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

FORM 10-QSB

X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from

Commission file number

|Storage Alliance Inc.                                            
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|(Exact name of small business issuer as specified in its charter)
|                                                                 

|Nevada                                                         |  | 98-0222922                          
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|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)

|725, 435 Fourth Avenue SW, Calgary, Canada
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|(Address of principal executive offices)  

|(403) 264-2500             
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|(Issuer's telephone number)

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|(Former name, former address and former fiscal year, if changed since last report)

Check whether the issuer: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:

12,321,987 common shares issued and outstanding as at August 25, 2003.

Transitional Small Business Disclosure Format (Check one):      Yes [ ]     No [X]

PART I

Item 1. Financial Statements

Our consolidated financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.

It is the opinion of management that the consolidated interim financial statements for the quarter ended July 31, 2003 include all adjustments necessary in order to ensure that the consolidated financial statements are not misleading.

|                                  |                                               | Storage Alliance Inc.                        
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|                                  |                                               | Consolidated Financial Statements            
|                                  |                                               | For the nine-month periods ended             
|                                  |                                               | July 31, 2003 and 2002                       
|                                  |                                               | (Unaudited - Amounts expressed in US dollars)
|                                  |                                               | Contents                                     
|Consolidated Financial Statements |                                              
|                                  | Balance Sheets                                |                                              
|                                  | Statements of Operations                      |                                              
|                                  | Statements of Cash Flows                      |                                              
|                                  | Statements of Comprehensive Loss              |                                              
|                                  | Statements of Changes in Stockholders' Equity
|                                  | Notes to Financial Statements                



|Storage Alliance Inc.                                                                  
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|Consolidated Balance Sheets                                                            
|(Amounts expressed in US dollars)                                                      
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|Assets                                                                                 
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|Current                                                                                
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|Property and equipment, net of accumulated depreciation                                
|Goodwill(Note 4)                                                                       
|Total Assets                                                                           
|Liabilities and Stockholders' Equity                                                   
|Liabilities                                                                            
|Current                                                                                
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|Stockholders' equity                                                                   
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|Total Liabilities and Stockholders' Equity                                             
|The accompanying notes are an integral part of these consolidated financial statements.

|Storage Alliance Inc.                                                                  
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|Consolidated Statements of Operations                                                  
|(Amounts expressed in US dollars)                                                      
|(Unaudited)                                                                            
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|Revenue                                                                                
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|Less: direct costs                                                                     
|Gross profit (loss)                                                                    
|Expenses                                                                               
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|Loss from operations                                                                   
|Interest income (expense), net                                                         
|Loss from continuing operations                                                        
|Loss from discontinued operations                                                      
|Net loss for the period                                                                
|Basic and diluted loss per share                                                       
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|Weighted average number of shares                                                      
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|(1)                                                                                    
|(2)                                                                                    
|The accompanying notes are an integral part of these consolidated financial statements.

|Storage Alliance Inc.                                                                  
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|Consolidated Statements of Cash Flows                                                  
|(Amounts expressed in US dollars)                                                      
|(Unaudited)                                                                            
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|Cash used in operating activities                                                      
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|Cash provided by financing activities                                                  
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|Cash used in investing activity                                                        
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|Increase (decrease) in cash and cash equivalents                                       
|Effect of foreign exchange on cash and cash equivalents                                
|Cash and cash equivalents, beginning of period                                         
|Cash and cash equivalents, end of period                                               
|Supplemental Information(Note 6)                                                       
|(1)                                                                                    
|(2)                                                                                    
|The accompanying notes are an integral part of these consolidated financial statements.



|Storage Alliance Inc.                                                                  
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|Consolidated Statements of Comprehensive Loss                                          
|(Amounts expressed in US dollars)                                                      
|(Unaudited)                                                                            
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|Net loss for the period                                                                
|Other comprehensive income (loss)                                                      
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|Comprehensive loss for the period                                                      
|(1)                                                                                    
|(2)                                                                                    
|The accompanying notes are an integral part of these consolidated financial statements.



|Storage Alliance Inc.                                                                  
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|Consolidated Statements of Changes in Stockholders' Equity                             
|(Amounts expressed in US dollars)                                                      
|(Unaudited)                                                                            
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|Balance, October 31, 2002                                                              
|Issued for private placement (Note 5(b)(i))                                            
|Issued for private placement (Note 5(b)(ii))                                           
|Issued for private placement, net of share issuance costs (Note 5(b)(iii))             
|Stock option compensation (Note 7)                                                     
|Currency translation adjustment                                                        
|Net loss for the period                                                                
|Balance, July 31, 2003                                                                 
|The accompanying notes are an integral part of these consolidated financial statements.



|Storage Alliance Inc.                     
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|Notes to Consolidated Financial Statements
|(Amounts expressed in US dollars)         
|(Unaudited)                               
|July 31, 2003 and 2002                    
|1.                                        
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|Storage Alliance Inc.                     
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|Notes to Consolidated Financial Statements
|(Amounts expressed in US dollars)         
|(Unaudited)                               
|July 31, 2003 and 2002                    
|1.                                        
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|2.                                        
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|Storage Alliance Inc.                     
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|Notes to Consolidated Financial Statements
|(Amounts expressed in US dollars)         
|(Unaudited)                               
|July 31, 2003 and 2002                    
|2.                                        
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|Storage Alliance Inc.                     
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|Notes to Consolidated Financial Statements
|(Amounts expressed in US dollars)         
|(Unaudited)                               
|July 31, 2003 and 2002                    
|2.                                        
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|3.                                        
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|4.                                        
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|Storage Alliance Inc.                     
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|Notes to Consolidated Financial Statements
|(Amounts expressed in US dollars)         
|(Unaudited)                               
|July 31, 2003 and 2002                    
|4.                                        
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|Storage Alliance Inc.                     
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|Notes to Consolidated Financial Statements
|(Amounts expressed in US dollars)         
|(Unaudited)                               
|July 31, 2003 and 2002                    
|5.                                        
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|Storage Alliance Inc.                     
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|Notes to Consolidated Financial Statements
|(Amounts expressed in US dollars)         
|(Unaudited)                               
|July 31, 2003 and 2002                    
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|7.                                        
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|Storage Alliance Inc.                     
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|Notes to Consolidated Financial Statements
|(Amounts expressed in US dollars)         
|(Unaudited)                               
|July 31, 2003 and 2002                    
|7.                                        
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|8.                                        
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|9.                                        
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|Storage Alliance Inc.                     
|------------------------------------------
|Notes to Consolidated Financial Statements
|(Amounts expressed in US dollars)         
|(Unaudited)                               
|July 31, 2003 and 2002                    
|10.                                       
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Item 2.	Management's Discussion and Analysis and Plan of Operation.

FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled "Risk Factors", that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our consolidated financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our consolidated financial statements and the related notes that appear elsewhere in this quarterly report.

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars. All references to "CDN$" refer to Canadian dollars and all references to "common shares" refer to the common shares in our capital stock.

As used in this quarterly report, the terms "we", "us", "our", and "Storage Alliance" mean Storage Alliance Inc., unless otherwise indicated.

General Overview

We were incorporated in the state of Nevada on October 29, 1999. Since our incorporation, we were in the business of the exploration and development of mineral properties. Our mining properties consisted of a placer claim and two blocks of hardrock mineral claims. We had completed some exploration on both of our properties but decided to abandon further exploration after the acquisition of Storage Alliance (Alberta) Inc. These operations are reflected as discontinued operations in the financial statements.

Effective September 19, 2002, we acquired 100% of the issued and outstanding shares of Storage Alliance (Alberta) Inc., a company incorporated in the Province of Alberta, Canada. Effective on November 12, 2002, we changed our name from Cascadia Capital Corporation to Storage Alliance Inc. to reflect the operations of this newly acquired business.

In our business, we design, market and deploy content and storage management solutions and professional services for customers in the petroleum exploration and production and other data-intensive industries. Our data storage and content management solutions protect and manage seismic and related petroleum exploration and production data and delivers this data with analytical software applications and tools. This past quarter has seen increased development activities associated with our newest service offering, ProspectOasis, which is an online listing directory of oil and gas prospects and production properties. The website, www.prospectoasis.com, allows petroleum companies to list for sale oil and gas prospects and production properties.

On August 29, 2003, we completed the purchase of certain assets of EAESW, Inc. doing business as Strata Web Systems for cash consideration of CDN$87,000 (approximately $62,500). We view this purchase as a strategic acquisition because we have acquired a valuable and proprietary software solution which will be a significant component and enhancement to our ProspectOasis service offering. We expect that this purchase has saved our company approximately 12-16 months of research and development time and expenditures, which we estimate at $600,000, which we would have incurred to develop a similar software solution in-house. We expect that commencing in September, 2003 we will generate revenues from continuing service to some of Strata Web's existing client base, including Talisman Energy and TransCanada Pipelines.

We are still in our infancy as a viable commercial entity, and consequently our focus has been on the identification of market needs, the development of products and services to meet these needs, and the branding of our company and our services. We anticipate that the expected growth in revenues will assist us in attracting additional financing to allow us to add the needed resources in order to further support the growth of our operations. Despite our expectations, there are no assurances that we will be able to generate revenues on a continued and regular basis, that a profitable level of operations can be achieved, or that we will be able to attract additional financing on acceptable terms, if at all. Should we be unable to achieve the anticipated revenue growth or to attract additional financing on acceptable terms, our ongoing business and future success may be adversely affected.

General - Explanation of Comparative Periods

On May 14, 2003, we sold to one accredited investor an aggregate of up to $800,000 of our shares of our common stock and share purchase warrants to acquire an additional 350,000 shares of our common stock in a private placement relying on the exemption from the registration requirements of the Securities Act provided by Rule 506 of Regulation D and/or Section 4(2) of the Securities Act. The private placement closed in two tranches. The first tranche of $400,000 closed on May 14, 2003 and involved the issuance of 588,235 shares of our common stock and share purchase warrants to acquire an additional 350,000 shares of our common stock. The share purchase warrants have an exercise price of $0.88 and expire on May 14, 2006. The second tranche ended up being $335,000 (due to contractual limitations on the amount of shares this investor could own) and closed on June 24 and involved the issuance of 639,942 shares of our common stock at $0.52 per share.

On June 2, 2003, we issued to an independent financial advisor, J.P. Carey Securities Inc., share purchase warrants to purchase an aggregate of up to 40,000 shares of common stock for services provided in connection with the private placement described above. The warrants have an exercise price of $1.00 per share and expire on June 2, 2006. The warrants were issued in a private placement relying on the exemption from the registration requirements of the Securities Act provided by Rule 506 of Regulation D and/or Section 4(2) of the Securities Act.

As we acquired Storage Alliance (Alberta) effective on September 19, 2002, our financial statements included the financial results of Storage Alliance (Alberta) for the nine month period ended July 31, 2003. Since we have abandoned our previous mineral exploration business and are continuing only with the business of Storage Alliance (Alberta), we have focussed our discussion of the results of the operations of Storage Alliance (Alberta) for the nine month periods ended July 31, 2003 and 2002.

RESULTS OF OPERATIONS

Three Months ended July 31, 2003 and July 31, 2002 of Storage Alliance (formerly Cascadia Capital Corporation)

The discussion comparing the results of operation of our company for the three months ended July 31, 2003 to the comparative 2002 period has not been included as it is not meaningful. Fluctuations between the periods are entirely due to the acquisition of our subsidiary in September 2002 and operations of our company prior to that time are reflected as discontinued operations. The discussion set out below compares the results of operations for the three months ended July 31, 2003 to the results of operations of our subsidiary (the predecessor company) for the three months ended July 31, 2002.

Three Months ended July 31, 2003 of Storage Alliance compared to the Quarter Ended July 31, 2002 of Storage Alliance (Alberta)

The following discussion relates to the operations of Storage Alliance for the quarter ended July 31, 2003 as compared to the operations of Storage Alliance (Alberta) (the predecessor business) for the quarter ended July 31, 2002. Our net loss for the three months ended July 31, 2003 was $375,633 as compared to $63,097 for the similar period in 2002 of Storage Alliance (Alberta).

Revenues and Gross Profits

Gross revenues for the three months ended July 31, 2003 were $Nil compared to $65,276 for the three months ended July 31, 2002. This decease of $65,276 or 100%, was a result of the termination of our contractual relationship with International Datashare and the focus of our management on the acquisition of Strata Web. Direct costs were $15,515 leaving a gross loss of $(15,515) for the quarter ended July 31, 2003 compared to direct costs of $21,439 and a gross profit of $43,837 for the quarter ended July 31, 2002. Substantially, most of our revenues for the quarter ended July 31, 2002, were generated from the sale of our LinkPortTM application hosting service. Direct costs consist mainly of fixed costs incurred for operating product servers for the LinkPort hosting services and the ProspectOasisTM online listing directory. The amount of fixed costs included in direct costs for the quarter ended July 31, 2003 was $18,902 as compared to $21,061 for the similar period in 2002.

Expenses

Total expenses were $362,250 for the quarter ended July 31, 2003 compared to $106,236 for the quarter ended July 31, 2002 an increase of $256,014 or 241%. General and administrative expenses were $360,960 for the quarter ended July 31, 2003 compared to $104,592 for the quarter ended July 31, 2002. The increase was a result of additional accounting and legal costs for regulatory filings associated with the acquisition, some post acquisition closing costs for shareholder disclosure and mailings and investment relations support as well as the additional salary of our Executive Vice-President and Chief Operating Officer. Also included in general administrative expenses is approximately $96,000 pertaining to research and development, a $83,000 increase over the similar period in 2002. General and administrative expenses are expected to increase in the next year from the level of expense incurred in the year due to the additional operation expenses associated with Storage Alliance (Alberta).

Depreciation expense was $1,290 for the quarter ended July 31, 2003 compared to $1,644 for the quarter ended July 31, 2002. The increase was mainly due to a lower depreciation basis than the similar period in 2002.

Nine Months ended July 31, 2003 and July 31, 2002 of Storage Alliance (formerly Cascadia Capital Corporation)

The discussion comparing the results of operation of our company for the nine months ended July 31, 2003 to the comparative 2002 period has not been included as it is not meaningful. Fluctuations between the periods are entirely due to the acquisition of our subsidiary in September 2002 and operations of our company prior to that time are reflected as discontinued operations. The discussion set out below compares the results of operations for the nine months ended July 31, 2003 to the results of operations of our subsidiary (the predecessor company) for the nine months ended July 31, 2002.

Nine Months ended July 31, 2003 of Storage Alliance compared to the Nine Months Ended July 31, 2002 of Storage Alliance (Alberta)

The following discussion relates to the operations of Storage Alliance for the nine months ended July 31, 2003 as compared to the operations of Storage Alliance (Alberta) (the predecessor business) for the nine months ended July 31, 2002. Our net loss for the nine months ended July 31, 2003 was $887,463 as compared to $474,273 for the similar period in 2002 of Storage Alliance (Alberta).

Revenues and Gross Profits

Gross revenues for the nine months ended July 31, 2003 were $78,969 compared to $93,723 for the nine months ended July 31, 2002. This decrease of $14,754 or 16%, was a result of the termination of our contractual relationship with International Datashare and the focus of our management on the acquisition of Strata Web. Direct costs were $27,106 leaving a gross profit of $51,863 for the nine months ended July 31, 2003 compared to direct costs of $48,423 and a gross profit of $45,300 for the nine months ended July 31, 2002. Substantially, most of our revenues were generated from the sale of our LinkPortTM application hosting service.

Expenses

Total expenses were $949,733 for the nine months ended July 31, 2003 compared to $517,766 for the nine months ended July 31, 2002 an increase of $431,967 or 83%. General and administrative expenses were $934,863 for the nine months ended July 31, 2003 compared to $510,944 for the nine months ended July 31, 2002. The increase was a result of additional accounting and legal costs for regulatory filings associated with the acquisition, some post acquisition closing costs for shareholder disclosure and mailings and investment relations support as well as the additional salary of our Executive Vice-President and Chief Operating Officer. Also included in general administrative expenses is approximately $260,000 pertaining to research and development, a $114,000 increase over the similar period in 2002. General and administrative expenses are expected to increase in the next year from the level of expense incurred in the year due to the additional operation expenses associated with Storage Alliance (Alberta).

Depreciation expense was $14,870 for the nine months ended July 31, 2003 compared to $6,822 for the nine months ended July 31, 2002. The increase was mainly due to additional costs incurred for the acquisition of computer hardware. We also earned $10,407 of interest income in the nine months ended July 31, 2003 (2002 - interest expense $1,807) due to proceeds received from private placements in the most recent quarter.

LIQUIDITY AND CAPITAL RESOURCES

Three and Nine Months ended July 31, 2003

The following discussion relates to Storage Alliance and our predecessor, Storage Alliance (Alberta).

We have continued to finance our activities primarily through the issuance and sale of our equity securities. We have incurred recurring losses from operations in each year since inception and our current liabilities exceed our current assets. Our net loss for the quarter ended July 31, 2003 was $375,633 compared to a loss incurred by our subsidiary (the predecessor company) of $63,097 for the quarter ended July 31, 2002 and $293,945 for the year ended October 31, 2002. As of July 31, 2003, we had an accumulated deficit of $1,259,828 and we had working capital of $205,893.

Our cash position at July 31, 2003 was $249,865 and at October 3l, 2002 was $nil. Our net inflow of cash of $249,865 in the nine months ended July 31, 2003 primarily related to operating and financing activities. During the nine months ended July 31, 2003, we used $992,461 in operating activities, primarily related to our loss for the period ended July 31, 2003 of $887,463. Additionally, we reduced our accounts payable and accrued liabilities by $197,885 using the cash proceeds received from stock subscriptions during the period. Our net loss of $887,463 for the nine-month period ended July 31, 2003 includes non-cash charges of $12,952 for allowance for doubtful accounts, $14,870 for depreciation and $59,170 in respect of stock option compensation. During our subsidiary's comparative period in 2002, cash flows used in operating activities totaled $254,420 largely financed with shareholder loans during the period. The negative cash flows of our subsidiary in 2002 resulted from a loss from operations of $474,273 less the deferral of payment of certain liabilities totaling $133,448 and the collection of accounts receivable of $5,477.

Cash provided by financing activities for the nine months ended July 31, 2003 was $1,332,529 which mainly consisted of the net proceeds from several private placements. In February, 2003, we issued a total of 623,810 shares of our common stock at a price of $1.05 per share for total gross proceeds of $655,000. In May, 2003, we issued to one accredited investor an aggregate of up to $800,000 of our shares of our common stock and share purchase warrants to acquire an additional 350,000 shares of our common stock in a private placement. This private placement closed in two tranches. The first tranche of $400,000 closed on May 14, 2003 and involved the issuance of 588,235 shares of our common stock at $0.68 per share and share purchase warrants to acquire an additional 350,000 shares of our common stock. The share purchase warrants have an exercise price of $0.88 and expire on May 14, 2006. The second tranche ended up being $335,000 (due to contractual limitations on the amount of shares this investor could own) and closed on June 24, 2003 and involved the issuance of 639,942 shares of our common stock at $0.55 per share. Share issuance costs of $61,450 were charged as reductions to the gross proceeds of the private placements.

To preserve cash flow, we use stock options to compensate key employees, directors and consultants. At July 31, 2003 no stock options were exercisable. Cash provided by financing activities in the comparative 2002 period totaled $265,878 consisting of $276,257 of advances from the subsidiary's former shareholder and a bank overdraft of $10,329.

Cash used to acquire fixed assets for the nine months ended July 31, 2003 was $69,822. Our subsidiary acquired fixed assets totaling $11,458 in the comparative period in 2002.

Known Trends and Uncertainties

Substantially all of our revenues to date have been generated from our largest customer, International Datashare Corporation. International Datashare accounted for 100% of our revenues for the year ended October 31, 2002, nil% of our revenues for the three months ended July 31, 2003 and 80% of our revenues for the nine months ended July 31, 2003 and nil% of our subsidiary's for the corresponding periods in 2002. As International Datashare failed to pay its invoices on a timely basis, we commenced a lawsuit in February 2003 for payment of our outstanding invoices. In April 2003, we settled the lawsuit but International Datashare is no longer a client of our company and there we will no longer generate any revenues from International Datashare. As a result, our revenues for the quarters ended April 30, 2003 and July 31, 2003 decreased significantly compared to the comparative periods in 2002. In order to negate this decrease in revenues, we continued to develop and launched our ProspectOasis website which we expect to begin to generate revenues in the last quarter of our fiscal year. In addition, we expect that our recent acquisition of the assets of Strata Web should result in the immediate generation of revenues for our company. Despite our efforts to diversify our business, and reduce our reliance on any one significant customer, if we are unable to identify and retain other significant clients or significantly diversify our customer base, then we may not be able to generate any significant amount of revenues.

Future Operations

Presently, we have not generated regular or continued revenues sufficient to meet operating and capital expenses. We have incurred operating losses since inception, and this is likely to continue into fiscal 2003. Management has projected that we will require $1.0 to $1.25 million to fund our ongoing operating expenses, working capital requirements for the year ended October 31, 2003, broken down as follows:



|Estimated Funding Required During the Year Ended October 31, 2003
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|Operating expenses                                               
|Marketing                                                        
|General and Administrative                                       
|Engineering research and development                             
|Capital Expenditures                                             
|Working capital                                                  
|Total                                                            

These estimates do not include any potential capital requirements that may be needed should we identify any products or business acquisitions that may add value to our current product and service offerings.

As at October 31, 2002, we had a working capital deficiency of $205,222. In January, 2003, we effected an equity private placement of $655,000 and on May 14, 2003 we effected an equity private placement for gross proceeds of $800,000 which was reduced to $735,000 (due to contractual limitations on the amount of shares this investor could own), $400,000 of which was advanced to us on May 14, 2003 and $335,000 was advanced on June 24, 2003. Share issuance costs of $61,450 were charged as reductions to the gross proceeds of the private placements. These funds will enable us to address current payables, continue with the support of existing clients and sales and marketing activity connected with the continued rollout of LinkPortTM application hosting and the launch of our ProspectOasisTM online listing directory. We anticipate that these funds will be sufficient to satisfy our cash requirements for the year ended October 31, 2003. However, additional capital will be required for 2004.

On August 29, 2003, we completed the purchase of certain assets of EAESW, Inc. doing business as Strata Web Systems for cash consideration of CDN$87,000 (approximately $62,500). We view this purchase as a strategic acquisition because we have acquired a valuable and proprietary software solution which will be a significant component and enhancement to our ProspectOasis service offering. We expect that commencing in September, 2003 we will generate revenues from continuing service to some of Strata Web's existing client base, including Talisman Energy and TransCanada Pipelines.

Due to the uncertainty of our ability to meet our current operating and capital expenses, in their report on the annual consolidated financial statements for the year ended October 31, 2002 and the financial statements of our subsidiary for the 261-day period ended September 18, 2002, our independent auditors included an explanatory paragraph regarding concerns about our ability to continue as a going concern. Our consolidated financial statements contain additional note disclosures describing the circumstances that lead to this disclosure by our independent auditors.

There is substantial doubt about our ability to continue as a going concern as the continuation of our business is dependent upon obtaining further financing, successful and sufficient market acceptance of our current service offerings and any new service offerings that we may introduce, the continuing successful development of our service offerings and related technologies, and, finally, achieving a profitable level of operations. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

There are no assurances that we will be able to obtain further funds required for our continued operations. We are pursuing various financing alternatives to meet our immediate and long-term financial requirements. There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, we will not be able to meet our other obligations as they become due.

NEW ACCOUNTING PRONOUNCEMENTS

FASB Interpretation No. 46, "Consolidation of Variable Interest Entities", clarifies the application of Accounting Research Bulletin No. 51, "Consolidated Financial Statements", to certain entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. FASB Interpretation No. 46 is applicable immediately for variable interest entities created after January 31, 2003. For variable interest entities created prior to January 31, 2003, the provisions of FASB Interpretation No. 46 are applicable no later than July 1, 2003.

On May 15, 2003, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standard ("SFAS") No. 150, "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity". SFAS No. 150 changes the accounting for certain financial instruments that, under previous guidance, could be classified as equity or "mezzanine" equity, by now requiring those instruments to be classified as liabilities (or assets in some circumstances) in the balance sheet. Further, SFAS No. 150 requires disclosure regarding the terms of those instruments and settlement alternatives. SFAS No. 150 affects an entity's classification of the following freestanding instruments: a) Mandatory redeemable instruments b) Financial instruments to repurchase an entity's own equity instruments c) Financial instruments embodying obligations that the issuer must or could choose to settle by issuing a variable number of its shares or other equity instruments based solely on (i) a fixed monetary amount known at inception or (ii) something other than changes in its own equity instruments d) SFAS No. 150 does not apply to features embedded in a financial instrument that is not a derivative in its entirety. The guidance in SFAS No. 150 is generally effective for all financial instruments entered into or modified after May 31, 2003, and is otherwise effective at the beginning of the first interim period beginning after June 15, 2003.

The implementation of these standards has no material effect on our financial statements.

APPLICATION OF CRITICAL ACCOUNTING POLICIES

Our consolidated financial statements and accompanying notes and those of our predecessor are prepared in accordance with generally accepted accounting principles in the United States. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management's application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our consolidated financial statements is critical to an understanding of our financials.

Going Concern

These consolidated financial statements have been prepared on the going concern basis which assumes that adequate sources of financing will be obtained as required and that our assets will be realized and liabilities settled in the ordinary course of business. Accordingly, these consolidated financial statements do not include any adjustments related to the recoverability of assets and classification of assets and liabilities that might be necessary should we be unable to continue as a going concern.

In order to continue as a going concern, we require additional financing. There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to continue as a going concern, we would likely be unable to realize the carrying value of our assets reflected in the balances set out in the preparation of the consolidated financial statements.

Revenue Recognition and Provision for Doubtful Accounts

Revenue from hosting, including non-refundable fees received up front, is recognized as the service is provided. Revenue from consulting fees are recognized as the services are provided. A provision for doubtful debts has previously been recorded equal to the full amount of the International Datashare Corporation receivable balance in dispute due to concerns over full collection given the litigation. During the three months ended July 31, 2003, we received and recognized recovery of bad debt expenses of approximately $70,000 (CDN$99,000) from International Datashare as a result of the settlement of the lawsuit with International Datashare. Other receivables are reviewed for collectibility on an account by account basis with any provision set up based on considerations including economic indicators.

Write-down of Goodwill

Goodwill represents acquisition costs in excess of the fair value of net tangible assets of Storage Alliance (Alberta) purchased. We follow SFAS No. 142, "Goodwill and Other Intangible Assets". As a result of the adoption of SFAS 142, we evaluate goodwill annually for impairment, or earlier if potential indicators of impairment exist. The determination of whether or not goodwill has become impaired involved a significant level of judgment in the assumptions underlying the approach used to determine the value of the reporting units. Changes in our strategy and/or market conditions could significantly impact these judgments and require adjustments to recorded amounts of intangible assets. We evaluate the fair values of our reporting units using a discounted cash flow approach that uses forward looking information regarding market share, revenues and costs for each reporting unit and appropriate discount rates. As a result, changes in these assumptions or discount rates could materially change the outcome of each reporting unit's fair value determination in future periods, requiring a permanent write-down of goodwill.

To July 31, 2003, no write-downs of goodwill were recorded in our financial statements. As there are no intangibles in the Company and no other intangibles recorded, there is no impact on the adoption of SFAS 142 for intangible assets.

Research and Development

Research costs are expensed as incurred.

RISK FACTORS

Much of the information included in this quarterly report includes or is based upon estimates, projections or other "forward-looking statements". Such forward-looking statements include any projections or estimates made by us and our management in connection with our business operations. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions, or other future performance suggested herein. We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of such statements.

Such estimates, projections or other "forward-looking statements" involve various risks and uncertainties as outlined below. We caution readers of this quarterly report that important factors in some cases have affected and, in the future, could materially affect actual results and cause actual results to differ materially from the results expressed in any such estimates, projections or other "forward-looking statements". In evaluating us, our business and any investment in our business, readers should carefully consider the following factors.

Sales of a substantial number of shares of our common stock into the public market by stockholders may result in significant downward pressure on the price of our common stock and could affect the ability of our stockholders to realize the current trading price of our common stock.

Sales of a substantial number of shares of our common stock in the public market could cause a reduction in the market price of our common stock. We had 12,321,987 shares of common stock issued and outstanding as of August 25, 2003. We recently filed a registration statement with the Securities and Exchange Commission that was declared effective on June 16, 2003, which allows for the selling stockholders named in the registration statement to resell up to 3,602,045 shares of our common stock. As a result of such registration statement, a substantial number of our shares of common stock may be issued and may be available for immediate resale, which could have an adverse effect on the price of our common stock.

Any significant downward pressure on the price of our common stock as the selling stockholders sell the shares of our common stock could encourage short sales by the selling stockholders or others. Any such short sales could place further downward pressure on the price of our common stock.

Trading on the OTC Bulletin Board may be sporadic because it is not a stock exchange, and stockholders may have difficulty reselling their shares.

Our common stock is quoted on the OTC Bulletin Board. Trading in stock quoted on the OTC Bulletin Board is often thin and characterized by wide fluctuations in trading prices, due to many factors that may have little to do with the company's operations or business prospects. Moreover, the OTC Bulletin Board is not a stock exchange, and trading of securities on the OTC Bulletin Board is often more sporadic than the trading of securities listed on a quotation system like Nasdaq or a stock exchange like Amex. Accordingly, you may have difficulty reselling any of the shares.

We have had negative cash flows from operations and if we are not able to obtain further financing our business operations may fail.

To date we have had negative cash flows from operations and we have been dependent on sales of our equity securities and debt financing to meet our cash requirements. We incurred a loss of $293,945 for the year ended October 31, 2002 and $887,463 for the nine months ended July 31, 2003. Not included in the loss for the year ended October 31, 2002 is the loss that our subsidiary incurred for the period from January 1, 2002 to September 18, 2002 (immediately preceding the acquisition date) of $463,531. As of October 31, 2002, we had a working capital deficiency of $(205,222) and as at July 31, 2003 we had a working capital of $205,893. We do not expect positive cash flow from operations in the near term. During January and July, 2003, we received an aggregate of $1,328,550 gross proceeds from two private placement financings in which we sold shares and share purchase warrants. We have estimated that we will require between $1.0 and $1.25 million to carry out our business plan in the year ended October 31, 2003. We anticipate that the funds we have raised in the last two private placements will be sufficient to satisfy our cash requirements for the balance of the year ended October 31, 2003. Additional capital will be required for 2004. However, there is no assurance that actual cash requirements will not exceed our estimates. In particular, additional capital may be required in the event that:

- we incur unexpected costs in completing the development of our technology or encounter any unexpected technical or other difficulties;

- we incur delays and additional expenses as a result of technology failure;

- we are unable to create a substantial market for our services; or

- we incur any significant unanticipated expenses.

The occurrence of any of the aforementioned events could adversely affect our ability to meet our business plans.

We will depend almost exclusively on outside capital to pay for the continued development of our technology and the marketing of our services. Such outside capital may include the sale of additional stock and/or commercial borrowing. There can be no assurance that capital will continue to be available if necessary to meet these continuing development costs or, if the capital is available, that it will be on terms acceptable to us. The issuance of additional equity securities by us would result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments. If we are unable to obtain financing in the amounts and on terms deemed acceptable to us, our business and future success may be adversely affected.

A decline in the price of our common stock could affect our ability to raise further working capital and adversely impact our operations.

A prolonged decline in the price of our common stock could result in a reduction in the liquidity of our common stock and a reduction in our ability to raise capital. Because our operations have been primarily financed through the sale of equity securities, a decline in the price of our common stock could be especially detrimental to our liquidity and our continued operations. Any reduction in our ability to raise equity capital in the future would force us to reallocate funds from other planned uses and would have a significant negative effect on our business plans and operations, including our ability to develop new products and continue our current operations. If our stock price declines, there can be no assurance that we can raise additional capital or generate funds from operations sufficient to meet our obligations.

If we issue additional shares in the future this may result in dilution to our existing stockholders.

Our Certificate of Incorporation authorizes the issuance of 100,000,000 shares of common stock. Our board of directors have the authority to issue additional shares up to the authorized capital stated in the certificate of incorporation. Our board of directors may choose to issue some or all of such shares to acquire one or more businesses or to provide additional financing in the future. The issuance of any such shares may result in a reduction of the book value or market price of the outstanding shares of our common stock. If we do issue any such additional shares, such issuance also will cause a reduction in the proportionate ownership and voting power of all other stockholders. Further, any such issuance may result in a change of control of our corporation.

We have a history of losses and fluctuating operating results which raise substantial doubt about our ability to continue as a going concern.

Since inception through October 31, 2002, we have incurred aggregate losses of $372,365. Our loss from operations for the fiscal year ended October 31, 2002 was $293,945 and our loss was for the nine months ended July 31, 2003 was $887,463. Our subsidiary had incurred aggregate losses of $1,431,014 from inception through the acquisition date, including a loss for the period from January 1, 2002 to the acquisition date (September 19, 2002) of $463,531. There is no assurance that we will operate profitably or will generate positive cash flow in the future. In addition, our operating results in the future may be subject to significant fluctuations due to many factors not within our control, such as the unpredictability of when customers will purchase our services, the size of customers' purchases, the demand for our services, and the level of competition and general economic conditions. If we cannot generate positive cash flows in the future, or raise sufficient financing to continue our normal operations, then we may be forced to scale down or even close our operations.

Although we anticipate that revenues will increase, we expect an increase in development costs and operating costs. Consequently, we expect to incur operating losses and negative cash flow until our services gain market acceptance sufficient to generate a commercially viable and sustainable level of sales, and/or additional services and/or products are developed and commercially released and sales of such services and/or products made so that we are operating in a profitable manner. These circumstances raise substantial doubt about our ability to continue as a going concern, as described in the explanatory paragraph to our independent auditors' report on the October 31, 2002 consolidated financial statements and the acquisition date financial statements of our subsidiary, which are included with this registration statement. The consolidated financial statements do not include any adjustments that might result from the outcome of that uncertainty.

Trading of our stock may be restricted by the SEC's penny stock regulations which may limit a stockholder's ability to buy and sell our stock.

The Securities and Exchange Commission has adopted regulations which generally define "penny stock" to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. Our securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and "accredited investors". The term "accredited investor" refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC which provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer's account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer's confirmation. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities. We believe that the penny stock rules discourage investor interest in and limit the marketability of our common stock.

NASD sales practice requirements may also limit a stockholder's ability to buy and sell our stock.

In addition to the "penny stock" rules described above, the NASD has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer's financial status, tax status, investment objectives and other information. Under interpretations of these rules, the NASD believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers. The NASD requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock and have an adverse effect on the market for our shares.

We have a limited operating history and if we are not successful in continuing to grow our business, then we may have to scale back or even cease our ongoing business operations.

We have a limited history of revenues from operations and have no significant tangible assets. We have yet to generate positive earnings and there can be no assurance that we will ever operate profitably. Our business involves the development and marketing of our data storage and other software to the oil and gas industry. Future development and operating results will depend on many factors, including the completion of services and/or products currently in development, levels of demand for our current and future services, levels of competition, success in developing market acceptance and recognition for our services and products, whether we can develop and market new services and/or products and control costs and the general economic condition of the data storage industry. In addition, our future prospects must be considered in light of the risks, expenses and difficulties frequently encountered in establishing a new business in the technology industry, which is characterized by intense competition and rapid technological change. There can be no assurance that our actual financial results will be consistent with our financial forecasts or that any positive trends will continue and if we are unable to continue to grow and generate our revenues from operations, then we may have to scale back or even cease the ongoing operations of our business.

Until recently, we were dependent on one customer and if we are unable to obtain new customers and diversify our customer base, then our revenues may never increase.

International Datashare Corporation was our largest customer for the period ended October 31, 2002 and accounted for 100% of our total revenues. For our subsidiary, International Datashare represented 75% of the revenues generated between January 1, 2002 and September 18, 2002. As International Datashare failed to pay its invoices on a timely basis, we commenced a lawsuit in February 2003 for payment of our outstanding invoices. In April 2003, we settled this lawsuit, but International Datashare is no longer a client of our company and we will no longer generate any revenues from International Datashare. If we are unable to replace this client with another significant client or if we are unable to successfully diversify our customer base in the future, we may not be able to generate significant revenues and our continuing business, financial condition and results of operations would be negatively affected.

Substantially all of our assets and a majority of our directors and officers are outside the United States, with the result that it may be difficult for investors to enforce within the United States any judgments obtained against us or any of our directors or officers.

Substantially all of our assets are located outside the United States and we do not currently maintain a permanent place of business within the United States. In addition, a majority of our directors and officers are nationals and/or residents of countries other than the United States, and all or a substantial portion of such persons' assets are located outside the United States. As a result, it may be difficult for investors to enforce within the United States any judgments obtained against us or our officers or directors, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any state thereof. Consequently, you may be effectively prevented from pursuing remedies under U.S. federal securities laws against them.

If we are unable to develop and increase public recognition of our LinkPortTM, DataPortTM, PortAgeTM and ProspectOasisTM trade brands, our ability to generate revenues would be negatively affected.

We have a limited offering of services and substantially all of our revenues to date have been generated from the sale of our LinkPortTM service. Therefore, market acceptance of our services is critical to our future success. Factors such as performance, market positioning, the availability and price of competing services, and the introductions of new technologies will affect the market acceptance of our services.

We believe that establishing and maintaining favorable consumer perception of our branded data storage and other software is critical to attracting and expanding our petroleum exploration and production customer base. The importance of developing our brand will increase due to the growing number of data storage services available to consumers. To build our brand, we must succeed in our marketing efforts, provide high-quality services, increase the number of visitors to our websites and continue to receive high ratings from leading oil and gas industry publications. If we do not accomplish each of these goals, our reputation could be harmed, and we may not be able to attract and retain customers and our ability to generate revenues would be negatively affected.

We operate in a highly competitive industry and our failure to compete effectively may adversely affect our ability to generate revenue.

Our current primary competitors in the data storage industry are storage hardware, software and service vendors such as EMC, Compaq, Hitachi Data Systems, Sun Microsystems, Network Appliance, Hewlett-Packard, EMC Software, Legato Systems and VERITAS Software. We estimate that there are numerous companies providing generic storage hardware or software that directly or indirectly compete with its services and is aware of numerous other start-up companies that have identified themselves as providers of storage services. There are two large service companies, Schlumberger and Halliburton, which offer end to end integrated solutions for the oil and gas industry. Their solutions appear to be relatively restrictive and limit client options for access. Both have developed and launched software focussed on prospect generation for the petroleum exploration and production industry. These companies also operate a service where petroleum companies can list for sale prospect and production oil and gas properties, similar to our ProspectOasisTM service. Two smaller companies which do not appear to have a significant presence in Canada include Upstreaminfo.com and Petris. Both offer software applications and services for the petroleum exploration and production industry.

Many of our existing and potential competitors may have one or more of the following:

- longer operating histories,

- greater name recognition,

- greater management depth and experience,

- larger customer bases,

- greater financial, technical and marketing resources, and

- a wider range of services and products.

As a result, these competitors may be able to adopt more aggressive pricing policies, respond more quickly to new technologies, industry standards and customer demands, undertake more extensive marketing campaigns, expand globally more quickly and make more attractive offers to potential employees and content providers.

The data storage industry is characterized by rapid changes in technology and customer demands. As a result, our services could quickly become obsolete and unmarketable. Our future success will depend on our ability to adapt to technological advances, anticipate customer demands, develop new services and enhance our current services on a timely and cost-effective basis. Further, our services must remain competitive with those of other companies with substantially greater resources.

We could lose our competitive advantages if we are not able to protect any proprietary technology and intellectual property rights against infringement, and any related litigation could be time-consuming and costly.

Our success and ability to compete depend to a significant degree on the proprietary technology. If any of our competitors copies or otherwise gains access to the proprietary technology or develops similar software independently, we would not be able to compete as effectively. We also consider our service marks, particularly our family of trademarks, invaluable to our ability to continue to develop and maintain the goodwill and recognition associated with our brand. The measures we take to protect the proprietary technology and other intellectual property rights, which presently are based upon a combination of copyright, trade secret and trademark laws, may not be adequate to prevent their unauthorized use. Further, the laws of foreign countries may provide inadequate protection of such intellectual property rights. We may need to bring legal claims to enforce or protect such intellectual property rights. Any litigation, whether successful or unsuccessful, could result in substantial costs and diversions of resources. In addition, notwithstanding the rights we have secured in our intellectual property, other persons may bring claims against us that we have infringed on their intellectual property rights, including claims based upon the content we license from third parties or claims that our intellectual property right interests are not valid. Any claims against us, with or without merit, could be time consuming and costly to defend or litigate, divert our attention and resources, result in the loss of goodwill associated with our service marks or require us to make changes to our websites or other of our technologies.

If our operations are disrupted by technological or other problems, then our ongoing operations could be materially and adversely impacted.

Our systems could be overwhelmed or could fail for any number of reasons. We receive and process the majority of our content through the Internet. Heavy usage volumes could cause significant backlogs or could cause our systems to fail. We may not be able to expand and upgrade our technology and network hardware and software to accommodate increased usage by our customers on a timely basis. Also, our systems, and those of the third parties on which we depend, may not operate properly in the event of:

- a hardware or software error, failure or crash,

- a power or telecommunications failure,

- human error, or

- a fire, flood or other natural disaster.

Our systems may be more likely to suffer problems while we implement upgrades to our network hardware and software. Additionally, our computer systems and those of the third parties on which we depend may be vulnerable to damage or interruption due to sabotage, computer viruses or other criminal activities or security breaches.

The computer servers which house the data storage and software are housed at the data center of a third party telecommunications company. If the systems of this third party slows down significantly or fail even for a short time, our customers would suffer delays in data access. These delays could damage our reputation, cause customers to close their accounts with us and cause customers to incur substantial losses. We could be subject to claims or litigation with respect to these losses. Our property and business interruption insurance may not adequately compensate us for all losses we may incur. If any of these circumstances occur, then our ongoing operations could be materially and adversely impacted.

Our services may become obsolete and unmarketable if we are unable to respond adequately to rapidly changing technology and customer demands.

Our industry is characterized by rapid changes in technology and customer demands. As a result, our services may quickly become obsolete and unmarketable. Our future success will depend on our ability to adapt to technological advances, anticipate customer demands, develop new services and enhance our current services on a timely and cost-effective basis. Further, our services must remain competitive with those of other companies with substantially greater resources. We may experience technical or other difficulties that could delay or prevent the development, introduction or marketing of new services or enhanced versions of existing services. Also, we may not be able to adapt new or enhanced services to emerging industry standards, and our new services may not be favorably received.

If we are unable to protect our Internet domain name, our efforts to increase public recognition of our brand may be impaired.

We currently hold the Internet domain names "storagealliance.com", "prospectoasis.com" and "strataweb.com". The acquisition and maintenance of domain names generally is regulated by governmental agencies and their designees. The regulation of domain names in the United States and in foreign countries is subject to change. As a result, we may be unable to acquire or maintain relevant domain names in all countries in which we intend to conduct business. This could impair our efforts to build brand recognition and to increase traffic to our websites. Furthermore, the relationship between regulations governing domain names and laws protecting trademarks and similar proprietary rights is unclear. Therefore, we may be unable to prevent third parties from acquiring domain names that are similar to, infringe upon or otherwise decrease the value of our trademarks and other proprietary rights.

Unless we can establish significant sales of our current services, our potential revenues may be significantly reduced.

We expect that a substantial portion, if not all, of our future revenue will be derived from the sale of our data storage and backup services, our web hosting services, our listing directory services and our professional consulting. We expect that these service offerings and their extensions and derivatives will account for a majority, if not all, of our revenue for the foreseeable future. Broad market acceptance of this system is, therefore, critical to our future success and our ability to generate revenues. Failure to achieve broad market acceptance of this system, as a result of competition, technological change, or otherwise, would significantly harm our business. Our future financial performance will depend primarily on the successful introduction and market acceptance of our current service offerings, and on the development, introduction and market acceptance of any future enhancements. There can be no assurance that we will be successful in marketing our current service offerings or any new service offerings, applications or enhancements, and any failure to do so would significantly harm our business.

Since our products have been recently developed, the markets may not accept our products or purchase them in sufficient numbers for us to recover the costs of developing such products.

We have only recently released additional commercial versions of some of our technologies and products. Additional efforts and expenditures to enhance their capabilities are critical to commercial viability. We invest heavily in the research and development of new products and we cannot assure you that the new products we develop will be commercially viable or that a sufficient demand will develop for such products. If markets do not accept our products in sufficient numbers to offset the costs of developing and marketing such products, we would be unable to generate significant revenues and may never be able to operate profitably.

Item 3. Controls and Procedures

As required by Rule 13a-15 under the Exchange Act, as of July 31, 2003, we have carried out an evaluation of the effectiveness of the design and operation of our company's disclosure controls and procedures. This evaluation was carried out under the supervision and with the participation of our company's management, including our company's president. Based upon that evaluation, our company's president a concluded that our company's disclosure controls and procedures are effective. There have been no significant changes in our company's internal controls or in other factors, which could significantly affect internal controls, during the quarter ended July 31, 2003.

Part II - OTHER INFORMATION

Item 1. Legal Proceedings.

We know of no material, active or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

Item 2. Changes in Securities.

Recent Sales of Unregistered Securities

On May 14, 2003, we sold to one accredited investor an aggregate of up to $800,000 of our shares of our common stock and share purchase warrants to acquire an additional 350,000 shares of our common stock in a private placement relying on the exemption from the registration requirements of the Securities Act provided by Rule 506 of Regulation D and/or Section 4(2) of the Securities Act. The private placement closed in two tranches. The first tranche of $400,000 closed on May 14, 2003 and involved the issuance of 588,235 shares of our common stock and share purchase warrants to acquire an additional 350,000 shares of our common stock. The share purchase warrants have an exercise price of $0.88 and expire on May 14, 2006. The second tranche was reduced to $335,000 due to contractual limitations on the amount of securities the investor could own and closed on June 24 and involved the issuance of 639,942 shares of our common stock.

On June 2, 2003, we issued to one accredited investor, J.P. Carey Securities Inc., share purchase warrants to purchase an aggregate of up to 40,000 shares of common stock for services provided in connection with the private placement described above. The warrants have an exercise price of $1.00 per share and expire on June 2, 2006. The warrants were issued in a private placement relying on the exemption from the registration requirements of the Securities Act provided by Rule 506 of Regulation D and/or Section 4(2) of the Securities Act.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Submission of Matters to a Vote of Security Holders.

None.

Item 5. Other Information.

None.

Item 6. Exhibits and Reports on Form 8-K.

Reports of Form 8-K

On May 13, 2003, we filed a Form 8-K Current Report announcing that we received a grant of a CDN$99,000 Scientific Research and Experimental Development expenditures credit from the Canada Customs and Revenue Agency of the Canadian Government. This credit includes a CDN$94,296 cash refund.

On May 15, 2003, we filed a Form 8-K Current Report attaching a copy of a press release issued on May 15, 2003 announcing a private placement.

Exhibits Required by Item 601 of Regulation S-B.

Exhibit Number/Description

(2) 	Plan of Acquisition

2.1*	Agreement and Plan of Share Exchange between Cascadia Capital Corporation, DKJ Technologies Inc., and Storage Alliance Inc. and Ed Kokts-Porietis, Jeff Ascah, Louise Ascah, Ken MacKinnon, 2 Inc. and Raymark Investment Corp. Inc. dated August 9, 2002. (2)

2.2*	Letter Agreement between Cascadia Capital Corporation, DKJ Technologies Inc. and Storage Alliance Inc. dated September 6, 2002. (2)

(3)	Articles of Incorporation

3.1*	Articles of Incorporation (1)

3.2*	Bylaws (1)

3.3*	Certificate of Amendment to Articles of Incorporation amending the name from Cascadia Capital Corporation to Storage Alliance Inc. (1)

(10)	Material Contracts

10.1*	Letter Agreement dated April 29, 2002 between International Datashare Corporation and Storage Alliance Inc. (3)

10.2*	LinkPort Application Hosting Services Agreement dated May 1, 2002 between International Datashare Corporation and Storage Alliance Inc. (3)

10.3*	LinkPort Application Hosting Services Agreement, dated January 6, 2003, between Murphy Oil Company Ltd. and Storage Alliance Inc. (3)

10.4*	LinkPort Application Hosting Services Agreement, dated January 6, 2003, between Racing Resources Ltd. and Storage Alliance Inc. (3)

10.5*	Settlement Agreement with International Datashare Corporation (4).

10.6*	Employment Agreement, dated December 30, 2002, between Storage Alliance Inc. (the subsidiary) and Robert Irwin. (5)

10.7*	Employment Agreement, dated January 6, 2003, between Storage Alliance Inc. (the subsidiary) and Ken Akerley. (5)

10.8*	Agreement, dated January 6, 2003, between Storage Alliance Inc. and Fred Moore. (5)

10.9*	Subscription Agreement, dated January 29, 2003, between Storage Alliance Inc. and Troon Investments Pty. Ltd. (5)

10.10*	Subscription Agreement, dated January 29, 2003, between Storage Alliance Inc. and Holbrook Capital Inc. (5)

10.11*	Placement Agency Agreement, dated April 16, 2003, between Storage Alliance Inc. and J.P. Carey Securities Inc. (5)

10.12*	Subscription Agreement, dated May 14, 2003, between Storage Alliance Inc. and Alpha Capital Aktiengesellschaft. (5)

10.13*	Funds Escrow Agreement, dated May 14, 2003, between Storage Alliance Inc., Alpha Capital Aktiengesellschaft and Grushko & Mittman, P.C. (5)

10.14*	Advisory Fee Payment and Subscription Agreement, dated June 2, 2003, between Storage Alliance Inc. and J.P. Carey Securities Inc. (5)

21.	Subsidiaries of Storage Alliance Inc.

Storage Alliance (Alberta) Inc. (Incorporated in Alberta, Canada)

(31)**	Section 302 Certification

31.1	Section 302 Certification.

(32)**	Section 906 Certification

32.1	Section 906 Certification.

** Filed herewith

* Previously filed

(1)	Incorporated by reference from the Company's Form SB-2 filed with the Securities and Exchange Commission on May 23, 2001.

(2)	Incorporated by reference from the Company's Form 10-QSB filed with the Securities and Exchange Commission on September 16, 2002.

(3)	Incorporated by reference from the Company's Form 8-K filed with the Securities and Exchange Commission on October 3, 2002.

(4)	Incorporated by reference from the Company's Form 8-K filed with the Securities and Exchange Commission on April 29, 2003.

(5)	Incorporated by reference from the Company's Form SB-2 filed with the Securities and Exchange Commission on June 10, 2003.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

STORAGE ALLIANCE INC.

By:/s/ Jeff Ascah
Jeff Ascah, President, Treasurer, Secretary and Director (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)
Date: September 15, 2003

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:/s/ Jeff Ascah
Jeff Ascah, President and Chief Executive Officer (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer
Date: September 15, 2003