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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 incorporation or organization) | (I.R.S.                Employer Identification number) |

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**Remote      Knowledge, Inc.**

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

|                   | Page                                                                                                             |
|------------------------|------------------------------------------------------------------------------------------------------------------|
| PART                I  |                                                                                                             |
|                   | Item                1. Financial Statements                                                                      | 3 |
|                   | Item                2. Management’s Discussion and Analysis or Plan of                Operation            | 11 |
|                   | Item                3. Controls and Procedures                                                                   | 14 |
| PART                II |                                                                                                             |
|                   | Item                1. Legal Proceedings                                                                         | 15 |
|                   | Item                2. Unregistered Sales of Equity Securities and Use                of                Proceeds | 15 |
|                   | Item                6. Exhibits                                                                                  | 16 |

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***Index***

**PART      I — FINANCIAL INFORMATION**

**Item      1. Financial Statements.**

**Imminent      receipt of funds is necessary for the Company to remain in business. As stated      in our previous 10-QSB, financing for several million dollars was required      before the end of August for the Company to remain in business. We have not      been      able to obtain such financing. However, we have obtained several short term      loans totaling $490,000 which along with deferring vendor invoices and some      payroll have enabled the Company to survive. These invoices and payroll remain      unpaid.**

**We      continue with our efforts to obtain this financing, but if it is not completed      immediately and receipt of funds necessary to pay the unpaid vendor invoices      and      payroll is not imminent the Company will be forced to cease operations and      close.**

**The      accompanying balance sheet of Remote Knowledge, Inc. as of September 30, 2007      and the related statements of operations and statement of cash flows for the      three and nine month periods then ended have not been      reviewed.**

**The      Company does not currently have the funds available to pay our auditor to      perform the review.**

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***Index***

**Remote        Knowledge, Inc.**

**(A        Development Stage Enterprise)**

**Condensed        Balance Sheet**

**(Not        Reviewed)**

|                                                                                                                                                      |   | **September 30,                  2007** |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|-------------|
| **ASSETS**                                                                                                                                                |   |                                         |        |
| **Current                  Assets**                                                                                                                       |   |                                         |        |
| Cash                                                                                                                                                      |   | $                                            | 372         |   |
| Accounts                  receivable                                                                                                                      |   |                                         | 4,055       |   |
| Other                  receivables                                                                                                                        |   |                                         | 166,303     |   |
| Prepaid                  and other current assets                                                                                                         |   |                                         | 86,258      |   |
| Total                  current assets                                                                                                                     |   |                                         | 256,988     |   |
| **Property                  and Equipment**, net                                                                                                          |   |                                         | 245,773     |   |
| **Other                  noncurrent assets**, net                                                                                                         |   |                                         | 49,878      |   |
| Total                  assets                                                                                                                             |   | $                                            | 552,639     |   |
| **LIABILITIES                  AND SHAREHOLDERS’ DEFICIT**                                                                                          |   |                                         |        |   |
| **Current                  Liabilities**:                                                                                                                 |   |                                         |        |   |
| Accounts                  payable – trade                                                                                                           |   | $                                            | 473,126     |   |
| Accrued                  expenses                                                                                                                         |   |                                         | 2,528,141   |   |
| Deferred                  revenue                                                                                                                         |   |                                         | 53,322      |   |
| Payable                  to shareholder                                                                                                                   |   |                                         | 127,926     |   |
| Shareholder                  advances                                                                                                                     |   |                                         | 1,679,500   |   |
| Notes                  payable - related party – net of discount of $52,844                                                                         |   |                                         | 1,279,656   |   |
| Notes                  payable – net of discount of $37,280                                                                                         |   |                                         | 1,955,812   |   |
| Total                  current liabilities                                                                                                                |   |                                         | 8,090,662   |   |
|                                                                                                                                                      |   |                                         |        |   |
| Notes                  payable – related party - long-term, net of discount of                  $1,232,970                                          |   |                                         | 2,712,030   |   |
| Total                  liabilities                                                                                                                        |   |                                         | 10,802,692  |   |
|                                                                                                                                                      |   |                                         |        |   |
| **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; 6,254 shares                  issued and outstanding        |   |                                         | 6           |   |
| Common                  stock, $.001 par value; 150,000,000 shares authorized; 16,703,920                  shares                  issued and outstanding |   |                                         | 16,704      |   |
| Additional                  paid-in capital                                                                                                               |   |                                         | 64,891,607  |   |
| Deferred                  compensation                                                                                                                    |   |                                         | —     |   |
| Subscriptions                  receivable                                                                                                                 |   |                                         | (45,000     | ) |
| Accumulated                  deficit                                                                                                                      |   |                                         | (10,234,380 | ) |
| Deficit                  accumulated during development stage                                                                                             |   |                                         | (64,878,994 | ) |
| Total                  shareholders’ deficit                                                                                                        |   |                                         | (10,250,053 | ) |
| Total                  liabilities and shareholders’ deficit                                                                                        |   | $                                            | 552,639     |   |

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

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***Index***

**Remote        Knowledge, Inc.**

**(A        Development Stage Enterprise)**

**(Not        Reviewed)**

**Condensed        Statements of Operations**

|                                                      |   | **Three-Month                  Periods Ended** |       |   | **Nine-Month                  Periods Ended** |   |       | **Period                  From January 1, 2001 (inception of development                  stage)** |   |
|-----------------------------------------------------------|--------|------------------------------------------------|------------|--------|-----------------------------------------------|--------|------------|---------------------------------------------------------------------------------------------------------|--------|
|                                                      |   | **September                  30,**             |       |   | **September                  30,**            |   |       | **September                  30,**                                                                      |   |   | **September                  30,** |   |   | **to                  September 30,** |   |
|                                                      |   | **2007**                                       |       |   | **2006**                                      |   |       | **2007**                                                                                                |   |   | **2006** |   |   | **2007** |   |
| **Revenues**                                              |   | $                                              | 3,151      |   |                                          | $      | 7,150      |                                                                                                    |   | $ | 9,297 |   |   | $ | 31,461 |   |   | $ | 91,861 |   |
| **Cost                  of Goods Sold**                   |   |                                           | —    |   |                                          |   | 9,765      |                                                                                                    |   |   | — |   |   |   | 31,173 |   |   |   | 76,033 |   |
| **Gross                  Profit**                         |   |                                           | 3,151      |   |                                          |   | (2,615     | )                                                                                                       |   |   | 9,297 |   |   |   | 288 |   |   |   | 15,828 |   |
| **Operating                  Costs and Expenses**:        |   |                                           | —    |   |                                          |   | —    |                                                                                                    |   |   | — |   |   |   | — |   |   |   | 4,169,146 |   |
| Advisory                  services                        |   |                                           |       |   |                                          |   |       |                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Research                  and development                 |   |                                           | 204,412    |   |                                          |   | 148,761    |                                                                                                    |   |   | 637,213 |   |   |   | 429,261 |   |   |   | 6,829,526 |   |
| Loss                  on impairment of assets             |   |                                           | —    |   |                                          |   | —    |                                                                                                    |   |   | — |   |   |   | 14,672 |   |   |   | 2,284,164 |   |
| Professional                  fees                        |   |                                           | 25,747     |   |                                          |   | 51,371     |                                                                                                    |   |   | 229,696 |   |   |   | 323,674 |   |   |   | 3,109,704 |   |
| Advertising                  and promotion fees           |   |                                           | —    |   |                                          |   | 38,200     |                                                                                                    |   |   | 2,354 |   |   |   | 168,076 |   |   |   | 1,660,464 |   |
| General                  and administrative expenses      |   |                                           | 729,880    |   |                                          |   | 741,089    |                                                                                                    |   |   | 2,150,655 |   |   |   | 3,411,822 |   |   |   | 20,958,041 |   |
| Total                  operating costs and expenses       |   |                                           | 960,039    |   |                                          |   | 979,421    |                                                                                                    |   |   | 3,019,918 |   |   |   | 4,347,505 |   |   |   | 39,011,045 |   |
| **Loss                  from Operations**                 |   |                                           | (956,888   | )      |                                          |   | (982,036   | )                                                                                                       |   |   | (3,010,621 | ) |   |   | (4,347,217 | ) |   |   | (38,995,217 | ) |
| **Other                  Expense (Income)**:              |   |                                           |       |   |                                          |   |       |                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  expense                         |   |                                           | 709,035    |   |                                          |   | 551,221    |                                                                                                    |   |   | 1,675,838 |   |   |   | 1,673,516 |   |   |   | 7,996,134 |   |
| Amortization                  of deferred financing costs |   |                                           | —    |   |                                          |   | —    |                                                                                                    |   |   | — |   |   |   | — |   |   |   | 1,188,432 |   |
| Interest                  income                          |   |                                           | —    |   |                                          |   | —    |                                                                                                    |   |   | — |   |   |   | — |   |   |   | (27,420 | ) |
| Other                  income                             |   |                                           | —    |   |                                          |   | (3,806     | )                                                                                                       |   |   | (567 | ) |   |   | (14,195 | ) |   |   | (21,919 | ) |
| Other                  expense                            |   |                                           | —    |   |                                          |   | —    |                                                                                                    |   |   | — |   |   |   | — |   |   |   | 12,698 |   |
| Debt                  forgiveness                         |   |                                           | (627       | )      |                                          |   | (6,766     | )                                                                                                       |   |   | (627 | ) |   |   | (317,573 | ) |   |   | (1,709,018 | ) |
| Total                  other expense                      |   |                                           | 708,408    |   |                                          |   | 540,649    |                                                                                                    |   |   | 1,674,644 |   |   |   | 1,341,748 |   |   |   | 7,438,907 |   |
| **Net                  Loss**                             |   |                                           | (1,665,296 | )      |                                          |   | (1,522,685 | )                                                                                                       |   |   | (4,685,265 | ) |   |   | (5,688,965 | ) |   |   | (46,434,124 | ) |

*(Continued)*

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

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***Index***

**Remote          Knowledge, Inc.**

**(A          Development Stage Enterprise)**

**(Not        Reviewed)**

**Condensed        Statements of Operations (continued)**

|                                                                                                                                                                                        |   | **Three-Month                  Periods Ended** |       |   | **Nine-Month                  Periods Ended** |   |       | **Period                  From January 1, 2001 (Inception of Development                  Stage)** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|------------|--------|-----------------------------------------------|--------|------------|---------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                        |   | **September 30,**                         |       |   | **September 30,**                        |   |       | **September 30,**                                                                                  |   |   | **September 30,** |   |   | **to                  September 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**           |   |                                           | —    |   |                                          |   | (25,730    | )                                                                                                       |   |   | (100,000 | ) |   |   | (37,422 | ) |   |   | (11,598,958 | ) |
| **Net                  Loss Attributable to Common Shares**                                                                                                                                 |   | $                                              | (1,665,296 | )      |                                          | $      | (1,584,415 | )                                                                                                       |   | $ | (4,785,265 | ) |   | $ | (5,726,387 | ) |   | $ | (64,878,994 | ) |
| **Net                  Loss Per Share:**                                                                                                                                                    |   |                                           |       |   |                                          |   |       |                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                  and Diluted                                                                                                                                                          |   | $                                              | (.10       | )      |                                          | $      | (.11       | )                                                                                                       |   | $ | (.30 | ) |   | $ | (.41 | ) |   | $ | (7.88 | ) |
| **Number                  of Shares Used in Calculating Net Loss Per Share:**                                                                                                               |   |                                           |       |   |                                          |   |       |                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                  and Diluted                                                                                                                                                          |   |                                           | 16,428,868 |   |                                          |   | 14,596,120 |                                                                                                    |   |   | 15,887,773 |   |   |   | 14,054,317 |   |   |   | 8,228,454 |   |

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

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***Index***

**Remote          Knowledge, Inc.**

**(A          Development Stage Enterprise)**

**Condensed        Statements of Cash Flows**

**(Not        Reviewed)**

|                                                                                                                                            |   | **NINE-MONTH                  PERIODS ENDED** |       |   | **Period                  From January 1, 2001 (inception of development stage)                  to** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|------------|--------|-----------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                            |   | **September 30,**                        |       |   | **September 30,**                                                                                          |   |   | **September 30,** |   |
|                                                                                                                                            |   | **2007**                                      |       |   | **2006**                                                                                                        |   |   | **2007** |   |
| **Cash                  Flows From Operating Activities**:                                                                                      |   |                                          |       |   |                                                                                                            |   |   |   |   |
| Net                  loss                                                                                                                       |   | $                                             | (4,685,265 | )      |                                                                                                            | $      | (5,688,965 | ) |   | $ | (46,434,124 | ) |
| 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 |   |                                          | 1,351,053  |   |                                                                                                            |   | 1,360,594 |   |   |   | 6,294,303 |   |
| Depreciation                                                                                                                                    |   |                                          | 163,970    |   |                                                                                                            |   | 184,390 |   |   |   | 1,095,452 |   |
| Loss                  on impairment of fixed assets                                                                                             |   |                                          | —    |   |                                                                                                            |   | — |   |   |   | 1,564,282 |   |
| Amortization                  of deferred financing costs                                                                                       |   |                                          | 2,070      |   |                                                                                                            |   | — |   |   |   | 1,190,502 |   |
| Equity                  issued for services and interest                                                                                        |   |                                          | 328,394    |   |                                                                                                            |   | 1,636,343 |   |   |   | 10,114,006 |   |
| Provision                  for loss on inventory                                                                                                |   |                                          | —    |   |                                                                                                            |   | 14,672 |   |   |   | 758,918 |   |
| Debt                  forgiveness                                                                                                               |   |                                          | —    |   |                                                                                                            |   | (317,573 | ) |   |   | (1,708,391 | ) |
| Charge                  off of receivables                                                                                                      |   |                                          | —    |   |                                                                                                            |   | — |   |   |   | 446,414 |   |
| Changes                  in assets and liabilities:                                                                                             |   |                                          |       |   |                                                                                                            |   |   |   |   |   |   |   |
| Accounts                  receivable                                                                                                            |   |                                          | 660        |   |                                                                                                            |   | (925 | ) |   |   | (4,055 | ) |
| Inventory                                                                                                                                       |   |                                          | —    |   |                                                                                                            |   | 48,903 |   |   |   | (836,393 | ) |
| Other                  receivables                                                                                                              |   |                                          | (166,303   | )      |                                                                                                            |   | — |   |   |   | (166,303 | ) |
| Prepaid                  and other current assets                                                                                               |   |                                          | 88         |   |                                                                                                            |   | (3,909 | ) |   |   | (53,762 | ) |
| Other                  noncurrent assets                                                                                                        |   |                                          | (51,948    | )      |                                                                                                            |   | — |   |   |   | (51,948 | ) |
| Accounts                  payable – trade                                                                                                 |   |                                          | 228,150    |   |                                                                                                            |   | (300,602 | ) |   |   | 1,354,662 |   |
| Accrued                  expenses                                                                                                               |   |                                          | 345,723    |   |                                                                                                            |   | (189,415 | ) |   |   | 1,848,015 |   |
| Deferred                  revenue                                                                                                               |   |                                          | 53,322     |   |                                                                                                            |   | — |   |   |   | 53,322 |   |
| Related                  party payable                                                                                                          |   |                                          | —    |   |                                                                                                            |   | — |   |   |   | 399,259 |   |
| Net                  cash used in operating activities                                                                                          |   |                                          | (2,436,907 | )      |                                                                                                            |   | (3,256,487 | ) |   |   | (24,142,662 | ) |
| **Cash                  Flows From Investing Activities**:                                                                                      |   |                                          |       |   |                                                                                                            |   |   |   |   |   |   |   |
| Additions                  of fixed assets                                                                                                      |   |                                          | (22,256    | )      |                                                                                                            |   | (72,178 | ) |   |   | (1,033,979 | ) |
| Related                  party receivable                                                                                                       |   |                                          | —    |   |                                                                                                            |   | — |   |   |   | (300,000 | ) |
| Net                  cash used in investing activities                                                                                          |   |                                          | (22,256    | )      |                                                                                                            |   | (72,178 | ) |   |   | (1,333,979 | ) |
| **Cash                  Flows From Financing Activities**:                                                                                      |   |                                          |       |   |                                                                                                            |   |   |   |   |   |   |   |
| Payments                  of notes payable                                                                                                      |   |                                          | (43,756    | )      |                                                                                                            |   | (1,096,580 | ) |   |   | (3,439,350 | ) |
| Capital                  contributions                                                                                                          |   |                                          | —    |   |                                                                                                            |   | — |   |   |   | 27,900 |   |
| Proceeds                  from SMH note payable                                                                                                 |   |                                          | —    |   |                                                                                                            |   | — |   |   |   | 1,500,000 |   |
| Proceeds                  from short term note payable                                                                                          |   |                                          | 950,000    |   |                                                                                                            |   | 2,950,000 |   |   |   | 4,485,000 |   |
| Proceeds                  from sale of common stock                                                                                             |   |                                          | —    |   |                                                                                                            |   | — |   |   |   | 903,800 |   |
| Proceeds                  from other notes payable                                                                                              |   |                                          | 124,208    |   |                                                                                                            |   | 62,710 |   |   |   | 3,482,949 |   |
| Proceeds                  from advance from related party                                                                                       |   |                                          | 4,500      |   |                                                                                                            |   | — |   |   |   | 4,500 |   |
| Net                  proceeds from sale of mandatory redeemable preferred stock                                                                 |   |                                          | —    |   |                                                                                                            |   | — |   |   |   | 5,040,033 |   |
| Net                  proceeds from sale of series B preferred stock with                  warrants                                              |   |                                          | —    |   |                                                                                                            |   | 145,000 |   |   |   | 7,114,073 |   |
| Net                  proceeds from related party note payable                                                                                   |   |                                          | 905,000    |   |                                                                                                            |   | 1,270,000 |   |   |   | 6,325,000 |   |
| Net                  cash provided by financing activities                                                                                      |   |                                          | 1,939,952  |   |                                                                                                            |   | 3,331,130 |   |   |   | 25,443,905 |   |
| Net                  Change in Cash and Cash Equivalents                                                                                        |   |                                          | (519,211   | )      |                                                                                                            |   | 2,465 |   |   |   | (32,736 | ) |
| **Cash                  and Cash Equivalents**, beginning of period                                                                             |   |                                          | 519,583    |   |                                                                                                            |   | 4,991 |   |   |   | 33,108 |   |
| **Cash                  and Cash Equivalents**, end of period                                                                                   |   | $                                             | 372        |   |                                                                                                            | $      | 7,456 |   |   | $ | 372 |   |

*(Continued)*

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

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***Index***

**Remote          Knowledge, Inc.**

**(A          Development Stage Enterprise)**

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

**(Not        Reviewed)**

|                                                                                                                                                                                           |   | **NINE-MONTH                  PERIODS ENDED** |    |   | **Period                  From January 1, 2001 (inception of development stage)                  to** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|---------|--------|------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                           |   | **September 30,**                        |    |   | **September 30,**                                                                                     |   |   | **September 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 shares; 0 shares; and 1,694,179 shares,                  respectively) upon conversion of Series A preferred stock                           |   | $                                             | 86      |   |                                                                                                       | $      | — |   |   | $ | 1,694 |   |
| Issuance                  of common stock (466,670 shares; 1,473,332 shares; and 7,200,670                  shares,                  respectively) upon conversion of Series B preferred stock |   | $                                             | 467     |   |                                                                                                       | $      | 1,473 |   |   | $ | 7,201 |   |
| Issuance                  of common stock upon conversion of mandatorily redeemable preferred                  stock                  classified as debt                                       |   | $                                             | — |   |                                                                                                       | $      | — |   |   | $ | 20,000 |   |
| Reclassification                  of mandatory 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 |   |                                                                                                       | $      | 37,422 |   |   | $ | 11,598,958 |   |
| Reclassification                  of demo units from inventory to property and equipment                                                                                                       |   | $                                             | — |   |                                                                                                       | $      | — |   |   | $ | 77,475 |   |
| Discount                  related to notes payable                                                                                                                                             |   | $                                             | 471,085 |   |                                                                                                       | $      | 2,070,000 |   |   | $ | 5,655,592 |   |
| Conversion                  of notes payable into convertible debt                                                                                                                             |   | $                                             | — |   |                                                                                                       | $      | — |   |   | $ | 375,000 |   |
| Conversion                  of accrued expenses into notes payable                                                                                                                             |   | $                                             | — |   |                                                                                                       | $      | — |   |   | $ | 87,028 |   |
| Issuance                  of common stock (1,073,893 shares; 0 shares; and 1,073,893 shares,                  respectively) with bridge loans                                                  |   | $                                             | 1,074   |   |                                                                                                       | $      | — |   |   | $ | 1,074 |   |
| Issuance                  of common stock (90,000 shares; 0 shares; and 90,000 shares, respectively)                  with restricted stock grant                                              |   | $                                             | 90      |   |                                                                                                       | $      | — |   |   | $ | 90 |   |
| **Supplemental                  Disclosure of Cash Flow Information**:                                                                                                                         |   |                                          |    |   |                                                                                                       |   |   |   |   |   |   |   |
| Cash                  paid for interest                                                                                                                                                        |   | $                                             | 22,495  |   |                                                                                                       | $      | 190,323 |   |   | $ | 405,617 |   |

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

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***Index***

**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**

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***Index***

**Remote      Knowledge, Inc.**

**Notes      To Condensed Financial Statements**

**Note      4 — Net Loss Per Common Share**

**Note      5 — Subsequent Events**

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***Index***

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

|   | **•** | timing                of products and new product                releases, |
|--------|-------------|----------------------------------------------------------------------------|

|   | **•** | research                and development expenditures, including the timing, amount and nature                thereof, |
|--------|-------------|-----------------------------------------------------------------------------------------------------------------------|

|   | **•** | estimates                of additional capital requirements, |
|--------|-------------|--------------------------------------------------------------|

|   | **•** | sales                projections, |
|--------|-------------|-----------------------------------|

|   | **•** | repayment                of debt, |
|--------|-------------|-----------------------------------|

|   | **•** | business                strategies, |
|--------|-------------|-------------------------------------|

|   | **•** | product                pricing and demand, and |
|--------|-------------|------------------------------------------------|

|   | **•** | expansion                and growth of business operations. |
|--------|-------------|-------------------------------------------------------------|

|   | **•** | the                availability of additional financing on favorable                conditions, |
|--------|-------------|-------------------------------------------------------------------------------------------------|

|   | **•** | general                economic, market and business                conditions, |
|--------|-------------|---------------------------------------------------------------------------------|

|   | **•** | the                success of our engineering efforts, |
|--------|-------------|--------------------------------------------------------|

|   | **•** | our                ability to protect our intellectual                property, |
|--------|-------------|---------------------------------------------------------------------------------|

|   | **•** | business                opportunities that may be presented to and pursued by                us, |
|--------|-------------|--------------------------------------------------------------------------------------------------|

|   | **•** | changes                in laws or regulations, and |
|--------|-------------|----------------------------------------------------|

|   | **•** | successful                exploitation of our market                opportunities. |
|--------|-------------|------------------------------------------------------------------------------------|

|   | **•** | our                inability to obtain financing for research and development, manufacturing,                and marketing expenditures, |
|--------|-------------|------------------------------------------------------------------------------------------------------------------------------------------|

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***Index***

|   | **•** | our                inability to compete against existing or future                competitors, |
|--------|-------------|------------------------------------------------------------------------------------------------|

|   | **•** | a                substantial increase in the cost of our                products, |
|--------|-------------|-----------------------------------------------------------------------------------|

|   | **•** | declines                in the market prices for our products,                and |
|--------|-------------|-----------------------------------------------------------------------------------|

|   | **•** | adverse                changes in our target markets. |
|--------|-------------|-------------------------------------------------------|

**OVERVIEW      AND COMPANY STATUS**

**Imminent      receipt of funds is necessary for the Company to remain in business. As stated      in our previous 10-QSB, financing for several million dollars was required      before the end of August for the Company to remain in business. We have not      been      able to obtain such financing. However, we have obtained several short term      loans totaling $490,000 which along with deferring vendor invoices and some      payroll have enabled the Company to survive. These invoices and payroll remain      unpaid.**

**We      continue with our efforts to obtain this financing, but if it is not completed      immediately and receipt of funds necessary to pay the unpaid vendor invoices      and      payroll is not imminent the Company will be forced to cease operations and      close.**

----

***Index***

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***Index***

**Item      3. Controls and Procedures.**

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***Index***

**PART      II — OTHER INFORMATION**

**Item      1. Legal Proceedings — None**

**Item      2. Unregistered Sales of Equity Securities and Issuance of      Notes and Use of Proceeds.**

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***Index***

**Item      6. Exhibits.**

| 1.     |   | Exhibit                10.1 | Summary                of Director Compensation                                                                            |
|--------|--------|-----------------------------|----------------------------------------------------------------------------------------------------------------------------|
|   |   |                        |                                                                                                                       |
| 2.     |   | Exhibit                10.2 | Bridge                Loan Promissory Note in the amount of $50,000 payable to Mark                Sullivan                |
|   |   |                        |                                                                                                                       |
| 3.     |   | Exhibit                10.3 | Bridge                Loan Promissory Note in the amount of $200,000 payable to 2003 Sanders                Children Trust |
|   |   |                        |                                                                                                                       |
| 4.     |   | Exhibit                10.4 | Bridge                Loan Promissory Note in the amount of $50,000 payable to Neil                Granader                |
|   |   |                        |                                                                                                                       |
| 5.     |   | Exhibit                10.5 | Bridge                Loan Promissory Note in the amount of $150,000 payable to David                Cain                  |
|   |   |                        |                                                                                                                       |
| 6.     |   | Exhibit                10.6 | Bridge                Loan Promissory Note in the amount of $40,000 payable to Sylvia                Granader              |
|   |   |                        |                                                                                                                       |
| 7.     |   | Exhibit                10.7 | Stock                Option Grant Notice William H. Moody                                                                  |
|   |   |                        |                                                                                                                       |
| 8.     |   | Exhibit                10.8 | Stock                Option Grant Notice Steve Phelps                                                                      |
|   |   |                        |                                                                                                                       |
| 9.     |   | Exhibit                31.1 | Certification                required by Section 302 of the Sarbanes-Oxley Act of                2002                      |
|   |   |                        |                                                                                                                       |
| 10.    |   | Exhibit                31.2 | Certification                required by Section 302 of the Sarbanes-Oxley Act of                2002                      |
|   |   |                        |                                                                                                                       |
| 11.    |   | Exhibit                32   | Certification                required by Section 906 of the Sarbanes-Oxley Act of                2002                      |

----

***Index***

**SIGNATURES**

|                                   | Remote                Knowledge, Inc.   |
|----------------------------------------|---------------------------------------------------|
|                                   |                                    |
|                                   | By:                                               | /s/                Randy S. Bayne |   |
|                                   |                                              | Randy                S. Bayne  |
|                                   |                                              | Chief                Executive Officer  |
|                                   |                                    |
| Date:                November 14, 2007 | By:                                               | /s/                D. Henry Houston |   |
|                                   |                                              | D.                Henry Houston  |
|                                   |                                              | Chief                Financial and Accounting Officer  |

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