**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**___________________________________**

**FORM      10-QSB**

**For      the quarterly period ended September 30, 2006**

**Commission      file number: 0-23391**

**XFORMITY      TECHNOLOGIES, INC.**

**(Formerly      known as XML-Global Technologies, Inc.)**

| **Colorado**                                                                                 | **84-1434313**                                                    |
|----------------------------------------------------------------------------------------------|-------------------------------------------------------------------|
| (State                or other jurisdiction of incorporation                or organization) | (I.R.S.                EmployerIdentification                No.) |

**14333      Proton Road, Dallas, Texas 75244**

**(972)      661-1200**

----

| **PART                  I.**  | **FINANCIAL                  INFORMATION**                                                                                                          | PAGE      |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------|
| **Item                  1.**  | **Financial                  statements**                                                                                                           |      |
|                          |                                                                                                                                                |      |
|                          | Consolidated                  Balance Sheets - September 30, 2006 (unaudited) and June 30,                  2006                                    | **3**     |
|                          |                                                                                                                                                |      |
|                          | Unaudited                  Consolidated Statements of Operations - Three Months Ended September                  30,                  2006 and 2005 | **4**     |
|                          |                                                                                                                                                |      |
|                          | Unaudited                  Consolidated Statements of Cash Flows - Three Months Ended September                  30,                  2006 and 2005 | **5**     |
|                          |                                                                                                                                                |      |
|                          | Notes                  to Unaudited Consolidated Financial Statements                                                                               | **6-13**  |
|                          |                                                                                                                                                |      |
| **Item                  2.**  | **Management's                  Discussion and Analysis or Plan of Operations**                                                                     | **13-15** |
|                          |                                                                                                                                                |      |
| **Item                  3.**  | **Controls                  and Procedures**                                                                                                        | **15**    |
|                          |                                                                                                                                                |      |
| **PART                  II.** | **OTHER                  INFORMATION**                                                                                                              |      |
|                          |                                                                                                                                                |      |
| **Item                  1.**  | **Legal                  Proceedings**                                                                                                              | **16**    |
|                          |                                                                                                                                                |      |
| **Item                  2.**  | **Unregistered                  Sales of Securities and Use of Proceeds**                                                                           | **16**    |
|                          |                                                                                                                                                |      |
| **Item                  3.**  | **Defaults                  upon Senior Securities**                                                                                                | **17**    |
|                          |                                                                                                                                                |      |
| **Item                  4.**  | **Submission                  of Matters to a Vote of Security Holders**                                                                            | **17**    |
|                          |                                                                                                                                                |      |
| **Item                  5.**  | **Other                  Information**                                                                                                              | **17**    |
|                          |                                                                                                                                                |      |
| **Item                  6.**  | **Exhibits                  and Reports on Form 8-K**                                                                                               | **17**    |
|                          |                                                                                                                                                |      |

----

**XF****ormity      Technologies, Inc. and Subsidiary**

**Consolidated      Balance Sheets**

**                                                                                                                                                 **
**(**

|                                                                                                                                                                                          | September                30, |   | June                30,                    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|--------|--------------------------------------------|
|                                                                                                                                                                                          | 2006                         |   | 2006                                       |
| **ASSETS**                                                                                                                                                                                    |                         |   |                                       |
| Current                Assets                                                                                                                                                                 |                         |   |                                       |
| Cash                and cash equivalents                                                                                                                                                      | $                204,651     |   | $                  74,309        |
| Accounts                receivable                                                                                                                                                            | 62,891                       |   | 45,297                                     |
| Prepaid                expenses                                                                                                                                                               | 10,830                       |   | 10,705                                     |
| Total                current assets                                                                                                                                                           | 278,372                      |   | 130,311                                    |
| Property                and equipment, net                                                                                                                                                    | 48,247                       |   | 51,369                                     |
| Other                assets                                                                                                                                                                   | 3,800                        |   | 3,800                                      |
| Total                Assets                                                                                                                                                                   | $                330,419     |   | $                185,480                   |
|                                                                                                                                                                                          |                         |   |                                       |
| **LIABILITIES                AND STOCKHOLDERS’ DEFICIT**                                                                                                                                |                         |   |                                       |
| Current                Liabilities                                                                                                                                                            |                         |   |                                       |
| Accounts                payable                                                                                                                                                               | $                1,717,197   |   | $     1,497,628   |
| Loan                payable                                                                                                                                                                   | 100,000                      |   | 50,000                                     |
| Accrued                expenses                                                                                                                                                               | 116,449                      |   | 113,213                                    |
| Severance                liability                                                                                                                                                            | 38,847                       |   | 72,883                                     |
| Deferred                revenue                                                                                                                                                               | 16,755                       |   | 26,225                                     |
| Current                portion - deferred credits                                                                                                                                             | 12,608                       |   | 12,898                                     |
| Convertible                debentures- net of unamortized discount of beneficial conversion                feature                                                                            |  1,081,641              |   |  777,614                              |
| Total                Current Liabilities                                                                                                                                                      | 3,083,497                    |   | 2,550,461                                  |
| Deferred                credits-net of current portion                                                                                                                                        | 199,961                      |   | 203,172                                    |
| Total                liabilities                                                                                                                                                              | 3,283,458                    |   | 2,753,633                                  |
|                                                                                                                                                                                          |                         |   |                                       |
| Stockholders'                Deficit                                                                                                                                                          |                         |   |                                       |
| Preferred                stock, $0.01 par value, 100,000,000 shares authorized, none issued                and                outstanding at September 30, 2006 and June 30, 2006             |  -                 |   |  -                                    |
| Common                stock, $0.0001 par value, 125,000,000 shares authorized, 40,078,337                shares                issued and outstanding at September 30, 2006 and June 30, 2006 | 4,008                        |   | 4,008                                      |
| Additional                paid-in capital                                                                                                                                                     | 4,455,001                    |   | 4,249,668                                  |
| Accumulated                deficit                                                                                                                                                            | (7,412,048)                  |   | (6,821,829)                                |
| Total                Stockholders' Deficit                                                                                                                                                    | (2,953,039)                  |   | (2,568,153)                                |
| Total                Liabilities and Stockholders' Deficit                                                                                                                                    | $                330,419     |   | $                   185,480 |

----

**XFormity      Technologies, Inc. and Subsidiary**

**Consolidated      Statements of Operations**

|                                                     | (Unaudited)                                                                                                                                                                                                                                                                                                                                                       |
|----------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                     | Three                Months Ended September 30,                                                                                                                                                                                                                                                                                                                   |
|                                                     | 2006                                                                                                                                                                                                                                                                                                                                                              |   | 2005 |
|                                                     |                                                                                                                                                                                                                                                                                                                                                              |   |   |
| Revenue                                                  | $                     266,443                                                                                                                                                                                                                                                                                                       |   |                                                                   $    169,003  |
| Cost                of revenue                           |                                                                      137,663             |   |                                                                         112,824  |
| Research                and development                  |                                                                        101,561 |   |                                                                          134,483  |
| Marketing                and selling                     |                                                                        61,698  |   |                                                             19,555  |
| General                and administrative                |                                                                      373,084             |   |                                                                         692,596  |
| Total                operating expenses                  |                                                                       674,006       |   |                                                                        959,458 |
| Loss                from operations                      | (407,563)                                                                                                                                                                                                                                                                                                                                                         |   |                                                                        (790,455) |
| Interest                expense, net                     |                     (182,656)                                                                                                                                                                                                                                                                                                                 |   |                                                                            (4,362) |
| Loss                before provision for income taxes    | (590,219)                                                                                                                                                                                                                                                                                                                                                         |   |                                                                        (794,817) |
| Provision                for income taxes                |                    -                                                                                                                                                                                                                                          |   |                -  |
| Net                loss                                  | $ (590,219)                                                                                                                                                                                                                                                                                                                                                  |   |                                                                    $  (794,817) |
|                                                     |                                                                                                                                                                                                                                                                                                                                                              |   |   |
| Net                loss per share - basic                | $          (0.01)                                                                                                                                                                                                                                                                                               |       |                                                                 $                          (0.02) |
|                                                     |                                                                                                                                                                                                                                                                                                                                                              |   |   |
| Weighted                average number of shares - basic | 40,078,337                                                                                                                                                                                                                                                                                                                                                        |   |                                                      35,911,672  |

----

** **
**      XFormity Technologies, Inc. and Subsidiary**

**Consolidated      Statements of Cash Flows**

|                                                                                                                  | (Unaudited)                                                                                                                                                                                                                                                                                                       |
|-----------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                  | Three                Months Ended September 30,                                                                                                                                                                                                                                                                   |
|                                                                                                                  | 2006                                                                                                                                                                                                                                                                                                              | 2005 |
| Operating                activities:                                                                                  |                                                                                                                                                                                                                                                                                                              |   |
| Net                loss                                                                                               |                                              $                         (590,219)9)                                       | $                        (794,817) |
| Depreciation                                                                                                          | 6,030                                                                                                                                                                                                                                                                                                        | 6,531  |
| Non-cash                transactions for:                                                                             |                                                                                                                                                                                                                                                                                                              |   |
| Interest                charge for beneficial conversion feature in convertible                debentures             | 157,360                                                                                                                                                                                                                                                                                                      | - |
| Changes                in:                                                                                            |                                                                                                                                                                                                                                                                                                              |   |
| Accounts                receivable                                                                                    |                                                           (17,594)4)                            | 28,817 |
| Prepaid                expenses and other assets                                                                      |                                                                (125)5) | 2,629 |
| Accounts                payable                                                                                       | 219,569                                                                                                                                                                                                                                                                                                           | 428,364  |
| Accrued                expenses                                                                                       | 3,236                                                                                                                                                                                                                                                                                                             | 13,641 |
| Severance                liability                                                                                    | (34,036)                                                                                                                                                                                                                                                                                                          | - |
| Deferred                revenue                                                                                       |              (9,470)                                                                                                                                                                                                                             | (13,412) |
| Deferred                credits                                                                                       | (3,501)                                                                                                                                                                                                                                                                                                           | - |
|                                                                                                                  |                                                                                                                                                                                                                                                                                                              |   |
| Net                cash used in operating activities                                                                  |         (268,750)                                                                                                                                                                                                                                                         |         (328,247) |
|                                                                                                                  |                                                                                                                                                                                                                                                                                                              |   |
| Investing                activities:                                                                                  |                                                                                                                                                                                                                                                                                                              |   |
| Purchases                of property and equipment                                                                    |              (2,908)                                                                                                                                                                                                                             |         (10,745) |
| Net                cash used in investing activities                                                                  |                          (2,908)                                                                                                                                                                                                                                     |          (10,745)  |
|                                                                                                                  |                                                                                                                                                                                                                                                                                                              |   |
| Financing                activities:                                                                                  |                                                                                                                                                                                                                                                                                                              |   |
| Loan                proceeds                                                                                          |                                                               50,000        | - |
| Proceeds                from issuance of convertible debentures                                                       | 352,000                                                                                                                                                                                                                                                                                                           | 350,000  |
| Net                cash provided by financing activities                                                              |            402,000                                                                                                                                                                                                                                         |            350,000  |
| Increase                in cash and cash equivalents                                                                  |                            130,342                                                                                                                                                                                                                         | 11,008  |
| Cash                and cash equivalents, beginning of period                                                         |                                                             74,3099              |              120,767  |
| Cash                and cash equivalents, end of period                                                               |                                               $                         204,6511                          | $                         131,775  |
|                                                                                                                  |                                                                                                                                                                                                                                                                                                              |   |
| Supplemental                disclosure of non-cash financing and investing activities                                 |                                                                                                                                                                                                                                                                                                              |   |
| Additional                paid-in capital from beneficial conversion feature in convertible                debentures | $                         205,333                                                                                                                                                                                                                                    |                                                  $                                   - |

----

**XFormity      Technologies, Inc. and Subsidiary**

**Notes      to Consolidated Financial Statements**

**September      30, 2006**

**(Unaudited)**

**Note      1 - Organization and Nature of Business. **

----

**Note      2. Basis of Financial Statement Presentation.**

**Note      3. Significant Accounting Policies.**

**Principles      of Consolidation**

----

**Use      of Estimates**
** **

**Cash      and Cash Equivalents **

**Credit      Risk**
** **

**Fair      Value of Financial Instruments**

**Revenue      Recognition**

*Software      Revenue Recognition*

**Property      and Equipment**

**Software      Development Costs**
** **

*Accounting      for the Costs of Computer Software to be Sold, Leased or Otherwise      Marketed*

----

**Consortium      Transactions**

**Beneficial      Conversion Feature in Convertible Debentures**

*"Accounting      for Convertible Securities with Beneficial Conversion Features or Contingently      Adjustable Conversion Ratios" *
*"Application      of Issue No. 98-5 to Certain Convertible Instruments*

**Note      4 Accounts Payable**

----

**Note      5 Other Current Liabilities**

**Loan      Payable**

**Accrued      Expenses**

|                                                      | **September                30,**                                                                                                                                                                          | **June                30,**                                                                                                                                                                    |
|-----------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                      | **2006**                                                                                                                                                                                                  | **2006**                                                                                                                                                                                       |
| 401                (K) obligation                         |                                          $ 37,547                            |                                          $ 50,667                 |
| Accrued                interest on convertible debentures |                                             71,311            |                                             47,168 |
| Other                                                     |                                               7,591 |                                             15,378 |
| ** **Totals                                          |                                        $ 116,449                                       |                         $                113,213                       |

**Severance      Liability**

**Note      6 Convertible Debentures**

*Debtor      Accounting For a Modification or Exchange of Debt Instruments.*

----

**Note      7 Income Taxes**

| **Statement                of Operations**                                                          |                                                                                                                                                    |                                                                                                                                                                                 |
|-----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **For                the Three Months Ended September 30,**                                         | **2006**                                                                                                                                                | **2005**                                                                                                                                                                             |
| Federal                Income tax provision (benefit)                                               | $(154,000)                                                                                                                                              | $(256,000)                                                                                                                                                                           |
| Total                provision (benefit) for income taxes                                           |                    (154,000)                             |                                      (256,000)                              |
| Valuation                allowance                                                                  |                                    154,000               |                                        256,000                    |
| Provision                for income tax           |                                  $      - |                      $                      - |

| **Balance                Sheet**                                                                          | **September                30,**                                                                                                   | **June                30,**                                                                                                                                                          |
|-----------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                      | **2006**                                                                                                                           | **2006**                                                                                                                                                                             |
| Deferred                tax asset primarily arising from Net Operating Loss                Carry-forwards | $  1,762,000                                                                                                        | $  1,608,000                                                                                                                                                          |
| Valuation                allowance                                                                        |    (1,762,000)                                                                                                      |    (1,608,000)                                                                                                                                                        |
| Net                deferred tax asset                                                                     | $                                               -  | $                          -                  |

**Note      8 Loss per Share **

----

**Note      9 Stock Compensation **

*Accounting*
*for      Stock Issued to Employees*
*Accounting      for Stock-based Compensation*

**Note      10 1999 Equity Incentive Plan**

| **For                the Quarter Ended September 30,** | **2006** | **2005** |
|--------------------------------------------------------|----------|----------|

|                                                                |   Number                of Options | Weighted                Average Exercise Price |   Number                of Options | Weighted                Average Exercise Price |
|---------------------------------------------------------------------|----------------------------------------------|------------------------------------------------|----------------------------------------------|------------------------------------------------|
| Options                outstanding at beginning of period           | 25,000                                       | $0.26                                          | 25,000                                       | $0.26                                          |
| Granted                                                             | -                                            | -                                              | -                                            | -                                              |
| Exercised                                                           | -                                            | -                                              | -                                            | -                                              |
| Forfeited                                                           | -                                            | -                                              | -                                            | -                                              |
| Options                outstanding and exercisable at end of period |  25,000                                 |  $0.26                                    |  25,000                                 |  $0.26                                    |

**Note      11 Related Party Transactions **

----

**Note      12 Commitments **

**.**

**Note      13 Subsequent Events**

| **ITEM                2.** | **MANAGEMENT'S                DISCUSSION AND ANALYSIS OR PLAN OF                OPERATIONS** |
|----------------------------|----------------------------------------------------------------------------------------------|

**Safe      Harbour - Forward Looking Statements**

**RESULTS      OF OPERATIONS**

**REVENUE**

----

**COST      OF REVENUE**

**RESEARCH      AND DEVELOPMENT**

**MARKETING      AND SELLING**

**GENERAL      AND ADMINISTRATIVE**

**INTEREST      EXPENSE. **

**NET      LOSS. **

----

**LIQUIDITY      AND CAPITAL RESOURCES**

**Item      3.   ****Controls      and Procedures**

----

**PART      II - OTHER INFORMATION **

**ITEM      1.       **
**LEG****AL      PROCEEDINGS**

**ITEM      2.      **
**UNR****EGISTERED      SALES OF SECURITIES AND USE OF PROCEEDS**

----

**ITEM      3.      DEFAULT UPON SENIOR      SECURITIES**

**ITEM      4.      SUBMISSION OF MATTERS TO A VOTE OF      SECURITY HOLDERS**

**ITEM      5.     OTHER INFORMATION**

**ITEM      6.      EXHIBITS AND REPORTS ON Form      8-K**

|   | Exhibits                                                                                                                                                     |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                         |
| 31.    | Certification                                                                                                                                                |
|   |                                                                                                                                                         |
| 32.    | Certification                pursuant to USC Section 1350                                                                                                    |
|   |                                                                                                                                                         |
|   | Reports                on 8-K                                                                                                                                |
| 1.     | Current                Report on Form 8-K/A, Item 4.02, dated June 14, 2006, as filed with                the                Commission on September 7, 2006 |

**SIGNATURES**

|                                                            | **XFormity                  Technologies, Inc.**                                                                                                                                                                                |
|-----------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                            |                                                                                                                                                                                                                            |
| Date:  November                  20, 2006   | /s/                  Christopher                  Ball           Christopher                  BallChief                  Executive Officer                               |
| Date:  November                  20, 2006   | /s/                  Jack                  Rabin                  Jack                  RabinChief                  Financial Officer |