UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  Form 10-Q  XQUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2008  ___ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____   DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC. (Name of small business in its charter)  Delaware0-5000252-2175896(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)Room 1101, 11/F,
Shanghai Industrial Investment Building,
48-62 Hennessy Road,
Wanchai, HK.(Address of Principal Executive Office)  Issuer's telephone number:  852-3104-9012  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 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.  [ X ] Yes   [ ] No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. Large accelerated filer [ ]Accelerated filer [ ]Non-accelerated filer [ ]  (Do not check if a smaller reporting company)Smaller reporting company [ X ] Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).         [  ] Yes   [X] No As of June 30, 2008 the Issuer had 11,100,000 shares of common stock issued and outstanding.  PART 1 - FINANCIAL INFORMATION ITEM 1.  FINANCIAL STATEMENTS (a)   The unaudited financial statements of Digital Network Alliance International, Inc. (hereinafter referred to as Digital, the Registrant, or the Company) included herein were prepared, without audit, pursuant to rules and regulations of the Securities and Exchange Commission.  Because certain information and notes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America were condensed or omitted pursuant to such rules and regulations, these financial statements should be read in conjunction with the financial statements and notes thereto included in the audited financial statements of the Company as included in the Company's Form 10-KSB for the fiscal year ended December 31, 2007.    DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC.  UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS  FOR THE SIX MONTHS ENDED JUNE 30, 2008  INDEX TO FINANCIAL STATEMENTS  PAGEConsolidated balance sheets3Consolidated statements of operations and comprehensive loss4Consolidated statements of cash flows5Notes to unaudited consolidated financial statements6-10                - - 2 - -    DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC.CONSOLIDATED BALANCE SHEETSJune 30,December 31,20082007(Unaudited)AssetsCurrent assetsCash and cash equivalents$           2,662$           1,741Trade accounts receivable, net-18,155Prepayment deposits30,67936,016Total current assets33,34155,912Plant and equipment, net24,29133,209Total assets$         57,632$         89,121Liabilities and Stockholders' DeficitCurrent liabilitiesTrade accounts payable$       389,355$       395,215Accrued expenses12,58114,058Payable to stockholder382,927336,425Deposits18,06015,126Income taxes payable640603Total current liabilities803,563761,427Stockholders' EquityCommon stock - Par value $.001; 200,000,000 sharesauthorized, 11,100,000 shares issued and outstanding11,10011,100Additional paid in capital2,282,1402,282,140Retained deficit(3,044,494)(2,971,579)Accumulated other comprehensive income5,3236,033Total stockholders' deficit(745,931)(672,306)Total liabilities and stockholders' deficit$         57,632$         89,121  The accompanying notes are an integral part of these financial statements    - - 3 - -    DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC.CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSSThree months ended June 30,Six months ended June 30,2008200720082007(Unaudited)(Unaudited)(Unaudited)(Unaudited)Sales revenues$1,013$128,461$29,698$303,514Cost of goods sold2,95073,28821,936166,667Gross profit (loss)(1,937)55,1737,762136,847Operating expensesDepreciation2,0586,5384,11513,076Distribution and selling expenses4,0363,4747,6105,377General and administrative expenses64,43181,411119,643214,347Total operating expenses70,52591,423131,368232,800Net operating loss(72,462)(36,250)(123,606)(95,953)Other incomeOther27,9655,54150,6916,413Total other income27,9655,54150,6916,413Net loss before income tax and discontinued operation(44,497)(30,709)(72,915)(89,540)Taxes----Net loss before discontinued operation(44,497)(30,709)(72,915)(89,540)Income from discontinued operation---2,086Gain on sale of discontinued subsidiary---57,872Net loss$(44,497)$(30,709)$(72,915)$(29,582)Foreign currency translation adjustment(160)(2,385)(710)(1,554)Comprehensive loss$(44,657)$(33,094)$(73,625)$(31,136)Net loss per common share$(0.00)$(0.00)$(0.01)$(0.00)Weighted average common shares outstanding11,100,00011,100,00011,100,00011,100,000    The accompanying notes are an integral part of these financial statements    - - 4 - -    DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC.CONSOLIDATED STATEMENTS OF CASH FLOWSSix months ended June 30,20082007(Unaudited)(Unaudited)Operating activities:Net (loss) profit$       (72,915)$       (29,582)Adjustments to reconcile net lossto net cash used in operating activities:Depreciation and amortization8,91814,339Gain on sale of discontinued subsidiary-(57,872)Impairment loss on bad and doubtful debts-46,601Changes in operating assets and liabilities:Trade accounts receivable18,15544,145Prepaid expenses and other assets5,337340Trade accounts payable(5,860)(34,651)Accrued expenses(1,477)(38,042)Deposits2,934(29,562)Net cash used in operating activities(44,908)(84,284)Investing activities:Disposal of subsidiaries-243Net cash used in investing activities-243Financing activities:Proceeds from stockholder loan46,50227,179Net cash provided by financing activities46,50227,179Effect of rate changes on cash(673)(1,554)(Decrease)/Increase in cash and cash equivalents921(58,416)Cash and cash equivalents, beginning of period1,74190,264Cash and cash equivalents, end of period$           2,662$         31,848Cash paid for interest$                  -$                  -Cash paid for income taxes$                  -$                  - The accompanying notes are an integral part of these financial statements  - - 5 - -   DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS  1. NATURE OF OPERATIONS  Digital Network Alliance International, Inc. (the Company) was incorporated on August 20, 1997 in the State of Delaware as Sheffield Products, Inc. On August 13, 2004 the Company acquired all of the outstanding stock of Digital Network Alliance Holdings (BVI) Inc., a British Virgin Islands Corporation (Digital BVI) in exchange for stock of the Company. On November 30, 2004 the Company changed its name to Digital Network Alliance International, Inc. The consolidated results of operations are primarily those of Digital BVI and its consolidated subsidiaries.  The principal activities of the consolidated company are that of provision of voice termination, satellite and broadband Internet services throughout the Asia Pacific region, including Hong Kong, Singapore, Indonesia and Mongolia.  The financial statements have been prepared on the basis that the Company will continue as a going concern, which contemplates the realization and satisfaction of liabilities and commitments in the normal course of business. At June 30, 2008, the Company had an accumulated deficit of $(3,044,494) and working capital of $(745,931). Operations to date have been primarily financed by equity transactions. As a result, the Company's future operations are dependent upon the identification and successful completion of permanent equity financing and ultimately, the achievement of profitable operations. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts nor to amounts and classification of liabilities that may be necessary should it be unable to continue as a going concern.  2.  BASIS OF PRESENTATION  The accompanying consolidated financial statements include those of the Company and its wholly owned subsidiaries; Digital BVI, Digital Network Alliance (S) Pte. Ltd. (Digital S) and Digital Network Alliance (HK) Limited (Digital HK), as well as its 70% owned subsidiary DNA Financial Systems Inc. BVI (Financial BVI). Financial BVI was only consolidated through the date of its disposal. The accounts of Financial BVI include its 100% owned subsidiary DNA Financial Systems (HK), Limited (Financial HK). Digital BVI incorporated in British Virgin Islands on June 4, 2005, Digital S incorporated in the Republic of Singapore on October 19, 2001, and Digital HK incorporated in Hong Kong on November 12, 2001. Financial BVI incorporated in British Virgin Islands on March 15, 2005 for the purpose of holding Financial HK, which incorporated in Hong Kong on April 1, 2005 and subsequently sold on March 2, 2007.  The accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP). This basis differs from that used in the statutory accounts of the Company, which were prepared in accordance with the accounting principles and relevant financial regulations applicable to enterprises in Singapore and Hong Kong. All necessary intercompany transactions and balances have been eliminated in consolidation, and all necessary adjustments have been made to present the consolidated financial statements in accordance with US GAAP.  The consolidated statements of operations have been adjusted to reflect the discontinuation of operations performed by our subsidiary, Financial BVI.  Financial BVI was sold on March 2, 2007.  3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Quarterly Financial Statements   - - 6 - -   The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q but do not include all of the information and footnotes required by generally accepted accounting principles and should, therefore, be read in conjunction with the Companys 2007 financial statements in Form 10-KSB.  These statements do include all normal recurring adjustments which the Company believes necessary for a fair presentation of the statements.  The interim operating results are not necessarily indicative of the results for a full year.  Economic and Political Risks  The Company faces a number of risks and challenges as a result of having primary operations and markets in the PRC. Changing political climates in the PRC could have a significant effect on the Companys business.  Cash and Cash Equivalents  For purposes of the statements of cash flows, cash and cash equivalents includes cash on hand and demand deposits held by banks. None of the Companys deposits are insured by the Federal Deposit Insurance Corporation or any other entity of the U.S. government.  Trade Accounts Receivable  Trade accounts receivable are recognized and carried at original invoice amount less an allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount becomes questionable. At June 30, 2008 and December 31, 2007 the allowance for doubtful accounts totalled $0.  Prepaid Expenses  Prepaid expenses consist primarily of prepayments made to contractors for circuits and services not yet received by the Company.  Plant and Equipment  Plant and equipment are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the useful lives of the assets. Major renewals and betterments are capitalized and depreciated; maintenance and repairs that do not extend the life of the respective assets are charged to expense as incurred.  Upon disposal of assets, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in income.  Depreciation related to property and equipment used in production is reported in cost of sales.  Property and equipment are depreciated over their estimated useful lives as follows:  Computer equipment2 yearsOffice equipment4 yearsNetwork equipment3 years  Long-term assets of the Company are reviewed annually to assess whether the carrying value has become impaired, according to the guidelines established in Statement of Accounting Standards (SFAS) No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. The Company also evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. No impairment of assets was recorded in the periods reported.   - - 7 - -   Deposits  The Company commonly receives payments of deposit in advance for circuits and voice termination services to be provided to customers. Those deposits are recognized into income in accordance with the Companys revenue recognition policy, as stated below.  Revenue Recognition  Revenue from provision of voice termination, satellite and broadband Internet services is recognized as earned when customers are invoiced for monthly services they have received in accordance with the service contracts. At that time the Company considers the earnings process to be complete and collectability to be reasonably assured.  Advertising Expenses  Advertising costs will be expensed when and if incurred. The Company has incurred no advertising expenses to date.  Retirement Benefits  The Company has a defined contribution benefit plan. The Companys contributions are discretionary. For the period ended June 30, 2008, the contribution made by Digital Network Alliance amounted to $1,651.  For the period ended June 30, 2007, the contribution made by Digital Network Alliance amounted to $2,887.  Foreign Currency and Comprehensive Income  The accompanying consolidated financial statements are presented in United States (US) dollars. The functional currency is the Singapore dollar (S$) and Hong Kong dollar (HK$). The consolidated financial statements are translated into US dollars from S$ and HK$ at year-end exchange rates for assets and liabilities, and weighted average exchange rates for revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.  Taxes  Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain.  Estimates  The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.  Loss Per Share   - - 8 - -   Basic loss per common share ("LPS") is calculated by dividing net loss by the weighted average number of common shares outstanding during the year. Diluted earnings per common share are calculated by adjusting the weighted average outstanding shares, assuming conversion of all potentially dilutive securities, such as stock options and warrants.  The Company had no potentially dilutive securities outstanding at June 30, 2008.  4. DISPOSAL OF SUBSIDIARY  On March 2, 2007, the Company disposed of its entire interests in DNA Financial Systems Inc. The net liabilities of the subsidiaries at the date of disposal were as follows: USDNet assets disposed of:Fixed assets$  4,029Cash and bank balance12,578Accounts receivable1,708Deposits and prepayment3,205Due to Fellow Subsidiary(46,594)Accounts payable(12,638)Accruals(1,282)Deposit received(6,057)(45,051)Gain on disposal of interest in subsidiaries57,872Consideration12,821Satisfied by:Cash consideration received$  12,821Net cash inflow arising on disposal:Cash received12,821Cash and bank balance disposed of(12,578)243    The subsidiaries disposed of during the year did not make any significant contribution to the results and cash flows of the Company during the period prior to the disposals.  - - 9 - -   ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION  DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS  Certain statements in this report, including statements in the following discussion, which are not statements of historical fact, are what are known as forward-looking statements, which are basically statements about the future.  For that reason, these statements involve risk and uncertainty since no one can accurately predict the future.  Words such as plans, intends,  hopes, seeks, anticipates, expects, and the like, often identify such forward-looking statements, but are not the only indication that a statement is a forward-looking statement.  Such forward-looking statements include statements concerning our plans and objectives with respect to the present and future operations of the Company, and statements which express or imply that such present and future operations will or may produce revenues, income or profits.  Numerous factors and future events could cause the Company to change such plans and objectives, or fail to successfully implement such plans or achieve such objectives, or cause such present and future operations to fail to produce revenues, income or profits. We caution you not to place undue reliance on these forward-looking statements.  Although we base these forward-looking statements on our expectations, assumptions, and projections about future events, actual events and results may differ materially, and our expectations, assumptions, and projections may prove to be inaccurate. The forward-looking statements speak only as of the date hereof, and we expressly disclaim any obligation to publicly release the results of any revisions to these forward-looking statements to reflect events or circumstances after the date of this filing.  OVERVIEW  Digital Network Alliance International, Inc. (hereinafter We, Our, the Company, or Digital) was incorporated under the laws of the State of Delaware on August 19, 1997, under the name of Sheffield Products, Inc. We changed our name to Digital Network Alliance International, Inc. on November 30, 2004. Our overall objective is to build a comprehensive telecommunications network which delivers cost-effective services to our customers within the Asia Pacific region, and beyond.  This is a long-term objective, involving many elements, and there is no assurance that it can be achieved.  Our ability to do so will be dependent upon a number of factors including, but not limited to, our ability to achieve and maintain strategic partnerships and alliances with various local partners and suppliers, our ability to achieve and maintain consistently profitable operations and the availability of necessary working capital.  Our plan of operations for 2008 includes maintenance of our existing operations, and to the extent possible, expansion and improvement of our existing operations as well as commencement of new operations.  The extent to which we will be able to expand and improve existing operations and commence new operations will be dependent to a large extent on the availability of working capital.  Since there is no assurance that working capital will be available to us, there is also no assurance regarding the extent to which we will be able to implement our plan of operations within the foreseeable future.  The Company may pursue acquisitions of other companies or technologies.  However, the Company has not currently entered into any negotiations or agreements to acquire any business.  The Company does not directly carry on any business activities.  All of our business operations are carried on through our operating subsidiaries.  The operating subsidiaries are Digital Network Alliance (S) Pte Ltd., a Singapore corporation (DNA Singapore) and Digital Network Alliance (HK) Ltd., a Hong Kong corporation (DNA Hong Kong).  DNA Singapore and DNA Hong Kong perform identical business activities of providing satellite Internet connections to customers in the Asia Pacific Region, and providing managed broadband services to commercial office buildings and apartment buildings in Hong Kong and Singapore. DNA Singapore manages business activities in Singapore and Indonesia.  DNA Hong Kong conducts and manages the business activities in Hong Kong and Mongolia.   - - 10 - -   The following discussion concerning the results of operation, liquidity and capital resources of Digital Network Alliance International, Inc. (the Company), is based solely upon the business operations that are carried on by the Companys operating subsidiaries for the three and six month interim periods ended June 30, 2008 and 2007.  On April 1, 2005, the Company formed DNA Financial Systems (HK) Ltd., a Hong Kong corporation (DNA Financial), as a third operating subsidiary.  On March 2, 2007, DNA Financial was sold to Mr. Choi Ying Ming, the CEO of DNA Financial, for a price of HKD100,000, or approximately $12,820.51.  The reason for the disposal was that the subsidiary was not generating a profit for the Company.  RESULTS OF OPERATIONS  Three Months Ended June 30, 2008 as Compared to the Three Months Ended June 30, 2007  Revenue.  During the three months ended June 30, 2008, the Company had revenue in the amount of $1,013, as compared to revenue in the amount of $128,461 for the three month period ended June 30, 2007, a decrease of $127,448, or approximately 99%. The primary reasons attributable to the decrease in revenue experienced by the Company were i) a significant drop in the Companys satellite business by approximately 67%, and ii) a drop in the Companys broadband business by approximately 32%. The foregoing drops in the satellite business and the broadband business were due to the fact that telecommunications operators in South East Asia (the Region) have been aggressively installing fibre optic communication systems infrastructure within the Region, generally referred to as fibre solutions, which has provided a greater amount of internet bandwidth supply at lower prices.  As a result of the lower prices, a portion of the Companys customers ceased using the Companys services and have switched to fibre solutions to meet their internet needs. Cost of Goods Sold.  Cost of goods sold for the three months ended June 30, 2008 was $2,950, as compared to $73,288 for the three month period ended June 31, 2007. The decrease of $70,338, or 96%, was due to the well-controlled cost of satellite bandwidth and broadband costs and the drop in the Companys revenue.  Gross Profit.  During the three month period ended June 30, 2008 the Company had gross profit (loss) of $1,937, as compared to gross profit of $55,173 for the three months ended June 30, 2007, a decrease of $57,110.  The decrease in gross profit experienced by the Company was the result of a decline that the Company experienced in the revenue generated by its satellite business and the broadband business.  General and Administration Expenses.  General and administration expenses for the 3 months ended June 30, 2008 totalled $64,431 compared to $91,423 in the same period ended 2007.  The decrease of $26,992, or 30%, was primarily due to the decrease in salaries by $6,397, rental by $533, professional fees by $710, staff benefits by $3,304 and others by $16,048.  Net Loss.  For the three month period ended June 30, 2008, the Company experienced a net loss of ($44,497), as compared to a net loss of ($30,709) for the 3 month period ended June 30, 2007.  The increase in the net loss experienced by the Company of $13,788 was mainly due to the increase the Company experienced in operating expenses.  Six Months Ended June 30, 2008 as Compared to the Six Months Ended  June 30, 2007  Revenue.  During the six months that ended June 30, 2008, the Company had revenue in the amount of $29,698, as compared to revenue of $303,514 for the six month period ended June 30, 2007, a decrease of $273,816 or approximately 90%.  The reason for the decrease in the Companys revenue from June 30, 2007 to June 30, 2008 was due to the fact that the Company faced increased competition from its competitors who were able to offer the Companys customers competitively priced products.  As a result of the fibre solution, most of the Companys customers elected to  - - 11 - -   purchase products from the Companys competitors in its satellite businesses, which in turn lead to a decline in the Companys revenue.   There were drops of $214,967 and $59,896 in satellite income and broadband income respectively.  The decrease was offset by an increase in voice termination of $1,047.  Cost of Goods Sold. Cost of goods sold for the six months ended June 30, 2008 was $21,936, as compared to $166,667 for the six month period ended June 30, 2007, a decrease of $144,731 or 87%.  The decrease in the cost of goods sold was due to the fact that the Company generated less revenue during the period ended June 30, 2008 as compared to the period ended June 30, 2007. The major drop was due to a drop in broadband cost and bandwidth cost by $11,409 and $132,225 respectively.  We also experienced a drop in the cost of equipment, cost of voice termination and the depreciation of network equipment.  Gross Profit.  During the six month period ended June 30, 2008 the Company had gross profit of $7,762, as compared to gross profit of $136,847 for the six months ended June 30, 2007, a decrease of $129,085, or approximately 94%.  The decrease in gross profit experienced by the Company was the result of a decline that the Company experienced in the revenue generated by its satellite business and the broadband business.  General and Administrative Expenses. General and administrative expenses for the six month period ended June 30, 2008 totalled $119,643, as compared to $214,347 in the same period ended 2007.  The decrease of $94,704, or 44%, was primarily due to the decrease in bad debt by $46,601, salaries by $38,356 and others expenses by $9,747.  Net loss.  For the six month period ended June 30, 2008, the Company experienced a net loss of ($72,915), as compared to a net loss of ($29,582) for the six month period ended June 30, 2007.  The increase in the net loss experienced by the Company of $43,333 was mainly due to the significant drop in revenue.  LIQUIDITY AND CAPITAL RESOURCES  As of June 30, 2008, our unaudited balance sheet reflects that we have cash and cash equivalents of $2,662, as compared to cash and cash equivalents of $1,741 for the fiscal year ended December 31, 2007.  As of June 30, 2008, our unaudited balance sheet reflects that we have total current assets of $33,341 and total assets of $57,632, as compared to total current assets of $55,912 and total assets of $89,121 for the fiscal year ended December 31, 2007. The reason for the decrease of $31,489 in our total assets were primarily attributable to the accounts receivables and prepayment deposits. There was no accounts receivables as at June 30, 2008.  Additionally, as of June 30, 2008 our unaudited balance sheet reflects that we have  total current liabilities of $803,563, and total shareholders deficit of $(745,931), as compared to total current liabilities of $761,427 and shareholders deficit of $(672,306) for the fiscal year ended December 31, 2007.  The net cash used by operating activities for the period ended June 30, 2008 was $44,908.  Managements plans regarding its liquidity and capital resources consist of raising permanent equity financing and focusing on broadband sales and related support services in Hong Kong and the Asia Pacific region which has the highest margin.  In addition, the Company will begin to explore new opportunities in broadband business in Hong Kong and the rest of the Asia Pacific region where margins for such products and services are higher and will focus on controlling its operating expenses. Management has agreed to provide temporary financing to the Company should it be required for working capital, but is not contractually obligated to do so.  OFF BALANCE SHEET ARRANGEMENTS  The Company does not have any off-balance sheet arrangements.  - - 12 - -    ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.  Not Applicable  ITEM 4T. CONTROLS AND PROCEDURES.  Disclosure Controls and Procedures  The Securities and Exchange Commission defines the term disclosure controls and procedures to mean a company's controls and other procedures of an issuer that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commissions rules and forms. Disclosure controls and procedures 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 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.  The Company maintains such a system of controls and procedures in an effort to ensure that all information which it is required to disclose in the reports it files under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified under the SEC's rules and forms and that information required to be disclosed is accumulated and communicated to principal executive and principal financial officers to allow timely decisions regarding disclosure.  As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures.  Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are designed to provide reasonable assurance of achieving the objectives of timely alerting them to material information required to be included in our periodic SEC reports and of ensuring that such information is recorded, processed, summarized and reported within the time periods specified.  Our chief executive officer and chief financial officer also concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report to provide reasonable assurance of the achievement of these objectives.  Changes in Internal Control over Financial Reporting  There was no change in the Company's internal control over financial reporting during the period ended June 30, 2008, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.  PART II - OTHER INFORMATION  ITEM 1. LEGAL PROCEEDINGS.  None.  ITEM 1A. RISK FACTORS. Not Applicable. ITEM2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.   - - 13 - -   ISTERED SALES OF EQUITY SECURPROCEEDS On May 12, 2008, the Board of Directors of the Company authorized the entry into an agreement by and between the Company and Brean Murray Carret & Co., (BMC) pursuant to which BMC agreed to act as the Companys exclusive finance advisor and investment banker.  In accordance with the terms of the agreement, on May 12, 2008 the Board of Directors authorized the issuance of 350,000 shares of the Companys common stock as partial consideration for the services to be rendered by BMC.  The 350,000 shares of common stock were issued to BMC on July 16, 2008.  The shares of common stock issued to BMC were not registered under the Securities Act of 1933 in reliance upon the exemption from registration provide in Section 4(2) of the Securities Act of 1933.  On May 12, 2008, the Board of Directors of the Company authorized the issuance of a total of 150,000 shares of the Companys common stock to the following individuals as compensation for services provided as independent members of the Companys Board of Directors: i) Paul Y.L Tong  50,000 shares of common stock; ii) David Ho  50,000 shares of common stock; and iii) Leslie Terh Chiew Kim  50,000 shares of common stock.  The total 150,000 shares of common stock were issued to the forgoing individuals on July 16, 2008.  The shares of common stock which were issued to Paul Y.L Tong, David Ho, and Leslie Terh Chiew Kim were not registered under the Securities Act of 1933 in reliance upon the exemption from registration provided by Regulation S of the Securities Act of 1933.  ITEM 3. DEFAULTS UPON SENIOR SECURITIES.  None.  ITEM 4.SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.  None.  ITEM  5. OTHER INFORMATION.  The information reported in Item 2 was not previously disclosed in a Form 8-K; in lieu of such filing, the information is being disclosed in this Form 10-Q.  The information reported in Item 2 is hereby incorporated by reference.  ITEM 6. EXHIBITS.  (a) The following exhibits are filed herewith:  31.1        Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.  31.2 Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.  32.1 Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  32.2 Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.        - - 14 - -    SIGNATURES  In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC.  /s/ Chan Chi Fai, President and Chief Operations Officer  Date: July 30, 2008   /s/ Eppie Wong, Chief Financial Officer and Director  Date: July 30, 2008  /s/ Terence Yap, Director  Date: July 30, 2008   /s/ Michael Yap, Director  Date: July 30, 2008  /s/ Leslie Ter Chiew Kim  Date: July 30, 2008   - - 15 - -