SECURITIES AND EXCHANGE COMMISSION FORM 10-Q  [X]      
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 For the quarterly period ended March 31, 2008  [
 ]        TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition
period from __________________ to __________________  Commission File Number 1-14219  TELAVA NETWORKS, INC. (Exact Name
of small business issuer as specified in its charter)  California                                                            
65-0067192 (State or other Jurisdiction
of                                                                     
I.R.S. Employer Identification No.) Incorporation or Organization  353 California Street, Suite 1500, San Francisco, California
94111 (Address of Principal
Executive
Offices)                                                                                                                            
(Zip Code) (415)
321-3490 (Issuer's Telephone Number, including Area Code)  Indicate by check mark whether the Registrant (i) 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 (of for such shorter period that the Registrant
was required to file such reports) and (ii) has been subject to such filing
requirements for the past 90 days.  Yes X    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. (Check one):  Large accelerated filero

Accelerated filero

Non-accelerated filero

Smaller reporting companyþ(Do not check if a
smaller reporting company)
 Indicate by check mark whether
the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act). Yes[    ]No [ X ]  Indicate the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date.  Common
Stock, no par value                                                                               
148,481,461 Title of
Class                                                                                                                              
Number of Shares outstanding at June
5, 2008     TELAVA NETWORKS, INC. AND
SUBSIDIARIES CONSOLIDATED BALANCE
SHEETS (U.S. Dollars)  March
31,             
December 31, ASSETS                                                                                                                           
2008   
2007 Current assets Cash and cash
equivalents                                                                                   
$                
542,223   
$                
648,054 Accounts
receivable,
net                                                                                                       
1,409,598                   
1,330,370 Notes
receivable                                                                                                                            
2,657                        
16,290 Notes
receivable  related
party                                                                                                        
--                          
7,513 Employee
receivable                                                                                                                            
--                          
1,491 Prepaid
expenses                                                                                                    
40,737   
30,777 Total current
assets                                                                                                                        
1,995,215                   
2,034,495  Property, plant, and equipment,
net                                                                                             
2,041,564                   
2,073,886 Intangible asset,
net                                                                                                                            
45,261                        
51,727 Other assets,
net                                                                                                             
1,844,102   
128,262 Total assets$             
5,926,142   
$             
4,288,370  LIABILITIES AND STOCKHOLDERS EQUITY  Current liabilities Accounts
payable                                                                                                  
$                
147,965   
$                
163,433 Accrued
expenses                                                                                                                     
108,498                      
102,682 Accrued
interest                                                                                                                        
111,860                        
46,683 Advances from
customers                                                                                                                  
--                             
124 Other taxes
payable                                                                                                                       
5,057                        
18,568 Payroll &
payroll tax
liabilities                                                                                                     
2,959                          
9,379 Notes payable
 other,
net                                                                                                    
2,210,500                      
390,000 Notes payable

convertible                                                                                 
1,650,000   
1,650,000 Total current
liabilities                                                                                                                   
4,236,839                   
2,380,869  Long term liabilities Deferred tax
liability                                                                                                
--   
-- Total
liabilities                                                                                                                                 
4,236,839                   
2,380,869  Minority interest  Telava
Wireless                                                                                               
323,185                      
344,930  Stockholders equity Preferred stock, no par value, 2,000,000 shares
authorized Series A
preferred stock, no shares issued and outstanding at March 31,
2008 and December 31, 2007,
respectively                                                                
--                                
-- Common stock, no par value 200,000,000 shares
authorized 148,481,461
and 148,481,461 shares issued and outstanding at March 31,
2008 and December 31, 2007,
respectively                                                   
1,090,000                   
1,090,000 Additional paid-in
capital                                                                                                                   
70,216                        
70,216 Treasury
stock                                                                                                                                   
(37,198)                     
(37,198) Stock
payable                                                                                                                                       
96,988                        
96,988 Other comprehensive
income                                                                                                          
(24,184)                       
(3,571) Retained
earnings                                                                                                           
170,296   
346,136 Total stockholders
equity                                                                                            
1,366,118   
1,562,571  Total liabilities and stockholders
equity$             
5,926,142   
$             
4,288,370   TELAVA NETWORKS, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS (U.S. Dollars)  For the Three Months Ended March
31, 2008     
2007 Net sales$                     
1,438,851   
$                 
1,277,519  Cost of
sales                                                                                                        
428,785   
682,919  Gross
profit                                                                                                                               
1,010,066                        
588,300  Operating expenses Salaries and
payroll
taxes                                                                                                     
486,682                          
329,849 Depreciation
and
amortization                                                                                               
40,789   
                        
35,929 Commissions
and
consulting                                                                                                 
32,333                            
39,209 Professional
fees                                                                                                                      
55,802                                 
986 Bad
debt                                                                                                                                    
49,300                          
111,370 Other general
and administrative
expenses                                            
443,486   
181,600  Total operating
expenses                                                                                  
1,108,392   
698,943  Loss from
operations                                                                                                                    
(98,326)                       
(110,643)  Other income (expense)  Interest
income                                                                                                                           
1,548                              
1,800 Other
income                                                                                                                                 
605                                 
243 Interest
expense                                                                                          
(101,412)   
(9,276)  Total other
income/(expense)                                                                           
(99,259)   
(7,233)  Net loss before
taxes                                                                                                                  
(197,585)                       
(117,876)  Benefit from income
taxes                                                                                  
--   
95,630  Net income before minority
interest                                                                                         
(197,585)                         
(22,246)  Minority interest in
income                                                                               
21,745   
30,646  Net income
(loss)                                                                                                
$                   
(175,840)   
$                      
8,400  Net loss per common share and equivalents 
basic                                    
$                           
(0.00)   
$                          
0.00 Net loss per common share and equivalents
diluted                               
 $                            
 (0.00)                           
$    0.00 Weighted average outstanding common shares 
basic                                                 
148,481,461                                    
-- Weighted average outstanding common shares
diluted                                           
   
148,481,461                       
9,581,340  Comprehensive income/(loss)  Net
loss                                                                                                        
$                     
(175,840)   
$                        
8,400 Foreign
currency exchange
gain                                                              
(20,613)   
(1,197)  Comprehensive income/(loss)$                     
(196,453)   
$               
       7,203  TELAVA
NETWORKS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH
FLOWS (U.S. Dollars)  For the Three Months Ended March
31, 2008     
2007 Cash Flows from Operating Activities: Net income
(loss)$                     
(175,840)   
$                        
8,400 Adjustments
to reconcile net income (loss) to net cash used in operating activities: Depreciation and
amortization                                                                                       
40,789                            
42,396 Stock issued for
services                                                                                                        
--                                    
-- Minority interest net
loss                                                                                            
(21,745)                         
(30,646) Changes in
operating assets and liabilities: (Increase) decrease in: Accounts
receivable                                                                                             
(79,229)                            
50,539 Employee
receivable                                                                                                  
9,004                                   
38 Prepaid
Expenses                                                                                                    
(4,255)                            
56,484 Other
assets                                                                                                                
2,455                                
(73) Increase (decrease) in: Accounts
payable                                                                                                 
(15,532)                            
26,590 Accrued
expenses                                                                                                     
5,816                            
19,896 Accrued interest
payable                                                                                       
65,177                              
9,276 Advances from
customers                                                                                        
(124)                                    
-- Other taxes
payable                                                                                              
(13,511)                           
(2,286) Income taxes
payable                                                                                                      
--                                    
-- Accrued salaries and payroll
taxes                                                                       
(6,420)                         
(28,637) Deferred tax
liability                                                                    
--   
(95,630) Net cash used in operating
activities                                              
(193,415)   
56,347  Cash Flows from Investing activities: Purchase of
property and
equipment                                                                                   
(2,002)                         
(13,996) Deposit for
investment in
IBFA                                                                                     
(1,750,000)                                    
-- Proceeds for
notes
receivable                                                                                                        
--                         
(68,859) Payments for
notes
receivable                                                                  
13,633   
17,665 Net cash used in investing
activities                                               
(1,738,369)   
(65,190)  Cash Flows from Financing Activities: Donated
capital                                                                                                                                
--                                    
-- Proceeds from
notes
payable                                                                                            
1,867,409                          
108,430 Payments for
notes
payable                                                                      
(20,000)   
-- Net cash provided by financing
activities                                      
1,847,409   
108,430  Net increase (decrease) in cash during
year(84,375)                            
99,587 Effect of
foreign currency translation
adjustment                                 
(21,456)   
(1,197) Cash and cash equivalents at beginning of
period648,054   
328,936 Cash and cash equivalents at end of
period                                                   
$                      
542,223   
$                  
427,326  Supplemental disclosure for non-cash
items: Acquisition
of Telava Wireless, majority owned
subsidiary               
$                                  
--   
$                              
-- Purchase of
intangible assets with common
stock                                
$                                  
--   
$                      
77,590 Debt
converted to common
stock                                                            
$                                  
--   
$                              
-- Debt
converted to preferred
stock                                                           
$                                  
--   
$                              
-- Services
rendered for common
stock                                                       
$                                  
--   
$                              
--   TELAVA
NETWORKS, INC. AND SUBSIDIARIES NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS FOR
THE THREE MONTHS ENDED MARCH 31, 2008 and 2007
  1.BASIS OF PRESENTATION  The accompanying unaudited consolidated financial statements have been prepared in accordance with Securities and Exchange Commission requirements for interim financial statements.  Therefore, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.  These consolidated financial statements should be read in conjunction with the Form 10-KSB for the year ended December 31, 2007 of Telava Networks, Inc. and Subsidiaries (the "Company").  The interim consolidated financial statements present the balance sheet, consolidated statements of operations and cash flows of the Company.  The financial statements have been prepared in accordance with accounting principles generally accepted in the United States.  The interim consolidated financial information is unaudited.  In the opinion of management, all adjustments necessary to present fairly the financial position as of March 31, 2008 and the results of operations, stockholders' equity and cash flows presented herein have been included in the financial statements.  Interim results are not necessarily indicative of results of operations for the full year.  The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  Going Concern The Company has incurreda netlossof $ (175,847) for the three months ended
March 31, 2008  and hasa working
capital deficit of $2,241,624at March 31, 2008,all ofwhich raises
substantial doubt about its ability to continue as a going concern. The Company
has funded its operations and marketing efforts through the issuance of debt and
equity securities. In order to continue execution of the business plan, increase
marketing efforts and achieve profitable operations, management anticipates a
need for additional financing. Managements plans for funding future operations
primarily include the sale of debt and equity securities. The Companys failure
to raise additional funds under its plan would unfavorably impact its ability to
continue as a going concern. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty, including
the Companys inability to realize the carrying value of assets.  2.   ORGANIZATION  Transnational Financial Network, Inc. ("TelavaCA") was formed in 1985 and is incorporated in the state
of California. TelavaCA conducted real estate mortgage banking activities
through wholesale branches and retail branches previously located in California
and Arizona. On November 7, 2007, TransNational Financial Network, Inc. amended
its articles of incorporation and changed its name to Telava Networks, Inc.
(TelavaCA) and increased its authorized capital to
200,000,000.   TELAVA
NETWORKS, INC. AND SUBSIDIARIES NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS FOR
THE THREE MONTHS ENDED MARCH 31, 2008 and 2007
   Telava Networks, Inc. (TelavaNV) was incorporated in
Nevada on July 23, 2003 as Local Area Yellow Pagesto provide advertising and directory listings for small
and medium sized businesses on its Internet website in a Yellow
Pages format.  The Company provides those services to its
subscribers for a monthly fee.  These services are provided primarily to
small and medium sized businesses throughout the United States.  On July
10, 2007, Local Area Yellow Pages amended its Articles of Incorporation to
change the name of the corporation to Telava Networks, Inc. (TelavaNV) for the
purpose of launching itsnetworkto provide the next generation fixed and mobile WiMAX broadband solutions to small and medium
businesses, public safety organizations, and others in various markets through
its network.  TelavaNV continues its Yellow Pages operations while, at the
same time, expanding its WiMAX network.  Through June 30, 2007, nearly all
of the Companys revenues have been generated by its Yellow Pages
business.  On January 19, 2006,the Telava Networks Inc. (NV) formed Local Info Pages,
Inc. (LIP), headquartered in Seoul, South Korea, as a wholly owned subsidiary
of Telava Networks, Inc. LIP is one of the leading direct marketing and business
service companies in Korea. LIP connects advertisers to targeted audiences
through its network advertising products and services. On January 3, 2007, the
Company acquired a website valued at $77,590.  The website brings value to
the Company because of its large customer base and they can target market those
customers.  This enables advertisers to directly reach consumers with
branded media products, coupons and other advertisements. Consumers trust the
Company to deliver the best values in town via direct and online coupons. For
advertisers, LIP offers business advertising solutions by enabling them to sell
their products and services in person, online or through the mail.  On May 17, 2006, the Telava Networks Inc. (NV) 
formed Telava Wireless, Inc. (Telava Wireless) as a subsidiary for the purpose
of entering the mobile WiMAX broadband
solutions market.  On November 6, 2006, the Company acquired 40 microwave
towers in exchange for 25% of Telava Wireless.  On September 11, 2007, Telava Networks Inc. (NV) formed
Telava Acquisitions, Inc. as a wholly owned subsidiary for the purpose of
acquiring other related businesses.  On October 1,
2007, TelavaNV acquired TransNational Financial Networks, Inc., aCaliforniacorporation, (TelavaCA), via reverse merger.  The
acquisition was effected by the issuance of 958,134 shares of Series A
Convertible Preferred Stock to the six shareholders of TelavaNV in exchange for
all of the 20,000,000 shares of TelavaNV.  An additional 400,000 shares of
Series A Convertible Preferred Stock was subsequently issued to certain holders
of TelavaNV convertible notes. Each share of Series A Convertible Preferred
Stock was convertible into 100 shares of common stock; which were all converted
to a total of 135,813,400 shares of common stock prior to December 31,
2007.  The acquisition of TelavaNV represented a change in
control of our Company. For accounting purposes, this change in control
constitutes a re-capitalization of TelavaNV, and is accounted for as a reverse
merger whereby the legal acquiror, TelavaNV, is treated as the acquired entity,
and the legal subsidiary, TelavaCA, is treated as the acquiring company with the
continuing operations. Accordingly, the historical financial information of
TelavaNV, Telava Wireless, and LIP constitutes the Company's historical
financial information prior to October 1, 2007 and the combined operations of
TelavaNV, TelavaCA, Telava Wireless and LIP (the Company) are reported from
October 1, 2007 forward.    TELAVA
NETWORKS, INC. AND SUBSIDIARIES NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS FOR
THE THREE MONTHS ENDED MARCH 31, 2008 and 2007
  2.   ORGANIZATION (CONTINUED)  As part of the reverse merger, the Company acquired
convertible debentures totaling $2,100,000.  During the year ended December
31, 2007, six holders of $450,000 in convertible debentures converted their debt
into 450,000 shares of common stock.  Such convertible debt converts into
one share of common stock for each dollar in principal amount of debt
outstanding.  Additionally, the Company issued 200,000 shares to an entity
which is considered a finders fee.  The Company acquired 37,116 shares of
treasury stock valued at $37,198. On January 22, 2008, the Board of Directors approved a
change in the Companys fiscal year end from April 30 to December 31, effective
as of December 31, 2007.  3.   SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES  Principles of Consolidation:The consolidated financial statements include the
accounts of TransNational Financial
Networks, Inc. A.K.A: Telava Networks, Inc., Telava Networks, Inc. Nevada
and its wholly-owned and majority-owned subsidiaries Telava Wireless and
LIP.  All significant inter-company balances and transactions have been
eliminated.  Telava Networks, Inc. Nevada and its subsidiaries Telava
Wireless and LIP and TransNational Financial Networks, Inc. A.K.A: Telava
Networks, Inc. will be collectively referred herein to as the Company. 
Minority interests in the net assets and earnings or losses of a consolidated
subsidiary are reflected in the caption Minority Interest in the Companys
consolidated financial statements.  Minority interest adjusts the Companys
consolidated results of operations to reflect only the Companys share of the
earnings or losses of the subsidiary.  Foreign Currency Adjustments:The financial position and results of operations
of the Companys foreign subsidiary, LIP, is measured using the foreign
subsidiarys local currency as the functional currency.  Revenues and
expenses of the subsidiary have been translated into U.S. dollars at average
exchange rates prevailing during the period.  Assets and liabilities have
been translated at the rates of exchange on the balance sheet date.  The
resulting translation gain and loss adjustments are recorded as a separate
component of stockholders equity, unless there is a sale or complete
liquidation of the underlying foreign investments.  Foreign currency
translation adjustments for the three months ended March 31, 2008 and 2007
resulted in losses of $20,613 and $1,197, respectively.  Cash and Cash Equivalents:This includes all short-term highly liquid
investments that are readily convertible to known amounts of cash and have
original maturities of three months or less.  At times cash deposits may
have exceeded government insured limits.  At March 31, 2008 and December
31, 2007, cash deposits exceeded those insured limits by $268,584 and $470,775,
respectively.  Advertising Costs:The Company incurs advertising costs that are not
considered direct response advertising and are expensed when incurred. 
Advertising expenses were $5,206 and $834 for the three months ended March 31,
2008 and 2007, respectively.       TELAVA
NETWORKS, INC. AND SUBSIDIARIES NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS FOR
THE THREE MONTHS ENDED MARCH 31, 2008 and 2007
  3.   SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)  Recently Issued Accounting
Pronouncements:  SFAS 161:In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative Instruments and Hedging Activities", an amendment of SFAS No. 133. SFAS 161 applies to all derivative instruments and non-derivative instruments that are designated and qualify as hedging instruments pursuant to paragraphs 37 and 42 of SFAS 133 and related hedged items accounted for under SFAS 133. SFAS 161 requires entities to provide greater transparency through additional disclosures about how and why an entity uses derivative instruments, how derivative instruments and related hedged items are accounted for under SFAS 133 and its related interpretations, and how derivative instruments and related hedged items affect an entity's financial position, results of operations, and cash flows. SFAS 161 is effective as of the beginning of an entity's first fiscal year that begins after November 15, 2008. The Company does not expect the adoption of SFAS 161 will have a material impact on its financial condition or results of operation.  SFAS 162:In May 2008, the FASB issued SFAS No. 162, The Hierarchy of Generally Accepted Accounting Principles. SFAS 162 will provide framework for selecting accounting principles to be used in preparing financial statements that are presented in conformity with U.S. generally accepted accounting principles (GAAP) for nongovernmental entities.  SFAS 162 will be effective 60 days following the Securities and Exchange Commissions approval of the Public Company Accounting Oversight Board (PCAOB) amendments to AU Section 411.  The Company does not expect the adoption of SFAS 162 will have a material impact on its financial condition or results of operation.  SFAS 163:In May 2008, the FASB issued SFAS No. 163, Accounting for Financial Guarantee Insurance Contracts  an interpretation of FASB Statement No. 60.  SFAS 163 requires that an insurance enterprise recognize a claim liability prior to an event of default (insured event) when there is evidence that credit deterioration has occurred in an insured financial obligation.  This Statement also clarifies how Statement 60 applies to financial guarantee insurance contracts, including the recognition and measurement to be used to account for premium revenue and claim liabilities. Those clarifications will increase comparability in financial reporting of financial guarantee insurance contracts by insurance enterprises. This Statement requires expanded disclosures about financial guarantee insurance contracts. The accounting and disclosure requirements of the Statement will improve the quality of information provided to users of financial statements.  SFAS 163 will be effective for financial statements issued for fiscal years beginning after December 15, 2008.  The Company does not expect the adoption of SFAS 163 will have a material impact on its financial condition or results of operation.  Reclassification The financial statements for 2007 reflect certain reclassifications, which have nominal effect on net income, to conform to classifications in the current year.       TELAVA
NETWORKS, INC. AND SUBSIDIARIES NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS FOR
THE THREE MONTHS ENDED MARCH 31, 2008 and 2007
  4.   ACCOUNTS RECEIVABLE  The Company provides billing information to a third
party billing company for the majority of its monthly billings. Billings
submitted are filtered by this billing company and the LECs. Net accepted
billings are recognized as revenue and accounts receivable.  The billing
company remits payments to the Company on the basis of cash ultimately received
from the LECs by the billing company.  The billing company and LECs
charge fees for services, which are netted against the gross accounts receivable
balance. The billing companies also apply holdbacks to the remittance for
potentially uncollectible accounts.  These dilution amounts will vary due
to numerous factors and the Company may not be certain as to the actual amounts
of dilution on any specific billing submittal until several months after that
submittal.  The Company estimates the amount of these charges and holdbacks
based on historical experience and subsequent information received from the
billing companies. The Company also estimates uncollectible account balances and
provides an allowance for such estimates.  As of March 31, 2008 and
December 31, 2007, the amount reserved for uncollectible account balances is
$247,992 and  $235,202, respectively.  The billing companies retain certain holdbacks that may
not be collected by the Company for a period extending beyond one year.
  The balances are charged to bad debt expense.  However, when
true-up balances occur with the LEC after six to eighteen months, the money
received will be classified as revenue to offset current bad debt
expenses.  The Company experiences significant dilution of its
gross billings by the billing company.  The Company negotiates collections
with the billing companies on the basis of the contracted terms and historical
experience.  The Companys cash flow may be affected by holdbacks, fees,
and other matters, which are determined by the LECs and the billing
company.  The Company processes its billings through the primary billing
company.  5.   PROPERTY, PLANT AND
EQUIPMENT  Property, plant and equipment consisted of the following
at: March 31, 2008

December 31,
2007MicrowaveTowers

$       
1,998,765

$       
1,998,765Computer Equipment

180,427

180,427Furniture and Equipment

76,728

77,197Software

34,796

34,796Subtotal

2,292,406

2,291,185Less: Accumulated Depreciation

(250,842)

(217,299)Total

$       
2,041,564

$       
2,073,886  Depreciation expense was $34,323 and $29,463 for the
three months ended March 31, 2008 and 2007, respectively.       TELAVA
NETWORKS, INC. AND SUBSIDIARIES NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS FOR
THE THREE MONTHS ENDED MARCH 31, 2008 and 2007
  6.   INTANGIBLE ASSETS  Intangible assets consisted of the following
at: March 31, 2008

December 31,
2007Website

$       
77,590

$       
77,590Less: Accumulated Amortization

(32,329)

(25,863)Total

$       
45,261

$       
51,727  Amortization expense was $6,466 and $6,466 for the three
months ended March 31, 2008 and 2007, respectively.  7.   OTHER ASSETS  Other assets consisted of security deposits for the
leases of office spaces and $1,750,000 as a deposit for the acquisition of
IBFA.  (See Note 15).  8.   NOTES PAYABLE  Short-term debt consists of the following at: March 31, 2008

December 31,
2007Demand note payable to various entities,
unsecured, interest at 8%

$          
480,000

$          
390,000Convertible note payable to various individuals,
unsecured, interest at 10%, maturity date 1/12/15, conversion rate of $1,
there is no beneficial conversion feature  default

1,650,000

1,650,000Line of credit, secured by assets, interest at
approximately 12%, maturity date 1/16/09

1,750,000

-Subtotal

$       
3,880,000

$       
2,040,000Less: Discount on debt

(19,500)

-Total

$       
3,860,500

$       
2,040,000  The convertible note payable of $1,650,000, has
defaulted due to failure to make interest payments. The terms of the note
payable state that upon default the holder may declare the entire unpaid
principal balance immediately due and payable without any further notice, demand
or presentment and may exercise, without any further notice, demand or
presentment  Interest expense was $101,412 and $9,276 for the three
months ended March 31, 2008 and 2007, respectively.      TELAVA NETWORKS, INC. AND SUBSIDIARIES NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS FOR
THE THREE MONTHS ENDED MARCH 31, 2008 and 2007
  9.  LINE OF CREDIT  The Company had a line of credit totaling $1,600,000 under which the Company may borrow on a secured basis at the prime rate plus 7%. There were no amounts outstanding under this line of credit at December 31, 2007 and 2006.  The credit agreement requires compliance with certain financial covenants and expires on September 12, 2008.  The use of proceeds was limited to the acquisition of Kite Broadband, LLC.  During the year ended December 31, 2007, the Company received a total of $1,574,000; however, the acquisition of Kite Broadband, LLC did not occur. Therefore the Company was required to return all of the funds.  The lender retained a total of $26,000 as a non refundable origination and commitment fee.  On January 17, 2008, the Company renegotiated the line of credit and increased the amount to $1,800,000 and paid the lender $2,000 for the increased commitment fee.  The use of proceeds has been amended and the funds must be used for the acquisition of IBFA Acquisition Company, LLC.  (See Note 15).  During the three months ended March 31, 2008, the Company borrowed $1,750,000 of the $1,800,000 line of credit. As of March 31, 2008, the Company has an available credit line of $50,000 to be used for any additional costs related to the IBFA acquisition.  The direct costs associated with the loan are considered a discount on the debt and amortized over the life of the loan. The Company amortized loan fees totaling $6,500 and $0, during the three months ended March 31, 2008 and 2007, respectively.  (See Note 8).  10.   LEASES  The Company leases its office space under long-term
operating leases expiring through fiscal year 2008. Rent expense under these
leases was $68,492 and $57,788 for the three months ended March 31, 2008 and
2007, respectively.  The lease expired on April 30, 2008.  On February
22, 2008, the Company executed a lease with the landlord for additional office
space for corporate use commencing May 1, 2008 and expires on April 30,
2013.  Lease obligations are disclosed as follows:  YearFuture Minimum Lease Payments 2008                                        
$166,045 2009                                        
$489,173 2010                                        
$500,638 2011                                        
$512,103 Thereafter                               
$699,365          TELAVA
NETWORKS, INC. AND SUBSIDIARIES NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS FOR
THE THREE MONTHS ENDED MARCH 31, 2008 and 2007
  10.   LEASES (CONTINUED)  The Company has entered into a corporate leasing
agreement for the property located in San Francisco on October 1, 2006 for
monthly rental of $5,000. The lease has an option to renew for another year on
month to month basis. The Company leases office space in Seoul, Korea for the
LIP operations.  The Company has the option to continue with the lease on a
month-to-month basis .The lease has an option to renew for another year on month
to month basis.  The monthly rent is approximately $5,000 and will expire
on December 31, 2008.Lease
obligations are disclosed as follows:  YearFuture Minimum Lease Payments 2008                                        
$  45,000  11.   EMPLOYMENT AGREEMENTS  On December 15, 2006, TelavaNV executed an employment
agreement with an executive for a period of four years.  The employment
agreement is effective as of January 1, 2007.  The executive has an annual
base salary of approximately $60,000 plus bonuses to be determined by the board
of directors.  In addition, the executive will receive a total of 500,000
shares of the Companys common stock and will be earned in 125,000 share
increments at the end of the year for each of the four years.  During the
year ended December 31, 2007, the executive earned 125,000 shares of the
Companys common stock valued at $19,398 which is based on the fair value of the
common stock as on the date of the agreement as the Company was private at the
time of the agreement.  As part of the employment agreement, the executive sold
its website www.ttoore.com to TelavaNV for 500,000
shares of the Companys common stock.  The shares are valued at $77,590
which is based on the fair value of the common stock as on the date of the
agreement as the Company was private at the time of the agreement.  As of March 31, 2008, the common shares owed to the
executive have not been issued and are recorded as stock payable.  12.   STOCKHOLDERS EQUITY  Preferred Stock:The
authorized Series A preferred stock is 2,000,000 shares with no par value. 
As of March 31, 2008 and at December 31, 2007, the Company had no shares of
Series A preferred stock issued and outstanding. Each share of the Series A
preferred stock is convertible at any time into 100 shares of common stock, and
has 100 votes per share. Holders of the Series A preferred stock are entitled to
dividends at the same rate as common stock as if converted immediately prior to
the date the dividend is declared.  Common Stock:The
authorized common stock is 200,000,000 shares at no par value.  As of March
31, 2008, and December 31, 2007 the Company had 148,481,461 shares of common
stock issued and outstanding.    TELAVA
NETWORKS, INC. AND SUBSIDIARIES NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS FOR
THE THREE MONTHS ENDED MARCH 31, 2008 and 2007
  13.   STOCK OPTIONS AND
WARRANTS  As of March 31, 2008, there are no stock options and
warrants outstanding.  14.   CONCENTRATION OF CREDIT
RISK  Financial instruments that potentially subject the
Company to concentrations of credit risk are primarily trade accounts
receivable.  The trade accounts receivable are due primarily from business
customers over widespread geographical locations within the LEC billing areas
across the United States.  The Company historically has experienced
significant dilution and customer credits due to billing difficulties and
uncollectible trade accounts receivable.  The Company estimates and
provides an allowance for uncollectible accounts receivable.  The handling
and processing of cash receipts pertaining to trade accounts receivable is
maintained primarily by two third party billing companies.  The Company is
dependent upon these billing companies for collection of its accounts
receivable.  15.   ACQUISITIONS  On January 16, 2008,Telava Acquisitions Corporation, a wholly owned
subsidiary,announced that it has signed an
agreement to acquire IBFA Acquisition Company, LLC (IBFA). The operations will
continue to be under the auspices of a Management Agreement between the two
entities until all regulatory transfer of licenses has been completed. IBFA
began operations in 1995, and is a licensed Competitive Local Exchange Carrier
(CLEC), long distance provider, and Internet Service Provider (ISP) based in the
Midwest.  The Company anticipates the deal to be closed by the third
quarter of 2008 pending the completion of the audit and regulatory transfer of
licenses.  During the three months ended March 31, 2008, the Company paid a
deposit of $1,750,000 to acquire IBFA and this amount is included in other
assets.    **ITEM 2 - MANAGEMENTS DISCUSSION AND ANALYSIS OF
OPERATIONS**  The following discussion and analysis should be read in
conjunction with the condensed financial statements and the notes thereto
included as Item 1 of this Report. The discussion of results and trends does not
necessarily imply that these results and trends will continue.  The Management's Discussion and Analysis of Financial
Condition and Results of Operations and other sections of the Form 10-Q contain
forward-looking information. The forward-looking information involves risks and
uncertainties that are based on current expectations, estimates, and projections
about the Company's business, management's beliefs and assumptions made by
management. Words such as "expects", "anticipates", "intends", "plans",
"believes", "seeks", "estimates", and variations of such words and similar
expressions are intended to identify such forward-looking information.
Therefore, actual outcomes and results may differ materially from what is
expressed or forecasted in such forward-looking information due to numerous
factors, including, but not limited to, availability of financing for
operations, successful performance of internal operations, impact of competition
and other risks detailed below, as well as those discussed elsewhere from time
to time in the Company's Securities and Exchange Commission filings and reports.
In addition, general economic and market conditions and growth rates could
affect such statements.  On October 1, 2007, Televa Networks, Inc., a Nevada
corporation, (TelavaNV) acquired TransNational Financial Networks, Inc., a
California corporation, (TelavaCA), via reverse merger.  The acquisition
was effected by the issuance of 958,134 shares of Series A Convertible Preferred
Stock to the six shareholders of TelavaNV in exchange for all of the 20,000,000
shares of TelavaNV.  An additional 400,000 shares of Series A Convertible
Preferred Stock was subsequently issued to certain holders of TelavaNV
convertible notes. Each share of Series A Convertible Preferred Stock was
convertible into 100 shares of common stock; the Series A Convertible Preferred
Stock was all converted to a total of 135,813,400 shares of common stock prior
to December 31, 2007.  The acquisition of TelavaNV represented a change in
control of our company. For accounting purposes, this change in control
constitutes a re-capitalization of TelavaNV, and is accounted for as a reverse
merger whereby the legal acquiror, TelavaCA, is treated as the acquired entity,
and the legal subsidiary, TelavaNV, is treated as the acquiring company with the
continuing operations. Accordingly, the historical financial information of
TelavaNV, Telava Wireless, and LIP constitutes the Company's historical
financial information prior to October 1, 2007 and the combined operations of
the TelavaNV, TelavaCA, Telava Wireless and LIP (the Company) are reported
from October 1, 2007 forward.  Our net sales for the three months ended March  31,
2008 was $1,438,851, an increase of 13% when compared to the net sales of
$1,277,519 for the three months  ended March 31, 2007.  A significant
part of our net sales in 2007 and most of 2008 were from the Local Area Yellow
Pages business; our wireless business had minimal sales in  2007.  The
increase in sales was primarily derived from purchase of the intangible asset
from the Korean business, Ttoore Company, which we acquired on January 3, 2007.
At the time of acquisition, TToores business was not significant in comparison
with the Company. We now have a strategic partnership with a major Korean
telecommunications company which is important to our growth in Korea.  The cost of sales for the three months ended March 31,
2008 and 2007 totaled $428,785 and $689,219, respectively.  The decrease of
38% in 2008 was due to improved cost controls.  Our gross profit was $1,010,066 for the three months
ended March 31, 2008 and $588,300 for the three months ended March 31,
2007.  The gross profit increased by 71% from 2007 to 2008 due to better
cost controls.  Our total operating expenses increased by 59% from the
three months ended March 31, 2007 to 2008 due to the addition of overall
employees and expenses associated with market expansion and sales growth in
TelavaNV and LIP.  The depreciation and amortization expense for the three
months ended March 31, 2008 was $40,789 which was a 14% increase when compared
to the prior period expense of $35,929 for the three months ended March 31,
2007.  We had professional fees of $55,802 and $986 for the three months
ended March 31, 2008 and 2007 which was an increase of 5559%.  The increase
in professional fees was primarily caused by expenses related to being public.  Bad debt expense
was reduced by more than half due to improved collection efforts.  Other
general and administrative expenses increased from $181,600 to $443,493, or
144%, and salaries also increased significantly due to our expansion efforts..  Expansion of the wireless business will require a
significant amount of capital. We estimate the capital need to be approximately
$30 million, to be used primarily for building infrastructure and integrating
infrastructure with our existing wireless assets. Our market area is the smaller
metropolitan area (less than 100,000 population) which is currently underserved
by current broadband solutions.  We have engaged ThomasLloyd Capital LLC as
our financial adviser to assist us in acquiring businesses in the wireless
industry as well as to assist us in raising capital, but no agreements for
specific capital raises have been entered into.  In connection with the sale of the mortgage division,
the purchaser agreed to assume all the liabilities related to that business.
There are $1,650,000 in subordinated convertible debentures (convertible at
$1.00 per share) remaining outstanding from the mortgage division. As of the
date of this filing, the convertible debentures are in default.The convertible note payable of $1,650,000, has
defaulted due to failure to make interest payments, the terms of the note
payable state that upon default the holder may declare the entire unpaid
principal balance immediately due and payable without any further notice, demand
or presentment and may exercise, without any further notice, demand or
presentment.  Off-Balance Sheet Arrangements  We do not have any off-balance sheet arrangements that
have or are reasonably likely to have a current or future effect on our
financial condition, changes in financial condition, revenues or expenses,
results of operations, liquidity, capital expenditures or capital resources that
is material to investors.  Derivatives  None.  Critical Accounting Policies  Stock Based Compensation:  The Company adopted Statement of Financial
Accounting Standards (SFAS) No. 123R (revised 2004), Share-Based Payment,
requiring the Company to recognize expense related to the fair value of its
employee stock option awards.  SFAS-123R eliminates accounting for
share-based compensation transactions using the intrinsic value method
prescribed in Accounting Principles Board Opinion No. 25 (APB-25), Accounting
for Stock Issued to Employees, and requires instead that such transactions be
accounted for using a fair-value-based method. The Company recognizes the cost
of all share-based awards on a graded vesting basis over the vesting period of
the award.  Revenue Recognition:  TelavaNVand LIP:The
Companys revenue is generated by customer subscriptions of directory and
advertising services.  Revenue is billed and recognized monthly for
services subscribed in that specific month.  The Company utilizes outside
billing companies to transmit billing data, much of which is forwarded to Local
Exchange Carriers (LECs) that provide local telephone service.  LEC Billing:When a
customer subscribes to the Companys service an electronic customer file is
created, which is the basis for the billing.  The Company submits
gross billings electronically to third party billing aggregators. These billing
aggregators compile and format electronic customer files and forward the billing
records to the appropriate LECs.  The billing for our service flows
through to monthly bills of the individual LEC customers.  The LECs
collect the Companys billing and remit amounts to the billing aggregators,
which in turn remit funds to the Company.  The following are
significant accounting estimates and assumptions used in the revenue recognition
process with respect to these billings.    Customer refunds:The
Companys customer refund policy allows the customer to request a refund if they
are not satisfied with the service within the first 30 days of the
subscription.  The Company accrues for refunds based on historical
experience of refunds as a percentage of new billings in that 30-day
period.  Customer refunds are reserved and charged against gross
revenue.  Non-paying customers:There are customers who may not pay the fee for
our services even though the Company believes they are valid subscribers. 
Included in cost of services is an accrual for estimated non-paying customers
that are recorded at the time of billing.  Dilution:The Company recognizes revenue during the
month for which the service is provided based on net billings accepted by the
billing aggregators and recognizes revenue only for accepted
records.  However, subsequent to this acceptance, there are instances
in the LEC billing process where a customer cannot be billed due to changes in
telephone numbers, telephone carriers, data synchronization issues,
etc.  These amounts that ultimately cannot be billed, as well as
certain minor billing adjustments by the LECs are commonly referred to as
dilution.  Such unbillable accounts and chargebacks are estimated at
the time of billing and charged against net revenues.  Fees:Both the aggregator and the LEC charge
processing fees.  Additionally, the LEC charges fees for responding to
billing inquiries by its customers, processing refunds, and other
customer-related services.  Such fees are estimated at the time of
billing and charged to cost of services.  Revenue for billings to certain customers whom are
billed directly by the Company and not through the LECs, is recognized based on
estimated future collections.   The Company continuously reviews this
estimate for reasonableness based on its collection experience.  Telava Wireless:  Leasing revenue for towers are
recognized on a monthly basis based on the terms and conditions of the lease
agreements.  LIP:  Printing revenue for coupon books are
recognized as services are performed.  Foreign Currency Adjustments:The financial position and results of operations
of the Companys foreign subsidiary, LIP, is measured using the foreign
subsidiarys local currency as the functional currency.  Revenues and
expenses of the subsidiary have been translated into U.S. dollars at average
exchange rates prevailing during the period.  Assets and liabilities have
been translated at the rates of exchange on the balance sheet date.  The
resulting translation gain and loss adjustments are recorded as a separate
component of shareholders equity, unless there is a sale or complete
liquidation of the underlying foreign investments.  Foreign currency
translation adjustments resulted in losses of $20,613 and $1,197,
respectively. ****  Item 3.Quantitative and Qualitative
Disclosures About Market Risk.  As a smaller reporting company as
defined by Item 10 of Regulation S-K, the Company is not required to provide
information required by this Item.  Item 4T. Controls and
Procedures.  Disclosure Controls and
Procedures   Evaluation of disclosure
controls and procedures. The Companys principal executive officer and its
principal financial officer, based on their evaluation of the Companys
disclosure controls and procedures (as defined in Exchange Act Rules 13a-14(c)
and 15d -14 (c) as of March 31, 2008. ,Based on this evaluation, our principal
executive officer and principal financial officer concluded as of the Evaluation
Date that our disclosure controls  and procedures
were not effective such that the information relating to the Company, including
our consolidated subsidiaries, required to be disclosed in our SEC reports (i)
is recorded, processed, summarized and reported within the time periods
specified in SEC rules and forms and (ii) is accumulated and communicated to
management, including our principal executive officer/principal financial
officer, as appropriate, to allow timely decisions regarding required
disclosure.  Our management, including our chief
executive officer and chief financial officer, does not expect that our
disclosure controls and procedures or our internal controls will prevent all
error and all fraud.  A control system, no matter how well conceived and
operated, can provide only reasonable, not absolute, assurance that the
objectives of the control system are met. Further, the design of a control
system must reflect the fact that there are resource constraints and the
benefits of controls must be considered relative to their costs. Due to the
inherent limitations in all control systems, no evaluation of controls can
provide absolute assurance that all control issues and instances of fraud, if
any, within the Company have been detected.  Changes in internal controls.
There were no significant changes in the Companys internal controls or in other
factors that could significantly affect the Companys internal controls
subsequent to the date of their evaluation.  PART II. OTHER INFORMATION  Item 1.    LEGAL PROCEEDINGS -
None  Item 2.    UNREGISTERED SALES OF EQUITY
SECURITIES AND USE OF PROCEEDS - NoneItem 3.    DEFAULTS UPON SENIOR
SECURITIES - None  The Company has convertible notes payable of $1,650,000,
and have defaulted due to failure to make interest payments. The terms of the
note payable state that upon default the holder may declare the entire unpaid
principal balance immediately due and payable without any further notice, demand
or presentment and may exercise, without any further notice, demand or
presentment  Item 4.    SUBMISSION OF MATTERS TO A
VOTE OF SECURITY HOLDERS - None  Item 5.    OTHER INFORMATION -
None  Item 6.    EXHIBITS  31.1   Certifications, Baldwin Yung, CEO and
CFO. 32.1   Certification pursuant to 18 U.S.C.
Section 1350 of Baldwin Yung.  SIGNATURES  Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.  TELAVA NETWORKS, INC.  Date:       June 6,
2008                                                                          
By:      /s/
BaldwinYung BaldwinYung Chief Executive and Financial Officer (Chief financial officer and accounting officer and duly authorized officer)