**UNITED
      STATES SECURITIES AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**




**FORM
      10-Q**




(Mark
      One)




**þ**
            **QUARTERLY
                REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
                1934**




**For
      the quarterly period ended June 30, 2008**




**OR**




**o**
            **TRANSITION
                REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
                1934**




**For
      the transition period from _________ to _________.**




***Commission
      file number 000-25499***




**SIENA
      TECHNOLOGIES, INC.**


(Exact
      name of small business issuer as specified in its charter)


**Nevada**
              
              **88-0390360**State
                  or other jurisdiction of
                Incorporation
                  or organization
              
              (IRS
                  Employer
                Identification
                  Number)**5625
                  South Arville Street, Suite E,**
                **Las
                  Vegas, Nevada**
              
              **89118**(Address
                  of principal
                executive
                  offices)
              
              (Zip
                  Code)




**(702)
      889-8777**


(Issuer’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 þ No o




Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, a non-accelerated filer, or a smaller reporting company.
      See
      the definitions of “large accelerated filer,” “accelerated filer” and “smaller
      reporting company” in Rule 12b-2 of the Exchange Act.


Large
                  Accelerated filer o
              Accelerated
                  filer oNon-accelerated
                  filer o
              Smaller
                  reporting Company þ(Do
                  not check if a smaller reporting company)




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act.)


Yes o No þ




As
      of
      August 13, 2008 there were 42,163,691 shares of common stock issued and
      outstanding, $0.001 par value.


Transitional
                  Small Business Disclosure Format (check one)
              Yes
                  o No þ









**SIENA
      TECHNOLOGIES, INC.**




**TABLE
      OF CONTENTS**




PagePART
                I — FINANCIAL INFORMATION
            
            1ITEM
                1.
            FINANCIAL
                STATEMENTS
            
            1ITEM
                2.
            MANAGEMENT’S
                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESOLUTS OF
                OPERATION.
            
            2ITEM
                3.
            QUANTITATIVE
                AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
            
            4ITEM 4T.
            CONTROLS
                AND PROCEDURES
            
            4PART
                II — OTHER INFORMATION
            
            5ITEM
                1.
            LEGAL
                PROCEEDINGS
            
            5ITEM 1A.
            RISK
                FACTORS
            
            5ITEM
                2.
            UNREGISTERED
                SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
            
            5ITEM
                3.
            DEFAULTS
                UPON SENIOR SECURITIES
            
            5ITEM
                4.
            SUBMISSION
                OF MATTERS TO A VOTE OF SECURITY HOLDERS
            
            5ITEM
                5.
            OTHER
                INFORMATION
            
            5ITEM
                6.
            EXHIBITS
            
            6SIGNATURE
            
            7CERTIFICATION
                PURSUANT TO SECTION 302CERTIFICATION
                PURSUANT TO SECTION 906




i




**PART
      I — FINANCIAL INFORMATION**




**ITEM
      1.**  **FINANCIAL
      STATEMENTS**




**Index
      to Financial Statements**




CONSOLIDATED
                BALANCE SHEETS
            
            F-1CONSOLIDATED
                STATEMENTS OF OPERATIONS (Unaudited)
            
            F-2CONSOLIDATED
                STATEMENTS OF CASH FLOWS (Unaudited)
            
            F-3CONSOLIDATED
                NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30,
                2008
                AND 2007 (Unaudited)
            
            F-4




1




**SIENA
      TECHNOLOGIES, INC.**


**CONSOLIDATED
      BALANCE SHEETS**


**June
                  30,**
                **2008**
              
              **December
                  31,**
                **2007***(Unaudited)*
              
              *(Restated)***ASSETS**Current
                  AssetsCash
              
              $
              9,471
              
              $
              1,835Current
                  Assets of Discontinued Operations (Note 6)
              
              
              -
              
              
              2,850,238Total
                  Current Assets
              
              
              9,471
              
              
              2,852,073**TOTAL
                  ASSETS**
              
              $
              9,471
              
              $
              2,852,073**LIABILITIES
&
STOCKHOLDERS’
                  DEFICIT**Current
                  LiabilitiesAccounts
                  Payable and Accrued Expenses
              
              $
              32,500
              
              $
              134,158Current
                  Liabilities of Discontinued Operations (Note 6)
              
              
              183,281
              
              
              4,996,036Related
                  Party Promissory Notes - In Default (Note 5)
              
              
              275,094
              
              
              -Fair
                  Value of Derivatives Embedded Within Promissory Notes (Note
                  4)
              
              
              835,853
              
              
              -Fair
                  Value of Derivative Liabilities (Note 4)
              
              
              4,420
              
              
              8,124Total
                  Current Liabilities
              
              
              1,331,148
              
              
              5,138,318Noncurrent
                  LiabilitiesNote
                  Payable - In Default
              
              
              400,178
              
              
              377,727Related
                  Party Note Payable - In Default (Note 5)
              
              
              9,190,386
              
              
              8,422,570Total
                  Noncurrent Liabilities
              
              
              9,590,564
              
              
              8,800,297Total
                  Liabilities
              
              
              10,921,712
              
              
              13,938,615Commitments
                  & Contingencies (Note 7)Stockholders’
                  DeficitCommon
                  Stock, $.001 par value; 100,000,000 shares authorized 42,163,691
                  shares
                  issued and outstanding at June 30, 2008 and December 31, 2007,
                  respectively
              
              
              42,163
              
              
              42,163Additional
                  Paid-in Capital
              
              
              29,912,212
              
              
              29,605,537Shares
                  to be Returned
              
              
              (13,817
              )
              
              -Shares
                  to be Issued
              
              
              163
              
              
              163Accumulated
                  Deficit
              
              
              (40,852,962
              )
              
              (40,734,405
              )Total
                  Stockholders’ Deficit
              
              
              (10,912,241
              )
              
              (11,086,542
              )**TOTAL
                  LIABILITIES AND STOCKHOLDERS' DEFICIT**
              
              $
              9,471
              
              $
              2,852,073




**The
      Accompanying Notes Are an Integral Part of these Consolidated Financial
      Statements**




F–1





**SIENA
      TECHNOLOGIES, INC.**


**CONSOLIDATED
      STATEMENTS OF OPERATIONS**


**(Unaudited)**


**Six Months Ended**
                **June 30**
              
              **Three Months Ended**
                **June 30****2008**
              
              **2007**
              
              **2008**
              
              **2007**Revenues
              
              $
              -
              
              $
              -
              
              $
              -
              
              $
              -Costs
                  of Sales
              
              
              -
              
              
              -
              
              
              -
              
              
              -Gross
                  Profit
              
              
              -
              
              
              -
              
              
              -
              
              
              -Operating
                  ExpensesInvestor
                  Relations
              
              
              8,079
              
              
              110,182
              
              
              6,709
              
              
              38,490Stock
                  Based Compensation
              
              
              34,675
              
              
              138,147
              
              
              16,321
              
              
              57,010Other
                  Selling, General and Administrative Expenses
              
              
              181,834
              
              
              177,278
              
              
              56,116
              
              
              155,885Total
                  Operating Expenses
              
              
              224,588
              
              
              425,607
              
              
              79,146
              
              
              251,385Loss
                  From Continuing Operations
              
              
              (224,588
              )
              
              (425,607
              )
              
              (79,146
              )
              
              (251,385
              )Other
                  Income and ExpensesChanges
                  in Fair Value of Derivatives
              
              
              3,704
              
              
              2,698,894
              
              
              4,112
              
              
              833,522Changes
                  in Fair Value of Embedded Derivatives
              
              
              (375,167
              )
              
              -
              
              
              (375,167
              )
              
              -Gain
                  on Disposal of Subsidiary - Kelley
              
              
              2,150,133
              
              
              -
              
              
              2,150,133
              
              
              -Interest
                  Expense
              
              
              (1,472,851
              )
              
              (237,450
              )
              
              (1,405,783
              )
              
              (117,694
              )Total
                  Other Income
              
              
              305,819
              
              
              2,461,444
              
              
              373,295
              
              
              715,828Net
                  Income From Continuing Operations
              
              
              81,231
              
              
              2,035,837
              
              
              294,149
              
              
              464,443(Loss)
                  Income from Discontinued Operations
              
              
              (199,788
              )
              
              (2,207,071
              )
              
              317,211
              
              
              (1,070,831
              )Provision
                  for Income Taxes
              
              
              -
              
              
              -
              
              
              -
              
              
              -Net
                  (Loss) Income
              
              $
              (118,557
              )
              $
              (171,234
              )
              $
              611,360
              
              $
              (606,388
              )Basic
                  and Diluted Net (Loss) Income Per Common Share
              
              $
              (0.00
              )
              $
              (0.00
              )
              $
              0.01
              
              $
              (0.02
              )Number
                  of Common Shares Used to Compute Basic and Diluted Weighted
                  Average
              
              
              42,163,691
              
              
              39,942,075
              
              
              42,163,691
              
              
              40,396,633




**The
      Accompanying Notes Are an Integral Part of these Consolidated Financial
      Statements**




F–2


**SIENA
      TECHNOLOGIES, INC.**


**CONSOLIDATED
      STATEMENTS OF CASH FLOWS**


**(Unaudited)**


**Six Months Ended**
                **June 30,****2008**
              
              **2007****CASH
                  USED IN OPERATING ACTIVITIES**Net
                  Loss
              
              $
              (118,557
              )
              $
              (171,234
              )Adjustments
                  to Reconcile Net Income to Net Cash Used in Operating
                  Activities
              
              
              
              
              
              -Stock
                  Issued for Services
              
              
              -
              
              
              40,000Liquidated
                  Damages Incurred Upon Default on Promissory Notes
              
              
              60,196
              
              
              -Beneficial
                  Conversion Feature
              
              
              272,000
              
              
              -Amortization
                  of Debt Discount
              
              
              167,089
              
              
              -Fair
                  Value Adjustments of Derivative Liabilities
              
              
              371,463
              
              
              (2,698,894
              )Fair
                  Value of Derivative Liabilities in Excess of Proceeds,
                  Expensed
              
              
              195,686
              
              
              -Stock
                  Based Compensation
              
              
              34,675
              
              
              138,147Gain
                  on Divestiture of Kelley
              
              
              (2,150,133
              )
              
              -Accretion
                  of Notes Payable Balances
              
              
              838,076
              
              
              64,623Changes
                  in Operating Assets and Liabilities
              
              
              
              
              
              -(Increase)
                  Decrease Current Assets of Discontinued Operations
              
              
              -
              
              
              508,871(Decrease)
                  Increase in Accounts Payable and Accrued Expenses
              
              
              72,141
              
              
              -(Decrease)
                  in Current Liabilities of Discontinued Operations
              
              
              -
              
              
              1,052,092**NET
                  CASH USED IN OPERATING ACTIVITIES**
              
              
              (257,364
              )
              
              (1,066,395
              )**CASH
                  PROVIDED BY FINANCING ACTIVITIES:**Net
                  Proceeds from Issuance of Stock
              
              
              -
              
              
              1,132,000Proceeds
                  from Promissory Notes
              
              
              265,000
              
              
              -**NET
                  CASH PROVIDED BY FINANCING ACTIVITIES**
              
              
              265,000
              
              
              1,132,000NET
                  INCREASE IN CASH & CASH EQUIVALENTS
              
              
              7,636
              
              
              65,605BEGINNING
                  CASH & CASH EQUIVALENTS
              
              
              1,835
              
              
              7,808ENDING
                  CASH & CASH EQUIVALENTS
              
              $
              9,471
              
              $
              73,413**SUPPLEMENTAL
                  DISCLOSURE OF CASH FLOW INFORMATION**Cash
                  Paid for Interest
              
              $
              -
              
              $
              261,458Cash
                  Paid for Income Taxes
              
              $
              -
              
              $
              -Stock
                  Issued for Services and Debt Reduction.
              
              $
              -
              
              $
              40,000Accrued
                  Commissions in Connection with Private Placement
              
              $
              -
              
              $
              10,000Assets
                  Contributed to Tuscany Services LLC in Exchange for Joint Venture
                  Interest
              
              $
              -
              
              $
              375,000Issuance
                  of Warrants in Connection with Private Placement
              
              $
              -
              
              $
              1,045,182




**The
      Accompanying Notes Are an Integral Part of these Consolidated Financial
      Statements**




F–3




**SIENA
      TECHNOLOGIES, INC.**


**CONSOLIDATED
      NOTES TO THE FINANCIAL STATEMENTS**


**FOR
      THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007**


**(Unaudited)**




**NOTE
      1 - DESCRIPTION OF BUSINESS**




On
      October 25, 2006, Network Installation Corp. (“NIC”) changed its name to Siena
      Technologies, Inc. (together with its two wholly owned subsidiaries, the
“Company”). The Company was incorporated on March 24, 1998 under the laws of the
      state of Nevada. The Company has two wholly owned subsidiaries, Com Services,
      Inc. (“COM”) and Network Installation Corporation (“Network”), both of which are
      no longer operating. The Company’s third subsidiary, Kelley Communication
      Company, Inc. (“Kelley”) was sold on March 17, 2008.




***Control
      by Principal Stockholders***




The
      Company’s directors, executive officers and their affiliates or related parties,
      own beneficially and in the aggregate, the majority of the voting power of
      the
      outstanding shares of the common stock of the Company. Accordingly, the
      directors, executive officers and their affiliates, if they voted their shares
      uniformly, would have the ability to control the approval of most corporate
      actions, including increasing the authorized capital stock of the Company and
      the dissolution, merger or sale of the Company’s assets or
      business.




**NOTE
      2 – BASIS OF PRESENTATION**




The
      accompanying consolidated financial statements include the accounts of the
      Company and its 100% owned subsidiaries, COM and Network. All significant
      inter-company accounts and transactions have been eliminated in consolidation.
      The results of each of the Company’s subsidiaries have been included in Loss
      from
      Discontinued Operations in the
      Company’s accompanying consolidated financial statements.




These
      condensed interim consolidated financial statements have been prepared in
      accordance with generally accepted accounting principles in the United States
      of
      America (“US GAAP”).




The
      interim results of operations are not necessarily indicative of the results
      to
      be expected for the fiscal year ending December 31, 2008. The Company’s
      financial statements contained herein are unaudited and, in the opinion of
      management, contain all adjustments (consisting only of normal recurring
      accruals) necessary for a fair presentation of financial position, results
      of
      operations and cash flows for the period presented. The Company’s accounting
      policies and certain other disclosures are set forth in the notes to the
      consolidated financial statements contained in the Company’s Annual Report on
      Form 10-KSB, as amended, for the year ended December 31, 2007, filed with the
      Securities and Exchange Commission on April 28, 2008. These financial statements
      should be read in conjunction with the Company’s audited consolidated financial
      statements and notes thereto. The preparation of financial statements in
      conformity with US GAAP requires management to make estimates and assumptions
      that affect the reported amounts of assets and liabilities and disclosures
      of
      contingent assets and liabilities at the date of the financial statements and
      the reported amounts of revenues and expenses during the reporting period.
      Actual results could differ from those estimates.




F–4


**SIENA
      TECHNOLOGIES, INC.**


**CONSOLIDATED
      NOTES TO THE FINANCIAL STATEMENTS (cont’d)**


**FOR
      THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007**


**(Unaudited)**




***Reclassifications***




The
      Company has made certain reclassifications to the 2007 financial statements
      herein, in order for the 2007 financial results to be comparable to the 2008
      financial statements. The reclassifications did not impact total assets, total
      liabilities, total stockholders’ deficit or net income for 2007.




***Use
      of Estimates***




The
      preparation of financial statements, in conformity with US GAAP, requires
      management to make estimates and assumptions that affect the reported amounts
      of
      assets and liabilities, and disclosure of contingent assets and liabilities
      at
      the date of the financial statements and the reported amounts of revenue and
      expenses during the reporting period. Significant estimates made in preparing
      these financial statements include analysis of the value of goodwill, the fair
      value of derivative financial instruments such as warrants, the fair value
      of
      embedded derivatives, and the fair value of common stock issued for services.
      Actual results could differ from those estimates.




**NOTE
      3 - GOING CONCERN**




The
      accompanying consolidated financial statements have been prepared in conformity
      with US GAAP, which contemplates continuation of the Company as a going concern.
      However, the Company has an accumulated deficit of ($40,852,962), and is
      generating losses from operations. The continuing losses have adversely affected
      the liquidity of the Company. The Company faces continuing significant business
      risks, including, but not limited to, its ability to continue raising funds
      from
      Dutchess Private Equities II, LP, or its related entities (collectively,
“Dutchess”). The Company is fully dependent on Dutchess for its financing needs
      and does not expect financing from other sources to become available in the
      near
      future. Dutchess is not under any commitment to continue funding the
      Company.




In
      view
      of the matters described in the preceding paragraph, recoverability of a major
      portion of the recorded asset amounts shown in the accompanying balance sheet
      is
      dependent upon continued operations of the Company, which in turn is dependent
      upon the Company’s ability to raise additional capital, and to succeed in its
      future operations. The consolidated financial statements do not include any
      adjustments relating to the recoverability and classification of recorded asset
      amounts and classification of liabilities that might be necessary should the
      Company be unable to continue as a going concern.




F–5


**SIENA
      TECHNOLOGIES, INC.**


**CONSOLIDATED
      NOTES TO THE FINANCIAL STATEMENTS (cont’d)**


**FOR
      THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007**


**(Unaudited)**




**NOTE
      4 – EMBEDDED DERIVATIVES AND DERIVATIVE LIABILITIES**




The
      fair
      market value of embedded derivative liabilities consisted of the
      following:


**June 30,**
                **2008**
              
              **December 31,**
                **2007**Derivatives
                  embedded within promissory note dated December 19, 2007, initial
                  value
              
              $
              218,400
              
              $
              -Cumulative
                  adjustments to record fair market value of embedded
                  derivative
              
              
              118,121
              
              
              -Subtotal
              
              
              336,521
              
              
              -Derivatives
                  embedded within promissory note dated March 26, 2008, initial
                  value
              
              
              160,000
              
              
              -Cumulative
                  adjustments to record fair market value of embedded
                  derivative
              
              
              129,032
              
              
              -Subtotal
              
              
              289,032
              
              
              -Derivatives
                  embedded within promissory note dated May 27, 2008, initial
                  value
              
              
              82,286
              
              
              -Cumulative
                  adjustments to record fair market value of embedded
                  derivative
              
              
              128,014
              
              
              -Subtotal
              
              
              210,300
              
              
              -Total
              
              $
              835,853
              
              $
              -




The
      fair
      market value of derivative liabilities consisted of the following:


********
              
              **June 30,**
                **2008**
              
              **December 31,**
                **2007**Derivative
                  liability, warrants exchanged for common stock on March 10, 2007,
                  initial value
              
              $
              1,497,416
              
              $
              1,497,416Cumulative
                  adjustments to record fair market value of derivative
                  liability
              
              
              (1,497,416
              )
              
              (1,491,657
              )Subtotal
              
              
              -
              
              
              5,759Derivative
                  liability, warrants related to private placement on November
                  13, 2006, initial value
              
              
              729,820
              
              
              729,820Cumulative
                  adjustments to record fair market value of derivative
                  liability
              
              
              (729,351
              )
              
              (729,098
              )Subtotal
              
              
              469
              
              
              722Derivative
                  liability, warrants related to private placement on January 23, 2007,
                  initial value
              
              
              1,045,182
              
              
              1,045,182Cumulative
                  adjustment to record fair market value of derivative
                  liability
              
              
              (1,044,098
              )
              
              (1,043,539
              )Subtotal
              
              
              1,084
              
              
              1,643Derivative
                  liability, warrants related to Dutchess debt financing on July
                  17, 2007,
                  initial value
              
              
              30,000
              
              
              30,000Adjustment
                  to record fair market value of derivative liability
              
              
              (27,133
              )
              
              (30,000
              )Subtotal
              
              
              2,867
              
              
              -Total
              
              $
              4,420
              
              $
              8,124




F–6


**SIENA
      TECHNOLOGIES, INC.**


**CONSOLIDATED
      NOTES TO THE FINANCIAL STATEMENTS (cont’d)**


**FOR
      THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007**


**(Unaudited)**




**NOTE
      5 - RELATED PARTY TRANSACTIONS**




***Note
      Payable - Dutchess (In Default)***




On
      July
      17, 2007, the Company entered into an agreement with Dutchess (the “July 2007
      Agreement”), providing for, among other things, additional funding from Dutchess
      in the amount of $2,000,000 (the “Additional Financing”). The Additional
      Financing was added to the then outstanding principal amount of the promissory
      note dated June 30, 2006, in the principal amount of $6,254,960 (the “Original
      Note”). The Original Note was cancelled and a new noted was issued in the
      aggregate amount of approximately $8,384,726 (the “New Note”). Further, pursuant
      to the July 2007 Agreement, Dutchess has the right to appoint three (3) members
      to the Company’s Board of Directors, whose total number shall remain at five
      (5), and such appointments shall continue until the New Note is repaid in full;
      during such time that the New Note (as defined below) is outstanding, Dutchess
      may remove and replace any of its appointed members. The July 2007 Agreement
      further provided for certain conditions to closing, all of which have been
      satisfied.




The
      New
      Note bears interest at a rate of seven percent (7%) per annum and is secured
      by
      all the assets of the Company, as evidenced by that certain amended and restated
      security agreement between the Company and Dutchess, dated July 17, 2007
      (“Amended Security Agreement”). The New Note is due and payable on or before
      January 1, 2012. The Company also issued Dutchess a five year warrant to
      purchase 3,000,000 shares of the Company’s common stock at four cents ($0.04)
      per share (the “Warrant”) (see Note 4 herein). The Warrant provides for certain
      anti-dilution provisions and cashless exercise in the event that the Company
      does not have an effective registration statement covering the shares of common
      stock underlying the Warrant on or before one year from the date of issuance
      of
      the Warrant. The Company also entered into a negative pledge, dated July 17,
      2007 (the “Negative Pledge”), pursuant to which the Company agreed to not grant,
      any lien, charge, security interest, hypothec, mortgage or encumbrance of any
      nature or kind over any of the property stated in the Amended Security
      Agreement.




In
      connection with the July 2007 Agreement, the Company paid Dutchess’ closing
      costs of $50,000.




The
      New
      Note is currently in default and Dutchess has the right to declare the full
      and
      unpaid balance of the New Note due and payable, and enforce each of its rights
      under the convertible debentures and warrants previously retired as of June
      30,
      2006, including conversion into and/or purchase of shares of the Company’s
      common stock.




***Promissory
      Notes Payable - Dutchess (In Default)***




On
      December 19, 2007, the Company issued a promissory note to Dutchess for
      $126,000. The Company received proceeds from this transaction of $105,000.
      The
      promissory note bears interest at 12% annually. The promissory note is currently
      in default.




On
      March
      26, 2008, the Company issued a promissory note to Dutchess for $120,000. The
      Company received proceeds from this transaction of $100,000. The promissory
      note
      bears interest at 12% annually. The promissory note is currently in
      default.




F–7




**SIENA
      TECHNOLOGIES, INC.**


**CONSOLIDATED
      NOTES TO THE FINANCIAL STATEMENTS (cont’d)**


**FOR
      THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007**


**(Unaudited)**




On
      May
      27, 2008, the Company issued a promissory note to Dutchess for $72,000. The
      Company received proceeds from this transaction of $60,000. The promissory
      note
      bears interest at 12% annually. The promissory note is currently in
      default.




**NOTE
      6 - DISCONTINUED OPERATIONS**




On
      March
      17, 2008, the Company determined it would dispose or sell the assets and
      liabilities associated with its subsidiary, Kelley. The business was
      underperforming and consistent profits derived from the business model did
      not
      appear possible under the operating structure in place. In conjunction with
      this
      decision, the company has accrued approximately $100,000 to cover the costs
      of
      disposing of Kelley.




In
      the
      second quarter of 2006, the Company finalized its plans to shut down its
      operations at its Network and COM subsidiaries. The Company decided to close
      down these operations primarily because they were incurring operating losses,
      had low gross margins and was experiencing cash flow shortages, in addition
      to
      the fact that these businesses were not consistent with the core business of
      the
      Company’s then subsidiary, Kelley. In conjunction with this decision, the
      Company accrued $150,000 to cover the costs of closing Network and COM. The
      net
      assets and liabilities of the discontinued operations at June 30, 2008 and
      December 31, 2007 consist of the following:


**June
                  30,**
                **2008**
              
              **December 31,**
                **2007****Assets of
                  discontinued operations**Cash
              
              $
              -
              
              $
              375,959Accounts
                  receivable, net
              
              
              -
              
              
              1,207,544Inventory
              
              
              -
              
              
              903,196Fixed
                  assets, net
              
              
              -
              
              
              167,660Other
                  Assets
              
              
              -
              
              
              195,879Total
                  assets
              
              $
              -
              
              $
              2,850,238**Liabilities
                  of discontinued operations**Accounts
                  payable and accrued expenses
              
              $
              -
              
              $
              1,787,965Notes
                  Payable
              
              
              -
              
              
              1,795,171Other
                  Liabilities
              
              
              183,281
              
              
              1,412,900Total
                  liabilities
              
              
              183,281
              
              
              4,996,036Net
                  liabilities of discontinued operations
              
              $
              183,281
              
              $
              2,145,798




The
      Company ceased all depreciation of Kelley fixed assets as of March 17, 2008,
      in
      accordance with Financial Accounting Standards Board No.144. (“FASB
      144”)


F–8


**SIENA
      TECHNOLOGIES, INC.**


**CONSOLIDATED
      NOTES TO THE FINANCIAL STATEMENTS (cont’d)**


**FOR
      THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007**


**(Unaudited)**




Loss
      from
      discontinued operations in the Company’s *Statements
      of Operations* consists
      of:




**Six
                    Months Ende****d**
                  **June
                    30****2008**
                
                **2007**Sales
                
                $
                4,743,704
                
                $
                2,793,506Cost
                    of Goods sold
                
                
                3,347,346
                
                
                1,882,142Gross
                    Profit
                
                
                1,369,358
                
                
                911,364Salaries
                
                
                831,938
                
                
                1,961,219Contingency
                    accrual
                
                
                100,000
                
                
                -Interest
                    expense
                
                
                52,807
                
                
                118,614Other
                
                
                584,401
                
                
                1,038,602Loss
                    from Discontinued Operations
                
                $
                (199,788
                )
                $
                (2,207,071
                )




**NOTE
      7 - COMMITMENTS & CONTINGENCIES**




The
      Company may be involved in litigation, negotiation and settlement matters that
      may occur as part of the Company’s day-to-day operations. However, there are no
      pending, nor to Management’s knowledge threatened, legal proceedings against the
      Company.




The
      Company was obligated to pay its former Chief Executive Officer and its former
      Chief Financial Officer severance as a result of separation agreements dated
      May
      25, 2007. The Company made the final payments under these agreements on July
      14,
      2008. No further amounts are due to the Company’s former officers.






**NOTE
      8 - BASIC AND DILUTED NET INCOME (LOSS) PER SHARE**




Net
      income (loss) per share is calculated in accordance with the Statement of
      Financial Accounting Standards No. 128 (SFAS No. 128), “Earnings Per Share.”
Basic net loss per share is based upon the weighted average number of common
      shares outstanding. For all periods, all common stock equivalents were excluded
      from the calculation of diluted loss per common share because they were
      anti-dilutive, due to the Company’s net losses.




Warrants,
      which will have an anti-dilutive effect on the net loss per common share once
      exercised, to purchase 18,110,895 and 16,710,895 shares of common stock
      remained outstanding as of June 30, 2008 and 2007, respectively, at strike
      prices that vary from $0.01 to $0.60 and $0.01 to $0.88 per share,
      respectively.




The
      Dutchess and Preston notes payable, which were restructured by the Company
      during 2007 and 2006, remained outstanding as of June 30, 2008. The notes
      payable carry certain provisions allowing for Dutchess and Preston to void
      the
      restructured transactions in the event of default by the Company. In the event
      of default and the removal of the restructured terms of the notes payable,
      the
      notes payable would become convertible at the lender’s option at any time, at a
      conversion price which would be approximately 75% of the fair market value
      of
      the Company’s common stock. The Company currently estimates the these
      outstanding debts would potentially be convertible into approximately
      1,827,000,000 shares of the Company’s common stock using the fair market value
      of the Company’s common stock as of June 30, 2008. There are other restrictions
      within the terms of the agreements with Dutchess and Preston which might limit
      the amount of shares the outstanding debts are convertible into, in this
      scenario, but the Company cannot be sure those terms will limit a conversion
      into a significant number of shares of the Company’s common
      stock.


F–9




**SIENA
      TECHNOLOGIES, INC.**


**CONSOLIDATED
      NOTES TO THE FINANCIAL STATEMENTS (cont’d)**


**FOR
      THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007**


**(Unaudited)**




The
      Dutchess promissory notes discussed in Note 5 are in default and potentially
      convertible at a 50% discount to the fair market value of the Company's common
      stock. As of June 30, 2008, the promissory notes are convertible into
      approximately 112,000,000 shares of the Company's common stock.




**NOTE
      9 – DIVESTITURE OF KELLEY**




On
      March
      17, 2008, the Board of Directors, believing it to be in the best interests
      of
      the Company and its shareholders, approved the sale of the assets (the “Asset
      Sale”) of Kelley pursuant to the terms of a certain asset purchase agreement by
      and among the Company, Kelley, Mr. James Michael Kelley, and Kelley II, LLC,
      a
      newly formed Nevada limited liability company (“Kelley II”), which was executed
      by the Company on April 7, 2008, and filed as Exhibit 10.1 to the Company’s
      Current Report on Form 8-K, filed with the Securities and Exchange Commission
      on
      April 9, 2008 (the “Asset Purchase Agreement”).




Mr.
      Kelley owns 100% of the limited liability company membership interests of Kelley
      II, and is its sole managing member. Additionally, he may be deemed to be the
      beneficial owner of approximately 13,816,577 shares of the Company’s capital
      stock owned by Kelley II (the “Kelley Shares”). He is also a former director,
      who served on the Company’s Board of Directors from September 2005 until January
      2008. Mr. Kelley transferred the Kelley Shares to Kelley II for purposes of
      consummating the transactions contemplated by the Asset Purchase Agreement.




Pursuant
      to the Asset Purchase Agreement the Company agreed to sell certain of Kelley’s
      assets to Kelley II, including, but not limited to, all equipment, all rights
      of
      Kelley against vendors, all customer lists, files and related information,
      all
      inventory, all rights of Kelley under certain contracts, all permits, all
      intellectual property of Kelley, including trademarks, service marks, trade
      names, domain names, web sites, phone, fax and email addresses, all rights
      or
      choses in action following the closing of the acquisition related to Kelley’s
      business, all books and records, all computer software, hardware, data rights
      and documentation, all cash and cash equivalents, and all goodwill related
      to
      these assets. A complete description of the assets sold is set forth in the
      Asset Purchase Agreement.




In
      exchange for the sale of the assets, Kelley II assumed certain liabilities
      of
      Kelley, which include, but are not limited to, the liabilities, if any, relating
      to the Obligations and Liabilities (each as defined in the Asset Purchase
      Agreement) of Kelley and the Company with respect to the sale of Tuscany
      Services, LLC, with respect to that certain Settlement Agreement dated January
      31, 2008, by and between Kelley, Kelley Technologies, LLC, Michael Kelley,
      the
      Company, Lisa Cox, individually and as Special Administratrix of the Estate
      of
      Stephen L. Cox, and with respect to that certain Confession of Judgment entered
      into by the District Court, Clark County, Nevada, dated December 1, 2008, in
      favor of Technology In Practice, LLC against Kelley Communication. A complete
      description of the liabilities assumed is set forth in the Asset Purchase
      Agreement.


F–10


**SIENA
      TECHNOLOGIES, INC.**


**CONSOLIDATED
      NOTES TO THE FINANCIAL STATEMENTS (cont’d)**


**FOR
      THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007**


**(Unaudited)**




Additionally,
      in exchange for the acquired assets, Kelley II assigned and transferred to
      the
      Company all of the Kelley Shares.




The
      sale
      of Kelley was completed on June 26, 2008.


F–11




**ITEM 2.**
            **MANAGEMENT’S
                DISCUSSION AND ANALYSIS FINANCIAL CONDITION AND RESULTS OF
                OPERATION.**




The
      discussion and financial statements contained herein are for the six months
      ended June 30, 2008 and June 30, 2007. The following discussion should be read
      in conjunction with our financial statements and notes included
      herewith.




**CAUTIONARY
      STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS**




This
      report contains forward-looking statements that involve risks and uncertainties.
      We generally use words such as “believe,” “may,” “could,” “will,” “intend,”
“expect,” “anticipate,” “plan,” and similar expressions to identify
      forward-looking statements, including statements regarding our ability to
      continue to create innovative technology products, our ability to continue
      to
      generate new business based on our sales and marketing efforts, referrals and
      existing relationships, our financing strategy and ability to access the capital
      markets and other risks discussed in our Risk Factor section included in our
      Form 10-KSB, as amended, for the year ended December 31, 2007, as filed with
      the
      Securities and Exchange Commission on April 28, 2008. Although we believe the
      expectations expressed in the forward-looking statements included in this Form
      10-Q are based on reasonable assumptions within the bounds of our knowledge
      of
      our business, a number of factors could cause our actual results to differ
      materially from those expressed in any forward-looking statements. We cannot
      assure you that the results or developments expected or anticipated by us will
      be realized or, even if substantially realized, that those results or
      developments will result in the expected consequences for us or affect us,
      our
      business or our operations in the way we expect. We caution readers not to
      place
      undue reliance on these forward-looking statements, which speak only as of
      their
      dates. We do not intend to update any of the forward-looking statements after
      the date of this document to conform these statements to actual results or
      to
      changes in our expectations, except as required by law.




**SIX
      MONTH PERIOD ENDED JUNE 30, 2008 AS COMPARED TO THE SIX MONTH PERIOD ENDED
      JUNE
      30, 2007, AS RESTATED**




***RESULTS
      OF OPERATIONS***




**SALES
      AND COSTS OF GOODS SOLD**




Sales
      and
      costs of good sold for the six months ended June 30, 2008 were $0 as compared
      to
      $0 for the six months ended June 30, 2007. All operations at Kelley, COM and
      Network have been discontinued. Therefore, no revenues or costs of goods sold
      are presented for the six months ended June 30, 2008 and 2007. The results
      of
      Kelley, COM and Network are included within discontinued operations in the
      statement of operations.




**OPERATING
      EXPENSES**




Operating
      expenses for the six months ended June 30, 2008 amounted to $224,588 as compared
      to $425,607 for the six months ended June 30, 2007. This decrease was primarily
      attributable to a decrease in stock option expense for the six months ended
      June
      30, 2008 of $103,472 as compared to the six months ended June 30, 2007. Our
      former executives held a significant number of stock options which were no
      longer being amortized in 2008.


2




**OTHER
      INCOME (EXPENSE)**




Other
      income for the six months ended June 30, 2008 was $305,819 as compared to
      $2,461,444 for the six months ended June 30, 2007. The decrease in other income
      is primarily due to decrease in the fair market value of derivatives from
      $2,698,894 to $371,463 for the six months ended June 30, 2008 as compared to
      the
      six months ended June 30, 2007 period.




**NET
      INCOME**




Net
      loss
      for the six months ended June 30, 2008 was $118,557 as compared to $171,234
      for
      the six months ended June 30, 2007 due to the reasons set forth
      above.




**BASIC
      AND DILUTED INCOME PER SHARE**




Our
      basic
      and diluted net income per share was $0.00 for the six months ended June 30,
      2008 and June 30, 2007.




**LIQUIDITY
      AND CAPITAL RESOURCES**




As
      of
      June 30, 2008, our current assets were $9,471 and current liabilities were
      $1,331,148. Cash and cash equivalents were $9,471. Our stockholders’ deficit at
      June 30, 2008 was $40,852,962. We had a net usage of cash for operating
      activities for the six months ended June 30, 2008 and 2007 of $257,634 and
      $1,066,395, respectively. We had net cash provided by financing activities
      of
      $265,000 and $1,132,000 for the six months ended June 30, 2008 and 2007,
      respectively.




Historically,
      we have operated from a cash flow deficit funded by the issuance of debt and
      the
      sale of equity, including funding provided by Dutchess. Without the continued
      availability of external funding, we would have to materially curtail our
      operations and plans for expansion. We intend to continue funding our operations
      through the sale of additional equity and/or issuance of debt. Though there
      can
      be no guarantee that we will be successful in our efforts.




***FINANCING
      ACTIVITIES***




On
      December 19, 2007, March 26, 2008 and May 27, 2008, we issued to Dutchess
      promissory notes in the amount of $126,000, $120,000 and $72,000 for proceeds
      to
      us of $105,000, $100,000 and $60,000. The promissory notes bear interest at
      12%
      per annum and mature on March 19, 2008, September 26, 2008 and December 27,
      2008, respectively.




We
      are in
      a default on the promissory notes issued to Dutchess. Dutchess has the right
      to
      declare the full and unpaid balance of the December 19, 2007, March 26, 2008
      and
      May 27, 2008 promissory notes, together with the New Note due and payable,
      and
      enforce its rights to convert the promissory notes into our common stock at
      a
      discounted rate.


3




***MATERIAL
      TRENDS AND UNCERTAINTIES***




We
      are
      not a shell company. Should our cash flow shortfalls continue, and should we
      be
      unsuccessful in raising capital, it will have an adverse impact, which will
      have
      an adverse impact on our financial condition and results of operations. While
      we
      are actively assessing our cash flow needs and pursuing multiple avenues of
      financing and cash flow generation, there can be no assurance that our
      activities will be successful. If our fundraising efforts are not successful,
      it
      is likely that we will not be able to meet our obligations as they come
      due.




Additionally,
      we are currently in default on a note payable to Dutchess of approximately
      $9,200,000, a note payable to Preston of $400,000 and our additional Dutchess
      promissory notes, which upon maturity will total over $400,000, including
      interest accrued and liquidated damages, assessed and which are likely to
      continue to accrue. Dutchess and Preston are now able to reinstate the previous
      terms of the debt which was included in the debt restructuring completed as
      of
      June 30, 2006. As a result of being in default under the terms of our debt
      restructuring transaction with Dutchess, the 5,954,000 warrants that were
      cancelled on June 30, 2006 may be reissued, which, if exercised could cause
      substantial dilution to our other shareholders. Additionally, our Loan
      Restructure Agreement with Dutchess and our Loan Restructure Agreement with
      Preston cancelled an aggregate of $7,675,000 face amount of convertible
      debentures that had been issued to Dutchess and Preston. These convertible
      debts
      could be reissued with the same terms which had been in effect prior to the
      restructuring. The convertible debts had substantially different terms than
      the
      notes payable and could result in a substantial number of common shares being
      potentially issuable to Dutchess and Preston, should Dutchess or Preston proceed
      to reinstate these convertible debts. Lastly, upon default, the promissory
      notes
      issued to Dutchess include liquidated damages and also allow for conversion
      to
      common stock at preferential rates. All shares of our issued and outstanding
      common stock are subject to dilution as a result of defaults on our obligations
      to Dutchess and Preston.




***SUBSIDIARIES***




As
      of
      June 30, 2008, we had two wholly owned subsidiaries, COM and Network, both
      of
      which are no longer operating.




**ITEM
      3.**  **QUANTITATIVE
      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**




Not
      applicable




**ITEM
      4T.**  **CONTROLS
      AND PROCEDURES**




**Evaluation
      of Disclosure Controls and Procedures**




We
      conducted an evaluation under the supervision and with the participation of
      our
      management, including our Chief Executive Officer (who is also our principal
      accounting officer and principal financial officer), of the effectiveness of
      the
      design and operation of our disclosure controls and procedures. The term
“disclosure controls and procedures,” as defined in Rules 13a-15(e) and
      15d-15(e) under the Securities and Exchange Act of 1934, as amended (the
“Exchange Act”), means controls and other procedures of a company that are
      designed to ensure that information required to be disclosed by the company
      in
      the reports it files or submits under the Exchange Act is recorded, processed,
      summarized and reported, within the time periods specified in the Securities
      and
      Exchange Commission’s rules and forms. Disclosure controls and procedures also
      include, without limitation, controls and procedures designed to ensure that
      information required to be disclosed by a company in the reports that it files
      or submits under the Exchange Act is accumulated and communicated to the
      company’s management, including its principal executive and principal financial
      officers, or persons performing similar functions, as appropriate, to allow
      timely decisions regarding required disclosure. Based on this evaluation, our
      Chief Executive Officer (who is also the principal accounting officer and
      principal financial officer) concluded as of June 30, 2008 that there were
      no
      matters which would result in more than a remote likelihood that a material
      misstatement of the quarterly financial statements would not have been prevented
      or detected.


4


**Changes
      in Internal Control over Financial Reporting**




No
      change
      in our internal control over financial reporting (as defined in Rules 13a-15(f)
      and 15d-15(f) under the Exchange Act) occurred during the fiscal quarter ended
      June 30, 2008 that has materially affected, or is reasonably likely to
      materially affect, our internal control over financial reporting.




**PART
      II — OTHER INFORMATION**




**ITEM
      1.**  **LEGAL
      PROCEEDINGS**




We
      may be
      involved in litigation, negotiation and settlement matters that may occur in
      our
      day-to-day operations. However, there are no pending, nor to our knowledge
      threatened, legal proceedings against us.




**ITEM
      1A.**  **RISK
      FACTORS**




Not
      applicable.




**ITEM
      2.**  **UNREGISTERED
      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**




None.




**ITEM
      3.**  **DEFAULTS
      UPON SENIOR SECURITIES**




We
      are
      currently in default on four promissory notes due to Dutchess, and a note
      payable due to Preston (please see Note 5 to our financial
      statements).




**ITEM
      4.**  **SUBMISSION
      OF MATTERS TO A VOTE OF SECURITY HOLDERS**




None.




**ITEM
      5.**  **OTHER
      INFORMATION**




None.




5




**ITEM
      6.**  **EXHIBITS**




**Exhibits**
              **No.**
            **Description**31.1
            Certification
                of Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002,
                filed herewith.32.1
            Certification
                of Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
                Section 906 of the Sarbanes-Oxley Act of 2002, filed
                herewith.


6




**SIGNATURE**




In
      accordance with the requirements of the Exchange Act, the registrant caused
      this
      report to be signed on its behalf by the undersigned, thereunto duly
      authorized.




SIENA
                TECHNOLOGIES, INC.
              (Registrant)Date:
                August 14, 2008
            
            By:
            
            /s/
                Michael NovielliMichael
                Novielli
              Interim
                Chief Executive Officer, Principal Financial Officer and Principal
                Accounting Officer


7


**EXHIBIT
      INDEX**




**Exhibits
                No.**
            **Description**31.1
            Certification
                of Officer pursuant to Section 302 of the Sarbanes-Oxley Act of
                2002, filed herewith.32.1
            Certification
                of Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
                Section 906 of the Sarbanes-Oxley Act of 2002, filed
                herewith.


8