**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**WASHINGTON,
      D.C. 20549**





**FORM
      10-Q**




**x**
            **QUARTERLY
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                1934**For
                the quarterly period ended June 30,
                2008**o**
            **TRANSITION
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of
                1934**





For
      the
      transition period from ______________ to ______________





Commission
      file number 000-105778





**JUMA
                TECHNOLOGY CORP.**(Exact
                Name of Registrant as Specified in its Charter)Delaware
            
            68-0605151(State
                or other jurisdiction of incorporation
              or
                organization)
            
            (I.R.S.
                Employer Identification No.)**154
                TOLEDO STREET, FARMINGDALE, NY 11735**
            
            **11735**(Address
                of Principal Executive Offices)
            
            (Zip
                Code)**(631)
                300-1000**(Registrant’s
                telephone number, including area code)


Check
      whether the registrant (1) has filed all reports required to be filed by Section
      13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
      months (or for such shorter period that the registrant was required to file
      such
      reports), and (2) has been subject to such filing requirements for the past
      90
      days. x Yes o
      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
      definitions of “large accelerated filer,” “accelerated filer,” and “smaller
      reporting company” in Rule 12b-2 of the Exchange Act. (Check one):





Large
                accelerated filer o
            Accelerated
                filer oNon-accelerated
                filer o(Do
                not check if a smaller reporting company)
            Smaller
                reporting companyþ





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act). Yes oNo x





Indicate
      the number of shares outstanding of each of the issuer’s classes of common
      equity, as of the latest practicable date. 43,948,950 Common
      Shares as of July 29, 2008








**TABLE
      OF CONTENTS**





Page**PART
                I - FINANCIAL INFORMATION****Item
                1.**
            **Unaudited
                Condensed Consolidated Financial Statements**Condensed
                Consolidated Balance Sheet as of June 30, 2008 and December 31,
                2007
            
            3Condensed
                Consolidated Statement of Operations for the three and six months
                ended
                June 30, 2008 and 2007
            
            4Condensed
                Consolidated Statement of Cash Flows for the six months ended June
                30,
                2008 and 2007
            
            5Notes
                to Condensed Consolidated Financial Statements
            
            6-18**Item
                2.**
            **Management’s
                Discussion and Analysis of Financial Condition and Results of
                Operations**Results
                of Operations for the three and six months ended June 30, 2008 and
                2007
            
            19-21Liquidity
                and Capital Resources
            
            22-24**Item
                3.**
            **Quantitative
                and Qualitative Disclosures about Market Risk**
            
            24**Item
                4.**
              **and
                4T.**
            **Controls
                and Procedures**
            
            24-25**PART
                II - OTHER INFORMATION****Item
                1.**
            **Legal
                Proceedings**
            
            26**Item
                1A.**
            **Risk
                Factors**
            
            26**Item
                2.**
            **Unregistered
                Sales of Equity Securities and Use of Proceeds**
            
            26**Item
                3.**
            **Defaults
                Upon Senior Securities**
            
            26**Item
                4.**
            **Submission
                of Matters to Vote of Security Holders.**
            
            26**Item
                5.**
            **Other
                Information**
            
            26**Item
                6.**
            **Exhibits**
            
            27Signatures
            
            28Certifications
            
            29
                - 32





2


**PART
      I - FINANCIAL INFORMATION**





**Item
      1. Financial Statements**





**Juma
      Technology Corp. and Subsidiaries**


**Condensed
      Consolidated Balance Sheet**





**June
                30,**
              **2008**
            
            **December
                31,**
              **2007**(Unaudited)
            
            
            (Audited)ASSETSCurrent
                assets:Cash
            
            $
            943,231
            
            $
            302,889Accounts
                receivable, (net of allowance of $196,955 and $0,
                respectively)
            
            
            3,918,511
            
            
            3,775,360Inventory
            
            
            156,288
            
            
            184,357Prepaid
                expenses
            
            
            71,219
            
            
            100,180Other
                current assets
            
            
            281,128
            
            
            312,051Total
                current assets
            
            
            5,370,377
            
            
            4,674,837Fixed
                assets, (net of accumulated depreciation of $643,243 and $540,344,
                respectively)
            
            
            1,909,195
            
            
            1,686,189Other
                assets:Security
                deposits
            
            
            109,252
            
            
            101,700Total
                assets
            
            $
            7,388,824
            
            $
            6,462,726LIABILITIES
                AND STOCKHOLDERS’ DEFICIENCYCurrent
                liabilities:Convertible
                notes payable, (net of discount of $109,078 and $219,444,
                respectively)
            
            $
            1,292,288
            
            $
            905,556Current
                portion of capital leases payable
            
            
            213,651
            
            
            196,720Accounts
                payable
            
            
            3,042,386
            
            
            2,564,353Accrued
                expenses and taxes payable
            
            
            1,293,480
            
            
            552,006Deferred
                revenue
            
            
            1,278,261
            
            
            654,032Total
                current liabilities
            
            
            7,120,066
            
            
            4,872,667Capital
                leases payable, net of current maturities
            
            
            286,614
            
            
            397,256Convertible
                notes payable, (net of discount of $441,541 and $484,376,
                respectively)
            
            
            6,686,692
            
            
            3,615,624Total
                liabilities
            
            
            14,093,372
            
            
            8,885,547Commitments
                and contingenciesStockholders’
                deficiencySeries
                A Preferred stock, $0.0001 par value, 8,333,333 shares authorized,
                8,333,333 shares issued and outstanding, respectively
            
            
            833
            
            
            833Series
                B Preferred stock, $0.0001 par value, 1,666,667 shares authorized,
                498,000
                and 0 shares issued and outstanding, respectively
            
            
            50
            
            
            -Common
                stock, $0.0001 par value, 900,000,000 shares authorized, 43,948,950
                and
                43,943,950 shares issued and outstanding, respectively
            
            
            4,394
            
            
            4,394Additional
                paid in capital
            
            
            17,300,855
            
            
            15,342,357Retained
                deficit
            
            
            (24,010,680
            )
            
            (17,770,405
            )Total
                stockholders’ deficiency
            
            
            (6,704,548
            )
            
            (2,422,821
            )Total
                liabilities and stockholders’ deficiency
            
            $
            7,388,824
            
            $
            6,462,726





The
      accompanying notes are an integral part of these Condensed Consolidated
      Financial Statements.


3


**Juma
      Technology Corp. and Subsidiaries**


**Condensed
      Consolidated Statement of Operations**


**For
      the three and six months ended June 30,**





**Three
                months ended**
            
            **Three
                months ended**
            
            **Six
                months ended**
            
            **Six
                months ended****June
                30,**
            
            **June
                30,**
            
            **June
                30,**
            
            **June
                30,****2008**
            
            **2007**
            
            **2008**
            
            **2007**Sales
            
            $
            4,974,747
            
            $
            3,528,959
            
            $
            9,611,626
            
            $
            6,240,064Cost
                of goods sold
            
            
            3,919,401
            
            
            2,901,506
            
            
            7,573,500
            
            
            5,324,050Gross
                margin
            
            
            1,055,346
            
            
            627,453
            
            
            2,038,126
            
            
            916,014Operating
                expenses:Selling
            
            
            536,546
            
            
            629,552
            
            
            1,057,105
            
            
            1,309,276Research
                and development
            
            
            207,937
            
            
            177,091
            
            
            389,522
            
            
            177,091Goodwill
                impairment
            
            
            -
            
            
            -
            
            
            204,600
            
            
            1,995,259General
                and administrative
            
            
            2,362,709
            
            
            1,276,974
            
            
            4,621,774
            
            
            2,068,062Total
                operating expenses
            
            
            3,107,192
            
            
            2,083,617
            
            
            6,273,001
            
            
            5,549,688(Loss)
                from operations
            
            
            (2,051,846
            )
            
            (1,456,164
            )
            
            (4,234,875
            )
            
            (4,633,674
            )Interest
                income/(expense), net
            
            
            (584,691
            )
            
            (43,081
            )
            
            (891,501
            )
            
            (68,603
            )(Loss)
                before income taxes
            
            
            (2,636,537
            )
            
            (1,499,245
            )
            
            (5,126,376
            )
            
            (4,702,277
            )Provision/(Benefit)
                for income taxes
            
            
            299
            
            
            -
            
            
            1,699
            
            
            (306,783
            )Net
                (loss)
            
            $
            (2,636,836
            )
            $
            (1,499,245
            )
            $
            (5,128,075
            )
            $
            (4,395,494
            )Deemed
                preferred stock dividend
            
            
            1,112,200
            
            
            -
            
            
            1,112,200
            
            
            -Net
                (loss) attributable tocommon
                shareholders
            
            $
            (3,749,036
            )
            $
            (1,499,245
            )
            $
            (6,240,275
            )
            $
            (4,395,494
            )Basic
                and diluted net (loss)attributable
                to common shareholdersper
                share
            
            $
            (0.09
            )
            $
            (0.04
            )
            $
            (0.14
            )
            $
            (0.11
            )Weighted
                average common shares outstanding
            
            
            43,948,950
            
            
            42,144,560
            
            
            43,947,741
            
            
            41,843,167





The
      accompanying notes are an integral part of these Condensed Consolidated
      Financial Statements.


4


**Juma
      Technology Corp. and Subsidiaries**


**Condensed
      Consolidated Statements of Cash Flows**


**For
      the six months ended June 30,**





2008
            
            2007Operating
                ActivitiesNet
                loss
            
            $
            (5,128,075
            )
            $
            (4,395,494
            )Adjustments
                to reconcile net (loss) to net cash (used) by operating
                activities:Depreciation
                expense
            
            
            171,244
            
            
            95,393Deferred
                taxes
            
            
            -
            
            
            (306,783
            )Stock
                option compensation expense
            
            
            449,412
            
            
            30,722Amortization
                of discount on notes payable
            
            
            541,460
            
            
            -Bad
                debt expense
            
            
            68,783
            
            
            -Amortization
                of loan costs
            
            
            34,190
            
            
            -Impairment
                of goodwill derived from notes
            
            
            204,600
            
            
            -Changes
                in operating assets and liabilities:Accounts
                receivable
            
            
            (211,934
            )
            
            516,255Inventory
            
            
            28,069
            
            
            (553,116
            )Prepaid
                expenses
            
            
            28,961
            
            
            291,821Other
                current assets
            
            
            121,733
            
            
            15,063Security
                deposit
            
            
            (7,553
            )
            
            (47,739
            )Accounts
                payable and accrued expenses
            
            
            1,219,507
            
            
            1,174,143Deferred
                revenue
            
            
            641,160
            
            
            (178,576
            )Net
                cash flows (used) by operating activities
            
            
            (1,838,443
            )
            
            (3,358,311
            )Investing
                ActivitiesAcquisition
                of fixed assets
            
            
            (238,073
            )
            
            (45,477
            )Note
                receivable
            
            
            -
            
            
            251,041Acquisition
                of Nectar, net of cash
            
            
            -
            
            
            1,724,103Net
                cash flows (used) provided by investing activities
            
            
            (238,073
            )
            
            1,929,667Financing
                ActivitiesIssuance
                of common stock
            
            
            -
            
            
            (282,888
            )Proceeds
                from loan
            
            
            -
            
            
            215,000Proceeds
                from issuance of convertible promissory notes
            
            
            2,900,000
            
            
            1,725,000Proceeds
                for stock option exercise
            
            
            2,500
            
            
            -Proceeds
                from long-term debt
            
            
            -
            
            
            52,660Repayment
                of convertible promissory notes
            
            
            (75,000
            )
            
            -Repayment
                of capital leases payable
            
            
            (110,642
            )
            
            -Repayment
                of loan
            
            
            -
            
            
            (293,576
            )Repayment
                of long-term debt
            
            
            -
            
            
            (54,003
            )Subscription
                receivable
            
            
            -
            
            
            18,427Net
                cash flows provided by financing activities
            
            
            2,716,858
            
            
            1,380,620Net
                change in cash
            
            
            640,342
            
            
            (48,024
            )Cash,
                beginning of year
            
            
            302,889
            
            
            191,470Cash,
                end of year
            
            $
            943,231
            
            $
            143,446Supplemental
                Cash Flow Information:Interest
                paid
            
            $
            350,259
            
            $
            56,726Income
                taxes paid
            
            $
            1,400
            
            $
            455NONCASH
                INVESTING ACTIVITYImpairment
                of goodwill derived from notes receivable/payable (net)
            
            $
            204,600
            
            $
            -Acquisition
                of fixed assets through capital leases
            
            $
            -
            
            $
            66,593Fixed
                assets acquired through the issuance of notes and warrants
            
            $
            156,177
            
            $
            -





The
      accompanying notes are an integral part of these Condensed Consolidated
      Financial Statements.


5


**Juma
      Technology Corp. and Subsidiaries**


**Notes
      to Condensed Consolidated Financial Statements**


**June
      30, 2008**




NOTE
      1
      - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES





Organization




Juma
      Technology, LLC, was formed in the State of New York on July 12, 2002. On
      November 14, 2006, Juma Technology, LLC consummated an agreement with X and
      O
      Cosmetics, Inc. to merge 100% of its member interests (“Reverse Merger”) in
      exchange for 33,250,731 shares of common stock in X and O Cosmetics, Inc. The
      transaction was treated for accounting purposes as a recapitalization by Juma
      Technology, LLC as the accounting acquirer.





Prior
      to
      the Reverse Merger, there were 259,830,000 shares of our common stock
      outstanding. As part of the Reverse Merger, 33,250,731 shares of our common
      stock were issued to former members of Juma Technology, LLC and their
      affiliates, and our former officer and director, Glen Landry returned
      251,555,731 of his 256,500,000 shares of common stock back to treasury; after
      giving effect to this share cancellation, there were 8,274,269 shares of common
      stock outstanding at the time of the reverse merger. Following the transaction
      there were 41,535,000 shares of common stock issued and outstanding .





On
      January 28, 2007, X and O Cosmetics, Inc. changed its name to Juma Technology
      Corp.





Juma
      Technology Corp. (the “Company”) is a highly specialized convergence systems
      integrator with a complete suite of services for the implementation and
      management of an entity’s data, voice and video requirements. The Company is
      focused on providing converged communications solutions for various vertical
      markets with an emphasis in driving long-term professional services engagements,
      maintenance, monitoring and management contracts. The Company utilizes several
      different technologies in order to provide its expertise and solutions to
      clients across a broad spectrum of business-critical requirements, regardless
      of
      the objectives. The Company also offers telephone carrier services that enhance
      functionality and increase fault-tolerance while providing for robust business
      continuity via disaster recovery mechanisms. Its flagship offering allows
      Internet Protocol PBX’s to be interconnected within a client’s global network
      and to the Public Switched Telephone Network in thirty minutes or less,
      regardless of the PBX manufacturer.





The
      Company also operates a wholly-owned subsidiary, AGN Networks, Inc. (“AGN”)
      which was acquired on March 6, 2007 utilizing another wholly-owned subsidiary
      of
      the Company, Juma Acquisition Corp. (“Juma Acquisition”). In February 2008, AGN
      Networks, Inc. changed its name to Nectar Services Corp.
      (“Nectar”).




6





**Juma
        Technology Corp. and Subsidiaries**
 **Notes
        to Condensed Consolidated Financial Statements**
 **June
        30, 2008**





NOTE
      1
      - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
      (continued)





While
      the
      Company operates through different subsidiaries, management believes that all
      such subsidiaries constitute a single operating segment since the subsidiaries
      have similar economic characteristics.





The
      financial statements include the accounts of the Company and its wholly-owned
      subsidiaries Nectar and Juma Acquisition. All material intercompany balances
      and
      transactions have been eliminated in the consolidated financial
      statements.





The
      accompanying interim condensed consolidated financial statements have been
      prepared, without audit, in accordance with the instructions to Form 10-Q for
      interim financial reporting pursuant to the rules and regulations of the
      Securities and Exchange Commission. While these statements reflect all normal
      recurring adjustments which are, in the opinion of management, necessary for
      a
      fair presentation of the results of the interim period, they do not include
      all
      of the information and footnotes required by U.S. generally accepted accounting
      principles for complete financial statements. Therefore, the interim condensed
      consolidated financial statements should be read in conjunction with the
      consolidated financial statements and notes included in the Company’s annual
      report filed on Form 10-KSB for the fiscal year ended December 31,
      2007.





The
      results and trends on these interim condensed consolidated financial statements
      for the three and six months ended June 30, 2008 and 2007 may not be
      representative of those for the full fiscal year or any future
      periods.





Revenue
      Recognition





The
      Company derives revenue primarily from the sale and service of communication
      systems and applications. The Company recognizes revenue when persuasive
      evidence of an arrangement exists, delivery has occurred, the fee is fixed
      and
      determinable, collectability is reasonably assured, contractual obligations
      have
      been satisfied, and title and risk of loss have been transferred to the
      customer. Revenues from the sales of products that include installation services
      are recognized on the percentage of completion basis pursuant to the provisions
      of Statement of Position No. 81-1, "Accounting for Performance of
      Construction-type and Certain Production-type Contracts" and Accounting Research
      Bulletin ("ARB") No. 45, "Long-term Construction-type Contracts".




7





**Juma
        Technology Corp. and Subsidiaries**
 **Notes
        to Condensed Consolidated Financial Statements**
 **June
        30, 2008**
  NOTE
        1
        - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
        (continued)





For
      each
      contract, the Company compares the costs incurred in the course of performing
      such contract during a reporting period to the total estimated costs of full
      performance of the contract and recognizes a proportionate amount of revenue
      for
      such period. Revenue from the sales of products that include installation
      services is recognized at the time the products are installed, after
      satisfaction of all the terms and conditions of the underlying customer
      contract. The Company also derives revenue from maintenance services, including
      services provided under contracts and on a time and materials basis. Maintenance
      contracts typically have terms that range from one to five years. Revenue from
      services performed under maintenance contracts is deferred and recognized
      ratably over the term of the underlying customer contract or at the end of
      the
      contract, when obligations have been satisfied. For services performed on a
      time
      and materials basis, revenue is recognized upon performance of the services.
      The
      Company also earns commissions on maintenance contracts. Revenues are recognized
      on the commissions over the term of the related maintenance
      contract.





Inventory





Inventory,
      which consists of finished goods, is valued at the lower of cost or market.
      The
      first-in, first-out method is used to value the inventory.





Earnings
      Per Share





Basic
      earnings per share are calculated by dividing net income (loss) by the weighted
      average of common shares outstanding during the year. Diluted earnings per
      share
      is calculated by using the weighted average of common shares outstanding
      adjusted to include the potentially dilutive effect of outstanding stock
      options, warrants, convertible loans and other convertible securities utilizing
      the treasury stock method. There were 15,943,000 and 18,686,000 potentially
      dilutive shares for the three and six months ended June 30, 2008, respectively.
      There were 4,885,500 potentially dilutive shares for the three and six months
      ended June 30, 2007. The effect of the potentially dilutive shares has been
      ignored, as it would be antidilutive.





Reclassifications





Certain
      amounts included for the period ended June 30, 2007 in the financial statements
      have been reclassified to conform with the presentation for the period ended
      June 30, 2008.




8





**Juma
        Technology Corp. and Subsidiaries**
 **Notes
        to Condensed Consolidated Financial Statements**
 **June
        30, 2008**


NOTE
      2
      - ACCOUNTS RECEIVABLE





Accounts
      receivable consists of the following:





**June
                30,**
              **2008**
            ****
            **December
                31,**
              **2007**Billed
            
            $
            2,624,017
            
            $
            2,339,223Unbilled
                (costs in excess of billings)
            
            
            1,294,494
            
            
            1,436,137$
            3,918,511
            
            $
            3,775,360





We
      make
      ongoing estimates relating to the collectability of our accounts receivable
      and
      maintain an allowance for estimated losses resulting from the inability of
      our
      customers to make required payments. Estimates used in determining accounts
      receivable allowances are based on specific customer account reviews and
      historical experience of credit losses. We also apply judgment including
      assessments about changes in economic conditions, concentration of receivables
      among customers and industries, recent write-off trends, rates of bankruptcy,
      and credit quality of specific customers. Unanticipated changes in the financial
      condition of customers, the resolution of various disputes, or significant
      changes in the economy could impact the reserves required. As of June 30, 2008
      and December 31, 2007 the allowance for doubtful accounts was $196,955 and
      $0,
      respectively.




NOTE
      3
      - NOTE RECEIVABLE





On
      December 15, 2006, the Company loaned $250,000 to AGN Networks, Inc. a Florida
      corporation (“AGN”), pursuant to the terms of a Promissory Note (the “Note”).
      The Note is unsecured and bears interest at the rate of 8% per annum payable
      to
      the Company on or about December 15, 2007. On March 6, 2007, the Company entered
      into and closed on an agreement and plan of merger with AGN, and as a result,
      AGN has become a wholly-owned subsidiary of the Company. The Company forgave
      $125,000 of the Note, which was assumed by Avatel Technologies,
      Inc.





On
      September 18, 2007, an addendum to the merger agreement between the Company
      and
      AGN stated, among other items, that if the Company does not acquire the business
      of Avatel Technologies, Inc. then the forgiveness of the $125,000 is void and
      the $125,000 would be payable to the Company upon written notice.




9





**Juma
        Technology Corp. and Subsidiaries**
 **Notes
        to Condensed Consolidated Financial Statements**
 **June
        30, 2008**
 NOTE
        4
        - ACQUISITION OF AGN NETWORKS, INC.





On
      March
      6, 2007, the Company completed the acquisition of AGN through the merger of
      AGN
      into a newly formed wholly-owned subsidiary of the Company, Juma
      Acquisition ,
      pursuant to an Agreement and Plan of Merger, dated March 6, 2007 (the
      "Agreement"). In accordance with the terms and provisions of the Agreement,
      in
      exchange for all of the capital stock of AGN, the Company paid a total of
      $200,000 to Mr. Ernie Darias and Mr. Albert Rodriquez (the "AGN shareholders").
      This amount was paid by issuing ninety day promissory notes to each of Mr.
      Darias and Mr. Rodriquez. In addition, the Agreement provides that Juma will
      forgive $125,000 of the loan previously made to AGN. Also, the Company issued
      an
      aggregate of 320,000 shares of common stock to the shareholders of AGN in
      connection with the Agreement. The Company committed that the 320,000 shares
      will have a value of at least $640,000 one year from the date of the Agreement
      or the Company will issue to the AGN shareholders a two-year promissory note
      reflecting the difference between the value of the 320,000 shares and $640,000.
      The Company also paid off certain obligations of AGN to Avatel Technologies,
      Inc., an entity owned by certain shareholders of AGN, in the aggregate amount
      of
      $675,000 by paying $200,000 in cash and by issuing a promissory note for the
      balance. The Company has entered into an employment agreement with Mr.
      Rodriquez. The Employment Agreement with Mr. Rodriquez is for a term of two
      years and a base salary of $125,000 per annum.





On
      September 18, 2007, an Addendum (the “Addendum”) was added to the Agreement. The
      Addendum stated that AGN would pay an additional $188,216 towards obligations
      due to Avatel Technologies, Inc. in exchange for the forgiveness of any
      intercompany loans or claims that Avatel Technologies, Inc. and its shareholders
      may have against the Company or AGN. The Addendum also stated that $125,000
      of
      the Note which was forgiven would be payable to the Company, at any time, if
      the
      Company does not acquire the business of Avatel Technologies, Inc. (See Note
      3)





Associated
      with the acquisition of AGN the Company recorded goodwill of $1,870,259, which
      was deemed impaired in March 2007. In September 2007, a reduction to the
      impaired goodwill of $425,779 was recorded. This adjustment to the impaired
      goodwill is related to the Addendum and the forgiveness of any intercompany
      loans. As of September 30, 2007, the impaired goodwill was
      $1,444,713.





In
      March
      2008, the Company recorded a loan for $329,600 to the shareholders of AGN,
      pursuant to the agreement. This loan bears interest at a rate of 7.5%, and
      principal and interest are payable in quarterly instalments over two years.
      Concurrent with the execution of this loan, the Company exercised its right
      to
      receive the $125,000 due to the Company based on the Addendum signed on
      September 18, 2007. The net effect of these transactions resulted in an
      adjustment to the purchase price and the creation of goodwill of $204,600,
      which
      was deemed impaired.




10





**Juma
        Technology Corp. and Subsidiaries**
 **Notes
        to Condensed Consolidated Financial Statements**
 **June
        30, 2008**


NOTE
      5
      -CONVERTIBLE NOTES PAYABLE





During
      May 2006, the Company issued two promissory notes for $75,000 each. Interest
      on
      these notes accrues at 2%, and the notes mature on or before August 22, 2006
      or
      upon receipt or gross proceeds of at least $250,000 from the sale of any debt
      or
      equity securities. During July 2006, the Company received gross proceeds of
      over
      $250,000 in debt and triggered the default interest rate of 8%, and the holder
      of the promissory notes has extended the maturity date to December 31, 2006.
      During August 2007, the holder of the notes converted both notes and all accrued
      interest into 326,450 shares of common stock.





On
      February 7, 2007, the Company began offering up to $2,000,000 of Convertible
      Promissory Notes (“Notes”). The Notes are non-interest bearing, mature in
      eighteen months and are convertible, at the holders option, into common stock
      of
      the Company at $1.00 per share. Each investor will also receive one-half share
      of common stock for each dollar of the principal amount of the Notes purchased.
      As of March 31, 2008, the Company has sold $2,225,000 in Notes. Of this amount,
      $100,000 has been converted into common stock; $1,000,000 is interest bearing
      at
      a rate of 14% with interest payments being made monthly; and $75,000 has been
      repaid and the note canceled. In
      connection with the reporting of these convertible notes, the Company has not
      recorded a beneficial conversion feature as the conversion price was in excess
      of the stock price on the date the notes were entered into. The Company has
      recorded a discount of $741,667 to record the cost of the shares issued in
      lieu
      of interest.





On
      August
      16, 2007, The Company signed a $5,000,000, 6% convertible promissory note with
      Vision Opportunity Master Fund, Ltd. (a managing director of Vision Opportunity
      Master Fund, Ltd. is a director of the Company). Interest on the note is
      due quarterly and matures within nine months. The note also carries a Mandatory
      Conversion Option which calls for conversion of the note into Convertible
      Preferred Stock once the Company is approved to issue preferred stock. The
      conversion price for this mandatory conversion is $0.60 per share. The
      Convertible Preferred stock is convertible into Common Stock of the Company
      at a
      1:1 ratio and carries a 6% dividend. The note also carries an optional
      conversion, at the right of the holder, into Common Stock at $0.60 per share.
      The note also calls for the issuance of Series A, Series B, and Series C
      warrants and a potential future investment at the option of the holder. During
      September 2007, Vision converted the promissory note into 8,333,333 shares
      of
      Convertible Preferred Stock.





In
      connection with the issuance of the warrants and beneficial conversion feature,
      the Company has reflected a value at the date of issuance for the warrants
      of
      $1,622,452 and a beneficial conversion feature value of $1,351,187. The fair
      value of the warrant grant was estimated on the date of the grant using the
      Black-Scholes option-pricing model with the following weighted average
      assumptions: expected volatility of 15%, risk free interest rate of 6%; and
      expected lives of between one and five years. The value of the beneficial
      conversion feature has been expensed during the quarter ended September 30,
      2007, as the notes were exercisable immediately.




11


**Juma
        Technology Corp. and Subsidiaries**
 **Notes
        to Condensed Consolidated Financial Statements**
 **June
        30, 2008**


NOTE
      5
      -CONVERTIBLE NOTES PAYABLE (continued)





On
      November 29, 2007, the Company entered into a Note and Warrant Purchase
      Agreement with Vision Opportunity Master Fund, Ltd. (“Purchaser”) with respect
      to the sale of notes in an aggregate principal amount of up to $6,000,000.
      Also
      on November 29, 2007, the Company entered into Amendment No. 1 to the Note
      Purchase Agreement. Under the Note Purchase Agreement, as amended, the Company
      executed and delivered to Vision Opportunity Master Fund, Ltd.: (a) the
      Company’s $2,500,000 principal amount, senior secured 10% convertible promissory
      note; (b) the Company’s $600,000 principal amount, senior secured 10%
      convertible promissory note; (c) one warrant to purchase an aggregate of
      7,300,000 shares of the Company’s common stock; and (d) one warrant to purchase
      an aggregate of 1,000,000 shares of the Company’s common stock. The
      notes
      mature in November 2010, and the warrants expire in November 2012.





In
      connection with the issuance of the warrants and convertible notes, the Company
      has reflected a value at the date of issuance for the warrants of $1,578,452
      and
      a beneficial conversion feature value of $250,596. The fair value of the
      warrants was estimated on the date of the grant using the Black-Scholes
      option-pricing model with the following weighted average assumptions: expected
      volatility of 15%, risk free interest rate of 6%; and term of between one and
      five years.





On
      March
      7, 2008, the Company closed the second tranche under the Note Purchase
      Agreement. The Company issued an additional convertible promissory note to
      the
      Purchaser in the principal amount of $1,450,000. The notes accrue interest
      at
      10% per annum from the date of issuance and mature in November 2010. In
      connection with this second tranche the Company has recorded a beneficial
      conversion feature of $46,774 which has been expensed since the notes are
      convertible into common stock at any time.





On
      June
      20, 2008, the Company closed the third tranche under the Note Purchase
      Agreement. The Company issued an additional convertible promissory note to
      the
      Purchaser in the principal amount of $1,450,000. The
      notes
      accrue interest at 10% per annum from the date of issuance and mature in
      November 2010.




12





**Juma
        Technology Corp. and Subsidiaries**
 **Notes
        to Condensed Consolidated Financial Statements**
 **June
        30, 2008**


NOTE
      5
      -CONVERTIBLE NOTES PAYABLE (continued)





The
      Notes
      accrue interest at 10% per annum from the date of issuance, and are payable,
      at
      the Company’s option, in cash or shares of its common stock, quarterly in
      arrears commencing on **** December
      31, 2007, March 31, 2008 and June 30, 2008, respectively. The maturity date
      of
      the Notes is November 2010. The Note contains various events of default such
      as
      failing to make a payment of principal or interest when due, which if not cured,
      would require the Company to repay the holder immediately the outstanding
      principal sum of and any accrued interest on the Notes. Each Note requires
      the
      Company to prepay under the Note if certain “Triggering Events” or “Major
      Transactions” occur while the Note is outstanding. The holders of the Notes are
      entitled to convert the Notes into shares of the Company’s common stock at any
      time based on the fixed conversion price of $0.75 per share





Also,
      on
      June 20, 2008, the Company made several amendments to the convertible notes
      outstanding with aggregate principal amount $6,000,000 issued under the
      agreement dated November 29, 2007, including a reduction in the conversion
      price
      per share from $0.75 to $0.60. In addition, the exercise price of the warrants
      outstanding to purchase an aggregate 8,300,000 shares of common stock issued
      under the same agreement was reduced from $0.90 to $0.72. At the same time
      the
      Company and the holder entered into an agreement whereby the holder tendered
      all
      the warrants to purchase an aggregate 8,300,000 shares of common stock and
      the
      Company issued 498,000 shares of Series B Convertible Preferred Stock to the
      holder. All the warrants tendered were cancelled.





Using
      the
      Black Scholes method it was determined that the reduction in the conversion
      price per share under the convertible notes from $0.75 to $0.60 resulted in
      an
      increase in the fair value of the associated conversion options of $341,000.
      The
      increase in the fair value of the conversion options was recorded as a reduction
      in the carrying value of the convertible notes and an increase in additional
      paid-in capital. The resulting discount on the convertible notes will be
      amortized to interest expense over the remaining life of the notes. An expected
      volatility of 55% and risk free interest rate of 2.88% were used when applying
      the Black Scholes method.





The
      issuance of 498,000 shares of Series B Convertible Preferred Stock resulted
      in a
      beneficial conversion feature in the amount of $1,112,200, which was recorded
      as
      a deemed dividend to preferred shareholders. The fair value of the exchanged
      warrants before the reduction in exercise price was used to value the preferred
      stock when calculating the beneficial conversion feature. The fair value of
      the
      warrants was calculated using the Black Scholes method with expected volatility
      of 55% and risk free interest rate of 3.57%.




13





**Juma
        Technology Corp. and Subsidiaries**
 **Notes
        to Condensed Consolidated Financial Statements**
 **June
        30, 2008**


NOTE
      5
      -CONVERTIBLE NOTES PAYABLE (continued)





In
      order
      to facilitate the issuance of the Series B Convertible Preferred Stock, the
      Company first filed with the Delaware Secretary of State a Certificate Reducing
      the Number of Authorized Shares of Series A Convertible Preferred Stock from
      10,000,000 shares to 8,333,333 shares and then the Company filed with the
      Delaware Secretary of State a Certificate of Designation of the Relative Rights
      and Preferences of the Series B Convertible Preferred Stock. Under the
      Certificate of Designation, 1,666,667 shares of the Company’s authorized
      preferred stock have been designated as Series B Convertible Preferred
      Stock.




In
      connection with the Vision Transactions, the Company is in technical default
      of
      the registration requirements and has recorded $100,000 for costs associated
      with this default in accordance with EITF 00-19-2, “Accounting for Registration
      Payment Agreements”.




NOTE
      6
      - CAPITAL LEASE OBLIGATIONS





CitiCorp
      Vendor Finance, Inc.




The
      Company leases software and computer equipment under capital lease arrangements
      with CitiCorp Vendor Finance, Inc. Pursuant to the lease, the lessor retains
      actual title to the leased property until the termination of the lease, at
      which
      time the property can be purchased for one dollar.





The
      lease
      dated June 2, 2006 is for software and computer equipment for the Company.
      The
      term of the lease is sixty months with monthly payments of $3,461, which is
      equal to the cost to amortize $172,187 over a five-year period at an interest
      rate of 7.6% per annum.





Var
      Resources Inc.




The
      Company leases computer equipment under capital lease arrangements with Var
      Resources, Inc. Pursuant to the lease, the lessor retains actual title to the
      leased property until the termination of the lease, at which time the property
      can be purchased for one dollar.





There
      are
      five leases dated November 19, 2007 for software and computer equipment used
      at
      the Company’s various data centers. The terms of the leases are thirty-six
      months with total monthly payments of $8,600, which is equal to the cost to
      amortize $253,174 over a 3-year period at an interest rate of 13.5% per
      annum.




14





**Juma
        Technology Corp. and Subsidiaries**
 **Notes
        to Condensed Consolidated Financial Statements**
 **June
        30, 2008**


NOTE
      6
      - CAPITAL LEASE OBLIGATIONS (continued)





Hitachi
      Data Systems




The
      Company leases software and computer equipment under capital lease arrangements
      with Hitachi Data Systems. Pursuant to the lease, the lessor retains actual
      title to the leased property until the termination of the lease, at which time
      the property can be purchased for one dollar.





The
      lease
      dated December 31, 2007 is computer equipment used at the Company’s various data
      centers. The term of the lease is thirty-six months with monthly payments of
      $4,296.04, which is equal to the cost to amortize $130,658 over a 3-year period
      at an interest rate of 11.3% per annum.





Key
      Bank




The
      Company leases software and computer equipment under capital lease arrangements
      with Key Bank. Pursuant to the lease, the lessor retains actual title to the
      leased property until the termination of the lease, at which time the property
      can be purchased for one dollar.





The
      lease
      dated June 20, 2007 is for software and licenses for the Company. The term
      of
      the lease is twenty-four months with monthly payments of $6,055, which is equal
      to the cost to amortize $119,253 over a 2-year period at an interest rate of
      19.7% per annum.




NOTE
      7
      - LEASE COMMITMENTS





The
      Company leases its Farmingdale, NY (from a related party), New York, NY and
      Burlington, NJ premises, pursuant to individual sublease agreements accounted
      for as operating leases. The lease on the Farmingdale, NY premises expires
      on
      May 31, 2016, the New York, NY premises lease expires on November 30, 2011
      and
      the Burlington City, NJ premises lease expires on March 9, 2012. All premises
      are under a non-cancelable operating lease. The Deerfield Beach, FL location
      was
      vacated on June 30, 2008, and a lease termination agreement was executed with
      the landlord. The lease termination agreement calls for a fee of $60,000 with
      a
      $20,000 payment due on July 1, 2008, and the remaining amount to be paid ratably
      over a twelve month period.





The
      Company also has operating leases for office equipment. The operating leases
      are
      for forty-eight months and expire April 30, 2011.




15





**Juma
        Technology Corp. and Subsidiaries**
 **Notes
        to Condensed Consolidated Financial Statements**
 **June
        30, 2008**


NOTE
      8
      - STOCK OPTIONS





On
      January 28, 2007 the Company adopted the 2006 Stock Option Plan of Juma
      Technology Corp., (the “the 2006 Plan”). The Plan provides for up to 6,228,750
      shares of incentive and non-qualified options that may be granted to employees,
      directors and certain key affiliates. Under the Plan, incentive options may
      be
      granted at not less than the fair market value on the date of grant and
      non-statutory options may be granted at or below fair market value. The Company
      wishes to utilize the Plan to attract, maintain and develop management by
      encouraging ownership of the Company's Common Stock by key employees, directors,
      and others. Options under the Plan will be either “incentive options” under
      Section 422A of the Internal Revenue Code of 1986, as amended, or “non-qualified
      stock options” which are not intended to so qualify.





At
      June
      30, 2008, the Company has 6,069,750 stock options to officers, employees and
      consultants outstanding at exercise prices ranging from $0.50 to $1.33 per
      share
      under the 2006 Plan. These options carry a ten year term and vest ratably over
      five years. The options vested during the first twelve months shall not be
      available to the optionee until the first anniversary of the stock option grant.
      Options for officers are issued at a 15% premium over fair market value, carry
      a
      five year life and vest ratably over one year. Using the Black-Scholes pricing
      model the Company has determined that the fair value of these options is
      approximately $1,164,896.





On
      August
      31, 2007 the Company adopted the 2007 Stock Option Plan of Juma Technology
      Corp., (the “2007 Plan”).The Plan provides for up to 6,228,750 shares of
      incentive and non-qualified options that may be granted to employees, directors
      and certain key affiliates. Under the Plan, incentive options may be granted
      at
      not less than the fair market value on the date of grant and non-statutory
      options may be granted at or below fair market value. The Company wishes to
      utilize the Plan to attract, maintain and develop management by encouraging
      ownership of the Company's Common Stock by key employees, directors, and others.
      Options under the Plan will be either “incentive options” under Section 422A of
      the Internal Revenue Code of 1986, as amended, or “non-qualified stock options”
which are not intended to so qualify.





At
      June
      30, 2008, the Company has 6,050,000 stock options to officers, employees and
      consultants outstanding at exercise prices ranging from $0.52 to $0.60 per
      share
      under the 2007 Plan. These options carry a ten year term and vest ratably over
      various terms. The options vested during the first twelve months shall not
      be
      available to the optionee until the first anniversary of the stock option grant.
      Options for officers are issued at a 15% premium over fair market value, carry
      a
      five year life and vest ratably over various terms. Using the Black-Scholes
      pricing model the Company has determined that the fair value of these options
      is
      approximately $635,991 based on expected volatility of 20%, expected term
      between five and ten years and risk-free interest between 2.96% and
      3.74%.




16


**Juma
        Technology Corp. and Subsidiaries**
 **Notes
        to Condensed Consolidated Financial Statements**
 **June
        30, 2008**


NOTE
      9
      - PREFERRED STOCK





In
      July
      2007, the Board of Directors approved an amendment to the
      Company's certificate of incorporation to authorize 10,000,000 shares of
      $0.0001 par value preferred stock.





On
      August
      16, 2007, the Company signed a $5,000,000, 6% convertible promissory note with
      Vision Opportunity Master Fund, Ltd (“Vision”). Interest on the note is due
      quarterly and matures within nine months. The note also carries a Mandatory
      Conversion Option which calls for conversion of the note into Convertible
      Preferred Stock once the Company is approved to issue preferred stock. The
      conversion price for this mandatory conversion is $0.60 per share. The Series
      A
      Convertible Preferred stock is convertible into Common Stock of the Company
      at a
      1:1 ratio and carries a 6% dividend. The note also carries an optional
      conversion, at the right of the holder, into Common Stock at $0.60 per share.
      The note also calls for the issuance of Series A, Series B, and Series C
      warrants and a potential future investment at the option of the holder. During
      September 2007, Vision converted the promissory note into 8,333,333 shares
      of
      Series A Convertible Preferred Stock.





On
      June
      20, 2008, the Company issued 498,000 shares of Series B Convertible Preferred
      Stock to Vision Opportunity Master Fund in exchange for warrants to purchase
      8,300,000 shares of the Company’s common stock. All the warrants tendered were
      cancelled. The Series B Convertible Preferred stock is convertible into Common
      Stock of the Company at a 10:1 ratio.





In
      order
      to facilitate the issuance of the Series B Convertible Preferred Stock, the
      Company first filed with the Delaware Secretary of State a Certificate Reducing
      the Number of Authorized Shares of Series A Convertible Preferred Stock from
      10,000,000 shares to 8,333,333 shares and then the Company filed with the
      Delaware Secretary of State a Certificate of Designation of the Relative Rights
      and Preferences of the Series B Convertible Preferred Stock. Under the
      Certificate of Designation, 1,666,667 shares of the Company’s authorized
      preferred stock have been designated as Series B Convertible Preferred
      Stock.




NOTE
      10 - PURCHASE OF SOFTWARE FOR NOTE PAYABLE AND WARRANTS





On
      May
      28, 2008, the Company purchased exclusive rights to software that is embedded
      in
      one of Nectar’s products for $100,000 in cash paid on closing, a note payable
      with principal amount of $200,000, and warrants to purchase an aggregate 150,000
      shares of the Company’s common stock. The note does not bear interest and is
      payable in four consecutive monthly payments of $50,000 with the first payment
      due thirty days after the date of purchase.





One
      warrant was issued to purchase 100,000 shares of common stock at an exercise
      price of $1.00 per share. The warrant expires five years after the date of
      purchase and may be exercised at any time before the expiration date. Another
      warrant was issued to purchase 50,000 shares of common stock at an exercise
      price of $1.25 per share. The warrants expire five years after the date of
      purchase and may be exercised at any time before the expiration date. The
      warrants were assigned a value of $6,177 using the Black Scholes
      method.




17





**Juma
        Technology Corp. and Subsidiaries**
 **Notes
        to Condensed Consolidated Financial Statements**
 **June
        30, 2008**
 NOTE
        11 - SUBSEQUENT EVENTS





During
      July 2008, the terms related to $1,000,000 of Convertible Promissory Notes
      were
      changed. The Notes were extended an additional eighteen months and will mature
      during December 2009. The Notes can be converted at any time by the holders
      after July 2009 at a conversion price of $0.67 per share. As an inducement
      to
      extend and modify the terms of the note the holder was issued 1,065,790 shares
      of common stock.





The
      Company is currently negotiating a two-month extension of the expiration date
      of
      the Series C warrants issued on August 16, 2007. These warrants are currently
      set to expire on August 16, 2008, and the negotiations may result in an
      extension of the expiration date to October 16, 2008.




18


**Item
                2.**
            **Management’s
                Discussion and Analysis of Financial Condition and Results of
                Operation**





**Forward-Looking
      Statements**




Historical
      results and trends should not be taken as indicative of future operations.
      Management’s statements contained in this Report that are not historical facts
      are forward-looking statements. Actual results may differ materially from those
      included in the forward-looking statements. Forward-looking statements, which
      are based on certain assumptions and describe future plans, strategies and
      expectations of the Company, are generally identifiable by use of the
      words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,”
“prospects,” or similar expressions. The Company’s ability to predict results or
      the actual effect of future plans or strategies is inherently uncertain. Factors
      which could have a material adverse affect on the operations and future
      prospects of the Company on a consolidated basis include, but are not limited
      to: changes in economic conditions, legislative/regulatory changes, availability
      of capital, interest rates, competition, significant restructuring and
      acquisition activities, and generally accepted accounting principles. These
      risks and uncertainties should be considered in evaluating forward-looking
      statements and undue reliance should not be placed on such statements. Further
      information concerning the Company and its business, including additional
      factors that could materially affect the Company’s financial results, is
      included herein and in the Company’s other filings with the SEC.





Information
      regarding market and industry statistics contained in this Report is included
      based on information available to the Company that it believes is accurate.
      It
      is generally based on industry and other publications that are not produced
      for
      purposes of securities offerings or economic analysis. We have not reviewed
      or
      included data from all sources, and cannot assure investors of the accuracy
      or
      completeness of the data included in this Report. Forecasts and other
      forward-looking information obtained from these sources are subject to the
      same
      qualifications and the additional uncertainties accompanying any estimates
      of
      future market size, revenue and market acceptance of products and services.
      The
      Company does not undertake any obligation to publicly update any forward-looking
      statements. As a result, investors should not place undue reliance on these
      forward-looking statements.





**Results
      of Operations for the three months ended June 30, 2008 and
      2007**





Revenues
      for the three months ended June 30, 2008 increased $1,445,788 or 41% to
      $4,974,747, compared with revenues of $3,528,959 for the three months ended
      June
      30, 2007. The increase in revenues was predominantly due to increased sales
      to
      new and existing customers.





Cost
      of
      goods sold for the three months ended June 30, 2008 increased $1,017,895 or
      35%
      to $3,919,401, compared to $2,901,506 for the three months ended June 30, 2007.
      The increase is related to: (i) the increase in sales; (ii) increase in
      engineers and service desk personnel; and (iii) the increase in costs associated
      with Nectar.




19





Gross
      margin for the three months ended June 30, 2008 increased $427,893 or 68% to
      $1,055,346, compared to $627,453 for the three months ended June 30, 2007.
      The
      increase is related to the increase in sales and more efficient project
      management offset by cost of sales incurred by Nectar.





Selling
      expenses decreased by $93,006 or 15% to $536,546 for the three months ended
      June
      30, 2008, compared to $629,552 for the three months ended June 30, 2007. The
      decrease was predominantly due to: (i) a decrease in marketing efforts; (ii)
      a
      decrease in sales force personnel; and (iii) a decrease in sales expenses for
      Nectar.





Research
      and development expenses increased by $30,846 or 17% to $207,937 for the three
      months ended June 30, 2008, compared to $177,091 for the three months ended
      June
      30, 2007. This increase is directly attributable to Nectar. The Company believes
      that research and development costs will begin to decrease as the Nectar
      platform and product offerings are sold into the market.





General
      and administrative expenses increased by $1,085,735 or 85% to $2,362,709 for
      the
      three months ended June 30, 2008, compared to $1,276,974 for the three months
      ended June 30, 2007. The increase was predominantly due to general and
      administrative expenses related to Nectar, salaries (due to an increase in
      employees and raises) and an increase in stock option expense.





Interest
      expense (net) totaled $584,691 for the three months ended March 31, 2008
      compared to $43,081 for the comparable period in 2007. The increase is
      predominantly due to the amortization of discounts on notes issued below face
      value and to amortization of discounts on convertible debt attributable to
      beneficial conversion features.





The
      Company experienced a net loss of $2,636,836 for the three months ended June
      30,
      2008 compared to a net loss of $1,499,245 for the comparable period in 2007.
      Currently Nectar does not generate any material revenues, but it does incur
      significant operational and development expenses that management believes will
      continue for the foreseeable future. Nectar generated a net loss of $798,911.
      The Company expects these costs to continue to rise until various products
      are
      launched and revenue from the new products begins to offset the additional
      costs.





**Results
      of Operations for the six months ended June 30, 2008 and
      2007**





Revenues
      for the six months ended June 30, 2008 increased $3,371,562 or 54% to
      $9,611,626, compared with revenues of $6,240,064 for the six months ended June
      30, 2007. The increase in revenues was predominantly due to increased sales
      to
      new and existing customers.





Cost
      of
      goods sold for the six months ended June 30, 2008 increased $2,249,450 or 42%
      to
      $7,573,500, compared to $5,324,050 for the six months ended June 30, 2007.
      The
      increase is related to the increase in sales and the increase in costs
      associated with Nectar which was not present for the entire comparable period
      in
      2007.




20





Gross
      margin for the six months ended June 30, 2008 increased $1,122,112 or 122%
      to
      $2,038,126, compared to $916,014 for the six months ended June 30, 2007. The
      increase is related to the increase in sales and more efficient project
      management offset by cost of sales incurred by Nectar which were not present
      for
      the entire comparable period in 2007.





Selling
      expenses decreased by $252,171 or 19% to $1,057,105 for the six months ended
      June 30, 2008, compared to $1,309,276 for the six months ended June 30, 2007.
      The decrease was predominantly due to a decrease in marketing efforts, a
      decrease in sales force personnel and sales expenses of Nectar which were not
      present for the entire comparable period in 2007.





Research
      and development expenses increased to $212,431 for the six months ended June
      30,
      2008. This increase is directly attributable to Nectar. The Company believes
      that research and development costs will begin to decrease as the Nectar
      platform and product offerings are sold into the market.





The
      goodwill, which is associated with the acquisition of Nectar, was deemed
      impaired at the time of the acquisition. This goodwill impairment was adjusted
      during the three months ended March 31, 2008 due to a loan which was created
      due
      to a provision in the purchase contract offset by an addendum to the purchase
      contract which allowed for a receivable which entitled the Company to a refund
      of a deposit on a potential acquisition. These items resulted in additional
      goodwill impairment of $204,600





General
      and administrative expenses increased by $2,553,712 or 123% to $4,621,774 for
      the six months ended June 30, 2008, compared to $2,068,062 for the six months
      ended June 30, 2007. The increase was predominantly due to general and
      administrative expenses related to Nectar, salaries (due to an increase in
      employees and raises) and an increase in stock option expense.





Interest
      expense (net) totaled $891,501 for the six months ended June 30, 2008 compared
      to $68,603 for the comparable period in 2007. The increase is predominantly
      due
      to the amortization of discounts on notes issued below face value and to
      amortization of discounts on convertible debt attributable to beneficial
      conversion features.





A
      provision for income taxes of $1,699 was recorded for the six months ended
      June
      30, 2008 compared to a benefit of $306,783 for the six months ended June 30,
      2007. This benefit is primarily due to a reversal of a deferred tax liability
      generated by a change in reporting net income for tax purposes from the cash
      basis to the accrual basis.





The
      Company experienced a net loss of $5,128,075 for the six months ended June
      30,
      2008 compared to net loss of $4,395,494 for the comparable period in 2007.
      Currently Nectar does not generate any material revenues, but is does incur
      significant operational and development expenses that management believes will
      continue for the foreseeable future. Nectar generated a net loss of $1,704,070.
      The Company expects these costs to continue to rise until various products
      are
      launched and revenue from the new products begins to offset the additional
      costs.





21





**Liquidity
      and Capital Resources**





As
      of
      June 30, 2008, the Company had total current assets of $5,370,377, and total
      current liabilities of $7,120,066, resulting in a current working capital
      deficit of $1,749,689. Also, at June 30, 2008 the Company had $943,231 in cash.
      Management does not believe that these amounts will be sufficient for the
      upcoming year, nor does it believe that the current business will be able to
      sustain the anticipated growth of the operations. Management will attempt to
      rely on external sources of capital to finance the execution of our business
      plan. We do not have any firm commitments to raise additional capital nor is
      there any assurance additional capital will be available at acceptable terms.
      We
      continue to seek additional sources of funding for working capital purposes.
      On
      February 7, 2007, the Company began offering up to $2,000,000 of Convertible
      Promissory Notes (“Notes”). The Notes are non-interest bearing, mature in
      eighteen months and are convertible, at the holders option, into common stock
      of
      the Company at $1.00 per share. Each investor will also receive one-half share
      of common stock for each dollar of the principal amount of the Notes purchased.
      As of September 30, 2007, the Company has sold $2,225,000 in Notes. Of this
      amount $100,000 has been converted into common stock, $1,000,000 is interest
      bearing at a rate of 14% with interest payments being made monthly and $75,000
      has been repaid and the note canceled. There can be no assurance that any more
      Notes will be sold under the previously described private placement of the
      Company’s securities.





On
      August
      16, 2007, signed a $5,000,000, 6% convertible promissory note with Vision
      Opportunity Master Fund, Ltd. Interest on the note is due quarterly and matures
      within nine months. The note also carries a Mandatory Conversion Option which
      calls for conversion of the note into Convertible Preferred Stock once the
      Company is approved to issue preferred stock. The conversion price for this
      mandatory conversion is $0.60 per share. The Series A Convertible Preferred
      stock is convertible into Common Stock of the Company at a 1:1 ratio and carries
      a 6% dividend. The note also carries an optional conversion, at the right of
      the
      holder, into Common Stock at $0.60 per share. The note also calls for the
      issuance of Series A, Series B, and Series C warrants and a potential future
      investment at the option of the holder. During September 2007, Vision converted
      the promissory note into 8,333,333 shares of Series A Convertible Preferred
      Stock.





On
      November 29, 2007, the Company entered into a Note and Warrant Purchase
      Agreement with Vision Opportunity Master Fund, Ltd. (“Purchaser”) with respect
      to the sale of Notes in an aggregate principal amount of up to $6,000,000.
      Also
      on November 29, 2007, the Company entered into Amendment No. 1 to the Note
      Purchase Agreement. Under the Note Purchase Agreement, as amended, the Company
      executed and delivered to Vision Opportunity Master Fund, Ltd. (a) the Company’s
      $2,500,000 principal amount, senior secured 10% convertible promissory note,
      (b)
      the Company’s $600,000 principal amount, senior secured 10% convertible
      promissory note and, (c) one warrant to purchase an aggregate of 7,300,000
      shares of the Company’s common stock, and (d) one warrant to purchase an
      aggregate of 1,000,000 shares of the Company’s common stock.




On
      March
      7, 2008, the Company closed the second tranche under the Note Purchase
      Agreement. The Company issued an additional convertible promissory note to
      the
      Purchaser in the principal amount of $1,450,000. And o n
      June
      20, 2008, the Company closed the third tranche under the Note Purchase
      Agreement. The Company issued an additional convertible promissory note to
      the
      Purchaser in the principal amount of $1,450,000.




22





The
      Notes
      accrue interest at 10% per annum from the date of issuance, and are payable,
      at
      the Company’s option, in cash or shares of its common stock, quarterly in
      arrears commencing on **** December
      31, 2007, March 31, 2008 and June 30, 2008, respectively. The maturity date
      of
      the Notes is November 2010. The Note contains various events of default such
      as
      failing to make a payment of principal or interest when due, which if not cured,
      would require the Company to repay the holder immediately the outstanding
      principal sum of and any accrued interest on the Notes. Each Note requires
      the
      Company to prepay under the Note if certain “Triggering Events” or “Major
      Transactions” occur while the Note is outstanding.





On
      June
      20, 2008, the Company made several amendments to the convertible notes
      outstanding with aggregate principal amount $6,000,000 issued under the
      agreement dated November 29, 2007, including a reduction in the conversion
      price
      per share from $0.75 to $0.60. In addition, the exercise price of the warrants
      outstanding to purchase in aggregate 8,300,000 shares of common stock issued
      under the same agreement was reduced from $0.90 to $0.72. At the same time
      the
      Company and the holder entered into an agreement whereby the holder tendered
      all
      the warrants to purchase an aggregate 8,300,000 shares of common stock and
      the
      Company issued 498,000 shares of Series B Convertible Preferred Stock to the
      holder. All the warrants tendered were cancelled.





In
      order
      to facilitate the issuance of the Series B Convertible Preferred Stock, the
      Company first filed with the Delaware Secretary of State a Certificate Reducing
      the Number of Authorized Shares of Series A Convertible Preferred Stock from
      10,000,000 shares to 8,333,333 shares and then the Company filed with the
      Delaware Secretary of State a Certificate of Designation of the Relative Rights
      and Preferences of the Series B Convertible Preferred Stock. Under the
      Certificate of Designation, 1,666,667 shares of the Company’s authorized
      preferred stock have been designated as Series B Convertible Preferred
      Stock.





Cash
      flows used in operations totaled $1,838,443 for the six months ended June 30,
      2008, compared to $3,358,311 for the six months ended June 30, 2007. The
      decrease in cash flow used in operations is predominantly due to an increase
      in
      noncash expenses for the granting of options and warrants and the impairment
      of
      goodwill.





Cash
      flows used by investing activities was $238,073 for the six months ended June
      30, 2008 compared to cash flows provided by investing activities of $1,929,667
      for the six months ended June 30, 2007. The decrease in cash flows from
      investing activities is due the acquisition of Nectar.





Cash
      flows from financing activities increased to $2,716,858 for the six months
      ended
      June 30, 2008 compared cash flows provided by financing activities of $1,380,620
      for the six months ended June 30, 2007. The increase was predominantly due
      to
      proceeds from convertible notes.




23




The
      Company has two letters of credit outstanding with the same lender for a total
      of $41,394; both letters of credit expire during 2008.





**Item
      3. Quantitative and Qualitative Disclosures about Market
      Risk**





Not
      applicable.





**Item
      4 and Item 4T. Controls and Procedures**




Evaluation
      of Disclosure Controls and Procedures




We
      carried out an evaluation of the effectiveness of the design and operation
      of
      our disclosure controls and procedures (as defined in Exchange Act Rules
      13a-15(e) and 15d-15(e)) as of June 30, 2008. This evaluation was carried out
      under the supervision and with the participation of our Chief Executive Officer,
      Mr. Anthony M. Servidio and Chief Financial Officer, Mr. Anthony Fernandez.
      Based upon that evaluation, our Chief Executive Officer and Chief Financial
      Officer concluded that, as of June 30, 2008, our disclosure controls and
      procedures are effective. There have been no significant changes in our internal
      controls over financial reporting during the quarter ended June 30, 2008 that
      have materially affected or are reasonably likely to materially affect such
      controls.





Disclosure
      controls and procedures are controls and other procedures that are designed
      to
      ensure that information required to be disclosed in our reports filed or
      submitted under the Exchange Act are recorded, processed, summarized and
      reported, within the time periods specified in the SEC's rules and forms.
      Disclosure controls and procedures include, without limitation, controls and
      procedures designed to ensure that information required to be disclosed in
      our
      reports filed under the Exchange Act is accumulated and communicated to
      management, including our Chief Executive Officer and Chief Financial Officer,
      to allow timely decisions regarding required disclosure.





Management's
      Annual Report on Internal Control Over Financial Reporting





Management
      of the Company is responsible for establishing and maintaining effective
      internal control over financial reporting as defined in Rule 13a-15(f) under
      the
      Exchange Act. The Company’s internal control over financial reporting is
      designed to provide reasonable assurance to the Company’s management and Board
      of Directors regarding the preparation and fair presentation of published
      financial statements in accordance with United States’ generally accepted
      accounting principles (US GAAP), including those policies and procedures that:
      (i) pertain to the maintenance of records that, in reasonable detail, accurately
      and fairly reflect the transactions and dispositions of the assets of the
      Company, (ii) provide reasonable assurance that transactions are recorded as
      necessary to permit preparation of financial statements in accordance with
      US
      GAAP and that receipts and expenditures are being made only in accordance with
      authorizations of management and directors of the Company, and (iii) provide
      reasonable assurance regarding prevention or timely detection of unauthorized
      acquisition, use, or disposition of the Company’s assets that could have a
      material effect on the financial statements.




24





Management
      conducted an evaluation of the effectiveness of internal control over financial
      reporting based on the framework in Internal Control-Integrated Framework issued
      by the Committee of Sponsoring Organizations of the Treadway Commission.
      Management’s assessment included an evaluation of the design of our internal
      control over financial reporting and testing of the operational effectiveness
      of
      our internal control over financial reporting. Based on this assessment,
      management concluded the Company maintained effective internal control over
      financial reporting as of December 31, 2007.





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




Changes
      in Internal Control over Financial Reporting





There
      have been no significant changes in our internal controls over financial
      reporting during the quarter ended June 30, 2008 that have materially affected
      or are reasonably likely to materially affect such controls.





Limitations
      on the Effectiveness of Internal Controls




Our
      management does not expect that our disclosure controls and procedures or our
      internal control over financial reporting will necessarily prevent all fraud
      and
      material error. Our disclosure controls and procedures are designed to provide
      reasonable assurance of achieving our objectives and our Chief Executive Officer
      and Chief Financial Officer concluded that our disclosure controls and
      procedures are effective at that reasonable assurance level. 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. Because
      of 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. These inherent limitations
      include the realities that judgments in decision-making can be faulty, and
      that
      breakdowns can occur because of simple error or mistake. Additionally, controls
      can be circumvented by the individual acts of some persons, by collusion of
      two
      or more people, or by management override of the internal control. The design
      of
      any system of controls also is based in part upon certain assumptions about
      the
      likelihood of future events, and there can be no assurance that any design
      will
      succeed in achieving its stated goals under all potential future conditions.
      Over time, control may become inadequate because of changes in conditions,
      or
      the degree of compliance with the policies or procedures may
      deteriorate.




25


**PART
      II-OTHER INFORMATION**




**Item
      1. Legal Proceedings**





None.





**Item
      1A. Risk Factors**





Not
      applicable.





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





None.




**Item
      3. Defaults Upon Senior Securities**




None.




**Item
      4.**  **Submission
      of Matters to Vote of Security Holders.**




None.




**Item
      5. Other Information**




None.




26




**Item
      6. Exhibits**





31.1
            
            Certification
                by Chief Executive Officer pursuant to Rule 13a-1431.2
            
            Certification
                by Chief Financial Officer pursuant to Rule 13a-1432.1
            
            Certification
                by Chief Executive Officer pursuant to Section 906 of the
                Sarbanes-Oxley Act of 2002.32.2
            
            Certification
                by Chief Executive Officer pursuant to Section 906 of the
                Sarbanes-Oxley Act of 2002.




27




**SIGNATURES**





In
      accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused
      this report to be signed on its behalf by the undersigned, thereunto duly
      authorized.





Juma
                Technology Corp.
              (Registrant)Date:
                August 13, 2008
            
            /s/
                Anthony M. ServidioAnthony
                M. Servidio
              Chief
                Executive Officer and Chairman
              (Principal
                Executive Officer)Date:
                August 13, 2008
            
            /s/
                Anthony FernandezAnthony
                Fernandez
              Chief
                Financial Officer
              (Principal
                Financial and Accounting Officer)




28