
      of incentive compensation and employee retention.










Stock
      option activity for the six months ended June 30, 2006, is as follows:





Number
                of Options
            
            
            Weighted-Average
                Exercise Price
            
            
            Weighted-Average
              Remaining
              Contractual
                Life
            
            
            AggregateIntrinsic
                ValueOutstanding
                at January 1, 2006
            
            
            97,108
            
            $
            72.59Granted
            
            
            --
            
            
            --Exercised
            
            
            --
            
            
            --Cancelled
            
            
            --
            
            
            --Outstanding
                at June 30, 2006
            
            
            97,108
            
            $
            72.59
            
            
            4.26
            
            $
            10Exercisable
                at June 30, 2006
            
            
            92,108
            
            $
            76.41
            
            
            4.52
            
            $
            5








The
      aggregate intrinsic value in the table above represents the total pretax
      intrinsic value (i.e., the difference between the Company’s closing stock price
      on the last trading day of our second quarter of 2006 and the exercise price,
      times the number of shares) that would have been received by the option holders
      had all option holders exercised their in the money options on June 30, 2006.
      This amount changes based on the fair market value of the Company’s stock.




As
      of
      June 30, 2006, approximately $4 of total unrecognized compensation cost related
      to stock options is expected to be recognized over a weighted-average period
      of
      2.3 years.




The
      following table summarizes the Company’s nonvested restricted stock activity for
      the six months ended June 30, 2006:





Number
                of Shares
            
            
            Weighted
                Average Grant Date Fair ValueNon
                vested stock at December 31, 2005
            
            
            245,000
            
            $
            5.24Granted
            
            
            --
            
            
            --Vested
            
            
            --
            
            
            --Forfeited
            
            
            --
            
            
            --Non
                vested stock at June 30, 2006
            
            
            245,000
            
            $
            5.24





As
      part
      of the adoption of SFAS 123R, effective January 1, 2006, the Company eliminated
      $1,230 of deferred employee compensation against paid in capital. As of June
      30,
      2006, $1,017 of total unrecognized compensation costs is expected to be
      recognized over a period of 2.3 years. The Company recognized $106 and $213
      of
      expense related to the amortization of these restricted stock awards during
      the
      three and six months ended June 30, 2006, respectively.




**Note
      6 - Contingencies:**




On
      September 22, 2004, Boundless Depot, LLC ("Boundless Depot") and Scott Johnson,
      one of two Boundless Depot shareholders, sued GoAmerica and Wynd Communications
      in the Superior Court of the State of California for the County of Los Angeles,
      claiming damages of $1,000 for GoAmerica's refusal to pay Boundless Depot
      unattained contingent consideration, comprised of cash and/or GoAmerica Common
      Stock, with respect to the Asset Purchase Agreement dated as of February 8,
      2003
      (the "Deafwireless Agreement"), pursuant to which GoAmerica and Wynd
      Communications acquired certain Deafwireless assets. The total value of such
      contingent consideration, if all contingencies had been fully met and amounts
      paid immediately thereupon, would not have exceeded $211; however, the Company
      does not believe any of the contingent consideration is owed to Boundless Depot
      or either of its shareholders since conditions of the Deafwireless Agreement
      were not met and we incurred costs for which we are entitled to receive
      reimbursement from Boundless Depot or offset against any amounts that may become
      payable to Boundless Depot. Upon petition by GoAmerica and Wynd Communications,
      the Court has ordered this matter into arbitration, which process is now
      pending. The Company intends to defend this action vigorously and may elect
      to
      pursue counterclaims.





In
      the
      first quarter of 2006, the Company reclassified $300 of restricted cash as
      of
      December 31, 2005 to operating cash to reflect an arrangement between the
      Company and one of its carrier providers which allowed for the elimination
      of
      the required letter of credit and related supporting cash account.





**Note
      7 - Business Segment Information:**





The
      Company has two reportable business segments: Wireless Data Solutions and
      Prepaid Services. The operating results of these business segments are
      distinguishable and regularly reviewed by the Company’s executive officers. The
      Company evaluates the performance of its business segments based primarily
      on
      operating income (loss). All overhead is allocated to the business segments,
      except for certain specific corporate costs, such as corporate management
      compensation, corporate legal, accounting and governance costs and certain
      insurance and facilities costs. Operating results presented for the business
      segments of the Company are as follows:





**Wireless
                  Data Solutions**
            
            
            **Prepaid
                  Services**
            
            
            **Corporate**
            
            
            **Total****Three
                Months Ended June 30, 2006:**Revenue
            
            $
            2,388
            
            $
            1,645
            
            $
            --
            
            $
            4,033Operating
                profit (loss)
            
            $
            358
            
            $
            (81
            )
            $
            (686
            )
            $
            (409
            )**Three
                Months Ended June 30, 2005:**Revenue
            
            $
            1,374
            
            $
            534
            
            $
            --
            
            $
            1,908Operating
                loss
            
            $
            (500
            )
            $
            (169
            )
            $
            (404
            )
            $
            (1,073
            )**Six
                Months Ended June 30, 2006:**Revenue
            
            $
            4,024
            
            $
            2,750
            
            $
            --
            
            $
            6,774Operating
                profit (loss)
            
            $
            398
            
            $
            (200
            )
            $
            (1,311
            )
            $
            (1,113
            )**Six
                Months Ended June 30, 2005:**Revenue
            
            $
            2,447
            
            $
            1,489
            
            $
            --
            
            $
            3,936Operating
                loss
            
            $
            (1,005
            )
            $
            (309
            )
            $
            (805
            )
            $
            (2,119
            )


**Note
      8 - Termination of Hands On Merger Agreement:**





On
      May 2,
      2005, the Company entered into a short term loan agreement with Hands On Video
      Relay Services, Inc., a Delaware corporation, and Hands On Sign Language
      Services, Inc., a California corporation (collectively, "Hands On”). Pursuant to
      that agreement, all amounts that the Company advanced to Hands On are secured,
      initially, by the assets acquired with such funds with interest at a defined
      prime rate. If Hands On breaches any material provision of any definitive
      agreement, the balance of principal and accrued interest becomes immediately
      due
      and payable and Hands On will grant the Company a broader security interest
      in
      substantially all of Hands On's assets until amounts due under the loan
      agreement are paid. As of June 30, 2006, the Company had advanced approximately
      $569, excluding interest, to Hands On under the loan agreement.





On
      March
      1, 2006, the Company announced its receipt of a letter from Hands On, dated
      March 1, 2006, in which Hands On purportedly terminated the merger agreement
      among the parties. Subsequent discussions between the parties did not provide
      a
      basis to pursue the merger. Hands On stockholders had approved the proposed
      merger with GoAmerica at special Hands On stockholder meetings held on February
      22, 2006. A Special Meeting of GoAmerica Stockholders relating to the Company’s
      proposed merger with Hands On was scheduled for March 13, 2006, adjourned from
      February 27, 2006 in order to allow GoAmerica to achieve a quorum with respect
      to the Special Meeting. As of March 6, 2006, the Company had achieved a quorum
      and received votes overwhelmingly in favor of the Hands On merger. On March
      7,
      2006, the Company announced its cancellation of its Special Meeting of
      Stockholders and its determination not to pursue its proposed merger with Hands
      On.





The
      details of this loan receivable as of June 30, 2006 and December 31, 2005 are
      as
      follows:





**June
                30,****2006**
            
            
            **December 
                31,****2005**(Unaudited)Current
                portion, included in prepaid expenses and other current assets.
            
            $
            427
            
            $
            --Long
                term portion, included in other assets.
            
            
            171
            
            
            531.Total.
            
            $
            598
            
            $
            531











The
      Company recorded $18 of interest income on these advances during the six months
      ended June 30, 2006. Accrued interest receivable totaled $29 as of June 30,
      2006. As a result of the termination of the merger agreement, repayment
      obligations began July 1, 2006 and are scheduled to continue through March
      2008.
      The Company believes this receivable to be fully collectible and therefore
      has
      not provided an allowance for doubtful collection as of June 30,
      2006.





At
      December 31, 2005, the Company had incurred approximately $280 of merger related
      costs which was capitalized as an other asset. During the period from January
      1,
      2006 through June 30, 2006, the Company capitalized an additional $151 of merger
      related costs. As a result of the terminated merger, the Company wrote off
      a
      total of $12 and $431 of merger related expenses during the three and six months
      ended June 30, 2006, respectively and such write off is included in other income
      (expense), net.





**Note
      9 - Subsequent Events:**





During
      July 2006, the Company entered into a lease agreement for the purchase of
      approximately $135 of computer equipment. The term of the lease is for 36
      months, commencing on August 1, 2006. The lease will be accounted for as a
      capital lease.









Item
      2.  Management's
      Discussion and Analysis of Financial Condition and Results of
      Operations.




General




GoAmerica(R)
      is a communications service provider, offering solutions primarily for consumers
      who are deaf, hard of hearing and/or speech-impaired, including
      telecommunications relay services, wireless subscription services, prepaid
      telecommunication services and wireless devices and accessories. Our i711.com(R)
      telecommunications relay service was launched in March 2005, which uses Nordia,
      Inc.’s technology platform
      and relay operators (also referred to as Communication Assistants or “CA’s”) to
      facilitate calls, and
      enables people who are deaf or hard of hearing to call and “converse” with
      hearing parties by using a computer, wireless handheld device or similar unit,
      through an operator that interprets text to voice and vice versa. Throughout
      2005, we provided a wireless version of relay services under a license to
      Sprint-Nextel, which was marketed under a Sprint brand. During the first quarter
      of 2006, we began offering our own branded wireless relay service and terminated
      our license with Sprint-Nextel. Our wireless subscription services consist
      of
      WyndTell(R) and our Wireless Toolkit(TM), previously known as WyndPower(TM),
      which assist our deaf or hard of hearing customers in communicating from most
      major metropolitan areas in the continental United States and parts of Canada.
      WyndTell and Wireless Toolkit allow customers to send and receive email messages
      to and from any email service, provide for delivery and acknowledgements of
      sent
      messages that are read, send and receive TTY/TDD (text telephone or
      teletypewriter) messages, faxes, and text-to-speech messages, and access the
      Internet using such wireless computing devices as Research in Motion, or RIM,
      wireless handheld devices, certain Motorola paging devices and the T-Mobile
      Sidekick, Fido hiptop, and SunCom hiptop devices running on Danger Inc.'s hiptop
      platform. GoAmerica continues to offer wireless data products and services
      to
      the consumer and enterprise markets as well as support customers who use our
      proprietary software technology called Go.Web Ô .
      GoWeb
      is designed for use mainly by enterprise customers to enable secure wireless
      access to corporate data and the Internet on numerous wireless computing
      devices. Additionally, we offer telecommunication services in the form of
      domestic and international prepaid calling cards, as a Company branded GA
      Prepaid(TM) card or as a private label for distributors of prepaid calling
      cards. We are obligated to provide usage service utilizing our own
      infrastructure until the obligation to provide the service is either completed
      or the card expires.





Our
      wireless data solutions revenues are derived from: (i) subscription to our
      value-added wireless data services, for which customers typically pay monthly
      recurring fees, (ii) the sale of wireless communications devices, (iii) relay
      services and (iv) other
      revenues from commissions received through the acquisition of subscribers on
      behalf of various network providers with which we do not have reseller
      agreements. We
      continue to engineer our technology to operate with new versions of wireless
      devices as they emerge.




Critical
      Accounting Policies and Estimates




Management’s
      Discussion and Analysis of Financial Condition and Results of Operations
      discusses our condensed consolidated financial statements, which have been
      prepared in accordance with accounting principles generally accepted in the
      United States. The preparation of these financial statements requires management
      to make estimates and judgments that affect the reported amounts of assets,
      liabilities, revenues and expenses, and the related disclosure of contingent
      assets and liabilities. On an on-going basis, management evaluates its estimates
      and judgments, including those related to revenue recognition, allowance for
      doubtful accounts, inventory valuation and recoverability of our intangible
      assets. Management bases its estimates and judgments on historical experience
      and on various other factors that are believed to be reasonable under the
      circumstances, the results of which form the basis for making judgments about
      the carrying values of assets and liabilities that are not readily apparent
      from
      other sources. Actual results may differ from these estimates under different
      assumptions or conditions.









Management
      believes the following critical accounting policies, among others, affect its
      more significant judgments and estimates used in the preparation of its
      consolidated financial statements. Historically, we have derived our revenue
      primarily from the sale of basic and value-added wireless data services and
      the
      sale of related mobile devices. Subscriber revenue consists primarily of monthly
      charges for access and usage and is recognized as the services are provided.
      Equipment revenue is recognized upon shipment to the end user. Revenue from
      relay services is recognized as revenue when services are provided or earned.
      Revenue from commissions is recognized upon activation of subscribers on behalf
      of third party wireless network providers. Revenue from sale of prepaid calling
      cards is deferred upon sale of the cards. These deferred revenues are recognized
      as earned when usage of the cards occurs and/or administrative fees are imposed.
      We estimate the collectibility of our trade receivables. A considerable amount
      of judgment is required in assessing the ultimate realization of these
      receivables, including analysis of historical collection rates and the current
      credit-worthiness of significant customers. Significant changes in required
      reserves have been recorded in recent periods and may occur in the future due
      to
      the current market conditions. We write down inventory for estimated excess
      or
      obsolete inventory equal to the difference between the cost of inventory and
      the
      estimated market value based upon assumptions about future demand and market
      conditions. If actual market conditions are less favorable than those projected
      by management, additional inventory write-downs may be required. In assessing
      the recoverability of our goodwill, other intangibles and other long-lived
      assets, we must make assumptions regarding estimated future cash flows. If
      such
      assumptions change in the future, we may be required to record impairment
      charges for these assets not previously recorded.




**Results
      of Operations**




The
      following table sets forth, for the three and six months ended June 30, 2006
      and
      2005, the percentage relationship to net revenues of certain items included
      in
      the Company’s unaudited consolidated statements of operations.




**Three
                Months Ended June 30,**
            
            
            **Six
                Months Ended June 30,****(In
                thousands)**
            
            
            **2006**
            
            
            **2005**
            
            
            **2006**
            
            
            **2005**$
            
            
            %
            
            
            $
            
            
            %
            
            
            $
            
            
            %
            
            
            $
            
            
            %**Revenues:**Subscriber
            
            $
            316
            
            
            7.8
            
            $
            632
            
            
            33.1
            
            $
            606
            
            
            8.9
            
            $
            1,419
            
            
            36.1Prepaid
                services
            
            
            1,645
            
            
            40.8
            
            
            534
            
            
            28.0
            
            
            2,750
            
            
            40.6
            
            
            1,425
            
            
            36.2Relay
                services
            
            
            1,361
            
            
            33.7
            
            
            312
            
            
            16.4
            
            
            1,828
            
            
            27.0
            
            
            445
            
            
            11.3Commissions
            
            
            659
            
            
            16.3
            
            
            291
            
            
            15.2
            
            
            1,486
            
            
            21.9
            
            
            294
            
            
            7.5Equipment
            
            
            51
            
            
            1.3
            
            
            139
            
            
            7.3
            
            
            101
            
            
            1.5
            
            
            241
            
            
            6.1Other
            
            
            1
            
            
            0.1
            
            
            --
            
            
            --
            
            
            3
            
            
            0.1
            
            
            112
            
            
            2.84,033
            
            
            100.0
            
            
            1,908
            
            
            100.0
            
            
            6,774
            
            
            100.0
            
            
            3,936
            
            
            100.0**Costs
                and expenses:**Cost
                of subscriber airtime
            
            
            166
            
            
            4.1
            
            
            234
            
            
            12.3
            
            
            305
            
            
            4.5
            
            
            519
            
            
            13.2Cost
                of equipment revenue
            
            
            122
            
            
            3.0
            
            
            193
            
            
            10.1
            
            
            202
            
            
            3.0
            
            
            298
            
            
            7.6Cost
                of network operations
            
            
            19
            
            
            0.5
            
            
            71
            
            
            3.7
            
            
            52
            
            
            0.8
            
            
            165
            
            
            4.2Cost
                of relay services
            
            
            647
            
            
            16.0
            
            
            --
            
            
            --
            
            
            692
            
            
            10.2
            
            
            --
            
            
            --Cost
                of prepaid services
            
            
            1,662
            
            
            41.2
            
            
            581
            
            
            30.5
            
            
            2,778
            
            
            41.0
            
            
            1,411
            
            
            35.8Sales
                and marketing, net
            
            
            479
            
            
            11.9
            
            
            342
            
            
            17.9
            
            
            1,021
            
            
            15.1
            
            
            453
            
            
            11.5General
                and administrative
            
            
            1,116
            
            
            27.7
            
            
            1,108
            
            
            58.0
            
            
            2,305
            
            
            34.0
            
            
            2,352
            
            
            59.8Research
                and development
            
            
            100
            
            
            2.5
            
            
            105
            
            
            5.5
            
            
            233
            
            
            3.4
            
            
            159
            
            
            4.0Depreciation
                and amortization
            
            
            131
            
            
            3.2
            
            
            126
            
            
            6.6
            
            
            299
            
            
            4.4
            
            
            256
            
            
            6.5Amortization
                of other intangibles
            
            
            --
            
            
            --
            
            
            221
            
            
            11.6
            
            
            --
            
            
            --
            
            
            442
            
            
            11.24,442
            
            
            110.1
            
            
            2,981
            
            
            156.2
            
            
            7,887
            
            
            116.4
            
            
            6,055
            
            
            153.8Loss
                from operations
            
            
            (409
            )
            
            (10.1
            )
            
            (1,073
            )
            
            (56.2
            )
            
            (1,113
            )
            
            (16.4
            )
            
            (2,119
            )
            
            (53.8
            )**Other
                income (expense):**Terminated
                merger costst
            
            
            (12
            )
            
            (0.3
            )
            
            --
            
            
            --
            
            
            (431
            )
            
            (6.4
            )
            
            --
            
            
            --Interest
                income (expense), net
            
            
            55
            
            
            1.4
            
            
            38
            
            
            2.0
            
            
            100
            
            
            1.5
            
            
            76
            
            
            1.9Total
                other income
            
            
            43
            
            
            1.1
            
            
            38
            
            
            2.0
            
            
            (331
            )
            
            (4.9
            )
            
            76
            
            
            1.9Net
                loss
            
            $
            (366
            )
            
            (9.0
            )
            $
            (1,035
            )
            
            (54.2
            )
            $
            (1,444
            )
            
            (21.3
            )
            $
            (2,043
            )
            
            (51.9
            )











The
      following table sets forth the period over period percentage increases or
      decreases of certain items included in the Company's unaudited consolidated
      statements of operations.




**Three
                Months Ended June 30,**
            
            
            **Six
                Months Ended June 30,****(In
                thousands)**
            
            
            
            
            
            
            
            
            **Change**
            
            
            
            
            
            
            
            
            **Change****2006**
            
            
            **2005**
            
            
            $
            
            
            %
            
            
            **2006**
            
            
            **2005**
            
            
            $
            
            
            %**Revenues:**Subscriber
            
            $
            316
            
            $
            632
            
            $
            (316
            )
            
            (50.0
            )
            $
            606
            
            $
            1,419
            
            $
            (813
            )
            
            (57.3
            )Prepaid
                services
            
            
            1,645
            
            
            534
            
            
            1,111
            
            
            208.1
            
            
            2,750
            
            
            1,425
            
            
            1,325
            
            
            93.0Relay
                services
            
            
            1,361
            
            
            312
            
            
            1,049
            
            
            336.2
            
            
            1,828
            
            
            445
            
            
            1,383
            
            
            310.8Commissions
            
            
            659
            
            
            291
            
            
            368
            
            
            128.5
            
            
            1,486
            
            
            294
            
            
            1,192
            
            
            405.4Equipment
            
            
            51
            
            
            139
            
            
            (88
            )
            
            (63.3
            )
            
            101
            
            
            241
            
            
            (140
            )
            
            (58.1
            )Other
            
            
            1
            
            
            --
            
            
            1
            
            
            (38.9
            )
            
            3
            
            
            112
            
            
            (109
            )
            
            (97.3
            )4,033
            
            
            1,908
            
            
            2,125
            
            
            111.4
            
            
            6,774
            
            
            3,936
            
            
            2,838
            
            
            72.1**Costs
                and expenses:**Cost
                of subscriber airtime
            
            
            166
            
            
            234
            
            
            (68
            )
            
            (29.1
            )
            
            305
            
            
            519
            
            
            (214
            )
            
            (41.2
            )Cost
                of equipment revenue
            
            
            122
            
            
            193
            
            
            (71
            )
            
            (36.8
            )
            
            202
            
            
            298
            
            
            (96
            )
            
            (32.2
            )Cost
                of network operations
            
            
            19
            
            
            71
            
            
            (52
            )
            
            (73.2
            )
            
            52
            
            
            165
            
            
            (113
            )
            
            (68.5
            )Cost
                of relay services
            
            
            647
            
            
            --
            
            
            647
            
            
            --
            
            
            692
            
            
            --
            
            
            692
            
            
            --Cost
                of prepaid services
            
            
            1,662
            
            
            581
            
            
            1,081
            
            
            186.1
            
            
            2,778
            
            
            1,411
            
            
            1,367
            
            
            96.9Sales
                and marketing, net
            
            
            479
            
            
            342
            
            
            137
            
            
            40.1
            
            
            1,021
            
            
            453
            
            
            568
            
            
            125.4General
                and administrative
            
            
            1,116
            
            
            1,108
            
            
            8
            
            
            0.7
            
            
            2,305
            
            
            2,352
            
            
            (47
            )
            
            (2.0
            )Research
                and development
            
            
            100
            
            
            105
            
            
            (5
            )
            
            (4.8
            )
            
            233
            
            
            159
            
            
            74
            
            
            46.5Depreciation
                and amortization
            
            
            131
            
            
            126
            
            
            5
            
            
            4.0
            
            
            299
            
            
            256
            
            
            43
            
            
            16.8Amortization
                of other intangibles
            
            
            --
            
            
            221
            
            
            221
            
            
            (100.0
            )
            
            --
            
            
            442
            
            
            (442
            )
            
            (100.0
            )4,442
            
            
            2,981
            
            
            (1,461
            )
            
            49.0
            
            
            7,887
            
            
            6,055
            
            
            1,832
            
            
            30.3Loss
                from operations
            
            
            (409
            )
            
            (1,073
            )
            
            664
            
            
            (61.9
            )
            
            (1,113
            )
            
            (2,119
            )
            
            1,006
            
            
            (47.5
            )**Other
                income (expense):**Terminated
                merger costst
            
            
            (12
            )
            
            --
            
            
            (12
            )
            
            --
            
            
            (431
            )
            
            --
            
            
            (431
            )
            
            (100.0
            )Interest
                income (expense), net
            
            
            55
            
            
            38
            
            
            17
            
            
            44.7
            
            
            100
            
            
            76
            
            
            24
            
            
            31.6Total
                other income
            
            
            43
            
            
            38
            
            
            5
            
            
            13.2
            
            
            (331
            )
            
            76
            
            
            (407
            )
            
            (535.5
            )Net
                loss
            
            $
            (366
            )
            $
            (1,035
            )
            $
            669
            
            
            (64.6
            )
            $
            (1,444
            )
            $
            (2,043
            )
            $
            599
            
            
            (29.3
            )







***Three
      months ended June 30, 2006 Compared to Three months ended June 30,
      2005***




** ***Consolidated***




*Subscriber
      revenue.* Subscriber
      revenue decreased 50%, to $316,000 for the three months ended June 30, 2006
      from
      $632,000 for the three months ended June 30, 2005. This decrease was primarily
      due to declines in our Wynd full service offering subscriber base, as well
      as
      our Go.Web customers and was partially offset by increased subscribers to our
      value-added WyndPower service. We expect the number of our subscribers to
      continue to decline due to additional deactivations in our Go.Web subscriber
      base.




*Prepaid
      services revenue.* Prepaid
      services revenue increased 208%, to $1.6 million for the three months ended
      June
      30, 2006 from $534,000 for the three months ended June 30, 2005. This increase
      was primarily due to the expansion of our distribution network.




*Relay
      services revenue.* Relay
      services revenue increased 336%, to $1.4 million for the three months ended
      June
      30, 2006 from $312,000 for the three months ended June 30, 2005. This increase
      was primarily due to our obtaining FCC certification, allowing us to bill
      directly for service usage for the month of June as opposed to submitting
      through a third party provider as in prior periods as well as increased usage
      of
      our i711.com(R) telecommunications relay service which was launched in March
      2005. Had we not been certified, relay services revenue would have increased
      162%, to $750,000 for the three months ended June 30, 2006 from $312,000 for
      the
      three months ended June 30, 2005. We expect relay services revenue to increase
      as we expand our user base and increase the number of wireless handheld devices
      on which our own branded wireless relay service is available.




*Commission
      revenue.* We
      began earning commissions during 2005 from our acquisition of subscribers on
      behalf of various wireless network providers and recognized $659,000 of
      commission revenue for the three months ended June 30, 2006 compared to $291,000
      for the three months ended June 30, 2005. We expect commission revenue to
      increase slightly as we continue to acquire subscribers on behalf of various
      wireless network providers.









*Equipment
      revenue.* Equipment
      revenue decreased to $51,000 for the three months ended June 30, 2006 from
      $139,000 **** for
      the
      three months ended June 30, 2005. This decrease was primarily due to lower
      sales
      prices for mobile devices. We expect equipment revenue to increase slightly
      as
      we continue to provide devices to new subscribers of our Wynd services and
      from
      our sales of equipment to subscribers on behalf of various wireless network
      providers.




*Other
      revenue.* Other
      revenue increased to $1,000 for the three months ended June 30, 2006. We expect
      other revenue to remain relatively constant as we do not intend to increase
      consulting projects and consulting services to third parties in the near
      future.




*Cost
      of subscriber airtime.* Cost
      of subscriber airtime decreased 29%, to $166,000 for the three months ended
      June
      30, 2006 from $234,000 for the three months ended June 30, 2005. This decrease
      was primarily due to the decrease in our subscriber base described above. We
      expect the number of our subscribers to continue to decline due to additional
      deactivations in our Go.Web subscriber base.





*Cost
      of prepaid services revenue.* Cost
      of prepaid services revenue increased 186%, to $1.7 million for the three months
      ended June 30, 2006 from $581,000 for the three months ended June 30, 2005.
      This
      increase was primarily due to the expansion of our distribution network
      resulting in increased usage of our prepaid calling cards.





*Cost
      of network operations.* Cost
      of network operations decreased to $19,000 for the three months ended June
      30,
      2006 from 71,000 for the three months ended June 30, 2005 due to decreased
      salaries and benefits for personnel performing network operations activities
      and
      decreased facility costs. We expect our cost of network operations to decline
      as
      a percentage of revenue during 2006.




*Cost
      of equipment revenue.* Cost
      of equipment revenue decreased 37%, to $122,000 for the three months ended
      March
      31, 2006 from $193,000 **** for
      the
      three months ended March 31, 2005. This decrease was primarily due to lower
      equipment pricing of mobile devices. We expect cost of equipment revenue to
      increase as we continue to provide devices to new subscribers of our Wynd
      services and from the cost of equipment provided to subscribers on behalf of
      various wireless network providers.




*Sales
      and marketing.* Sales
      and marketing expenses increased to $479,000 **** for
      the
      three months ended June 30, 2006 from $342,000 **** for
      the
      three months ended June 30, 2005. This increase primarily was due to our
      introduction of new products and services to the consumer marketplace as well
      as
      increased payments to third parties as compensation for marketing these
      products. We expect sales and marketing expenses to increase as a percentage
      of
      sales during 2006 as we continue to introduce new products and services to
      the
      consumer marketplace.




*General
      and administrative.* General
      and administrative expenses increased slightly to $1,116,000 **** for
      the
      three months ended June 30, 2006 from $1,108,000 **** for
      the
      three months ended June 30, 2005. This increase was primarily due to increased
      salaries and benefits for personnel performing general corporate activities,
      including $106,000 in stock-based compensation and was partially offset by
      decreased professional services fees. We expect general and
      administrative  expenses
      to decline as a percentage of revenue during 2006. **




*Research
      and development* .
      Research and development expense decreased to $100,000 for the three months
      ended June 30, 2006 from $105,000 for the three months ended June 30, 2005.
      We
      expect research and development expenses to remain constant as we utilize
      internal resources to develop and maintain our WyndTell and relay technologies
      rather than using outside consultants.




*Amortization
      of other intangibles.* The
      Company had recorded amortization of other intangibles of $221,000 for the
      three
      months ended June 30, 2005. The assets were fully amortized as of December
      31,
      2005.




*Terminated
      merger costs.* The
      Company recorded terminated merger costs of $12,000 for the three months ended
      June 30, 2006 in connection with the termination of the merger agreement with
      Hands On.




*Interest
      income (expense), net* .
      Interest income increased to $55,000 for the three months ended June 30, 2006
      from $38,000 for the three months ended June 30, 2005.




***Wireless
      Data Solutions Segment***





*Subscriber
      revenue.* Subscriber
      revenue decreased 50%, to $316,000 for the three months ended June 30, 2006
      from
      $632,000 for the three months ended June 30, 2005. This decrease was primarily
      due to declines in our Wynd full service offering subscriber base, as well
      as
      our Go.Web customers and was partially offset by increased subscribers to our
      value-added WyndPower service. We expect the number of our subscribers to
      continue to decline due to additional deactivations in our Go.Web subscriber
      base.









*Relay
      services revenue.* Relay
      services revenue increased 336%, to $1.4 million for the three months ended
      June
      30, 2006 from $312,000 for the three months ended June 30, 2005. This increase
      was primarily due to our obtaining FCC certification allowing us to bill
      directly for service usage for the month of June as opposed to submitting
      through a third party provider as in prior periods as well as increased usage
      of
      our i711.com(R) telecommunications relay service which was launched in March
      2005. Had we not been certified, relay services revenue would have increased
      162%, to $750,000 for the three months ended June 30, 2006 from $312,000 for
      the
      three months ended June 30, 2005. We expect relay services revenue to increase
      as we expand our user base and increase the number of wireless handheld devices
      on which our own branded wireless relay service is available.




*Commission
      revenue.* We
      began earning commissions during 2005 from our acquisition of subscribers on
      behalf of various wireless network providers and recognized $659,000 of
      commission revenue for the three months ended June 30, 2006 compared to $291,000
      for the three months ended June 30, 2005. We expect commission revenue to
      increase slightly as we continue to acquire subscribers on behalf of various
      wireless network providers.




*Equipment
      revenue.* Equipment
      revenue decreased to $51,000 for the three months ended June 30, 2006 from
      $139,000 **** for
      the
      three months ended June 30, 2005. This decrease was primarily due to lower
      sales
      prices for mobile devices. We expect equipment revenue to increase slightly
      as
      we continue to provide devices to new subscribers of our Wynd services and
      from
      our sales of equipment to subscribers on behalf of various wireless network
      providers.




*Other
      revenue.* Other
      revenue increased to $1,000 for the three months ended June 30, 2006. We expect
      other revenue to remain relatively constant as we do not intend to increase
      consulting projects and consulting services to third parties in the near
      future.




*Cost
      of subscriber airtime.* Cost
      of subscriber airtime decreased 29%, to $166,000 for the three months ended
      June
      30, 2006 from $234,000 for the three months ended June 30, 2005. This decrease
      was primarily due to the decrease in our subscriber base described above. We
      expect the number of our subscribers to continue to decline due to additional
      deactivations in our Go.Web subscriber base.





*Cost
      of network operations.* Cost
      of network operations decreased to $12,000 for the three months ended June
      30,
      2006 from $49,000 for the three months ended June 30, 2005 due to decreased
      salaries and benefits for personnel performing network operations activities
      and
      decreased facility costs. We expect our cost of network operations to decline
      as
      a percentage of revenue during 2006.




*Cost
      of equipment revenue.* Cost
      of equipment revenue decreased 37%, to $122,000 for the three months ended
      March
      31, 2006 from $193,000 **** for
      the
      three months ended March 31, 2005. This decrease was primarily due to lower
      equipment pricing of mobile devices. We expect cost of equipment revenue to
      increase as we continue to provide devices to new subscribers of our Wynd
      services and from the cost of equipment provided to subscribers on behalf of
      various wireless network providers.




*Sales
      and marketing.*  Sales and marketing expenses increased to
      $479,000****for the three months ended June 30, 2006 from
      $342,000****for the three months ended June 30, 2005. This
      increase primarily was due to our introduction of new products and services
      to
      the consumer marketplace as well as increased payments to third parties as
      compensation for marketing these products. We expect sales and marketing
      expenses to increase as a percentage of sales during 2006 as we continue to
      introduce new products and services to the consumer
      marketplace.




*General
      and administrative.* General
      and administrative expenses decreased to $362,000 **** for
      the
      three months ended June 30, 2006 from $604,000 **** for
      the
      three months ended June 30, 2005. This decrease was primarily due to decreased
      salaries and benefits for personnel performing general corporate activities
      and
      decreased facility costs. We expect general and administrative  expenses
      to decline as a percentage of revenue during 2006. **




*Research
      and development* .
      Research and development expense decreased to $100,000 for the three months
      ended June 30, 2006 from $105,000 for the three months ended June 30, 2005.
      We
      expect research and development expenses to remain constant as we utilize
      internal resources to develop and maintain our WyndTell and relay technologies
      rather than using outside consultants




*Amortization
      of other intangibles.* The
      Company had recorded amortization of other intangibles of $221,000 for the
      three
      months ended June 30, 2005. The assets were fully amortized as of December
      31,
      2005.







***Prepaid
      Services Segment***





*Prepaid
      services revenue.* Prepaid
      services revenue increased 208%, to $1.6 million for the three months ended
      June
      30, 2006 from $534,000 for the three months ended June 30, 2005. This increase
      was primarily due to the expansion of our distribution network.




*Cost
      of prepaid services revenue.* Cost
      of prepaid services revenue increased 186%, to $1.7 million for the three months
      ended June 30, 2006 from $581,000 for the three months ended June 30, 2005.
      This
      increase was primarily due to the expansion of our distribution network
      resulting in increased usage of our prepaid calling cards.





*Cost
      of network operations.* Cost
      of network operations related to our prepaid calling cards decreased to $7,000
      for the three months ended June 30, 2006 from $22,000 for the three months
      ended
      June 30, 2005.





*General
      and administrative.* General
      and administrative expenses decreased to $68,000 for the three months ended
      June
      30, 2006 from $100,000 for the three months ended March 31, 2005. This decrease
      was primarily due to decreased professional services fees. We expect general
      and
      administrative  expenses
      to decline as a percentage of revenue during 2006.




***Corporate
      Segment***





*General
      and administrative.* General
      and administrative expenses increased to $686,000 **** for
      the
      three months ended June 30, 2006 from $404,000 **** for
      the
      three months ended June 30, 2005. This increase was primarily due to increased
      salaries and benefits for personnel performing general corporate activities,
      including $106,000 in stock-based compensation and increased professional
      services fees. We expect general and administrative  expenses
      to decline as a percentage of revenue during 2006.




*Terminated
      merger costs.* The
      Company recorded terminated merger costs of $12,000 for the three months ended
      June 30, 2006 in connection with the termination of the merger agreement with
      Hands On.




*Interest
      income (expense), net* .
      Interest income increased to $55,000 for the three months ended June 30, 2006
      from $38,000 for the three months ended June 30, 2005.




***Six
      months ended June 30, 2006 Compared to Six months ended June 30,
      2005***




** ***Consolidated***




*Subscriber
      revenue.* Subscriber
      revenue decreased 57%, to $606,000 for the six months ended June 30, 2006 from
      $1.4 million for the six months ended June 30, 2005. This decrease was primarily
      due to declines in our Wynd full service offering subscriber base, as well
      as
      our Go.Web customers and was partially offset by increased subscribers to our
      value-added WyndPower service.




*Prepaid
      services revenue.* Prepaid
      services revenue increased 93%, to $2.7 million for the six months ended June
      30, 2006 from $1.4 million for the six months ended June 30, 2005. This increase
      was primarily due to the expansion of our distribution network.




*Relay
      services revenue.* Relay
      services revenue increased 311%, to $1.8 million for the six months ended June
      30, 2006 from $445,000 for the six months ended June 30, 2005. This increase
      was
      primarily due to our obtaining FCC certification allowing us to bill directly
      for service usage for the month of June as opposed to submitting through a
      third
      party provider as in prior periods as well as increased usage of our i711.com(R)
      telecommunications relay service which was launched in March 2005. Had we not
      been certified, relay services revenue would have increased 106%, to $916,000
      for the six months ended June 30, 2006 from $445,000 for the six months ended
      June 30, 2005.




*Commission
      revenue.* We
      began earning commissions during 2005 from our acquisition of subscribers on
      behalf of various wireless network providers and recognized $1.5 million of
      commission revenue for the six months ended June 30, 2006 compared to $294,000
      for the six months ended June 30, 2005.









*Equipment
      revenue.* Equipment
      revenue decreased to $101,000 for the six months ended June 30, 2006 from
      $241,000 **** for
      the
      six months ended June 30, 2005. This decrease was primarily due to lower sales
      prices for mobile devices as well as lower sales of our ClearMobile prepaid
      phone product line.




*Other
      revenue.* Other
      revenue decreased to $3,000 for the six months ended June 30, 2006 from $112,000
      for the six months ended June 30, 2005. This decrease was primarily due to
      reduced consulting services.




*Cost
      of subscriber airtime.* Cost
      of subscriber airtime decreased 41%, to $305,000 for the six months ended June
      30, 2006 from $519,000 for the six months ended June 30, 2005. This decrease
      was
      primarily due to the decrease in our subscriber base described
      above.





*Cost
      of prepaid services revenue.* Cost
      of prepaid services revenue increased 97%, to $2.8 million for the six months
      ended June 30, 2006 from $1.4 million for the six months ended June 30, 2005.
      This increase was primarily due to the expansion of our distribution network
      resulting in increased usage of our prepaid calling cards.





*Cost
      of network operations.* Cost
      of network operations decreased to $52,000 for the six months ended June 30,
      2006 from $165,000 for the six months ended June 30, 2005 due to decreased
      salaries and benefits for personnel performing network operations activities
      and
      decreased facility costs.




*Cost
      of equipment revenue.* Cost
      of equipment revenue decreased 32%, to $202,000 for the six months ended June
      30, 2006 from $298,000 **** for
      the
      six months ended June 30, 2005. This decrease was primarily due to lower prices
      for mobile devices as well as lower sales of our ClearMobile prepaid phone
      product line.




*Sales
      and marketing.* Sales
      and marketing expenses increased to $1.0 million **** for
      the
      six months ended June 30, 2006 from $453,000 **** for
      the
      six months ended June 30, 2005. This increase primarily was due to our
      introduction of new products and services to the consumer marketplace as well
      as
      increased payments to third parties as compensation for marketing these
      products.




*General
      and administrative.* General
      and administrative expenses decreased to $2,305,000 **** for
      the
      six months ended June 30, 2006 from $2,352,000 **** for
      the
      six months ended June 30, 2005. This decrease was primarily due to decreased
      salaries and benefits for personnel performing general corporate activities
      and
      decreased facility costs and was partially offset by an increase of
      approximately $213,000 in stock-based compensation.




*Research
      and development* .
      Research and development expense increased to $233,000 for the six months ended
      June 30, 2006 from $159,000 for the six months ended June 30, 2005. This
      increase was primarily due to increased salaries and benefits for personnel
      performing research and development activities.




*Amortization
      of other intangibles.* The
      Company had recorded amortization of other intangibles of $442,000 for the
      six
      months ended June 30, 2005. The assets were fully amortized as of December
      31,
      2005.




*Terminated
      merger costs.* The
      Company recorded terminated merger costs of $431,000 for the six months ended
      June 30, 2006 in connection with the termination of the merger agreement with
      Hands On.




*Interest
      income (expense), net* .
      Interest income increased to $100,000 for the six months ended June 30, 2006
      from $76,000 for the six months ended June 30, 2005.




***Wireless
      Data Solutions Segment***





*Subscriber
      revenue.* Subscriber
      revenue decreased 57%, to $606,000 for the six months ended June 30, 2006 from
      $1.4 million for the six months ended June 30, 2005. This decrease was primarily
      due to declines in our Wynd full service offering subscriber base, as well
      as
      our Go.Web customers and was partially offset by increased subscribers to our
      value-added WyndPower service.




*Relay
      services revenue.* Relay
      services revenue increased 311%, to $1.8 million for the six months ended June
      30, 2006 from $445,000 for the six months ended June 30, 2005. This increase
      was
      primarily due to our obtaining FCC certification allowing us to bill directly
      for service usage for the month of June as opposed to submitting through a
      third
      party provider as in prior periods as well as increased usage of our i711.com(R)
      telecommunications relay service which was launched in March 2005. Had we not
      been certified, relay services revenue would have increased 106%, to $916,000
      for the six months ended June 30, 2006 from $445,000 for the six months ended
      June 30, 2005.









*Commission
      revenue.* We
      began earning commissions during 2005 from our acquisition of subscribers on
      behalf of various wireless network providers and recognized $1.5 million of
      commission revenue for the six months ended June 30, 2006 compared to $294,000
      for the six months ended June 30, 2005.




*Equipment
      revenue.* Equipment
      revenue decreased to $101,000 for the six months ended June 30, 2006 from
      $187,000 **** for
      the
      six months ended June 30, 2005. This decrease was primarily due to lower sales
      prices for mobile devices.




*Other
      revenue.* Other
      revenue decreased to $3,000 for the six months ended June 30, 2006 from $112,000
      for the six months ended June 30, 2005. This decrease was primarily due to
      reduced consulting services.




*Cost
      of subscriber airtime.* Cost
      of subscriber airtime decreased 41%, to $305,000 for the six months ended June
      30, 2006 from $519,000 for the six months ended June 30, 2005. This decrease
      was
      primarily due to the decrease in our subscriber base described
      above.





*Cost
      of network operations.* Cost
      of network operations decreased to $38,000 for the six months ended June 30,
      2006 from $121,000 for the six months ended June 30, 2005 due to decreased
      salaries and benefits for personnel performing network operations activities
      and
      decreased facility costs.




*Cost
      of equipment revenue.* Cost
      of equipment revenue decreased 32%, to $202,000 for the six months ended June
      30, 2006 from $244,000 **** for
      the
      six months ended June 30, 2005. This decrease was primarily due to lower prices
      for mobile devices.




*Sales
      and marketing.* Sales
      and marketing expenses increased to $1.0 million **** for
      the
      six months ended June 30, 2006 from $453,000 **** for
      the
      six months ended June 30, 2005. This increase primarily was due to our
      introduction of new products and services to the consumer marketplace as well
      as
      increased payments to third parties as compensation for marketing these
      products.




*General
      and administrative.* General
      and administrative expenses decreased to $849,000 **** for
      the
      six months ended June 30, 2006 from $1,258,000 **** for
      the
      six months ended June 30, 2005. This decrease was primarily due to decreased
      salaries and benefits for personnel performing general corporate activities
      and
      decreased facility costs. We expect general and administrative  expenses
      to decline as a percentage of revenue during 2006. **




*Research
      and development* .
      Research and development expense increased to $233,000 for the six months ended
      June 30, 2006 from $159,000 for the six months ended June 30, 2005. This
      increase was primarily due to increased salaries and benefits for personnel
      performing research and development activities




*Amortization
      of other intangibles.* The
      Company had recorded amortization of other intangibles of $442,000 for the
      six
      months ended June 30, 2005. The assets were fully amortized as of December
      31,
      2005.




***Prepaid
      Services Segment***





*Prepaid
      services revenue.* Prepaid
      services revenue increased 93%, to $2.7 million for the six months ended June
      30, 2006 from $1.4 million for the six months ended June 30, 2005. This increase
      was primarily due to the expansion of our distribution network.




*Equipment
      revenue.* We
      recognized $54,000 of equipment revenue from ClearMobile, our prepaid phone
      product line during the six months ended June 30, 2005. This segment had no
      equipment sales during the six months ended June 30, of 2006.




*Cost
      of prepaid services revenue.* Cost
      of prepaid services revenue increased 97%, to $2.8 million for the six months
      ended June 30, 2006 from $1.4 million for the six months ended June 30, 2005.
      This increase was primarily due to the expansion of our distribution network
      resulting in increased usage of our prepaid calling cards.





*Cost
      of network operations.* Cost
      of network operations related to our prepaid calling cards decreased to $14,000
      for the six months ended June 30, 2006 from $44,000 for the six months ended
      June 30, 2005.





*Cost
      of equipment revenue.* Cost
      of equipment revenue was $54,000 for the six months ended June 30, 2005. This
      segment had no equipment sales during the six months ended June 30, of
      2006.










*General
      and administrative.* General
      and administrative expenses decreased to $145,000 for the six months ended
      June
      30, 2006 from $289,000 for the six months ended June 30, 2005. This decrease
      was
      primarily due to decreased professional services fees.




***Corporate
      Segment***





*General
      and administrative.* General
      and administrative expenses increased to $1.3 million **** for
      the
      six months ended June 30, 2006 from $805,000 **** for
      the
      six months ended June 30, 2005. This increase was primarily due to increased
      salaries and benefits for personnel performing general corporate activities,
      including $213,000 in stock-based compensation and increased professional
      services fees.




*Terminated
      merger costs.* The
      Company recorded terminated merger costs of $431,000 for the six months ended
      June 30, 2006.




*Interest
      income (expense), net* .
      Interest income increased to $100,000 for the six months ended June 30, 2006
      from $76,000 for the six months ended June 30, 2005.




**Liquidity
      and Capital Resources**




Since
      our
      inception, we financed our operations through a public offering and private
      placements of our equity securities. We have incurred significant operating
      losses since our inception and as of June 30, 2006 have an accumulated deficit
      of $274.7 million. During the six months ended June 30, 2006, we incurred a
      net
      loss of $1.4 million, used $907,000 of cash to fund operating activities and
      overall experienced a decline of $889,000 in our cash and cash equivalents.
      We
      currently anticipate that our available cash resources will be sufficient to
      fund our operating needs for at least the next 12 months. At this time, we
      do
      not have any bank credit facility or other working capital credit line under
      which we may borrow funds for working capital or other general corporate
      purposes.




Net
      cash
      used in operating activities amounted to $907,000 for the six months ended
      June 30, 2006 principally reflecting our loss from operations.




We
      provided $36,000 in cash from investing activities during the six months ended
      June 30, 2006, which primarily resulted from the reduction of cash utilized
      to
      support a letter of credit in favor of Velocita which is no longer required.
      This was partially offset by additional funds related to terminated merger
      costs
      and advances to Hands On and purchases of fixed assets.




Net
      cash
      used in financing activities was $18,000 for the six months ended June 30,
      2006,
      which resulted from payments made on capital lease obligations.




As
      of
      June 30, 2006, our principal commitments consisted of obligations outstanding
      under operating leases. As of June 30, 2006, future minimum payments for
      non-cancelable operating leases having terms in excess of one year amounted
      to
      $353,000, of which approximately $283,000 **** is
      payable in the next twelve months.




The
      following table summarizes GoAmerica’s contractual obligations at June 30, 2006,
      and the effect such obligations are expected to have on its liquidity and cash
      flow in future periods.




June
                30, 2006 (In thousands)
            
            
            Total
            
            
            Less
                than 1 Year
            
            
            1-3
                Years
            
            
            4-5
                Years
            
            
            After
                5 YearsContractual
                Obligations:Capital
                Lease Obligations
            
            $
            44
            
            $
            21
            
            $
            23
            
            $
            --
            
            $
            --Operating
                LeaseObligations
            
            
            353
            
            
            283
            
            
            70
            
            
            --
            
            
            --Total
            
            $
            397
            
            $
            304
            
            $
            93
            
            $
            --
            
            $
            --











**Forward
      Looking Statements**




The
      statements contained in this Quarterly Report on Form 10-Q that are not
      historical facts are forward-looking statements (within the meaning of Section
      21E of the Securities Exchange Act of 1934, as amended). Such forward-looking
      statements may be identified by the use of forward-looking terminology such
      as
      "may", "will", "expect", "estimate", "anticipate", "continue", or similar terms,
      variations of such terms or the negative of those terms. Such forward-looking
      statements involve risks and uncertainties, including, but not limited to: (i)
      our
      limited operating history; (ii) our ability to respond to the rapid
      technological change of the wireless data industry and offer new services;
      (iii)
      our dependence on wireless carrier networks; (iv) our ability to respond to
      increased competition in the wireless data industry; (v) our ability to
      integrate acquired businesses and technologies; (vi) our ability to generate
      revenue growth; (vii) our ability to increase or maintain gross margins,
      profitability, liquidity and capital resources; (viii) difficulties inherent
      in
      predicting the outcome of regulatory processes; and (ix) our limited experience
      in offering prepaid calling cards .
      Many of
      such risks and others are more fully described in our Annual Report on Form
      10-K
      for the year ended December 31, 2005. Our actual results could differ materially
      from the results expressed in, or implied by, such forward-looking
      statements *.*




**Recent
      Accounting Pronouncements**




In
      July
      2006, the Financial Accounting Standards Board (“FASB”) has published FASB
      Interpretation No. 48 (“FIN No. 48”), Accounting for Uncertainty in Income
      Taxes, to address the noncomparability in reporting tax assets and liabilities
      resulting from a lack of specific guidance in FASB Statement of Financial
      Accounting Standards (SFAS) No. 109, Accounting for Income Taxes, on the
      uncertainty in income taxes recognized in an enterprise’s financial statements.
      FIN No. 48 will apply to fiscal years beginning after December 15, 2006, with
      earlier adoption permitted.  The adoption of FIN 48 is not expected to have
      a material effect on the Company’s financial condition or results of
      operations .





In
      November 2004, FASB issued SFAS 151, "Inventory Costs - An Amendment of ARB
      No.
      43, Chapter 4" ("SFAS 151"). SFAS 151 amends the guidance in ARB No. 43, Chapter
      4 to clarify the accounting for abnormal amounts of idle facility expense,
      freight, handling costs, and wasted material (spoilage). The provisions of
      SFAS
      151 are effective for inventory costs incurred during fiscal years beginning
      after June 15, 2005. The adoption of SFAS 151 did not have a material effect
      on
      our financial condition or results of operations.




In
      December 2004, the FASB issued SFAS 153, "Exchanges of Nonmonetary Assets -
      an
      amendment of APB Opinion No. 29" ("SFAS 153"). SFAS 153 amends APB Opinion
      29 to
      eliminate the similar productive asset exception and establishes that exchanges
      of productive assets should be accounted for at fair value, rather than at
      carryover basis unless (1) neither the asset received nor the asset surrendered
      has a fair value that is determinable within reasonable limits, (2) the
      transaction is an exchange transaction to facilitate sales to customers, or
      (3)
      the transaction lacks commercial substance. A nonmonetary exchange has
      commercial substance if the future cash flows of the entity are expected to
      change significantly as a result of the exchange. The provisions of SFAS 153
      are
      effective for nonmonetary exchanges occurring in fiscal periods beginning after
      June 15, 2005. The adoption of SFAS 153 did not have a material effect on our
      financial condition or results of operations.




In
      December 2004, the FASB issued SFAS 123R, "Share-Based Payment". SFAS 123R
      establishes that employee services received in exchange for share-based payment
      result in a cost that should be recognized in the income statement as an expense
      when the services are consumed by the enterprise. It further establishes that
      those expenses be measured at fair value determined as of the grant date. The
      provisions of SFAS 123R become effective as of the beginning of the first annual
      reporting period that begins after June 15, 2005. Furthermore, the Office of
      the
      Chief Accountant (OCA) of the Securities and Exchange Commission issued Staff
      Accounting Bulletin 107 to provide clarification of the OCA’s interpretation of
      SFAS 123R as it applies to share based compensation arrangements for both
      employees and non employees. The Company has evaluated the effect of the
      adoption of SFAS 123R and has concluded that its adoption did not have a
      material affect on our financial condition and results of
      operations.









**Item
      3.**  **Quantitative
      and Qualitative Disclosures About Market Risk**




We
      believe that we have limited exposure to financial market risks, including
      changes in interest rates. At June 30, 2006, all of our available excess funds
      are cash or cash equivalents. The value of our cash and cash equivalents is
      not
      materially affected by changes in interest rates. A hypothetical change in
      interest rates of 1.0% would result in an annual change in our net loss of
      approximately $39,000 based on cash and cash equivalent balances at June 30,
      2006. We currently hold no derivative instruments and do not earn foreign-source
      income.




**Item
      4.**  **Controls
      and Procedures**







*Evaluation
      of disclosure controls and procedures.*





As
      of the
      end of the Company's most recently completed fiscal quarter (the registrant's
      fourth fiscal quarter in the case of an annual report) covered by this report,
      the Company carried out an evaluation, with the participation of the Company's
      management, including the Company's Chief Executive Officer and Chief Financial
      Officer, of the effectiveness of the Company's disclosure controls and
      procedures pursuant to Securities Exchange Act Rule 13a-15. Based upon that
      evaluation, the Company's Chief Executive Officer and Chief Financial Officer
      concluded that the Company's disclosure controls and procedures are effective
      in
      ensuring that information required to be disclosed by the Company in the reports
      that it files or submits under the Securities Exchange Act is recorded,
      processed, summarized and reported, within the time periods specified in the
      SEC's rules and forms.








*Changes
      in internal controls.*





There
      have been no changes in the Company's internal controls over financial reporting
      that occurred during the Company's last fiscal quarter to which this report
      relates that have materially affected, or are reasonably likely to materially
      affect, the Company's internal control over financial reporting.










**PART
      II. OTHER INFORMATION**




**Item
      1.**  **Legal
      Proceedings.**




On
      September 22, 2004, Boundless Depot, LLC ("Boundless Depot") and Scott Johnson,
      one of two Boundless Depot shareholders, sued GoAmerica and Wynd Communications
      in the Superior Court of the State of California for the County of Los Angeles,
      claiming damages of one million dollars for GoAmerica's refusal to pay Boundless
      Depot unattained contingent consideration, comprising cash and/or GoAmerica
      Common Stock, with respect to the Asset Purchase Agreement dated as of February
      8, 2003 (the "Deafwireless Agreement"), pursuant to which GoAmerica and Wynd
      Communications acquired certain Deafwireless assets. The total value of such
      contingent consideration, if all contingencies had been fully met and amounts
      paid immediately thereupon, would not have exceeded $211,000; however, the
      Company does not believe any of the contingent consideration is owed to
      Boundless Depot or either of its shareholders since conditions of the
      Deafwireless Agreement were not met and the Company incurred costs for which
      it
      is entitled to receive reimbursement from Boundless Depot or offset against
      any
      amounts that may become payable to Boundless Depot. Upon petition by GoAmerica
      and Wynd Communications, the Court has ordered this matter into arbitration,
      which process is now pending. The Company intends to defend this action
      vigorously and may elect to pursue counterclaims.





**Item
      6. Exhibits.**








31.1
      Certification of the Chief Executive Officer Pursuant to Section 302 of the
      Sarbanes-Oxley Act of 2002.





31.2
      Certification of the Chief Financial Officer Pursuant to Section 302 of the
      Sarbanes-Oxley Act of 2002.





32.1
      Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section
      1350,
      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.





32.2
      Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section
      1350,
      adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.








**SIGNATURES**




Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this report to be signed on its behalf by the undersigned thereunto
      duly authorized.


GOAMERICA,
              INC.DATE:August
              14, 2006
            By:
            /s/ Daniel
              R.
              LuisDaniel R. LuisChief
              Executive Officer(Principal Executive
              Officer)




DATE:August
              14, 2006
            By:
            /s/ Donald
              G.
              BarnhartDonald G. BarnhartChief
              Financial Officer(Principal Financial and Accounting
              Officer)