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| Colorado                                                                | 84-1434313                                          |
|-------------------------------------------------------------------------|-----------------------------------------------------|
| (State      or other jurisdiction ofincorporation      or organization) | (I.R.S.      Employer Identification      No.) |

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| PART      I.  | FINANCIAL      INFORMATION                                                                                       | PAGE   |
|---------------|------------------------------------------------------------------------------------------------------------------|--------|
| Item      1.  | Financial      statements                                                                                        |   |
|          |                                                                                                             |   |
|          | Consolidated      Balance Sheets – September 30, 2008 (Unaudited) and June 30,      2008                   | 3      |
|          |                                                                                                             |   |
|          | Unaudited      Consolidated Statements of Operations – Three Months Ended September 30,      2008 and 2007 | 4      |
|          |                                                                                                             |   |
|          | Unaudited      Consolidated Statements of Cash Flows – Three Months Ended September 30,      2008 and 2007 | 5      |
|          |                                                                                                             |   |
|          | Notes      to Unaudited Consolidated Financial Statements                                                        | 6-8    |
|          |                                                                                                             |   |
| Item      2.  | Management's      Discussion and Analysis and Results of Operations                                              | 9-10   |
|          |                                                                                                             |   |
| Item      3.  | Quantitative      and Qualitative Disclosures About Market Risk                                                  | 11     |
|          |                                                                                                             |   |
| Item      4.  | Controls      and Procedures                                                                                     | 11     |
|          |                                                                                                             |   |
| PART      II. | OTHER      INFORMATION                                                                                           |   |
|          |                                                                                                             |   |
| Item      1.  | Legal      Proceedings                                                                                           | 11     |
|          |                                                                                                             |   |
| Item      2.  | Unregistered      Sales of Securities and Use of Proceeds                                                        | 11     |
|          |                                                                                                             |   |
| Item      3.  | Defaults      upon Senior Securities                                                                             | 11     |
|          |                                                                                                             |   |
| Item      4.  | Submission      of Matters to a Vote of Security Holders                                                         | 11     |
|          |                                                                                                             |   |
| Item      5.  | Other      Information                                                                                           | 11     |
|          |                                                                                                             |   |
| Item      6.  | Exhibits      and Reports on Form 8-K                                                                            | 11     |
|          |                                                                                                             |   |

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|                                                                                                                                                                          | (Unaudited)                                                                                                                                                                                                                                                  |   |                                                                                                                                                                                                   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                          | September      30,                                                                                                                                                                                                                                           |   | June      30                                                                                                                                                                                           |
|                                                                                                                                                                          | 2008                                                                                                                                                                                                                                                         |   | 2008                                                                                                                                                                                                   |
| ASSETS                                                                                                                                                                        |                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                   |
| Current      Assets                                                                                                                                                           |                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                   |
| Cash      and cash equivalents                                                                                                                                                |  $                                          49,755                  |   |  $                                 87,117                  |
| Accounts      receivable                                                                                                                                                      |                                            169,826             |   |                                     10,812  |
| Deferred      commission expense                                                                                                                                              |                                              36,762       |   |                                     36,762       |
| Prepaid      expenses                                                                                                                                                         |                                              19,793  |   |                                     27,609  |
| Total      current assets                                                                                                                                                     |                                            276,136             |   |                                   162,300             |
| Property      and equipment, net of accumulated depreciation                                                                                                             |                                              37,191  |   |                                     37,055  |
| Other      assets                                                                                                                                                             |                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                   |
|    Security      deposit                                                                                                                                       |                                             26,120             |   |                                     26,120       |
|    Deferred      commission                                                                                                                                    |                                             64,333             |   |                                     73,524       |
| Total      Assets                                                                                                                                                             |  $                                  403,780                                   |   | $                                298,999                             |
|                                                                                                                                                                          |                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                   |
| LIABILITIES      AND STOCKHOLDERS’ DEFICIT                                                                                                                              |                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                   |
| Current      Liabilities                                                                                                                                                      |                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                   |
| Accounts      payable                                                                                                                                                         | $                                     1,668,218                                                   |   | $                             1,637,327                                             |
| Loan      payable                                                                                                                                                             |                                 100,000                                                                                    |   |               100,000                                                                                                            |
| Accrued      expenses                                                                                                                                                         |                                141,235                                                                                          |   |                97,812                                                                                                       |
| Current      portion - deferred revenue                                                                                                                                       |                                128,316                                                                                          |   |              130,423                                                                                                                  |
| Current      portion – deferred credits                                                                                                                                 |                                  13,930                                                                               |   |                13,758                                                                                                       |
| Convertible      debentures- related party                                                                                                                                    |                                 563,544                                                                                    |   |              563,544                                                                                                                  |
| Convertible      debentures                                                                                                                                                   |                                           160,091                        |   |                                  160,091                        |
| Total      Current Liabilities                                                                                                                                                |                              2,775,334                                                                                                    |   |           2,702,955                                                                                                                                  |
|     Deferred      revenues – net of current portion                                                                                                 |                                           138,945                        |   |                                 168,667                              |
|     Deferred      credits – net of current portion                                                                                                  |                                           172,777                        |   |                                 176,326                              |
| Total      liabilities                                                                                                                                                        |                                        3,087,056                                        |   |                               3,047,948                                        |
|                                                                                                                                                                          |                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                   |
| Stockholders'      Deficit                                                                                                                                                    |                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                   |
| Preferred      stock, $0.01 par value, 100,000,000 shares authorized, none issued and      outstanding at September 30, 2008 and June 30, 2008                                |  -                                                                                                                                                                                                                                                 |   |  -                                                                                                                                                                                           |
| Common      stock, $0.0001 par value, 125,000,000 shares authorized, 50,931,553 shares      issued and outstanding at September 30, 2008 and June 30, 2008,      respectively |                                             5,093              |   |                                      5,093  |
| Additional      paid-in capital                                                                                                                                               |                            6,773,227                                                                                                           |   |             6,773,227                                                                                                                 |
| Accumulated      deficit                                                                                                                                                      |                                     (9,461,596)                                                        |   |                              (9,527,269)                                            |
| Total      Stockholders' Deficit                                                                                                                                              |                           (2,683,276)                                                                                                                    |   |           (2,748,949)                                                                                                                                |
| Total      Liabilities and Stockholders' Deficit                                                                                                                              |    $                              403,780                                          |   |    $                       298,999                              |

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|                                                             | (Unaudited)                                                                                                                                                                                                                                                         |
|------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                             | Three      Months Ended September 30,                                                                                                                                                                                                                               |
|                                                             | 2008                                                                                                                                                                                                                                                                |   | 2007 |
|                                                             |                                                                                                                                                                                                                                                                |   |   |
| Revenue                                                          | $                                            567,521             |   | $                                             324,947  |
| Cost      of revenue                                             |                         140,619                                                                                                             |   |                         126,322 |
| Research      and development                                    |                                               137,893       |   |                                                 84,058 |
| Marketing      and selling                                       |                           71,662                                                                                                  |   |                           57,485 |
| General      and administrative                                  |                         131,815                                                                                                             |   |                         151,728 |
| Total      operating expenses                                    |                         481,989                                                                                                             |   |                         419,593 |
| Income      (loss) from operations                               |                           85,532                                                                                                  |   |                          (94,646) |
| Interest      expense, net                                       |                                               (19,859)      |   |                          (37,113) |
| Income      (loss) before provision for income taxes             |                           65,673                                                                                                  |   |                        (131,759) |
| Provision      for income taxes                                  |                    -                                                                                                                                            |   |            -  |
| Net      Income (loss)                                           |  $                                       65,673             |   |  $                                          (131,759) |
|                                                             |                                                                                                                                                                                                                                                                |   |   |
| Net      Income (loss) per share – basic and diluted       |  $                                              (0.00) |   |  $                                           (0.00) |
|                                                             |                                                                                                                                                                                                                                                                |   |   |
| Weighted      average number of shares – basic and diluted | 50,931,553                                                                                                                                                                                                                                                          |   | 50,132,076 |

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|                                                                                                                                                          |   | (Unaudited)                           |     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|----------|
|                                                                                                                                                          |   | Three Months Ended September      30, |     |
|                                                                                                                                                          |   | 2008                                  |     |   | 2007 |   |
| Operating      activities:                                                                                                                                    |   |                                  |     |   |   |   |
| Net      income (loss)                                                                                                                                        |   | $                                     | 65,673   |   |   | $ | (131,759 | ) |
| Depreciation                                                                                                                                                  |   |                                  | 5,538    |   |   |   | 5,084 |   |
| Amortization      of deferred commission                                                                                                                      |   |                                  | 9,191    |   |   |   |   |   |
| Non-cash      transactions for:                                                                                                                               |   |                                  |     |   |   |   |   |   |
|             Interest      charge for beneficial conversion feature in convertible      debentures |   |                                  | -        |   |   |   | 19,062 |   |
|             Issuance      of common stock in payment of license fees                              |   |                                  | -        |   |   |   | 15,659 |   |
| Changes      in:                                                                                                                                              |   |                                  |     |   |   |   |   |   |
| Accounts      receivable                                                                                                                                      |   |                                  | (159,014 | ) |   |   | 3,042 |   |
| Prepaid      expenses                                                                                                                                         |   |                                  | 7,816    |   |   |   | (6,720 | ) |
| Accounts      payable                                                                                                                                         |   |                                  | 30,891   |   |   |   | (17,546 | ) |
| Accrued      expenses                                                                                                                                         |   |                                  | 43,423   |   |   |   | 20,234 |   |
| Deferred      revenue                                                                                                                                         |   |                                  | (31,829  | ) |   |   | 36,688 |   |
| Deferred      credits                                                                                                                                         |   |                                  | (3,377   | ) |   |   | (3,212 | ) |
|                                                                                                                                                          |   |                                  |     |   |   |   |   |   |
| Net      cash used in operating activities                                                                                                                    |   |                                  | (31,688  | ) |   |   | (59,468 | ) |
|                                                                                                                                                          |   |                                  |     |   |   |   |   |   |
| Investing      activities:                                                                                                                                    |   |                                  |     |   |   |   |   |   |
| Purchases      of property and equipment                                                                                                                      |   |                                  | (5,674   | ) |   |   | (8,893 | ) |
| Net      cash used in investing activities                                                                                                                    |   |                                  | (5,674   | ) |   |   | (8,893 | ) |
|                                                                                                                                                          |   |                                  |     |   |   |   |   |   |
| (Decrease)      in cash and cash equivalents                                                                                                                  |   |                                  | (37,362  | ) |   |   | (68,361 | ) |
| Cash      and cash equivalents, beginning of period                                                                                                           |   |                                  | 87,117   |   |   |   | 216,834 |   |
| Cash      and cash equivalents, end of period                                                                                                                 |   | $                                     | 49,755   |   |   | $ | 148,473 |   |
|                                                                                                                                                          |   |                                  |     |   |   |   |   |   |
| Supplemental      disclosure of non-cash financing and investing activities                                                                                   |   |                                  |     |   |   |   |   |   |
|  Issuance      of common stock in payment of deferred commission                                                                                         |   | $                                     | -        |   |   | $ | 147,048 |   |

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|                                                            |   | Three Months Ended September 30,      2008                                                                                                                                                       |
|-----------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Long term portion of deferred commission in other      assets   |   |             $                  64,333      |
| Current portion of deferred commission in prepaid      expenses |   |             $                  36,762      |
| Amount of commission    expensed                                |   |            $                    9,191 |

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|                                                             | September 30,                                                                                                                                                                  | June 30,                                                                                                                                                                       |
|------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                             | 2008                                                                                                                                                                           | 2008                                                                                                                                                                           |
| 401      (K) obligation                                          | $                               27,140            | $                               21,584            |
| Accrued      interest on convertible debentures and note payable |                                  73,885 |                                  55,719 |
| Other                                                            |                                  40,210 |                                  20,509 |
|      Totals                             | $                             141,235                       | $                               97,812            |

However, as the convertible debentures, options,and warrants have a strike price in excess of the market price and areconsidered not “in the money” and are excluded from the calculation of dilutedearnings per share due to their anti-dilutive effect.

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| ITEM 2. | MANAGEMENT'S      DISCUSSION AND ANALYSIS OR PLAN OFOPERATIONS |
|---------|----------------------------------------------------------------|

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|   Interest      expense                                                                         |   |   |   |                                                                | Three      Months EndedSeptember 30,                          |
|-----------------------------------------------------------------------------------------------------------|--------|--------|--------|---------------------------------------------------------------------|---------------------------------------------------------------|
|                                                                                                      |   |   |   | 2008                                                                | 2007                                                          |
| Accrued      interest on convertible debentures                                                           |   |   |   | $               16,416 | $         16,414 |
| Amortization      of the discount of the beneficial conversion feature in the convertible      debentures |   |   |   |                                                                |                                                          | - |         19,062 |
| Accrued      interest on loan payable                                                                     |   |   | 1,750  |          1,750                                       |
| Interest      incurred from the deferred credits issued to consortium      members                        |   |   |   |                                                                |                                                          | 2,374 |          2,501 |
| Interest      income earned on cash and cash equivalents                                                  |   |   |   |                                                                |                                                          |   (681) |    (2,614) |
| Net      interest expense                                                                                 |   |   |   |                                                                |                                                          | $           19,859 | $              37,113 |

The Company achieved its first profitable quarter since it commencedoperations.  The Company had incurred operating losses and negativecash flows from operations in each quarter since it commenced operations throughJune 30, 2008.  As of September 30, 2008, there was an accumulateddeficit of $9,461,596 and the Company’s cash position is$49,755.  While there can be no assurances that the

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LEGALPROCEEDINGS

UNREGISTERED SALES OFSECURITIES AND USE OF PROCEEDS

|           | Exhibits                                                                                                                          |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------|
| 31.            | Certification                                                                                                                     |
|           |                                                                                                                              |
| 32.            | Certification      pursuant to USC Section 1350                                                                                   |
|           |                                                                                                                              |
|           | Reports on 8-K                                                                                                                    |
|   1. | Current      Report on Form 8-K, Items 1.01 and 3.02 dated October 23, 2008, as filed      with the Commission of October 28,2008 |

|                                                | XFormity      Technologies, Inc.                                                                                                                                           |
|-----------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                |                                                                                                                                                                       |
| Date:  November 14, 2008        | /s/ Christopher      Ball           Christopher      BallChief      Executive Officer                               |
| Date:  November 14,      2008   | /s/ Jack      Rabin                  Jack      RabinChief      Financial Officer |

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