*Table
        of Contents*







**UNITED
      STATES**


**SECURITIES
      AND****EXCHANGE COMMISSION**


WASHINGTON,
      D. C. 20549




**FORM
      10-KSB/A**




**x
      ANNUAL REPORT UNDER
      SECTION 13 OR 15 (D) OF THE**


**SECURITIES
      EXCHANGE ACT OF 1934**




For
      Fiscal Year Ended


April
      30,
      2008





Commission
      File # 000-27397




**INOVA
      TECHNOLOGY, INC.**


(Exact
      name of registrant as specified in its charter)




NEVADA


(State
      or
      other jurisdiction of incorporation or organization)




98-0204280


(IRS
      Employer Identification Number)





233
      Wilshire Boulevard, Suite 400, Santa Monica, California 90401


(Address
      of principal executive offices)(Zip Code)





800-757-9808


(Registrant's
      telephone no., including area code)




**SECURITIES
      REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT: NONE**




**SECURITIES
      REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: COMMON STOCK, $0.001 PAR
      VALUE**




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




Check
      if
      there is no disclosure of delinquent filers in response to Item 405 of
      Regulation S-B not contained in this form, and no disclosure will be contained,
      to the best of the registrant's knowledge, in definitive proxy or information
      statements incorporated by reference in Part III of this Form 10-KSB or any
      amendment to this Form 10-KSB. x




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act). Yes o No
x




Revenues
      for year ended April 30, 2008: $5,442,402




Number
      of
      shares of the registrant's common stock outstanding as of August 1, 2008 was:
      956,911,693.




**DOCUMENTS
      INCORPORATED BY REFERENCE**




Transitional
      Small Business Disclosure Format (Check one): Yes x ; No o


This
        filing amends our Annual Report on Form 10-KSB for the year ended April 30,
        2008, previously filed on August 13, 2008. Specifically, 1) The interest
        paid on
        the cash flow statement has been corrected, 2) The interest rate on a related
        party transaction was corrected 3) The tax valuation allowance has been
        corrected 4) The internal controls wording has been modified and several
        typographical errors have been fixed.





*Table
        of Contents*




**Inova
      Technology Inc.**





**Form
      10-KSB**





**TABLE
      OF CONTENTS**





**PART
                I**Item
                1.
            Description
                of Business
            1Item
                2.
            Description
                of Property
            2Item
                3.
            Legal
                Proceedings
            2Item
                4.
            Submission
                of Matters to a Vote of Security
                Holders
            4**PART
                II**Item
                5.
            Market
                for Common Equity and Related Stockholder Matters
            4Item
                6.
            Management’s
                Discussion and Analysis or Plan of Operations
            5Item
                7.
            Financial
                Statements
            6Item
                8.
            Controls
                and Procedures
            33**PART
                III**Item
                9.
            Directors,
                Executive Officers, Promoters and Control
                Persons;
            36Item
                10.
            Executive
                Compensation
            37Item
                11.
            Security
                Ownership of Certain Beneficial Owners and
                Management
            38Item
                12.
            Certain
                Relationships and Related
                Transactions
            39Item
                13.
            Exhibits
            40Item
                14.
            Principal
                Accountant Fees and Services
            40






*Table
          of Contents*





**PART
      I**





**Item
      1 Description of Business**





*Organization
      and History of the Company*





Inova
      Technology Inc. (the “Company”) was incorporated in Nevada in 1997, as
      Newsgurus.com, Inc. The company changed its name to Secure Enterprise Solutions
      Inc. in 2002, then to Edgetech Services Inc. In 2007, the Company assumed its
      present name of Inova Technology, Inc.





In
      2005,
      Edgetech entered into an agreement with the shareholders of Web’s Biggest, Inc.,
      Mr. Xavier Roy of Los Angeles, California, and Advisors LLC, (collectively,
      “Web’s Biggest”) which resulted in Edgetech issuing 25,000,000 convertible
      preferred shares to the shareholders of Web’s Biggest in consideration for 100%
      of the outstanding capital of Web’s Biggest and $250,000 be used for general
      working capital of Edgetech.





In
      2006,
      Edgetech bought certain assets of Data Management, Inc., a Nevada corporation
      in
      exchange for 25 million convertible preferred shares. The convertible shares
      used to acquire it represented approximately 90% of the voting stock of Edgetech
      on a fully diluted basis. Concurrently, Edgetech sold its wholly-owned
      subsidiary, Web’s Biggest Limited, to Advisors LLC in exchange for 25 million
      convertible preferred shares of Edgetech Services, Inc. held by Advisors LLC.
       The 25 million convertible preferred shares given to buy Data Management
      were the same 25 million convertible preferred shares received from the sale
      of
      Web’s Biggest.




Prior
      to
      these transactions described above, the Company was controlled by Advisors
      LLC,
      an entity related to Mr. Paul Aunger, an officer and director of the registrant.
      When the transactions described above were completed, this resulted in a change
      of control of the Company and the controlling shareholder became Southbase
      International Ltd., an entity related to Mr. Adam Radly, an officer and director
      of the Company. Prior to these transactions, the unaffiliated shareholders
      of
      the Company owned approximately





1
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          of Contents*


10%
      of
      the Registrant and they continued to own approximately 10% of the Company on
      a
      fully diluted basis.





On
      May 1,
      2007, Inova also acquired RightTag Inc., a manufacturer of radio frequency
      identification (“RFID”) products.





On
      December 21, 2007, Inova acquired Texas-based Desert Communications (“Desert”)
      for $5.9 million ($3.3 million paid in cash and $2.6 million to be paid under
      notes payable).





*Description
      of the Company’s Business*





Inova
      is
      a technology holding company. Inova has four subsidiaries. These subsidiaries
      and their respective businesses are listed below:




Subsidiary/Division
              BusinessEdgetech
                  Services Inc.
              IT
                  services and consultingData
                  Management Inc. (dormant)
              Government
                  consulting andprocurementRightTag,
                  Inc.
              Manufacturer
                  of radiofrequency
                  identification (RFID)productsDesert
                  Communications, Inc.
              IT
                  consulting and sales ofcomputer
                  systems





**Item
      2. Description of Property.**





Inova
      does not own any property.





**Item
      3. Legal Proceedings**





*The
      Kim’s litigation*


Two
      former officers and directors of Edgetech, Tae Ho Kim and Sang Ho Kim, filed
      suit against the Company and its Canadian subsidiary in March 2006 in the
      Ontario Superior Court of Justice. The Kims claimed in their lawsuit that the
      Company breached an alleged employment agreement with them, as well as the
      separation agreement that the Company and the Kims entered into upon the
      termination of the Kims employment with the Company. The lawsuit claims
      compensatory damages in the amount of CDN$694,000 and bad faith and punitive
      damages of CDN$800,000.





Following
      an investigation into the Kim’s’ management of the Company conducted by the
      Company’s legal counsel, the Company found that the Kims wrongfully retained
      Company property upon their separation from the Company and also issued
      themselves 25 million shares of Edgetech stock without complying with the terms
      of the corporate resolution granting them this stock. The Company believed
      that
      these actions represented a breach of fiduciary duty to the Company and a
      violation of the separation agreement. Furthermore, the Company believed that
      the Ontario court in which the Kims filed their lawsuit did not have
      jurisdiction over Inova. As a result, the Company believed that it had several
      strong defenses to the Kim’s lawsuit.





The
      Kims
      brought a motion to find the Company in breach
      of
      the settlement agreement. The Company’s position was that no agreement had been
      reached. The Company also asserted various procedural arguments.




2
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          of Contents*




In
      May
      2007, the court found that Inova had breached the settlement agreement and
      granted the Kim’s motion. The court entered judgment against Inova for $215,691.
      Inova has not paid this judgment.




*The
      Top Layer Networks litigation*


In
      January 2006, Top Layer Networks, Inc., a provider of hardware to our Canadian
      hardware sales business, sued Inova (then named Edgetech Services Inc.) in
      United States District Court in Massachusetts. Top Layer alleges that Inova
      purchased hardware over the course of several years and has failed to pay for
      it. Top Layer’s complaint requests damages in the amount of approximately
      $154,000.





The
      Company had originally negotiated a settlement of this case; however, due to
      cash flow problems, the Company did not implement the settlement. On April
      18,
      2008, the case was called for trial and Inova did not appear. The court
      therefore granted Top Layer judgment against Inova. A signed judgment has not
      been issued, and as a result, we do not know the full amount of Inova’s
      liability.




*The
      Roy litigation*


In
      February 2006, Mr. Charles Roy sued the Company in the Superior Court of the
      State of California for the County of Los Angeles. The lawsuit alleged that
      the
      Company breached a consulting agreement by not paying him the amounts contained
      in the agreement and sought monetary damages of $90,000.





At
      approximately the same time as Mr. Xavier Roy resigned as CEO, the Company
      discovered that Xavier Roy had executed the agreement. The agreement required
      the Company to pay Mr. Charles Roy $4,500 per month for 24 months. The agreement
      also states that the Company must pay a minimum of $108,000 in the event that
      Mr. Charles Roy is terminated.





The
      Company claimed that the agreement was procured by fraud and in breach of Xavier
      Roy’s fiduciary duty to the Company, and that as a result, Mr. Roy did not have
      authority to enter into the agreement.





The
      case
      was tried in April 2007, and the jury found that Inova breached the agreement
      with Charles Roy. The jury awarded a judgment of $127,500 plus legal fees
      against the Company.





3
 *Table
          of Contents*


**Item
      4. Submission of Matters to a Vote of Security Holders and Small
      Business Issuer Purchases of Securities.**





No
      matters were submitted to a vote of security holders through solicitation or
      otherwise during the fourth quarter of the fiscal year covered by this report.





**PART
      II.**





**Item
      5. Market for Common Equity and Related Stockholder Matters.**





The
      Company’s common stock is traded on the pink pages under the symbol “IVTH.PK”
Our CUSIP No. is 45776L100 .





The
      following table lists the high and low closing sales prices for each quarter
      on
      the OTCBB for our common shares for the past two fiscal years. The below
      quotations reflect inter-dealer prices, without retail mark-up, mark-down or
      commission and may not represent actual transactions.


30-Apr-08
              0.01
              0.0131-Jan-08
              0.01
              0.0131-Oct-07
              0.01
              0.0131-Jul-07
              0.02
              0.0230-Apr-07
              0.10
              031-Jan-07
              0.01
              0.0131-Oct-06
              0.02
              0.0131-Jul-06
              0.02
              0.01





4
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          of Contents*





There
      are
      no restrictions that limit our ability to pay dividends on our common stock.
       We have not declared any dividends since incorporation and we do not
      anticipate doing so in the foreseeable future.  Our present policy is to
      retain future earnings for use in our operations and expansion of our business.




**Item
      6. Management’s Discussion and Analysis or Plan of Operation**





The
      information contained in this Management's Discussion and Analysis of Financial
      Condition and Results of Operation contains *"forward
      looking statements."* Actual
      results may materially differ from those projected in the forward looking
      statements as a result of certain risks and uncertainties set forth in this
      report. Although our management believes that the assumptions made and
      expectations reflected in the forward looking statements are reasonable, there
      is no assurance that the underlying assumptions will, in fact, prove to be
      correct or that actual future results will not be materially different from
      the
      expectations expressed in this Annual Report. The following discussion should
      be
      read in conjunction with the Company’s Consolidated Financial Statements.





RESULTS
      OF OPERATIONS FOR THE TWELVE MONTH PERIOD ENDED APRIL 30, 2008





Total
      revenues (net sales) increased from $1,615,187 for the twelve month period
      ending April 2007 to $5,442,402 for the twelve-month period ending April 30,
      2008.  This is primarily the result of revenues produced from the
      acquisition of Desert Communications. Desert was acquired on December 21, 2007
      therefore the revenue for Inova for the 12 months ending April 30 2008 only
      includes revenue from Desert for the period from December 21, 2007 to April
      30,
      2008.





The
      Company’s selling, general and administrative expenses increased from $1,546,551
      for the twelve months ending April 30, 2007 to $2,195,557 for the same period
      in
      2008. This is primarily the result of the expenses from Desert.





Last
      fiscal year, the Company reported a net loss from continuing operations in
      the
      amount of $540,649; this loss increased to $976,062 for the fiscal year ended
      April 30, 2008. This has been caused by much larger interest expenses this
      year
      based on the significant borrowings associated with acquisitions.





The
      Company expects revenues to continue to increase as a result of the acquisition
      of Desert. In addition, once the Company pays off the debt incurred to acquire
      Desert, cash flow should improve considerably.





LIQUIDITY
      AND CAPITAL RESOURCES





Our
      operating activities for the twelve months ended April 30, 2008, did not
      generate adequate cash to meet our operating needs and were partly funded by
      our
      borrowing of cash from related parties.





As
      of
      April 30, 2008, we had cash and cash equivalents totaling $12,167 and total
      current assets were $3,550,316, total current liabilities were $6,270,275 and
      total stockholders’ equity was $1,401,948.





Management
      believes existing cash together with any cash generated from operations will
      be
      not be sufficient to meet normal operating requirements including capital
      expenditures for the next twelve months.  We may need to sell additional
      equity or debt securities or obtain credit facilities to further enhance our
      liquidity position and/or finance acquisitions, and the sale of additional
      equity securities could result in additional dilution to our stockholders.





OFF-BALANCE
      SHEET ARRANGEMENTS





None.




5
 *Table
          of Contents*




**Item
      7. Financial Statements**




REPORT
      OF
      INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM





To
      the
      Board of Directors


Inova
      Technology, Inc.


Santa
      Monica, California





We
      have
      audited the accompanying consolidated balance sheets of Inova Technology, Inc.,
      as of April 30, 2008 and 2007 and the related consolidated statements of
      operations, changes in stockholders’ equity and cash flows for the years ended
      April 30, 2008 and 2007. These consolidated financial statements are the
      responsibility of Inova’s management. Our responsibility is to express an
      opinion on these consolidated financial statements based on our
      audits.





We
      conducted our audits in accordance with standards of the Public Company
      Accounting Oversight Board (United States). Those standards require that we
      plan
      and perform the audits to obtain reasonable assurance about whether the
      consolidated financial statements are free of material misstatements. The
      Company is not required to have, nor were we engaged to perform, an audit of
      its
      internal control over financial reporting. Our audits included consideration
      of
      internal control over financial reporting as a basis for designing audit
      procedures that are appropriate in the circumstances, but not for the purpose
      of
      expressing an opinion on the effectiveness of the Company’s internal control
      over financial reporting. Accordingly, we express no such opinion. An audit
      includes examining, on a test basis, evidence supporting the amounts and
      disclosures in the consolidated financial statements. An audit also includes
      assessing the accounting principles used and significant estimates made by
      management, as well as evaluating the overall consolidated financial statement
      presentation. We believe that our audits provide a reasonable basis for our
      opinion.




In
      our
      opinion, the consolidated financial statements referred to above present fairly,
      in all material respects, the consolidated financial position of Inova as of
      April 30, 2008 and 2007 and the results of its consolidated operations and
      its
      consolidated cash flows for the periods described in conformity with accounting
      principles generally accepted in the United States of America.




As
      discussed in Note 18 to the consolidated financial statements, the Company
      has
      restated its financial statements for the year ended April 30, 2007 related
      to
      the accounting for acquisition of Web’s Biggest, unrecorded management fees and
      invalid share issuances.





As
      discussed in Note 3 to the consolidated financial statements, the accompanying
      consolidated financial statements have been prepared assuming that Inova will
      continue as a going concern. Inova requires significant amount of cash in its
      operations and does not have sufficient cash to fund its operations for the
      next
      twelve months, which raises substantial doubt about its ability to continue
      as a
      going concern. Management’s plans regarding those matters are also described in
      Note 3. The consolidated financial statements do not include any adjustments
      that might result from the outcome of this uncertainty.





MALONE
      & BAILEY, PC


www.malone-bailey.com


Houston,
      Texas


August
      13, 2008




6
 *Table
          of Contents*


INOVA
                  TECHNOLOGY, INC.CONSOLIDATED
                  BALANCE SHEETS
  (Restated)April
                  30,
              
              April
                  30,2008
              
              2007ASSETSCurrent
                  assetsCash
              
              $
              12,167
              
              $
              22,847Restricted
                  cash - escrow
              
              
              —
              
              
              339,758Accounts
                  receivables, net
              
              
              769,918
              
              
              208,408Contract
                  receivables, net
              
              
              2,233,252
              
              
              —Inventory
              
              
              101,679
              
              
              —Cost
                  in excess of billing
              
              
              198,655
              
              
              —Prepaid
                  and other current assets
              
              
              234,645
              
              
              —Total
                  current assets
              
              
              3,550,316
              
              
              571,013Fixed
                  assets, net
              
              
              183,926
              
              
              1,039Intangible
                  assets, net
              
              
              845,332
              
              
              130,231Goodwill
              
              
              5,904,782
              
              
              2,612,304Total
                  assets
              
              $
              10,484,356
              
              $
              3,314,587LIABILITIES
                  AND STOCKHOLDERS' EQUITYCurrent
                  liabilitiesAccounts
                  payable
              
              $
              1,746,889
              
              $
              532,962Accrued
                  liabilities
              
              
              270,061
              
              
              5,811Deferred
                  income
              
              
              403,792
              
              
              —Notes
                  payable - related parties
              
              
              1,200,855
              
              
              662,690Notes
                  payable, net
              
              
              2,648,678
              
              
              —Total
                  current liabilities
              
              
              6,270,275
              
              
              1,201,463Notes
                  payable - net of current maturities
              
              
              2,812,133
              
              
              439,545Total
                  liabilities
              
              
              9,082,408
              
              
              1,641,008Stockholders'
                  equityConvertible
                  preferred stock, $0.001 par value; 25,000,000 shares
              
              
              4,951
              
              
              4,951authorized;
                  4,951,000 shares issued and outstandingCommon
                  stock, $0.001 par value; 3,000,000,000 sharesauthorized;
                  600,000,000 shares issued and outstanding
              
              
              600,000
              
              
              600,000Additional
                  paid-in capital
              
              
              2,774,658
              
              
              2,070,227Accumulated
                  deficit
              
              
              (1,977,661
              )
              
              (1,001,599
              )Total
                  stockholders' equity
              
              
              1,401,948
              
              
              1,673,579Total
                  liabilities and stockholders' equity
              
              $
              10,484,356
              
              $
              3,314,587
  See
                  summary of accounting policies and notes to consolidated financial
                  statements.
  7
 *Table
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  INOVA
                    TECHNOLOGY, INC.CONSOLIDATED
                    STATEMENTS OF OPERATIONSFor
                    the years ended April 30, 2008 and
                    2007
  (Restated)2008
                
                2007Revenues
                
                $
                5,442,402
                
                $
                1,615,187Cost
                    of revenues
                
                
                (4,109,518
                )
                
                (578,336
                )Operating
                    expenses
                
                
                (2,195,557
                )
                
                (1,546,551
                )Operating
                    loss
                
                
                (862,673
                )
                
                (509,700
                )Other
                    income (expense):Interest
                    income
                
                
                —
                
                
                1,367Other
                    income
                
                
                —
                
                
                9,300Interest
                    expense
                
                
                (113,389
                )
                
                (41,616
                )Loss
                    from continuing operations
                
                
                (976,062
                )
                
                (540,649
                )Income
                    from discontinued operations
                
                
                —
                
                
                84,888Loss
                    from disposal of discontinued operations
                
                
                —
                
                
                (1,236,362
                )Net
                    loss
                
                
                (976,062
                )
                
                (1,692,123
                )Translation
                    adjustment
                
                
                —
                
                
                (4,877
                )Comprehensive
                    loss
                
                $
                (976,062
                )
                $
                (1,697,000
                )Basic
                    and diluted income (loss) per share:-
                    from continuing operations
                
                $
                (0.00
                )
                $
                (0.00
                )-
                    from discontinued operations
                
                
                —
                
                
                (0.00
                )Basic
                    and diluted income (loss) per share
                
                
                (0.00
                )
                
                (0.01
                )Weighted
                    average common shares outstanding
                
                
                600,000,000
                
                
                332,590,991See
                    summary of accounting policies and notes to consolidated financial
                    statements.
  8
 *Table
            of Contents*
  INOVA
                    TECHNOLOGY, INC.CONSOLIDATED
                    STATEMENTS OF CASH FLOWSFor
                    the years ended April 30, 2008 and
                    2007
  (Restated)2008
                
                2007CASH
                    FLOWS OPERATING ACTIVITIESNet
                    loss
                
                $
                (976,062
                )
                $
                (1,692,123
                )Less:
                    income (loss) from discontinued operations
                
                
                —
                
                
                1,151,474Loss
                    from continuing operations
                
                
                (976,062
                )
                
                (540,649
                )Adjustments
                    to reconcile net income to net cash used provided byoperating
                    activities:Bad
                    debt expense
                
                
                17,753
                
                
                —Depreciation
                    expense
                
                
                11,792
                
                
                25,216Management
                    fees
                
                
                —
                
                
                180,000Amortization
                    expense
                
                
                940,442
                
                
                230,410Changes
                    in operating assets and liabilities:Increase
                    (decrease) in accounts receivable
                
                
                (375,712
                )
                
                402,095Increase
                    (decrease) in inventory
                
                
                (7,830
                )
                
                —Increase
                    (decrease) in cost in excess of billing
                
                
                112,156
                
                
                —Increase
                    (decrease) in prepaid assets
                
                
                (130,524
                )
                
                —Increase
                    (decrease) in A/P and accrued expenses
                
                
                822,366
                
                
                28,475Increase
                    (decrease) in deferred income
                
                
                403,792
                
                
                —Net
                    cash provided by operating activities of continuing
                    operations
                
                
                818,173
                
                
                325,547Net
                    cash used by operating activities of discontinuing
                    operations
                
                
                —
                
                
                (1,278,943
                )Net
                    cash provided by (used by) operating activities
                
                
                818,173
                
                
                (953,396
                )CASH
                    FLOW INVESTING ACTIVITIESPurchase
                    of RightTag
                
                
                —
                
                
                (339,758
                )Purchase
                    of Desert Communication
                
                
                (3,725,000
                )
                
                —Purchase
                    of fixed assets
                
                
                (27,540
                )
                
                —Net
                    cash used in investing activities of continuing operations
                
                
                (3,752,540
                )
                
                (339,758
                )Net
                    cash provided by investing activities of discontinuing
                    operations
                
                
                —
                
                
                73,259Net
                    cash provided by investing activities
                
                
                (3,752,540
                )
                
                (266,499
                )CASH
                    FLOW FINANCING ACTIVITIES##Proceeds
                    from loans
                
                
                3,269,820
                
                
                —Repayments
                    made on notes payable
                
                
                (358,401
                )
                
                —Proceeds
                    from borrowings on notes payable - related parties
                
                
                469,513
                
                
                1,167,557Repayments
                    made on notes payable - related parties
                
                
                (472,765
                )
                
                (304,253
                )Capital
                    contributions made by related party
                
                
                15,520
                
                
                —Sale
                    of treasury stock
                
                
                
                
                
                4,715Net
                    cash provided by financing activities of continuing
                    operations
                
                
                2,923,687
                
                
                868,019Effect
                    of foreign currency translation
                
                
                —
                
                
                (4,877
                )NET
                    CHANGE IN CASH
                
                
                (10,680
                )
                
                (356,753
                )CASH
                    AT BEGINNING OF YEAR
                
                
                22,847
                
                
                379,600CASH
                    AT END OF YEAR
                
                $
                12,167
                
                $
                22,847SUPPLEMENTAL
                    INFORMATION:Interest
                    paid
                
                $
                106,496
                
                $
                15,147Income
                    taxes paid
                
                
                —
                
                
                —NON-CASH
                    INVESTINGAND FINANCING ACTIVITIES:Common
                    stock issued for partial payment of notes payable
                
                $
                —
                
                $
                92,326Preferred
                    stock converted to common stock
                
                
                —
                
                
                20,049Common
                    stock issued for conversion of preferred stock
                
                
                —
                
                
                508,310Seller
                    financed purchase of Desert Communication
                
                
                2,630,801
                
                
                —Beneficial
                    conversion feature discount on notes payable
                
                
                75,856
                
                
                —Discount
                    to notes payable on relative fair value of warrants
                
                
                613,056
                
                
                —See
                    summary of accounting policies and notes to consolidated financial
                    statements.
  9
 *Table
            of Contents*
 INOVA
                    TECHNOLOGY, INC.CONSOLIDATED
                    STATEMENT OF STOCKHOLDERS EQUITYYears
                    ended April 30, 2007 and 2008
  Common
                    Stock
                
                Preferred
                    Stock
                
                Treasury
                    Stock
                
                
                
                
                
                AccumulatedShares
                
                Par
                    (0.001)
                
                Shares
                
                Par
                    (0.001)
                
                Shares
                
                Amount
                
                APIC
                
                OCI
                
                Deficit
                
                TotalBalances
                    at April 30, 2006
                
                
                70,288,450
                
                $
                70,288
                
                
                25,000,000
                
                $
                25,000
                
                
                137,500
                
                $
                (4,715
                )
                $
                (665,381
                )
                $
                4,877
                
                $
                690,524
                
                $
                120,593Shares
                    issued to pay notes
                  payable
                
                
                21,264,758
                
                
                21,264
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                71,061
                
                
                
                
                
                
                
                
                92,325Shares
                    issued to acquire
                  Data
                    Management
                
                
                
                
                
                
                
                
                25,000,000
                
                
                25,000
                
                
                
                
                
                
                
                
                (25,000
                )
                
                
                
                
                
                
                
                —Shares
                    received for sale of
                  Web's
                    Biggest, LTD
                
                
                
                
                
                
                
                
                (25,000,000
                )
                
                (25,000
                )
                
                
                
                
                
                
                
                25,000
                
                
                
                
                
                
                
                
                —Reversal
                    of treasury stock purchase
                
                
                137,500
                
                
                138
                
                
                
                
                
                
                
                
                (137,500
                )
                
                4,715
                
                
                (138
                )
                
                
                
                
                
                
                
                4,715Preferred
                    shares converted
                  to
                    common shares (restated)
                
                
                508,309,292
                
                
                508,310
                
                
                (20,049,000
                )
                
                (20,049
                )
                
                
                
                
                
                
                
                (488,261
                )
                
                
                
                
                
                
                
                —Sale
                    of Web's Biggest
                  (restated)
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                2,972,945
                
                
                
                
                
                
                
                
                2,972,945Management
                    fees
                  (restated)
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                180,000
                
                
                
                
                
                
                
                
                180,000Translation
                    adjustment
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                (4,877
                )
                
                
                
                
                (4,877
                )Net
                    loss (restated)
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                (1,692,123
                )
                
                (1,692,123
                )Balances
                    at April 30, 2007 (Restated)
                
                
                600,000,000
                
                
                600,000
                
                
                4,951,000
                
                
                4,951
                
                
                —
                
                
                —
                
                
                2,070,226
                
                
                —
                
                
                (1,001,599
                )
                
                1,673,578Capital
                    contributions from
                  related
                    party
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                15,520
                
                
                
                
                
                
                
                
                15,520Beneficial
                    conversion
                  feature
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                75,856
                
                
                
                
                
                
                
                
                75,856Warrant
                    discount
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                613,056
                
                
                
                
                
                
                
                
                613,056Net
                    loss
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                (976,062
                )
                
                (976,062
                )Balances
                    at April 30, 2008
                
                
                600,000,000
                
                $
                600,000
                
                
                4,951,000
                
                $
                4,951
                
                
                —
                
                $
                —
                
                $
                2,774,658
                
                $
                —
                
                $
                (1,977,661
                )
                $
                1,401,948
  See
                    summary of accounting policies and notes to consolidated financial
                    statements.
  10
 *Table
              of Contents*


**INOVA
      TECHNOLOGY, INC.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**Years
      Ending April 30, 2008 and 2007**








**NOTE
      1 - HISTORY AND ORGANIZATION OF THE COMPANY**





Inova
      Technology, Inc. was incorporated in Nevada on May 16, 1997, as
      Newsgurus.com, Inc. and changed its name to Secure Enterprise Solutions
      Inc. on January 10, 2002, then to Edgetech Services Inc. and on August 17,
      2006
      to Inova Technology, Inc.





On
      June
      1, 2005, Inova acquired Web’s Biggest, Inc., a California Corporation, for
      25,000,000 convertible preferred shares to the shareholders of Web’s Biggest in
      consideration for 100% of the outstanding capital of Web’s Biggest and $250,000
      be used for general working capital of Inova. This transaction was originally
      recorded as a recapitalization of Inova. Consequently the transaction was
      considered to be a reverse merger and the accounting treatment was as if Web’s
      Biggest, Inc acquired Inova. When completed, this transaction resulted in a
      change of control of Inova. After consummation of the merger, Inova shareholders
      owned approximately 10% of the newly combined entity.





During
      2008, Inova determined that the original accounting for the merger with Web’s
      Biggest in 2005 was incorrect. Both companies were operating companies and
      the
      intent of the combined entity was to continue on with both operations. Inova
      should have accounted for the transaction as a reverse acquisition whereby
      Web’s
      Biggest purchased Inova and fair value and purchase accounting would apply.
      See
      Notes 6 and 18 for more details.





On
      October 18, 2006, Inova purchased 100% of the outstanding capital stock of
      Data
      Management, Inc., a Nevada corporation, from the Data Management shareholders in
      exchange for 25 million of Inova’s convertible preferred shares. The convertible
      shares used represented approximately 90% of the voting stock of Inova on a
      fully diluted basis. Data Management was an entity owned by two business
      entities (Southbase LLC and Advisors LLC) which are owned by Mr. Adam Radly
      and
      Mr. Paul Aunger, both officers, directors and majority shareholders of Inova.
       It was determined that Data Management was not a business and that the
      transaction was in substance the purchase of fixed assets.  Inova acquired
      no other tangible assets or liabilities.  Due to the related party nature
      of the transaction, the assets purchased were brought over to Inova on their
      historical cost basis.





Concurrently,
      Inova sold its wholly-owned subsidiary, Web’s Biggest Limited, to Advisors LLC
      in exchange for 25 million convertible preferred shares of Inova held by
      Advisors LLC.  Advisors LLC is a company owned by Mr. Paul Aunger, a
      director and officer of Inova and accordingly, the transaction was not
      considered an arm’s length transaction.




11
 *Table
          of Contents*




The
      25
      million convertible preferred shares used in the Data Management Transaction
      were the same 25 million convertible preferred shares received with regards
      to
      the Web’s Biggest Transaction. Accordingly, these transactions are viewed as one
      homogeneous transaction and treated as an exchange of Web’s Biggest’s net assets
      for Data Management’s net assets, akin to a like-kind exchange of assets.
 However, the historical cost basis. (less
      accumulated depreciation and amortization) of the net assets acquired from Data
      Management was
      significantly less than the net assets of Web’s Biggest by approximately
      $1,236,000.  Accordingly, the difference of $1,236,000 in historical cost
      basis of the net assets was accounted for as a loss on exchange of assets in
      the
      accompanying consolidated statements of operations. This also resulted in the
      activity of Web’s Biggest being accounted for as discontinued
      operations.





Prior
      to
      the transactions described above Inova was controlled by Advisors, LLC. When
      the
      transactions described above were completed, this resulted in a change of
      control of Inova and the controlling shareholder became Southbase, LLC.
 Prior to these transactions, the unaffiliated shareholders of Inova owned
      approximately 10% of Inova and they continued to own approximately 10% on a
      fully diluted basis after these transactions. The Board of Directors did not
      change as a result of the transactions described above.





On
      May 1,
      2007, Inova acquired RightTag, Inc. RightTag manufactures standard compliant
      and
      durable RFID (Radio Frequency Identification) equipment and provides customer
      friendly RFID solutions.





On
      December 21, 2007, Inova acquired Texas-based Desert Communications, Inc. Desert
      provides IT services to a customer base that primarily consists of Texas based
      school districts, local government entities and corporations. Services provided
      by Desert include IT network and communications services, network design,
      implementation and maintenance.





**NOTE
      2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**





***Principles
      of consolidation***





These
      consolidated financial statements include the accounts of Inova Technology,
      Inc.
      (Nevada) and its wholly owned subsidiaries Desert Communications, Inc., Edgetech
      Services Inc. (Ontario), Data Management, Inc. and RightTag, Inc. Significant
      inter-company accounts and transactions have been eliminated.





***Use
      of estimates***





The
      preparation of financial statements in accordance with accounting principles
      generally accepted in the United States of America requires management to make
      estimates and assumptions that affect the reported amount of assets and
      liabilities, disclosure of contingent assets and liabilities at the date of
      the
      financial statements and the reported amount of revenues and expenses during
      the
      year. Actual results could differ from these estimates.




12
 *Table
          of Contents*




***Reclassifications***





Certain
      prior year amounts have been reclassified to conform with the current year
      presentation.





***Cash
      and cash equivalents***





For
      purposes of the statement of cash flows, Inova considers all highly liquid
      investments purchased with an original maturity of three months or less to
      be
      cash equivalents.





***Accounts
      receivable***





Trade
      and
      other accounts receivable are carried at face value less any provisions for
      uncollectible accounts considered necessary. Accounts receivable primarily
      include trade receivables from customers in Canada for the year of 2007 and
      from
      school districts in Texas for the year of 2008.  Bad debt expense is
      recognized based on management’s estimate of likely losses per year, based on
      past experience and an estimate of current year uncollectible amounts.
 There allowance for doubtful accounts was $51,659 and $35,000 as of April
      30, 2008 and 2007, respectively.





***Inventory***





Inventories
      are stated at the lower of cost or market. Cost is determined by the average
      cost method for all inventories. Inventories consist primarily of components
      and
      finished products held for sale. Rapid technological change and new product
      introductions and enhancements could result in excess or obsolete inventory.
      To
      minimize this risk, Inova evaluates inventory levels and expected usage on
      a
      periodic basis and records adjustments as required.





***Discontinued
      Operations***





Inova
      presents the results of operations, financial position and cash flows of
      operations that have either been sold or that meet the criteria for "held for
      sale accounting" as discontinued operations. At the time an operation qualifies
      for held for sale accounting, the operation is evaluated to determine whether
      or
      not the carrying value exceeds its fair value less cost to sell. Any loss as
      a
      result of carrying value in excess of fair value less cost to sell is recognized
      in the period the operations meet held for sale accounting. Management judgment
      is required to (1) assess the criteria required to meet held for sale
      accounting, and (2) estimate fair value. Changes to the operation could cause
      it
      to no longer qualify for held for sale accounting and changes to fair value
      could result in an increase or decrease to previously recognized
      losses.




13
 *Table
          of Contents*




***Property
      and equipment***





Property
      and equipment are carried at cost, less accumulated depreciation and
      amortization. Additions are capitalized and maintenance and repairs are charged
      to expense as incurred. Depreciation and amortization is provided principally
      on
      the straight-line basis method over the estimated useful lives of the assets.
       When property is retired or otherwise disposed of, the related cost and
      accumulated depreciation are removed from the accounts and any resulting gains
      or losses are credited or charged to operations.





***Intangible
      assets, goodwill and impairments of long-lived assets***





Intangibles
      are recorded at cost and amortized on the straight-line method over their
      estimated useful lives. Goodwill is reviewed annually. An impairment analysis
      at
      April 30, 2008 was undertaken and an impairment to goodwill of $324,310 was
      recorded.





Intangible
      valuation and Goodwill impairment are determined using similar processes. The
      main step is to compare the fair value of a reporting unit with its carrying
      amount, including goodwill. Inova determines the fair value by using a
      discounted cash flow (“DCF”) analysis approach. Determining fair value requires
      the exercise of significant judgments, including judgments about appropriate
      discount rates, perpetual growth rates, relevant comparable company earnings
      multiples and the amount and timing of expected future cash flows. The cash
      flows employed in the DCF analyses are based on Inova’s budget and long-term
      business plan, and various growth rates have been assumed for years beyond
      the
      long-term business plan period. Discount rate assumptions are based on an
      assessment of the risk inherent in the future cash flows of the respective
      reporting units.





***Revenue
      and cost recognition***





Inova
      has
      four sources of revenues: IT network design and implementation from Desert,
      computer equipment sales from Desert, IT consulting services from Edgetech
      and
      sales of RFID items from RightTag. Revenue that is received before it is earned
      is classified as deferred revenue.





**IT
      network design and implementation:**





Revenues
      from fixed-price contracts are recognized on the percentage-of-completion
      method, measured by the percentage of cost incurred to date to estimated total
      cost for each contract. This method is used because management considers total
      cost to be the best available measure of progress on the contracts. Because
      of
      inherent uncertainties in estimating costs, it is at least reasonably possible
      that the estimates used will change within the near term.





Contract
      costs include all direct material and labor costs and those indirect costs
      related to contract performance, such as indirect labor, supplies, tools,
      repairs, and depreciation. Selling, general and administrative costs are charged
      to expense as incurred. Provisions for estimated losses on uncompleted contracts
      are made in the period in which such losses are determined. Changes in job
      performance, job conditions, and estimated profitability may result in revisions
      to costs and income, which are recognized in the period in which the revisions
      are determined. Changes in estimated job profitability resulting from job
      performance, job conditions, contract penalty provisions, claims, change orders,
      and settlements, are accounted for as changes in estimates in the current
      period.




14
 *Table
          of Contents*


The
      asset, “Costs and estimated earnings in excess of billings on uncompleted
      contracts,” represents revenues recognized in excess of amounts billed. The
      liability, “Billings in excess of costs and estimated earnings on uncompleted
      contracts,” represents billings in excess of revenues recognized.





**Computer
      equipment sales, IT consulting services & sales of RFID
      items:**





Revenue
      is recognized when persuasive evidence of an arrangement exists, delivery has
      occurred or services have been rendered, the price is fixed or determinable,
      and
      collectibility is reasonably assured.





***Embedded
      conversion features***





Inova
      evaluates embedded conversion features within convertible debt and convertible
      preferred stock under paragraph 12 of SFAS 133 and EITF 00-19 to determine
      whether the embedded conversion feature should be bifurcated from the host
      instrument and accounted for as a derivative at fair value with changes
      in fair value recorded in earnings. If the conversion feature does not
      require derivative treatment under SFAS 133 and EITF 00-19, the instrument
      is
      evaluated under EITF 98-5 and EITF 00-27 for consideration of any beneficial
      conversion feature.





***Income
      taxes***





Inova
      uses the liability method of accounting for income taxes. Under this method,
      deferred income taxes are recorded to reflect the tax consequences on future
      years of temporary differences between the tax basis of assets and liabilities
      and their financial amounts at year-end. Inova provides a valuation allowance
      to
      reduce deferred tax assets to their net realizable value.





***Stock
      based compensation***





Effective
      January 1, 2006, Inova began recording compensation expense associated with
      stock options and other forms of equity compensation in accordance with
      Statement of Financial Accounting Standards (“SFAS”) No. 123R, *Share-Based Payment,* as
      interpreted by SEC Staff Accounting Bulletin No. 107. Prior to
      January 1, 2006, Inova had accounted for stock options according to
      the provisions of Accounting Principles Board Opinion No. 25, *Accounting for Stock Issued to Employees,* and
      related interpretations, and therefore no related compensation expense was
      recorded for awards granted with no intrinsic value. Inova adopted the modified
      prospective transition method provided for under SFAS No. 123R, and,
      consequently, have not retroactively adjusted results from prior periods. Inova
      did not issue any employee options during the years ended April 30, 2008 and
      2007.




15
 *Table
          of Contents*




***Basic
      and diluted net income (loss) per share***





Basic
      loss per share is computed using the weighted average number of shares of common
      stock outstanding during each period. Diluted loss per share includes the
      dilutive effects of common stock equivalents on an “as if converted” basis. For
      the years ended 2008 and 2007, potential dilutive securities had an
      anti-dilutive effect and were not included in the calculation of diluted net
      loss per common share.





***Recent
      accounting pronouncements***





Inova
      does not expect the adoption of recently issued accounting pronouncements to
      have a significant impact on Inova’s results of operations, financial position
      or cash flows.





**NOTE
      3 - GOING CONCERN**





As
      shown
      in the accompanying consolidated financial statements, Inova incurred recurring
      losses from continuing operations of $651,752 and $540,649 in 2008 and 2007,
      respectively, has a working capital deficit of $2,719,959 and has an accumulated
      deficit of $1,653,351. These conditions raise substantial doubt as to Inova’s
      ability to continue as a going concern. To address these concerns, management
      of
      Inova is trying to raise additional funds and continue to increase revenues
      from
      its current businesses.




**NOTE
      4 - CONTRACTS RECEIVABLE**


Completed
                  contracts
              
              $
              1,639,799Contracts
                  in progress
              
              
              593,453Total
                  Contracts Receivable
              
              $
              2,233,252





Costs,
      estimated earnings, and billings on uncompleted contracts are summarized as
      follows:


Costs
                  incurred on uncompleted contracts
              
              $
              483,706Estimated
                  earnings
              
              
              302,150Less:
                  Billings to date
              
              
              (587,201
              )Total
              
              $
              198,655





16
 *Table
          of Contents*





Included
        in the accompanying balance sheet under the following captions:


Costs
                  and estimated earnings in excessof
                  billings on uncompleted contracts
              
              $
              198,655Billings
                  in excess of costs and estimatedearnings
                  on uncompleted contracts
              
              
              —$
              198,655





**NOTE
      5 - PURCHASE OF RIGHTTAG AND DESERT COMMUNICATIONS**





**Acquisition
      of RightTag, Inc.:**





On
      May 1,
      2007, Inova completed its purchase of RightTag, Inc. by acquiring all of the
      outstanding shares of RightTag for the purchase price of $325,000. Inova also
      agreed to pay RightTag’s previous shareholders additional funds based on
      RightTag’s gross profit over the next five years. RightTag manufactures standard
      compliant and durable RFID (Radio Frequency Identification) equipment and
      provides customer friendly RFID solutions. The entity was acquired in an effort
      for Inova to expand and pursue potentially profitable and strong investment
      opportunities.





The
      following table presents the allocation of the acquisition cost to the assets
      acquired and liabilities assumed, based on their fair values:


Cash
              
              $
              646Accounts
                  receivable
              
              
              4,020Inventory
              
              
              12,850Prepaid
                  expenses
              
              
              115Goodwill
              
              
              300,870Intangible
                  assets
              
              
              135,702Accounts
                  payable
              
              
              (28,231
              )Accrued
                  liabilities
              
              
              (1,812
              )Shareholder
                  loans
              
              
              (99,160
              )Total
              
              $
              325,000





The
      $135,702 of acquired intangible assets (customer list/company name) has a useful
      life of approximately 3 years.





**Acquisition
      of Desert Communication:**





On
      December 21, 2007, Inova acquired Texas-based Desert Communications (“Desert”)
      for $5.9 million ($3.3 million paid in cash and $2.6 million to be paid under
      notes payable).




17
 *Table
          of Contents*




Desert
      provides IT services to a customer base that primarily consists of Texas based
      school districts, local government entities and corporations. Services provided
      by Desert include IT network and communications services, network design,
      implementation and maintenance.





Funding
      for the acquisition was obtained from IBM and Boone Opportunity Lenders
      (“Boone”). IBM provided part of a $2.5 million line of credit and Boone
      Opportunity Lenders provided a $1.8 million debenture. Inova also signed a
      $2.3
      million promissory note payable to the previous owners of Desert.





The
      following table presents the preliminary allocation of the acquisition cost
      to
      the assets acquired and liabilities assumed, based on their preliminary fair
      values:


Cash
              
              $
              2,222,632Accounts
                  receivable
              
              
              2,406,695Inventory
              
              
              293,283Prepaid
                  expense
              
              
              6,654Fixed
                  assets
              
              
              167,139Goodwill
              
              
              3,414,445Intangible
                  assets
              
              
              860,555Accounts
                  payable and accrued liabilities
              
              
              (3,434,077
              )Total
              
              $
              5,937,326




Of
      the
      $860,555 of acquired intangible assets, $498,930 was preliminarily assigned
      to
      the customer list which has a useful life of approximately 3 years and the
      remaining $361,625 was preliminarily assigned to three employment agreements
      which have an average contract life of 2 years.





The
      results of these acquisitions are included in the consolidated financial
      statements from the date of acquisition.  The following shows the unaudited
      pro forma results of operations as though the purchases of RightTag and Desert
      had been completed on May 1, 2006:


2008
              
              2007Sales
              
              $
              17,633,590
              
              $
              14,944,551Cost
                  of sales
              
              
              (12,008,040
              )
              
              (10,332,197
              )G&A
              
              
              (3,684,974
              )
              
              (3,058,364
              )Interest
                  income (expense)
              
              
              (550,626
              )
              
              295,038Income
                  from continuing operations
              
              
              1,389,950
              
              
              1,849,028Loss
                  on sale of Web’s Biggest
              
              
              —
              
              
              (1,226,061
              )Income
                  from discontinuing operations
              
              
              —
              
              
              170,053Net
                  income
              
              $
              1,389,950
              
              $
              793,020Basic
                  and diluted net income per share
              
              
              (0.00
              )
              
              (0.00
              )from
                  continuing operationsBasic
                  and diluted net income per share
              
              
              (0.00
              )
              
              (0.00
              )from
                  discontinuing operationsBasic
                  and diluted net income per share
              
              
              (0.00
              )
              
              (0.00
              )Weighted
                  average common shares
              
              
              600,000,000
              
              
              332,590,991




18
 *Table
          of Contents*





The
      pro
      forma information is presented for informational purposes only and is not
      necessarily indicative of the results of operations that actually would have
      been achieved had the acquisition been consummated as of that time, nor is
      it
      intended to be a projection of future results.





**NOTE
      6 - GOODWILL AND INTANGIBLES**





**RightTag:**





In
      May
      2007 when Inova acquired RightTag, Inova accounted for the acquisition using
      the
      purchase method of accounting for business combinations. The purchase price
      and
      costs associated with the acquisition exceeded the preliminary estimated fair
      value of net assets acquired by $436,572, which was preliminarily assigned
      to
      goodwill.





During
      2008, Inova completed the valuation of the intangible assets acquired in the
      RightTag transaction. Pursuant to the valuation, purchase price of $135,702
      was
      assigned to the customer list acquired and the remaining $300,870 was assigned
      to goodwill.





**Desert:**





In
      December 2007 when Inova acquired Desert, Inova accounted for the acquisition
      using the purchase method of accounting for business combinations. The purchase
      price and costs associated with the acquisition exceeded the preliminary
      estimated fair value of net assets acquired by $4,275,000, of which $860,555
      was
      preliminarily assigned to the customer list and employment agreements acquired
      and the remaining $3,414,445 was preliminarily assigned to goodwill. The
      allocation is not final as of the date of this report.





**Web’s
      Biggest:**





In
      June
      2005 when Inova acquired Web’s Biggest, the original transaction was accounted
      for as a recapitalization. No goodwill or other intangibles were
      recognized.




19
 *Table
          of Contents*




In
      2008,
      Inova discovered that the original transaction between Inova and Web’s Biggest
      was not accounted for properly. The acquisition should have been recorded as
      a
      reverse acquisition whereby Web’s Biggest purchased Inova’s assets and
      liabilities to be recorded at fair value. In 2008, Inova completed its valuation
      of the assets and liabilities acquired in the Web’s Biggest merger. Pursuant to
      the valuation, purchase price of $360,641 was assigned to the customer list
      acquired and the remaining $2,612,304 was assigned to goodwill. Inova restated
      its prior year financial statements to reflect the correction of this error.
      See
      Note 18 restatement footnote for more details.An impairment analysis at April
      30, 2008 has been undertaken and a reduction to goodwill of $324,310 has been
      booked.





Goodwill
      consists of the following as of April 30, 2008 and 2007:


2008
              
              2007RightTag
              
              $
              300,870
              
              $
              —Desert
              
              
              3,315,918
              
              
              —Edgetech
              
              
              2,287,994
              
              
              2,612,304Total
              
              $
              5,904,782
              
              $
              2,612,304





Intangible
      assets consist of the following as of April 30, 2008:


2008
              
              2007RightTag
                  - customer list
              
              $
              90,468
              
              $
              —Desert
                  - customer list
              
              
              443,493
              
              
              —Desert
                  - employment agreements
              
              
              301,354
              
              
              —Edgetech
                  - customer list
              
              
              10,018
              
              
              130,231Total
              
              $
              845,333
              
              $
              130,231




For
      the
      years ended April 30, 2008 and 2007, Inova recorded amortization expenses of
      $605,466  and
      $230,410, respectively.




20
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**NOTE
      7 - RELATED PARTY TRANSACTION**


Due
                  to related parties:2008
              
              2007Due
                  to Southbase, entity associatedwith
                  the CEO, matures January 2010,monthly
                  payments of $11,847, interestof
                  7%, unsecured
              
              $
              861,563
              
              $
              426,503Due
                  to IMSS, entity associated withthe
                  CEO, matures January 2010,no
                  interest, unsecured
              
              
              —
              
              
              186,382Due
                  to former officers, on demand, interestof
                  7%, unsecured
              
              
              —
              
              
              10,118Due
                  to Advisors, LLC, entity associatedwith
                  the Secretary, matures January 2010,monthly
                  payments of $15,388, interest ofprime
                  + 3%, secured by receivables (8% at April 30)
              
              
              247,927
              
              
              202,142Due
                  to Advisors, LLC, entity associatedwith
                  the Secretary, matures January 2010,monthly
                  payments of $11,545, interest ofprime
                  + 2%, secured by receivables (7% at April 30)
              
              
              91,365
              
              
              277,090Total
                  due to related parties
              
              $
              1,200,855
              
              $
              1,102,235




Other
      related party transactions:





As
      of
      April 30, 2008, part of the related party notes of $247,927 and $91,365 relate
      to a factoring agreement Inova has with Advisors, LLC. The invoices are put
      into
      this agreement so monies can be advanced to Inova before Inova’s customers pay,
      thereby facilitating payment of operating expenses.





As
      of
      April 30, 2007, part of the related party notes of $202,142 and $277,090 relate
      to a factoring agreement Inova has with Advisors, LLC. The invoices are put
      into
      this agreement so monies can be advanced to Inova before Inova’s customers pay,
      thereby facilitating payment of operating expenses.





During
      the year ended April 30, 2008, a related party made a contribution to Inova
      in
      the amount of $15,520.




21
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**NOTE
      8** **-** **NOTES
      PAYABLE**





There
      were no notes payable to third parties as of April 30, 2007. Notes payable
      consisted of the following as of April 30, 2008:


Note
                payable - Boone
              
              $
              1,433,600Notes
                  payable - individuals
              
              
              104,118Notes
                  payable - Desert previous owners
              
              
              2,697,884LOC
                  from IBM
              
              
              1,427,820Note
                  payable - Agile
              
              
              250,000Total
                  notes payable
              
              
              5,913,422Unamortized
                  discount
              
              
              (452,611
              )Total
                  as of April 30, 2008
              
              
              5,460,811Less:
                  current portion
              
              
              (2,648,678
              )Long
                  term portion
              
              $
              2,812,133




**Note
      Payable - BOL Opportunity Fund I, LLC (Boone)**





In
      December 2007, Inova borrowed $1,792,000 under a note payable from BOL
      Opportunity Fund I, LLC. This note has an interest rate of 11.25% per annum
      and
      it matures on March 10, 2009. This
      note
      is secured by all tangible and intangible assets of Inova, in each case whether
      now owned or hereafter acquired and wherever located, and all proceeds thereof,
      together with all proceeds, products, replacements and renewals thereof. This
      note is also secured by the shares of Desert owned by Inova.





167,279,258
      warrants were issued to Boone with this note. These warrants expire in March
      2012. 162,672,600 warrants have an aggregated exercise price of $200 and
      4,606,658 warrants have an exercise price of $0.026 per share. The fair value
      of
      these warrants was
      calculated using the Black-Scholes Model  include
      (1) 3.48% discount rate, (2) warrant life of 5 years, (3) expected volatility
      of
      550%, and (4) zero expected dividends. The relative fair value and a discount
      of $487,200
      was recorded. Subsequently some of these warrants have been reallocated to
      Boone’s affiliates.





Inova
      determined that the warrants issued was not derivative instruments pursuant
      to
      SFAS No. 133, Accounting for Derivatives, as amended. Under the provisions
      of
      EITF Issue 00-27, Inova discounted the relative fair value of warrants attached
      to the notes using the Black-Scholes Option Pricing Model to exceed the
      principal value of the note. The resulting total discount of $487,200 is being
      amortized over the life of the notes using the effective interest method. The
      amortized amount for the year ended April 30, 2008 is $111,665. A summary of
      this convertible note is as follows:


Gross
                  proceeds from note payable
              
              $
              1,792,000Less:
                  principal repayment
              
              
              (358,401
              )Less:
                  relative fair value of warrants granted
              
              
              (487,200
              )Add:
                  amortization of discount
              
              
              120,422Carrying
                  amount of notes on April 30, 2008
              
              $
              1,066,821




22
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Inova
      signed a put option agreement with Boone whereby anytime between June 10, 2010
      and June 10, 2012, **** Boone
      can
      require Inova to **** repurchase
      from Boone up to
      167,279,258 shares of Common Stock for $1,280,000. If at the time the Put is
      exercised, Boone was required to use the guaranty under the debenture, the
      repurchase price for the shares would be $1,440,000. The Put Option is not
      in
      effect until Boone exercises its warrants. As of April 30, 2008, the warrants
      had not been exercised.





Inova
      entered into a registration agreement with Boone requiring that a
      filing
      be done for the number of Registrable Securities equal to the lesser of (i)
      the
      total number of Registrable Securities and (ii) one-third of the number of
      issued and outstanding shares of Common Stock that are held by non-affiliates.
      Registrable securities are (i) all Warrant Shares (ii) any additional shares
      of
      Common Stock issuable in connection with any anti-dilution provisions in the
      Warrants (iii) all Put Shares; and (iv) any securities issued or issuable upon
      any stock split, dividend or other distribution, recapitalization or similar
      event. The filing is required to be done by March 31, 2008 and approved and
      effective shortly thereafter. As of the filing date this had not occurred
      because of previous SEC filings that are being reviewed by the SEC staff. The
      document calls for a penalty of 2% of purchase price if this date is not met.
      However, we have received a written waiver for the 10K until the SEC extended
      due date and until November 10, 2008 for the registration
      statement.





This
      loan
      has the following financial requirements:





1)
      Maintain availability under IBM $2.5 million line of credit of $250,000 or
      greater;





2)
      EBITDA
      of $1.7 million for 12 month period ending December 31, 2008 and $300,000 for
      each 3-month period beginning December 31, 2007;





3)
      No
      concentration above $2.5 million to any supplier through the IBM
      facility;





4)
      No
      concentration above 20% to any single customer;





5)
      No
      single accounts payable more than the greater of $300,000 or 20% of the accounts
      receivable balance under 60 days. The portion beyond 90 days past due must
      be
      less than 10% of the total accounts receivable.





As
      of
      April 30, 2008, the 3 month EBITDA and 20% customer concentration were not
      in
      compliance. However, the lender did not deem Desert to be in default and
      provided Desert with written waivers.




23
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          of Contents*




**Notes
      Payable to RightTag Original Creditors**





There
      are
      notes payable to multiple parties in the amount of $104,118. The interest rates
      are at 7% per annum and they are payable over 2 years from the date of Right
      Tag
      acquisition. These notes are unsecured.





**Notes
      Payable to Desert Previous Owners**





There
      are
      notes payable to the previous owners of Desert Communications in the amount
      of
      $2,697,884 as of April 30, 2008, including accrued but unpaid interest. The
      interest rates are at 7% per annum and they are payable over 2 years from the
      date of Desert acquisition. These notes are unsecured.





**$2,500,000
      Line of Credit with IBM Credit LLC**





Desert
      has a $2.5 million line of credit with IBM Credit LLC. This line of credit
      has
      an interest rate of prime plus 2% and is secured by the assets of
      Desert.





**$250,000
      Note Payable - Agile Opportunity Fund, LLC**





In
      February 2008, Inova borrowed $250,000 under a note payable from Agile
      Opportunity Fund, LLC. This note has an interest rate of 18% per annum and
      it
      matures on August 15, 2009. At any time from the date of the note through the
      date this note is paid in full, Agile has the right to convert the outstanding
      principal balance plus accrued but unpaid interest into Inova’s common shares at
      a conversion price equal to $0.005 per share. This
      note
      is secured by all tangible and intangible assets of Inova, in each case whether
      now owned or hereafter acquired and wherever located, and all proceeds thereof,
      together with all proceeds, products, replacements and renewals
      thereof.





25,000,000
      warrants were issued to Agile with this note. These warrants expire in February
      2013. They have an exercise price of $0.005 per share. The fair value of these
      warrants was
      calculated using the Black-Scholes Model  include
      (1) 4.49% discount rate, (2) warrant life of 5 years, (3) expected volatility
      of
      550%, and (4) zero expected dividends. The relative fair value and a discount
      of $71,428
      was recorded.





Inova
      determined that the conversion feature of the note and the warrants issued
      were
      not derivative instruments pursuant to SFAS No. 133, Accounting for Derivatives,
      as amended. Under the provisions of EITF Issue 98-5 and 00-27, Inova discounted
      the relative fair value of warrants attached to the notes and calculated the
      intrinsic value of the beneficial conversion feature using the Black-Scholes
      Option Pricing Model to exceed the principal value of the note. The resulting
      total discount of $92,857 is being amortized over the life of the notes using
      the effective interest method. The amortized amount for the year ended April
      30,
      2008 is $7,026. A summary of this convertible note is as follows:




24
 *Table
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Gross
                  proceeds from note payable
              
              $
              250,000Less:
                  beneficial conversion feature discount
              
              
              (21,429
              )Less:
                  relative fair value of warrants granted
              
              
              (71,428
              )Add:
                  amortization of discount
              
              
              7,026Carrying
                  amount of notes on April 30, 2008
              
              $
              164,169





At
      any
      time, at Inova's sole discretion and upon at least ten business days written
      notice to Agile, Inova may prepay any or all of the outstanding principal amount
      of this debenture upon payment to Agile of the repayment amount. The prepayment
      amount shall equal the accrued but unpaid interest on the outstanding principal
      amount of this Debenture being repaid plus (i) if the date of such repayment
      is
      prior to May 15, 2008, one hundred twenty percent (120%) of the outstanding
      principal amount of this Debenture being repaid, (ii) if the Repayment Date
      is
      on or after May 15, 2008 but prior to August 15, 2008. one hundred thirty
      percent (130%) of the outstanding principal amount of this Debenture being
      repaid or (iii) if the Repayment Date is on or after August 15, 2008. one
      hundred forty percent (140%) of the outstanding principal amount of this
      Debenture being repaid.





Commencing
      on February 15, 2010, Agile shall have the right, at its sole option and demand,
      immediately upon notice to Inova to sell all or any portion of the Warrants,
      and/or the shares underlying thereunder to the extent the Warrants have been
      previously exercised, back to the Company for a total consideration equal to
      one
      hundred thousand dollars if all such Warrants or underlying shares were "put"
      to
      Inova.





Inova
      agreed to file a registration statement covering 120% of the shares of Common
      Stock issuable upon conversion of the Debenture and exercise of all Warrants,
      no
      later than twenty five (25) trading days after Inova begins trading on the
      OTCBB
      or other listed exchange, and use its best effort s to have the Registration
      Statement declared effective within one hundred-twenty (120) days after such
      date. However, if the initial registration statement does not register the
      full
      amount of shares of Common Stock issuable upon conversion of the Debenture
      and
      exercise of all Warrants. Inova shall file an additional registration statement
      covering the shortfall of such shares into which the then outstanding principal
      plus accrued interest would convert into within fifteen (15) business days
      following a request by Investor. Inova shall keep the registration statement
      active so long as Agile owns the Debenture, the Warrants or any underlying
      shares issuable upon conversion or exercise thereof. In the event that Inova
      is
      in breach of any provision of this agreement, in addition to any other remedies
      available to the Investor, Inova shall pay to the Investor an amount equal
      to
      one (1%) percent of the outstanding principal amount of the Debenture for each
      month that the Company is in breach of this agreement. Inova analyzed the
      registration right arrangement under EITF 00-19-2 and concluded that there
      was
      no contingent liability to be recorded on the date of this note.




25
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          of Contents*





**NOTE
      9 - COMMITMENTS AND CONTINGENCIES**





There
      is
      a month to month office lease for $3,238 per month for Desert, which expires
      in
      August 2008. The other entities operate out of small facilities that do not
      have
      rental agreements.





Rent
      expense was $22,177 and $15,973 for fiscal 2008 and 2007, respectively. No
      real
      estate is owned by the Inova companies.





**Litigation**





*The
      Kim’s litigation*





Two
      former officers and directors of Inova, Tae Ho Kim and Sang Ho Kim, filed suit
      against Inova and its Canadian subsidiary in March 2006 in the Ontario Superior
      Court of Justice. The Kims claimed in their lawsuit that Inova breached an
      alleged employment agreement with them, as well as the separation agreement
      that
      Inova and the Kims entered into upon the termination of the Kims employment
      with
      Inova. In May 2007, the Kims were awarded $215,691, which has been accrued
      by
      Inova in accounts payable as of April 30, 2008. The company is planning to
      appeal.





*The
      Top Layer Networks litigation*





In
      January 2006, Top Layer Networks, Inc., a provider of hardware to Inova’s
      Canadian hardware sales business, sued Inova (then named Edgetech Services
      Inc.)
      in United States District Court in Massachusetts. Top Layer alleges that Inova
      purchased hardware over the course of several years and has failed to pay for
      it. Top Layer’s complaint requests damages in the amount of approximately
      $154,000 which has been accrued by Inova in accounts payable as of April 30,
      2008.





*The
      Roy litigation*





In
      February 2006, Mr. Charles Roy sued Inova in the Superior Court of the State
      of
      California in the County of Los Angeles. The lawsuit alleged that Inova breached
      a consulting agreement by not paying Roy the amounts contained in the agreement
      and sought monetary damages of $90,000.  At approximately the same time as
      Mr. Xavier Roy resigned as CEO, Inova discovered that Xavier Roy had executed
      the agreement. The agreement required Inova to pay Mr. Charles Roy $4,500 per
      month for 24 months. The agreement also states that Inova must pay a minimum
      of
      $108,000 in the event that Mr. Charles Roy is terminated.  Inova claimed
      that the agreement was procured by fraud and in breach of Xavier Roy’s fiduciary
      duty to Inova, and that as a result, Mr. Roy did not have authority to enter
      into the agreement.  The case was tried in April 2007, and the jury found
      that Inova breached the agreement with Charles Roy. The jury awarded a judgment
      of $127,500 against Inova, which has been accrued by Inova in accounts payable
      as of April 30, 2008. There is a settlement being contemplated.





26
 *Table
          of Contents*





**NOTE
      10 - CAPITAL LEASES**





The
      Company is under an obligation for vehicles:





The
      lease
      calls for monthly payments of $493 including 4.7% interest. The capitalized
      cost
      of the vehicle is $33,638. The amount payable at April 30, 2008 and 2007 was
      $16,342 and $22,376, respectively and is in accounts payable on the balance
      sheet. The lease term commenced 2004 to December 2010.





Future
      minimum lease payments due on the above lease is:


2009
              
              $
              5,9042010
              
              
              5,904





**NOTE
      11 - PROFIT SHARING PLAN**





Effective
      January 1999, Desert adopted a profit sharing plan which covers most full-time
      employees with one year of service. The plan allows for discretionary annual
      contributions to be made. During the year ended April 2008 $100,000 was
      contributed by Desert.





**NOTE
      12 - INCOME TAX**




(US
                  Entities)Consolidated
              
              EdgeTech
                  Canada**Net
                  Operating Losses:**Loss
                  (income) for fiscal 2007
              
              
              647,166
              
              
              (168,855
              )NOL
                  as of April 30, 2007
              
              
              647,166
              
              
              407,072Loss
                  (income) for fiscal 2008
              
              
              1,002,842
              
              
              (28,284
              )Add:
                  Non-deductible Expenses-
                  Meals & Entertainment (50%)
              
              
              1,504-
                  Stock Based Compensation
              
              
              —NOL
                  as of April 30, 2008
              
              
              1,653,016
              
              
              378,788**Deferred
                  Tax Assets:**Deferred
                  Tax Assets (35% of NOL)
              
              
              578,556
              
              
              132,575.80Valuation
                  Allowance
              
              
              (578,556
              )
              
              (132,575.80
              )Net
                  Deferred Tax Assets
              
              
              —
              
              
              —




No
        income
        taxes payable in 2008 or in 2007, as a result of the operating losses recorded
        during those years. Based on a number of factors, including the lack of a
        history of profits, management believes that there is sufficient uncertainty
        regarding the realization of deferred tax assets, and, accordingly, has not
        booked an income tax benefit as of April 30, 2008 and 2007. All losses incurred
        can be carried forward for seven years for Canadian income tax purposes and
        twenty years for United States income tax purposes.




**NOTE
      13 - CAPITAL TRANSACTIONS**




As
      of
      April 30, 2007 and during fiscal 2008, Inova issued more common shares to its
      related parties than the number of shares previously authorized. These shares
      were issued to convert the outstanding preferred stock and to pay down its
      outstanding debts. Due
      to
      the fact that the authorized shares were not increased until July 2008, all
      common share issuance in excess of its 600,000,000 authorized shares were
      considered as invalid until July 2008. It
      was
      concluded by management that all shares issued in excess of the previously
      authorized shares considered not to be issued until July 28, 2008.. See note
      18
      for details on prior year invalid issues.




27
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          of Contents*




During
      fiscal 2007:





-
            Inova
                issued 25 million shares of convertible preferred stock for the purchase
                of Data Management and received back the same 25 million shares of
                convertible preferred stock for the sale of Web’s
                Biggest.





-
            137,500
                common shares that were purchased by Inova in fiscal 2006 for $4,715
                in a
                treasury stock transaction were returned to the original investor
                for
                return of the $4,715.





-
            21,264,758
                common shares were issued to related parties as partial payments
                of their
                notes payable. The value of the shares was $92,235 resulting in a
                reduction of the notes payable by that
                amount.





-
            Inova
                issued 633,833,500 common shares for the conversion of 25 million
                preferred shares. The conversion was in accordance with the original
                terms
                of the preferred stock agreement. 125,524,208 common shares were
                reversed
                as Inova did not have enough authorized common shares leaving 508,309,292
                validly issued shares.





During
      fiscal 2008, following transactions were authorized by the board of directors
      but the shares agreed to be issued were not considered issued until July 2008
      when authorized shares were increased (see note 19 for details):





-
            During
                the year ended April 30, 2008, 45,422,573 common shares approved
                to be
                issued to a related party as partial payment of a note payable and
                account
                payable with carrying values totaling
                $195,738.





-
            In
                December 2007, Southbase LLC (a company related to the CEO, Mr. Adam
                Radly), agreed to convert $600,000 of cash loaned to Inova plus the
                interest accrued on the loan into 185,964,912 common shares of Inova.
                The
                following conversion of the loan amount (principal and interest)
                was
                calculated: $400,000 to be converted into 133,333,333 common shares
                at the
                stated rate of $0.003 per share and $200,000 was to be converted
                into
                52,631,579 common shares at the stated rate of $0.026 per
                share.





**NOTE
      14 - WARRANTS**





During
      the year ended April 30, 2007, Inova granted 21,000,000 warrants at the exercise
      prices of $0.0033 per share to a related party related to $400,000 borrowed
      under a term loan. These warrants vest immediately and have a life of three
      years. These warrants have a fair value of $63,000 and a relative fair value
      of
      $54,428.




28
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          of Contents*





Variables
      used in the Black-Scholes option-pricing model include (1) 4.45% risk-free
      interest rate, (2) warrant life is the contractual life of these warrants,
      (3)
      expected volatility 550%, and (4) zero expected dividends.





During
      the year ended April 30, 2008, Inova granted 192,279,258 warrants at exercise
      prices ranging from $0.001 to $0.005 per share to lenders related to $2,042,000
      borrowed. These warrants vest immediately and have a life of five years. These
      warrants have a fair value of $769,116 and a relative fair value of
      $558,629.





Variables
      used in the Black-Scholes option-pricing model include (1) 3.48% risk-free
      interest rate, (2) warrant life is the contractual life of these warrants,
      (3)
      expected volatility 550%, and (4) zero expected dividends.





Summary
      information regarding options and warrants is as follows:




WeightedaverageWarrants
              
              Share
                  PriceYear
                  ended April 30, 2007:Granted
              
              
              21,000,000
              
              $
              0.003Outstanding
                  atApril
                  30, 2007
              
              
              21,000,000
              
              
              0.003Year
                  ended April 30, 2008:Granted
              
              
              192,279,258
              
              
              0.001Outstanding
                  atApril
                  30, 2008
              
              
              213,279,258
              
              $
              0.001





Warrants
      outstanding and exercisable as of April 30, 2007:


-
                  Outstanding -
              
              ExercisableNumber
              
              Remaining
              
              NumberExercise
                  Price
              
              of
                  Shares
              
              life
              
              of
                  Shares$
              0.003
              
              
              21,000,000
              
              
              3
                  years
              
              
              21,000,00021,000,000
              
              
              
              
              
              21,000,000


29
 *Table
            of Contents*





Warrants
      outstanding and exercisable as of April 30, 2008:


-
                  Outstanding -
              
              ExercisableNumber
              
              Remaining
              
              NumberExercise
                  Price
              
              of
                  Shares
              
              life
              
              of
                  Shares$
              0.003
              
              
              21,000,000
              
              
              2
                  years
              
              
              21,000,000$
              0.001
                  - 0.026
              
              
              192,279,258
              
              
              1
                  year
              
              
              245,773213,279,258
              
              
              
              
              
              21,245,773





**NOTE
      15 - MAJOR CUSTOMERS AND MAJOR VENDORS**





During
      fiscal 2007, Inova made sales of $719,331 to a single customer which were in
      excess of 10% of total revenues for 2007.





During
      fiscal 2008, revenues generated from top three customers were approximately
      40%
      of total revenues.





There
      were no major vendors during fiscal 2007.





During
      fiscal 2008, purchases from the four largest vendors represent approximately
      45%
      of total purchases.





**NOTE
      16 - SEGMENT INFORMATION**





Inova
      has
      three reportable segments, one providing IT solutions and services, one
      providing RFID products and one providing hardware and cabling.  Operating
      segments are defined as components of an enterprise about which separate
      financial information is available that is evaluated regularly in deciding
      how
      to allocate resources and in assessing performance. The following is the summary
      of operations by segment:




30
 *Table
          of Contents*


Edgetech
              
              Right
                  Tag
              
              DCI
              
              TotalSales
              
              
              383,705
              
              
              158,216
              
              
              4,900,481
              
              
              5,442,402Operating
                  income
              
              
              (562,218
              )
              
              (51,542
              )
              
              (104,603
              )
              
              (718,363
              )Interest/other
              
              
              (60,400
              )
              
              (16,113
              )
              
              (36,876
              )
              
              (113,389
              )Assets
              
              
              3,968,086
              
              
              461,373
              
              
              6,054,897
              
              
              10,434,356





**NOTE
      17 - DISCONTINUED OPERATIONS**





As
      discussed in Note 1, Web’s Biggest, Inc was sold and accounted for as
      discontinued operations. The following is a summary of the operating income
      from
      discontinued operations for fiscal 2007:


Revenues
              
              $
              620,049Cost
                  of revenues
              
              
              (288,164
              )Operating
                  expenses
              
              
              (247,213
              )Operating
                  income
              
              
              84,672Interest
                  income
              
              
              216Net
                  income from discontinued operations
              
              $
              84,888





**NOTE
      18** **-** **RESTATEMENTS**





During
      the year ended April 30, 2008, Inova restated its prior year financial
      statements for the following transactions:





**1.**  **Inova’s
      acquisition of Web’s Biggest:**





During
      2008, Inova determined that the original accounting for the merger with Web’s
      Biggest in 2005 was incorrect. Both companies were operating companies and
      the
      intent of the combined entity was to continue on with both operations. Inova
      should have accounted for the transaction as a reverse acquisition whereby
      Web’s
      Biggest purchased Inova and fair value and purchase accounting would apply.
      The
      purchase price was $2,464,908 (70,425,950 shares issued at their market value
      of
      $0.035 per share on June 1, 2005) and the fair value of the net liabilities
      assumed was $508,037, resulting in goodwill and intangible assets totaling
      $2,972,945. Inova recorded goodwill of $2,612,304 and intangible asset of
      $360,641 through additional paid in capital. Inova also recorded $230,410
      amortization of intangible asset through reduction of retained earnings. An
      impairment analysis at April 30, 2008 has been undertaken and a reduction to
      goodwill of $324,310 has been booked.




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**2.**  **Unrecorded
      management fees:**





During
      2008, Inova identified that there were management fees of $15,000 per month
      for
      prior periods which were not recognized but which are now being realized as
      an
      increase in expense and in paid in capital. This totaled $180,000, which
      increases net loss for fiscal 2007.





**3.**  **Common
      shares issued in excess of the authorized** **shares:**





As
      described in Note 13, at April 30, 2007, Inova issued more common shares to
      its
      related parties than the number of shares previously authorized. For the year
      ended April 30, 2007, there were 125,524,208 common shares issued by Inova
      to
      its related parties to convert the outstanding preferred shares. An adjustment
      was made to reduce common stock par value by $125,524, increase the preferred
      stock par value by $4,951 and increase the additional paid in capital of
      $120,573.





**NOTE
      19 - SUBSEQUENT EVENTS**





On
      May 7,
      2008, Desert entered into a new month to month office lease, effective September
      2008. Rent is payable at $6,300 per month including tax.





In
      July
      2008, Inova borrowed $ 500,000 from Ascendiant. The note
      has warrants of 48,978,294 for Ascendiant at an
      exercise price of $100 total. These warrants have a put option of $250,000.
      There are also related warrants for Agile of 3,918,264 at an exercise price
      of
      $100 total. The interest term of the note is the higher of prime + 3% or 15%,
      with 6 principal payments of $83,333 starting in July, 2009.





The
      Boone
      note in 2007 was $1,792,000 with the option to increase to $2,016,000. A
      guarantee of $224,000, which had been arranged as possible at the time of the
      original financing was put into place. This increases the Boone note payable
      to
      it’s maximum amount, $2,016,000. The terms of this are the same as the original
      Boone borrowing since this is part of the same note.





In
      July
      2008, number of authorized shares was increased to 3,000,000,000 shares.
      356,911,705 shares previously agreed to be issued to the related parties were
      issued for conversion of their notes payable. These shares were valued at
      $1,156,937 and additional interest expense of $234,886 was recorded by Inova
      for
      the excess fair value.




32
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**Item
      8. Changes in and Disagreements with Accountants on Accounting
      and Financial Disclosure**





There
      are
      no disagreements with our accountant on accounting and financial disclosure.





**Item
      8A. Controls and Procedures**





*Evaluation
      of Disclosure Controls and Procedures*





Disclosure
      controls and procedures include, without limitation, controls and procedures
      designed to ensure that information required to be disclosed by an issuer in
      the
      reports that it files or submits under the Securities Exchange Act of 1934,
      as
      amended (the "Act") is accumulated and communicated to the issuer's management,
      including its principal executive and principal financial officers, or persons
      performing similar functions, as appropriate to allow timely decisions regarding
      required disclosure. It should be noted that the design of any system of
      controls is based in part upon certain assumptions about the likelihood of
      future events, and there can be no assurance that any design will succeed in
      achieving its stated goals under all potential future conditions, regardless
      of
      how remote.  As of the end of the period covered by this Annual
      Report, we carried out an evaluation, under the supervision and with the
      participation our Chief Financial Officer, of the effectiveness of the design
      and operation of our disclosure controls and procedures.  Based on
      this evaluation, our Chief Financial Officer has concluded that the Company’s
      disclosure controls and procedures are not effective because of the
      identification of a material weakness in our internal control over financial
      reporting which is identified below, which we view as an integral part of our
      disclosure controls and procedures.





*Changes
      in Internal Controls over Financial Reporting*





We
      have
      not yet made any changes in our internal controls over financial reporting
      that
      occurred during the period covered by this report on Form 10-KSB that has
      materially affected, or is reasonably likely to materially affect, our
      internal control over financial reporting.




*Management’s
      Annual Report on Internal Control Over Financial Reporting*





Our
      management is responsible for establishing and maintaining adequate internal
      control over financial reporting, as such term is defined in
      Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Our internal control
      system was designed to provide reasonable assurance regarding the reliability
      of
      financial reporting and the preparation of financial statements for external
      purposes, in accordance with generally accepted accounting principles. Because
      of inherent limitations, a system of internal control over financial reporting
      may not prevent or detect misstatements. Also, projections of any evaluation
      of
      effectiveness to future periods are subject to the risk that controls may become
      inadequate due to change in conditions, or that the degree of compliance with
      the policies or procedures may deteriorate.





Our
      management conducted an evaluation of the effectiveness of our internal control
      over financial reporting using the criteria set forth by the Committee of
      Sponsoring Organizations of the Treadway Commission (COSO) in Internal
      Control—Integrated Framework. Based on its evaluation, our management concluded
      that there is a material weakness in our internal control over financial
      reporting. A material weakness is a deficiency, or a combination of control
      deficiencies, in internal control over financial reporting such that there
      is a
      reasonable possibility that a material misstatement of the Company’s annual or
      interim financial statements will not be prevented or detected on a timely
      basis.





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This
      annual report does not include an attestation report of the Company’s registered
      public accounting firm regarding internal control over financial
      reporting.  Management’s report was not subject to the attestation by
      the Company’s registered public accounting firm pursuant to temporary rules of
      the SEC that permit the Company to provide only management’s report in this
      annual report.




**Item
      8B. Other Information.**





On
      December 21, 2007, Inova acquired Texas-based Desert Communications (“Desert”)
      for $5.9 million ($3.3 million paid in cash and $2.6 million to be paid under
      notes payable).





Desert
      provides IT services to a customer base that primarily consists of Texas based
      school districts, local government entities and corporations. Services provided
      by Desert include IT network and communications services, network design,
      implementation and maintenance.





Funding
      for the acquisition was obtained from IBM and Boone Opportunity Lenders
      (“Boone”). IBM provided part of a $2.5 million line of credit and Boone
      Opportunity Lenders provided a $1.8 million debenture. Inova signed a $2.3
      million promissory note payable to the previous owners of Desert.





The
      fair
      values of the assets acquired and the liabilities assumed at December 21, 2007
      are as follows:





Cash
            
            $
            2,222,632Accounts
                receivable
            
            
            2,406,695Inventory
            
            
            293,283Prepaid
                expense
            
            
            6,654Fixed
                assets
            
            
            167,139Goodwill
            
            
            3,414,445Intangible
                assets
            
            
            860,555Accounts
                Payable and accrued liabilities
            
            
            (3,434,077
            )Total
            
            $
            5,937,326




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The
      following shows the unaudited pro forma results of operations as though the
      purchases of Right Tag and Desert had been completed on May 1,
      2006:


2008
              
              2007Sales
              
              $
              17,633,590
              
              $
              14,944,551Cost
                  of sales
              
              
              (12,008,040
              )
              
              (10,332,197
              )G&A
              
              
              (3,684,974
              )
              
              (3,058,364
              )Interest
                  income (expense)
              
              
              (550,626
              )
              
              295,038Income
                  from continuing operations
              
              
              1,389,950
              
              
              1,849,028Loss
                  on sale of Web’s Biggest
              
              
              —
              
              
              (1,226,061
              )Income
                  from discontinuing operations
              
              
              —
              
              
              170,053Net
                  income
              
              $
              1,389,950
              
              $
              793,020





Restatements





There
      were management fees of $15,000 per month for prior periods which were not
      paid
      but which are now being realized as an increase in expense and in paid in
      capital. This is a total of $180,000, which is a reduction of retained earnings
      and increase to equity.





Also,
      the
      company determined hat the original accounting for the merger with Web’s Biggest
      in 2005 was incorrect. Both companies were operating companies and the intent
      of
      the combined entity was to continue on with both operations. Inova should have
      accounted for the transaction as a reverse acquisition whereby Web’s Biggest
      purchased Inova and fair value and purchase accounting would apply.




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**PART
      III.**





**Item
      9.  Directors, Executive Officers, Promoters, Control
      Persons and Corporate Governance; Compliance With Section 16(a) of the Exchange
      Act.**





Our
      directors and executive officers as of the date of this Report are as
      follows:




Name
            
            Age
            
            PositionAdam
                Radly
            
            39
            
            Chief
                Executive Officer, President, TreasurerPaul
                Aunger
            
            49
            
            Secretary,
                DirectorJeffrey
                Mandelbaum
            
            44
            
            DirectorBob Bates
            
            40
            
            Chief
              Financial Officer




Adam
      Radly, President, Chief Executive Officer, Chairman and Treasurer


Mr.
      Radly
      became Chief Executive Officer of Inova after the merger with Web’s Biggest.





Mr.
      Radly
      was the founder and CEO of Isis Communications. While he was CEO of Isis, the
      company’s revenue increased from zero to $22 million, and Mr. Radly helped the
      company complete an IPO raising approximately $40 million. During his tenure,
      Isis completed eight acquisitions, and raised an additional $30 million from
      U.S. institutional investors in a secondary offering. Isis later merged with
      AAV
      Ltd. Mr. Radly is also the founder of XSIQ (International) Pty Ltd., a leading
      provider of K-12 education software and SponsorAnything.com, a leading
      sponsorship website.





Paul
      Aunger, Secretary


Mr.
      Aunger became a director and the Company’s Secretary on November 22, 2005. He is
      managing partner of Advisors, LLC.





Jeffrey
      Mandelbaum, Director




Jeff
      was
      with Sybase, Inc. (NYSE: SY) from 1986-1996. As a member of the initial
      management team, he held a variety of positions in sales and executive
      management. In his most recent position at Sybase as CEO and President of Sybase
      Financial Services, Inc., he was responsible for worldwide customer and partner
      financing. Under Jeff’s leadership, Sybase Financial Services, Inc. closed over
      $900,000,000 in financing transactions between 1990 and 1996. Jeff
      has
      provided advisory services focused on strategy, sales and marketing, business
      development, and corporate finance services for leading private equity investors
      and their portfolio companies including Warburg Pincus, Kleiner Perkins Caufield
      & Byers, Sigma Partners, Jefferson Partners, Baker Capital, and Draper
      Atlantic.




Bob
      Bates, Chief Financial Officer




Bob
      is a
      CPA with almost 20 years experience as a Controller and CFO for various public
      and private entities in several countries. He was with Allied Capital (NYSE)
      as
      Controller and has worked with other Billion dollar plus companies. He also
      spent time with KPMG.




*Director
      Independence*




The
      Board
      of Directors has determined that Mr. Mandelbaum is an independent director
      under
      applicable SEC rules. The full Board of Directors fulfills the role of the
      Audit
      Committee. We do not have an Audit Committee financial expert. The Board
      believes that due to the Company’s small size, an audit committee is unnecessary
      and would impose high costs in comparison to the potential benefits.




36
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SECTION
      16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE





Section
      16(a) of the Securities Exchange Act of 1934 requires the Company's directors
      and executive officers, and persons who own more than ten percent of a
      registered class of the Company's equity securities, to file with the Securities
      and Exchange Commission (the "SEC” *)* initial
      reports of ownership and reports of changes in ownership of common stock and
      other equity securities of our Company. Officers, directors and greater than
      ten
      percent stockholders are required by SEC regulation to furnish our Company
      with
      copies of all Section 16(a) forms they file.





Based
      on
      our review of the Section 16(a) forms filed with the SEC, no director, officer,
      or 10% beneficial owner of our securities failed to timely file any report
      required under Section 16(a). To our knowledge, none of the above persons failed
      to report a reportable transaction.





We
      do not
      have a code of ethics that applies to our principal executive officer, principal
      financial officer, principal accounting officer or controller, or persons
      performing similar functions.  We have not adopted such a code of ethics
      because we have determined that such a code would be an unnecessary and
      bureaucratic practice given the small size of the Company's management.





**Item
      10. Executive Compensation.**




The
      following describes the cash and stock compensation paid to our directors and
      officers during the two past fiscal years. Our fiscal year ends on April 30.
      As
      a result, our most recent fiscal year ended April 30, 2008, and is referred
      to
      below as 2008. The previous fiscal year ended April 30, 2007 and is referred
      to
      as 2007 below.




**SUMMARY
      COMPENSATION TABLE**





Name
                and principal
              position
            Year
            Management
                fee ($)
            Stock
                Awards ($)
            Total
                ($)Adam
                Radly, Chairman and CEO
            2008
            120,000
            -0-
            -0-Adam
                Radly, Chairman and CEO
            2007
            120,000
            -0-
            -0-Paul
                Aunger, Secretary and Director
            2008
            60,000
            -0-
            0Paul
                Aunger, Secretary and Director
            2007
            60,000
            -0-
            -0-





The
      above
      compensation, although accrued by Inova, has not been paid to our officers.
      Our
      officers have agreed to allow this compensation to accrue for the time being
      until the Company’s cash flow improves; however, they may revoke this
      arrangement at any time.





**Other
      related party information:**


The
      Company pays professional fees of $5,000 a month to Advisors LLC, a company
      controlled by Paul Aunger, a director of the company. The Company also pays
      $10,000 a month in consulting fees to Southbase LLC, a company controlled by
      our
      CEO, Adam Radly.





Our
      executive officers do not have written employment agreements with the Company.




37
 *Table
          of Contents*


**Item
      11. Security Ownership of Certain Beneficial Owners and
      Management and Related Stockholder Matters**





The
      following table describes the equity compensation available to our management.





Equity
                Compensation Plan InformationPlan
                category
            Number
                of securities to be issued upon exercise of outstanding options,
                warrants
                and rights
              
              (a)
            Weighted-average
                exercise price of outstanding options, warrants and rights
              
              (b)
            Number
                of securities remaining available for future issuance under equity
                compensation plans (excluding securities reflected in column (a))
              
              (c)Equity
              compensation
              plans
                approved by
              security
                holders
            -0-
            -0-
            450,000,000
                (1)Equity
              compensation
              plans
                not approved
              by
                security holders
            -0-
            -0-
            -0-Total
            -0-
            -0-
            450,000,000
                (1)





(1)


Includes
      2,000,000 non-restricted Class B preferred shares authorized to be issued for
      each acquisition with more than $40 million in sales or $10 million in EBITDA
      and 2,000,000 non-restricted Class B preferred shares authorized to be issued
      for each acquisition with less than $40 million in sales. Each Class B preferred
      share is convertible into common stock at the rate of 1 to 100.





The
      following table sets forth certain information known to us with respect to
      beneficial ownership of our common stock as of July 31, 2008 by each person
      known by us to beneficially own 5% or more of our outstanding common stock;
      each
      of our directors; each of the Named Executive Officers; and all of our directors
      and Named Executive Officers as a group.




In
      general, a person is deemed to be a *"beneficial
      owner"* of
      a
      security if that person has or shares the power to vote or direct the voting
      of
      such security, or the power to dispose or direct the disposition of such
      security. In computing the number of shares beneficially owned by a person
      and
      the percentage ownership of that person, shares of common stock subject to
      options or debentures held by that person that are currently exercisable or
      convertible or exercisable or convertible within 60 days of July 31, 2008 are
      deemed outstanding.





Percentage
      of beneficial ownership is based upon 956,911,693 shares of common stock
      outstanding at July 31, 2008. To our knowledge, except as set forth in the
      footnotes to this table and subject to applicable community property laws,
      each
      person named in the table has sole voting and investment power with respect
      to
      the shares set forth opposite such person's name.




38
 *Table
          of Contents*





Name
                and Address of Beneficial
              Owner
                (1)
            Number
                of Shares Beneficially Owned
            
            Percent
                of ClassAdam
                Radly - CEO and related entities
            568,938,076
                Common Stock, $0.001 Par Value
            
            59.5%Paul
                  Aunger-Secretary and related entities
            333,662,530
            
            34.9%




(1)
            The
                address for these owners is 233 Wilshire Blvd, Suite 300 Santa Monica,
                CA
                90401


(2)
            There
                are approximately 28 shareholders of record, 1 of which is a holder
                for
                several hundred individuals





**Item
      12. Certain Relationships and Related Transactions.**





Our
      Chairman and CEO, Adam Radly, has loaned the Company money several times during
      the past fiscal year. The amount outstanding under these loans is $142,532.
      Interest is accruing at the rate of 7% per year.





In
      December 2007, Southbase LLC agreed to convert $600,000 of cash loaned to the
      Company plus the interest accrued on the loan into 185,964,912 common shares
      of
      the Company. However, as discussed above, this transaction was not accounted
      for
      until July, 2008, when the authorized shares were increased.





The
      Company has an invoice factoring arrangement with Advisors LLC, an entity
      related to Paul Aunger, our Secretary and a director. The amount of the invoices
      factored was $348,525 during this fiscal year.





39
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          of Contents*


**Item
      13. Exhibits**


(A)


Exhibits





**Exhibit
                Number**
            **Description**31.1
            Certification
                 of  the  Chief  Executive Officer required by Rule
                 13a  -  14(a)  or  Rule  15d  -
                 14(a).31.2
            Certification
                 of  the  Chief  Financial Officer required by Rule
                 13a  -  14(a)  or  Rule  15d  -
                 14(a).32.1
            Certification
                 of  the  Chief  Executive Officer required by Rule
                 13a  -  14(b)  or Rule 15d - 14(b) and 18 U.S.C.
                1350.32.2
            Certification
                 of  the  Chief  Financial Officer required by Rule
                 13a  -  14(b)  or Rule 15d - 14(b) and 18 U.S.C.
                1350.





**Item
      14. Principal Accountant Fees and Services.**




AUDIT
      FEES




We
      estimate fees of $68,000 for this year's audit of our financial
      statements.  Last year, we were billed $40,000 for our year-end audit.




AUDIT-RELATED
      FEES




We paid
      aggregate fees of $46,000 for assurance and related services by the current
      principal accountant that are related to the performance of the review of our
      financial statements.  For Fiscal Year 2007, these fees were $10,000.




TAX
      FEES




We
      were
      billed aggregate fees of $2,000 for tax compliance, tax advice, and tax planning
      by our former principal accountant for this fiscal year. Last fiscal year,
      these
      fees were $2,000.




ALL
      OTHER
      FEES




This
      year, we were billed $0 for products and services provided by our principal
      accountant not otherwise disclosed above, Last year, we were billed $0 for
      these
      products and services.




None
      of
      the above fees were subject to audit committee pre-approval requirements.




40
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          of Contents*


**SIGNATURES**


**INOVA
      TECHNOLOGY INC.**





In
      accordance with the Exchange Act, this report has been signed below by the
      following persons on behalf of the registrant and in the capacities and on
      the
      date indicated.




Signature
              Name
                  and Title
              Date/s/
              Adam
                  Radly
              Adam
                  RadlyChairman
                  and CEO
              August13,2008/s/
              Bob
                  Bates
              Bob
                  BatesCFO
              August13,2008/s/
              Paul
                  Aunger
              Paul
                  AungerSecretary
                  and Director
              August13,2008/s/
              Jeff
                  Mandelbaum
              Jeff
                  MandelbaumDirector
              August13,2008






41