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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

**QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15 (d)**

**OF      THE SECURITIES AND EXCHANGE ACT OF 1934**

**Remote      Knowledge, Inc.**

| Delaware                                       | 74-1664837                            |
|------------------------------------------------|---------------------------------------|
| (State                or other jurisdiction of | (I.R.S.                Employer       |
| incorporation                or organization)  | Identification                number) |

| 657                  Briarpark Drive, Suite 100, Houston, Texas | 77042                       |
|-----------------------------------------------------------------|-----------------------------|
| (Address                  of Principal Executive offices)       | (Zip                  Code) |

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*Table          of Contents*

**RemoteKnowledge,      Inc.**

**INDEX      TO QUARTERLY REPORT ON FORM 10-QSB**

|                                                                                                             | Page                                              |
|------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|
| PART                I                                                                                            |                                              |
| Item                1. Financial Statements                                                                      |         2 |
| Item                2. Management’s Discussion and Analysis or Plan of                Operation            |         9 |
| Item                3. Controls and Procedures                                                                   |       10            |
| PART                II                                                                                           |                                              |
| Item                1. Legal Proceedings                                                                         |       11            |
| Item                2. Unregistered Sales of Equity Securities and Use                of                Proceeds |       11            |
| Item                4. Submission of Matters to a Vote of Security                Holders                        |       14            |
| Item                5. Other Information                                                                         |       14            |
| Item                6. Exhibits                                                                                  |       14            |
|                                                                                                             |                                              |
|                                                                                                             |                                              |

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*Table          of Contents*

**PART      I — FINANCIAL INFORMATION**

**Item      1. Financial Statements.**

**Remote      Knowledge, Inc.**

**(A      Development Stage Enterprise)**

**Condensed      Balance Sheet**

**Unaudited**

|                                                                                                                                                |   | **June                30, 2007** |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|-------------|
| **ASSETS**                                                                                                                                          |   |
| Current                Assets                                                                                                                       |   |                             |        |
| Cash                and cash equivalents                                                                                                            |   | $                                | 10,844      |   |
| Accounts                receivable                                                                                                                  |   |                             | 4,055       |   |
| Other                receivables                                                                                                                    |   |                             | 128,934     |   |
| Prepaid                and other current assets                                                                                                     |   |                             | 94,644      |   |
| Total                current assets                                                                                                                 |   |                             | 238,477     |   |
| Property                and equipment, net                                                                                                          |   |                             | 299,826     |   |
| Other                noncurrent assets, net                                                                                                         |   |                             | 48,542      |   |
| Total                assets                                                                                                                         |   | $                                | 586,845     |   |
| **LIABILITIES                AND SHAREHOLDERS’ DEFICIT**                                                                                      |   |
| Current                Liabilities:                                                                                                                 |   |                             |        |   |
| Accounts                payable — trade                                                                                                       |   | $                                | 406,085     |   |
| Accrued                expenses                                                                                                                     |   |                             | 2,301,248   |   |
| Deferred                revenue                                                                                                                     |   |                             | 56,473      |   |
| Payable                to shareholder                                                                                                               |   |                             | 127,926     |   |
| Shareholder                advances                                                                                                                 |   |                             | 1,675,000   |   |
| Notes                payable-related party, net of discount of $66,521                                                                              |   |                             | 825,979     |   |
| Notes                payable, net of discount of $145,238                                                                                           |   |                             | 1,674,473   |   |
| Total                current liabilities                                                                                                            |   |                             | 7,067,184   |   |
| Notes                payable-related party-long-term, net of discount of                $1,526,046                                                  |   |                             | 2,418,954   |   |
| Total                liabilities                                                                                                                    |   |                             | 9,486,139   |   |
|                                                                                                                                                |   |                             |        |   |
| Shareholders’                Deficit:                                                                                                         |   |                             |        |   |
| Preferred                stock — series A, $.001 par value; 15,000 shares authorized; 4,274 shares                issued and outstanding      |   |                             | 4           |   |
| Preferred                stock — series B, $.001 par value; 20,000 shares authorized; 6,379 shares                issued and outstanding      |   |                             | 6           |   |
| Common                stock, $.001 par value; 150,000,000 shares authorized; 16,146,692                shares                issued and outstanding |   |                             | 16,147      |   |
| Additional                paid-in capital                                                                                                           |   |                             | 64,590,845  |   |
| Deferred                compensation                                                                                                                |   |                             | (13,217     | ) |
| Subscriptions                receivable                                                                                                             |   |                             | (45,000     | ) |
| Accumulated                deficit                                                                                                                  |   |                             | (10,234,380 | ) |
| Deficit                accumulated during development stage                                                                                         |   |                             | (63,213,698 | ) |
| Total                shareholders’ deficit                                                                                                    |   |                             | (8,899,293  | ) |
| Total                liabilities and shareholders’ deficit                                                                                    |   | $                                | 586,845     |   |

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

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*Table            of Contents*

**Remote      Knowledge, Inc.**

**(A      Development Stage Enterprise)**

**Unaudited**

**Condensed      Statements of Operations**

|                                                    |   | **Three-Month                Periods Ended** |       |   | **Six-Month                Periods                Ended** |   |       | **Period                From****January                1, 2001****(Inception                of****Development                Stage)** |   |
|---------------------------------------------------------|--------|----------------------------------------------|------------|--------|-----------------------------------------------------------|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                    |   | **JUNE                30,**                  |       |   | **JUNE                30,**                               |   |       | **JUNE                30,**                                                                                                           |   |   | **JUNE                30,** |   |   | **to                JUNE                30,** |   |
|                                                    |   | **2007**                                     |       |   | **2006**                                                  |   |       | **2007**                                                                                                                              |   |   | **2006** |   |   | **2007** |   |
| **Revenues**                                            |   | $                                            | 3,116      |   |                                                      | $      | 10,890     |                                                                                                                                  |   | $ | 6,146 |   |   | $ | 24,311 |   |   | $ | 88,710 |   |
| **Cost                of Goods Sold**                   |   |                                         | —    |   |                                                      |   | 9,914      |                                                                                                                                  |   |   | — |   |   |   | 21,408 |   |   |   | 76,033 |   |
| **Gross                Profit**                         |   |                                         | 3,116      |   |                                                      |   | 976        |                                                                                                                                  |   |   | 6,146 |   |   |   | 2,903 |   |   |   | 12,677 |   |
|                                                    |   |                                         |       |   |                                                      |   |       |                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                Costs and Expenses**:        |   |                                         |       |   |                                                      |   |       |                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Advisory                services                        |   |                                         | —    |   |                                                      |   | —    |                                                                                                                                  |   |   | — |   |   |   | — |   |   |   | 4,169,146 |   |
| Research                and development                 |   |                                         | 171,172    |   |                                                      |   | 157,939    |                                                                                                                                  |   |   | 432,801 |   |   |   | 280,500 |   |   |   | 6,625,114 |   |
| Loss                on impairment of assets             |   |                                         | —    |   |                                                      |   | 14,672     |                                                                                                                                  |   |   | — |   |   |   | 14,672 |   |   |   | 2,284,164 |   |
| Professional                fees                        |   |                                         | 78,940     |   |                                                      |   | 86,417     |                                                                                                                                  |   |   | 203,949 |   |   |   | 272,303 |   |   |   | 3,083,957 |   |
| Advertising                and promotion fees           |   |                                         | 224        |   |                                                      |   | 58,832     |                                                                                                                                  |   |   | 2,354 |   |   |   | 129,876 |   |   |   | 1,660,464 |   |
| General                and administrative expenses      |   |                                         | 659,037    |   |                                                      |   | 624,058    |                                                                                                                                  |   |   | 1,420,775 |   |   |   | 2,670,733 |   |   |   | 20,228,163 |   |
| Total                operating costs and expenses       |   |                                         | 909,373    |   |                                                      |   | 941,918    |                                                                                                                                  |   |   | 2,059,879 |   |   |   | 3,368,084 |   |   |   | 38,051,008 |   |
| **Loss                from Operations**                 |   |                                         | (906,257   | )      |                                                      |   | (940,942   | )                                                                                                                                     |   |   | (2,053,733 | ) |   |   | (3,365,181 | ) |   |   | (38,038,331 | ) |
|                                                    |   |                                         |       |   |                                                      |   |       |                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| **Other                Expense (Income)**:              |   |                                         |       |   |                                                      |   |       |                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                expense                         |   |                                         | 524,100    |   |                                                      |   | 554,868    |                                                                                                                                  |   |   | 966,803 |   |   |   | 1,122,295 |   |   |   | 7,286,437 |   |
| Amortization                of deferred financing costs |   |                                         | (964       | )      |                                                      |   | —    |                                                                                                                                  |   |   | — |   |   |   | — |   |   |   | 1,189,094 |   |
| Interest                income                          |   |                                         | —    |   |                                                      |   | —    |                                                                                                                                  |   |   | — |   |   |   | — |   |   |   | (27,420 | ) |
| Other                income                             |   |                                         | (567       | )      |                                                      |   | (5,443     | )                                                                                                                                     |   |   | (567 | ) |   |   | (10,389 | ) |   |   | (21,919 | ) |
| Other                expense                            |   |                                         | —    |   |                                                      |   | (9,376     | )                                                                                                                                     |   |   | — |   |   |   | — |   |   |   | 12,698 |   |
| Debt                forgiveness                         |   |                                         | —    |   |                                                      |   | (310,807   | )                                                                                                                                     |   |   | — |   |   |   | (310,807 | ) |   |   | (1,708,391 | ) |
| Total                other expense                      |   |                                         | 522,569    |   |                                                      |   | 229,242    |                                                                                                                                  |   |   | 966,236 |   |   |   | 801,099 |   |   |   | 6,730,499 |   |
| **Net                Loss**                             |   | $                                            | (1,428,826 | )      |                                                      | $      | (1,170,184 | )                                                                                                                                     |   | $ | (3,019,969 | ) |   | $ | (4,166,280 | ) |   | $ | (44,768,830 | ) |

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

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*Table            of Contents*

**Remote      Knowledge, Inc.**

**(A      Development Stage Enterprise)**

**Unaudited**

**Condensed      Statements of Operations (continued)**

|                                                                                                                                                                                  |   | **Three-Month                Periods Ended** |       |   | **Six-Month                Periods Ended** |   |       | **Period                From****January                1, 2001****(Inception                of****Development                Stage)** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|------------|--------|--------------------------------------------|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                  |   | **JUNE                30,**                  |       |   | **JUNE                30,**                |   |       | **JUNE                30,**                                                                                                           |   |   | **JUNE                30,** |   |   | **to                JUNE 30,** |   |
|                                                                                                                                                                                  |   | **2007**                                     |       |   | **2006**                                   |   |       | **2007**                                                                                                                              |   |   | **2006** |   |   | **2007** |   |
| **Effective                Dividend from Amortization of Discount Related to Beneficial Conversion                of                Mandatorily Redeemable Series A Preferred Stock** |   |                                         | —    |   |                                       |   | —    |                                                                                                                                  |   |   | — |   |   |   | — |   |   |   | (5,554,000 | ) |
| **Warrants                Issued for Release of Redemption Provision of Series A Preferred                Stock**                                                                     |   |                                         | —    |   |                                       |   | —    |                                                                                                                                  |   |   | — |   |   |   | — |   |   |   | (1,291,912 | ) |
| **Effective                Dividend from Amortization of Discount Related to Beneficial Conversion                of                Series B Preferred Stock and Warrants**           |   |                                         | —    |   |                                       |   | (11,692    | )                                                                                                                                     |   |   | (100,000 | ) |   |   | (11,692 | ) |   |   | (11,598,958 | ) |
| **Net                Loss Attributable to Common Shares**                                                                                                                             |   | $                                            | (1,428,826 | )      |                                       | $      | (1,181,876 | )                                                                                                                                     |   | $ | (3,119,969 | ) |   | $ | (4,177,972 | ) |   | $ | (63,213,700 | ) |
| **Net                Loss Per Share:**                                                                                                                                                |   |                                         |       |   |                                       |   |       |                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                and Diluted                                                                                                                                                      |   | $                                            | (.09       | )      |                                       | $      | (.08       | )                                                                                                                                     |   | $ | (.20 | ) |   | $ | (.30 | ) |   | $ | (7.99 | ) |
| **Number                of Shares Used in Calculating Net Loss Per Share:**                                                                                                           |   |                                         |       |   |                                       |   |       |                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                and Diluted                                                                                                                                                      |   |                                         | 15,876,158 |   |                                       |   | 14,223,116 |                                                                                                                                  |   |   | 15,612,780 |   |   |   | 13,778,042 |   |   |   | 7,910,379 |   |

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

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*Table          of Contents*

**Remote      Knowledge, Inc.**

**(A      Development Stage Enterprise)**

**Condensed      Statements of Cash Flows**

**Unaudited**

|                                                                                                                         |   | **Six-Month                Periods Ended** |       |   | **Period                From****January                1, 2001****(Inception                of****Development                Stage)** |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                         |   | **JUNE                30,**                |       |   | **JUNE                30,**                                                                                                           |   |   | **JUNE                30,** |   |
|                                                                                                                         |   | **2007**                                   |       |   | **2006**                                                                                                                              |   |   | **2007** |   |
| **Cash                Flows From Operating Activities**:                                                                     |   |                                       |       |   |                                                                                                                                  |   |   |   |   |
| Net                loss                                                                                                      |   | $                                          | (3,019,971 | )      |                                                                                                                                  | $      | (4,166,280 | ) |   | $ | (44,768,830 | ) |
| Adjustments                to reconcile net loss to net cash used in operating                activities:                    |   |                                       |       |   |                                                                                                                                  |   |   |   |   |   |   |   |
| Accretion                of debt discount and discount related to beneficial conversion of                convertible debt   |   |                                       | 829,007    |   |                                                                                                                                  |   | 881,656 |   |   |   | 5,772,257 |   |
| Depreciation                                                                                                                 |   |                                       | 109,337    |   |                                                                                                                                  |   | 120,632 |   |   |   | 1,040,819 |   |
| Loss                on impairment of fixed assets                                                                            |   |                                       | —    |   |                                                                                                                                  |   | — |   |   |   | 1,564,282 |   |
| Amortization                of deferred financing costs                                                                      |   |                                       | 662        |   |                                                                                                                                  |   | — |   |   |   | 1,189,094 |   |
| Equity                issued for services and interest                                                                       |   |                                       | 121,193    |   |                                                                                                                                  |   | 1,561,769 |   |   |   | 9,906,805 |   |
| Provision                for loss on inventory                                                                               |   |                                       | —    |   |                                                                                                                                  |   | 14,672 |   |   |   | 758,918 |   |
| Debt                forgiveness                                                                                              |   |                                       | —    |   |                                                                                                                                  |   | (310,807 | ) |   |   | (1,708,391 | ) |
| Charge                off of receivables                                                                                     |   |                                       | —    |   |                                                                                                                                  |   | — |   |   |   | 446,414 |   |
| Changes                in assets and liabilities:                                                                            |   |                                       |       |   |                                                                                                                                  |   |   |   |   |   |   |   |
| Accounts                receivable                                                                                           |   |                                       | 660        |   |                                                                                                                                  |   | (4,700 | ) |   |   | (4,055 | ) |
| Inventory                                                                                                                    |   |                                       | —    |   |                                                                                                                                  |   | 48,903 |   |   |   | (836,393 | ) |
| Other                receivables                                                                                             |   |                                       | (128,934   | )      |                                                                                                                                  |   | — |   |   |   | (128,934 | ) |
| Prepaid                and other current assets                                                                              |   |                                       | (8,298     | )      |                                                                                                                                  |   | (120,785 | ) |   |   | (62,148 | ) |
| Other                noncurrent assets                                                                                       |   |                                       | (49,204    | )      |                                                                                                                                  |   | — |   |   |   | (49,204 | ) |
| Accounts                payable – trade                                                                                |   |                                       | 161,109    |   |                                                                                                                                  |   | (370,057 | ) |   |   | 1,287,621 |   |
| Accrued                expenses                                                                                              |   |                                       | 118,832    |   |                                                                                                                                  |   | (177,390 | ) |   |   | 1,621,124 |   |
| Deferred                revenue                                                                                              |   |                                       | 56,473     |   |                                                                                                                                  |   | — |   |   |   | 56,473 |   |
| Related                party payable                                                                                         |   |                                       | —    |   |                                                                                                                                  |   | — |   |   |   | 399,259 |   |
| Net                cash used in operating activities                                                                         |   |                                       | (1,809,134 | )      |                                                                                                                                  |   | (2,522,387 | ) |   |   | (23,514,889 | ) |
| **Cash                Flows From Investing Activities**:                                                                     |   |                                       |       |   |                                                                                                                                  |   |   |   |   |   |   |   |
| Additions                of fixed assets                                                                                     |   |                                       | (21,676    | )      |                                                                                                                                  |   | (16,781 | ) |   |   | (1,033,399 | ) |
| Related                party receivable                                                                                      |   |                                       | —    |   |                                                                                                                                  |   | — |   |   |   | (300,000 | ) |
|             Net                cash used in investing activities |   |                                       | (21,676    | )      |                                                                                                                                  |   | (16,781 | ) |   |   | (1,333,399 | ) |
| **Cash                Flows From Financing Activities**:                                                                     |   |                                       |       |   |                                                                                                                                  |   |   |   |   |   |   |   |
| Payments                of notes payable                                                                                     |   |                                       | (35,836    | )      |                                                                                                                                  |   | (1,044,075 | ) |   |   | (3,431,430 | ) |
| Capital                contributions                                                                                         |   |                                       | —    |   |                                                                                                                                  |   | — |   |   |   | 27,900 |   |
| Proceeds                from SMH note payable                                                                                |   |                                       | —    |   |                                                                                                                                  |   | — |   |   |   | 1,500,000 |   |
| Proceeds                from short term note payable                                                                         |   |                                       | 850,000    |   |                                                                                                                                  |   | 2,500,000 |   |   |   | 4,385,000 |   |
| Proceeds                from sale of common stock                                                                            |   |                                       | —    |   |                                                                                                                                  |   | — |   |   |   | 903,800 |   |
| Proceeds                from other notes payable                                                                             |   |                                       | 42,907     |   |                                                                                                                                  |   | 62,710 |   |   |   | 3,401,648 |   |
| Net                proceeds from sale of mandatory redeemable preferred stock                                                |   |                                       | —    |   |                                                                                                                                  |   | — |   |   |   | 5,040,033 |   |
| Net                proceeds from sale of series B preferred stock                                                            |   |                                       | —    |   |                                                                                                                                  |   | 45,000 |   |   |   | 7,114,073 |   |
| Proceeds                from related party note payable                                                                      |   |                                       | 465,000    |   |                                                                                                                                  |   | 1,350,000 |   |   |   | 5,885,000 |   |
| Net                cash provided by financing activities                                                                     |   |                                       | 1,322,071  |   |                                                                                                                                  |   | 2,913,635 |   |   |   | 24,826,024 |   |
| Net                Change in Cash and Cash Equivalents                                                                       |   |                                       | (508,739   | )      |                                                                                                                                  |   | 374,467 |   |   |   | (22,264 | ) |
| **Cash                and Cash Equivalents**, beginning of period                                                            |   |                                       | 519,583    |   |                                                                                                                                  |   | 4,991 |   |   |   | 33,108 |   |
| **Cash                and Cash Equivalents**, end of period                                                                  |   | $                                          | 10,844     |   |                                                                                                                                  | $      | 379,458 |   |   | $ | 10,844 |   |

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

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*Table          of Contents*

**Remote      Knowledge, Inc.**

**(A      Development Stage Enterprise)**

**Condensed      Statements of Cash Flows (continued)**

**Unaudited**

|                                                                                                                                                                                      |   | **Six-Month                Periods Ended** |    |   | **Period                From****January                1, 2001****(Inception                of****Development                Stage)** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|--------|---------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                      |   | **JUNE                30,**                |    |   | **JUNE                30,**                                                                                                           |   |   | **JUNE                30,** |   |
|                                                                                                                                                                                      |   | **2007**                                   |    |   | **2006**                                                                                                                              |   |   | **2007** |   |
| **Non-Cash                Transactions**:                                                                                                                                                 |   |                                       |    |   |                                                                                                                                  |   |   |   |   |
| Issuance                of common stock for related party debt                                                                                                                            |   | $                                          | — |   |                                                                                                                                  | $      | — |   |   | $ | 888,832 |   |
| Issuance                of common stock for debt                                                                                                                                          |   | $                                          | — |   |                                                                                                                                  | $      | — |   |   | $ | 1,157,114 |   |
| Issuance                of common stock for assets                                                                                                                                        |   | $                                          | — |   |                                                                                                                                  | $      | — |   |   | $ | 8,000 |   |
| Conversion                of accounts payable to notes payable                                                                                                                            |   | $                                          | — |   |                                                                                                                                  | $      | — |   |   | $ | 766,484 |   |
| Conversion                of notes payable and other debt to equity                                                                                                                       |   | $                                          | 100,000 |   |                                                                                                                                  | $      | — |   |   | $ | 4,301,000 |   |
| Contribution                of capital by shareholders for financing costs                                                                                                                |   | $                                          | — |   |                                                                                                                                  | $      | — |   |   | $ | 1,188,432 |   |
| Issuance                of common stock (86,710 and 1,694,179 shares, respectively) upon                conversion of Series A preferred stock                                            |   | $                                          | 86      |   |                                                                                                                                  | $      | — |   |   | $ | 1,694 |   |
| Issuance                of common stock ( 300,002 shares; 1,233,333 shares; and 7,034,002                shares,                respectively) upon conversion of Series B preferred stock |   | $                                          | 300     |   |                                                                                                                                  | $      | 1,233,333 |   |   | $ | 7,034 |   |
| Issuance                of common stock upon conversion of mandatory redeemable preferred                stock                classified as debt                                          |   | $                                          | — |   |                                                                                                                                  | $      | — |   |   | $ | 20,000 |   |
|  Reclassification                of mandatorily redeemable preferred stock to equity                                                                                                 |   | $                                          | — |   |                                                                                                                                  | $      | — |   |   | $ | 5,534,000 |   |
| Discount                related to beneficial conversion of mandatory redeemable Series A                preferred stock                                                                  |   | $                                          | — |   |                                                                                                                                  | $      | — |   |   | $ | 5,554,000 |   |
| Warrants                issued for release of redemption provision of Series A preferred                stock                                                                             |   | $                                          | — |   |                                                                                                                                  | $      | — |   |   | $ | 1,291,912 |   |
| Discount                related to beneficial conversion of Series B preferred stock and                warrants                                                                          |   | $                                          | 100,000 |   |                                                                                                                                  | $      | 11,692 |   |   | $ | 11,598,958 |   |
| Reclassification                of demo units from inventory to property and equipment                                                                                                    |   | $                                          | — |   |                                                                                                                                  | $      | — |   |   | $ | 77,475 |   |
| Discount                related to notes payable                                                                                                                                          |   | $                                          | 363,750 |   |                                                                                                                                  | $      | — |   |   | $ | 5,548,257 |   |
| Conversion                of notes payable into convertible debt                                                                                                                          |   | $                                          | — |   |                                                                                                                                  | $      | — |   |   | $ | 375,000 |   |
| Conversion                of accrued expenses into note payable                                                                                                                           |   | $                                          | — |   |                                                                                                                                  | $      | — |   |   | $ | 87,028 |   |
| Issuance                of common stock (713,333 shares and 713,333 shares, respectively)                with                bridge loans                                                 |   | $                                          | 714     |   |                                                                                                                                  | $      | — |   |   | $ | 714 |   |
| Issuance                of common stock (60,000 shares and 60,000 shares, respectively) with                restricted stock grant                                                        |   | $                                          | 60      |   |                                                                                                                                  | $      | — |   |   | $ | 60 |   |
| **Supplemental                Disclosure of Cash Flow Information**:                                                                                                                      |   |                                       |    |   |                                                                                                                                  |   |   |   |   |   |   |   |
| Cash                paid for interest                                                                                                                                                     |   | $                                          | 4,407   |   |                                                                                                                                  | $      | 152,000 |   |   | $ | 387,529 |   |

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

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****Remote        Knowledge, Inc.****

**Notes          To Condensed Financial Statements**

**Note      1 — Basis of Presentation**

**Note      2 — Significant Accounting Policies**

*Share-Based      Compensation*
*Share-Based Payment-Revised 2004” *

**Note      3 — Notes Payable**

**Note      4 — Net Loss Per Share**

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****Remote      Knowledge, Inc.****

**Notes        To Condensed Financial Statements**

**Note      5 — Subsequent Events**

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*Table          of Contents*

**Item      2. Management’s Discussion and Analysis or Plan of      Operation.**

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*Table          of Contents*

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**OVERVIEW      AND COMPANY STATUS**

**We      must have a financing agreement for several million dollars in place by the      end      of August, with imminent funding, in order to continue operations and remain      in      business.**

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**Item      3. Controls and Procedures.**

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*Table          of Contents*

**PART      II — OTHER INFORMATION**

**Item      1. Legal Proceedings — None**

**Item2.      Unregistered Sales of Equity Securities and Use of      Proceeds.**

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*Table          of Contents*

**Item4.      Submission of Matters to a Vote of Security      Holders**

**Item      5. Other Information**

**Item      6. Exhibits.**

|  1.  |   | Exhibit                10.1  | Summary                of Director Compensation                                                           |
|-----------|--------|------------------------------|-----------------------------------------------------------------------------------------------------------|
|  2.  |   | Exhibit                10.2  | Bridge                Loan Promissory Note in the amount of $65,000 to Randy S.                Bayne      |
|  3.  |   | Exhibit                10.3  | Bridge                Loan Promissory Note in the amount of $25,000 to Howard                London       |
|  4.  |   | Exhibit                10.4  | Bridge                Loan Promissory Note in the amount of $25,000 to Mark                Miller         |
|  5.  |   | Exhibit                10.5  | Bridge                Loan Promissory Note in the amount of $150,000 to Jeffrey J.                Bell    |
|  6.  |   | Exhibit                10.6  | Bridge                Loan Promissory Note in the amount of $188,000 to Mike                Repsold       |
|  7.  |   | Exhibit                10.7  | Bridge                Loan Promissory Note in the amount of $12,000 to Michael A.                Hunter   |
|  8.  |   | Exhibit                10.8  | Bridge                Loan Promissory Note in the amount of $100,000 to John                Phelps        |
|  9.  |   | Exhibit                10.9  | Bridge                Loan Promissory Note in the amount of $50,000 to Don                Sanders         |
|  10. |   | Exhibit                10.10 | Bridge                Loan Promissory Note in the amount of $25,000 to Ben                Morris          |
|  11. |   | Exhibit                10.11 | Bridge                Loan Promissory Note in the amount of $25,000 to Don                Weir            |
|  12. |   | Exhibit                10.12 | Bridge                Loan Promissory Note in the amount of $100,000 to Robert K.                McDonald |
|  13. |   | Exhibit                10.13 | Bridge                Loan Promissory Note in the amount of $40,000 to Scott                Vacek         |
|  14. |   | Exhibit                31.1  | Certification                required by Section 302 of the Sarbanes-Oxley Act of                2002     |
|  15. |   | Exhibit                31.2  | Certification                required by Section 302 of the Sarbanes-Oxley Act of                2002     |
|  16. |   | Exhibit                32    | Certification                required by Section 906 of the Sarbanes-Oxley Act of                2002     |

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**SIGNATURES**

|                                   | Remote                  Knowledge, Inc.  |                                                                        |
|----------------------------------------|-----------------------------------------------|-----------------------------------------------------------------------------|
|                                   |                                          |                                                                        |   |
|                                   | By:                                           | /s/                Randy S. Bayne        |   |
|                                   |                                          | Randy                  S. Bayne                                             |   |
|                                   |                                          | Chief                  Executive Officer                                    |   |
|                                   |                                          |                                                                        |   |
| Date:                  August 13, 2007 | By:                                           | /s/                D. Henry Houston                                         |   |
|                                   |                                          | D.                  Henry Houston                                           |   |
|                                   |                                          | Chief                  Financial and Accounting Officer                     |   |

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