UNITED STATESSECURITIES AND
EXCHANGE COMMISSIONWASHINGTON, DC 20549FORM 10-Q[X]
Quarterly report under Section 13 or 15(d) of the Securities exchange Act of
1934For the quarterly period ended June 30, 2008[ ] Transition
report under Section 13 or 15(d) of the Exchange ActFor the transition
period from ___________ to ___________.Commission File Number:0-51202CORDIA
CORPORATION-----------------------------------------------------------------------(Exact
Name of Registrant as Specified in Its Charter)Nevada
                                11-2917728-------------------------------
      ------------------------------------(State
or Other Jurisdiction of       (I.R.S. Employer
Identification No.) Incorporation
or Organization) 13275 W. Colonial Drive, Winter Garden,
Florida
34787----------------------------------------------------------------------(Address
of Principal Executive
Offices)866-777-7777---------------------------(Registrant's
Telephone Number, Including Area Code) Indicate by check mark whether the
registrant (1) filed all reports required to be filed by Section 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes [ X ]   No  [
  ]  Indicate by check mark whether the
registrant is a large accelerated filer, an accelerated filer, a non-accelerated
filer, or a smaller reporting company.  See definition of accelerated
filer and large accelerated filer: in Rule 12b-2 of the Exchange Act.  Large Accelerated Filer [   ]
   Accelerated Filer [   ]
   Non-Accelerated Filer [  ] Smaller Reporting Company [ X
 ]  Indicate by check mark whether the
registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
[   ]   No [ X ] APPLICABLE ONLY TO ISSUERS INVOLVED IN
BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE
YEARS  Check whether the registrant filed all
documents and reports required to be filed by Section 12, 13 or 15(d) of the
Securities Exchange Act of 1934 subsequent to the distribution of securities
under a plan confirmed by a court. Yes [   ] No [   ] APPLICABLE ONLY TO CORPORATE
ISSUERS As of August 14, 2008, there were 6,944,188 shares of
the issuer's common stock outstanding.      CORDIA CORPORATIONFORM
10-QTABLE OF CONTENTS  PagePart I
Financial InformationItem 1.
Financial StatementsCondensed Consolidated Balance Sheets  June 30,
2008 (unaudited) and December 31, 2007
1Condensed Consolidated Statements of Operations 
six and three months ended June 30, 2008 and 2007 (unaudited)
2Condensed Consolidated Statements of Cash Flows 
six months ended June 30, 2008 and 2007 (unaudited)
3Notes to Condensed Consolidated Financial
Statements (unaudited)
4Item 2.
Managements Discussion and Analysis of Financial
Condition and Results of Operations
13Item 3.
Quantitative and Qualitative Disclosure About
Market Risk
23Item 4.
Controls and Procedures
23Part II
Other InformationItem 1.
Legal Proceedings
24Item 2.
Unregistered Sale of Equity Securities and Use of
Proceeds
24Item 3.
Defaults Upon Senior Securities
24Item 4.
Submission of Matters to a Vote of Security
Holders
24Item 5
Other Information
25Item 6.
Exhibits
25Signatures


PART IFINANCIAL INFORMATION ITEM 1.  FINANCIAL STATEMENTS. CORDIA CORPORATION AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS  June 30,

December 31,2008

2007ASSETS
(unaudited)Current
AssetsCash
and cash equivalents
$            842,326

$            999,039Cash
 restricted
142,040

173,848Accounts
receivable, less allowance for doubtful accounts of$1,375,605
(2008) and $2,002,823(2007)
4,461,639

2,178,984Inventory
505,465

-Prepaid
expenses
1,753,027

1,427,093Loans
receivable
71,479

-Accrued
usage receivable
232,019

314,215TOTAL
CURRENT ASSETS
8,007,995

5,093,179Property and
equipment, at costOffice
and computer equipment
2,103,820

2,006,879Computer
software
1,937,848

2,059,386Leasehold
improvements
663,545

561,5054,705,213

4,627,770Less:
 Accumulated depreciation/amortization
2,481,342

2,237,604NET
PROPERTY AND EQUIPMENT
2,223,871

2,390,166Other
AssetsGoodwill
4,578,980

3,398,972Security
deposits and other assets
1,921,914

861,791Investment
in unconsolidated affiliates
271,721

336,541TOTAL
OTHER ASSETS
6,772,615

4,597,304TOTAL
ASSETS
$
       17,004,481

$
       12,080,649LIABILITIES AND STOCKHOLDERS' (DEFICIT)Current
LiabilitiesCapital
lease obligations, current portion
$              13,463

$              12,953Notes
payable, current portion
954,265

557,062Accounts
payable
7,402,114

4,018,814Accrued
expenses
1,250,779

939,769Billed
taxes payable
9,364,640

8,029,921Deferred
revenue
1,490,917

1,315,900TOTAL
CURRENT LIABILITIES
20,476,178

14,874,419Noncurrent
LiabilitiesDeferred
rent
75,710

82,378Deferred
income tax liability
-

2,004Notes
payable, net of current portion
1,722,609

1,058,804Capital
lease obligation, net of current portion
18,360

25,221TOTAL
NONCURRENT LIABILITIES
1,816,679

1,168,407MINORITY
INTEREST IN SUBSIDIARIES
1,300

-COMMITMENT
AND CONTINGENCIESStockholders'
(Deficit)Common
stock, $0.001 par value; 100,000,000 shares authorized, 7,566,574 (2008)
and 6,916,574 (2007) shares issued
7,567

6,917Additional
paid-in capital
7,132,304

6,707,581Comprehensive
income (loss)
(60,517)

(48,121)Accumulated
deficit
(12,028,259)

(10,307,761)(4,948,907)

(3,641,384)Less: Treasury
stock at cost, 622,386 (2008) and 589,186 (2007) common shares
(340,769)

(320,793)TOTAL
STOCKHOLDERS  (DEFICIT)
(5,289,676)

(3,962,177)TOTAL
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
$       17,004,481

$       12,080,649  See notes
to condensed consolidated financial statements.   - 1 -     CORDIA
CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)   Six
Months Ended

Three Months EndedJune 30,

June 30,2008

2007

2008

2007RevenuesWireline
services

$23,049,463

$19,565,097

$11,692,520

$
 9,612,397VoIP
services

1,242,721

327,417

587,723

160,423Prepaid
services

3,289,894

-

3,289,894

-Business
process outsourced services

9,000

253,209

4,500

136,16827,591,078

20,145,723

15,574,637

9,908,988Cost of
RevenuesWireline
services

13,379,442

10,500,950

6,888,742

5,151,775VoIP
services

1,061,468

382,979

515,510

202,476Prepaid
services

3,161,158

-

3,161,158

-17,602,068

10,883,929

10,565,410

5,354,251Gross
Profit

9,989,010

9,261,794

5,009,227

4,554,737Operating
ExpensesSales
and Marketing

2,468,921

2,126,473

1,251,358

1,011,533Bad
debts

1,669,133

1,574,116

799,730

978,993General
and administrative

6,211,481

6,289,326

3,168,177

3,245,428Impairment
of goodwill

-

284,117

-

-Depreciation

803,417

511,598

418,325

261,50011,152,952

10,785,630

5,637,590

5,497,454Operating Loss

(1,163,942)

(1,523,836)

(628,363)

(942,717)Other Income
(expenses)Other
(expense)

(499,623)

(179,931)

(222,874)

(93,614)Interest
income

4,369

29,520

2,832

4,778Interest
(expense)

(59,692)

(1,855)

(35,413)

(902)(554,946)

(152,266)

(255,455)

(89,738)Loss Before
Income Taxes and Minority Interest

(1,718,888)

(1,676,102)

(883,818)

(1,032,445)Income Tax
Provision

1,610

-

(1,592)

-Loss Before
Minority Interest

(1,720,498)

(1,676,102)

(882,226)

(1,032,445)Minority
interest in loss of subsidiary

-

2,745

-

-Net Loss

$(1,720,498)

$(1,673,357)

$
  (882,226)

$(1,032,455)Basic and
Diluted (Loss) per share

$
        (0.27)

$
        (0.30)

$
        (0.14)

$
        (0.18)Basic and
Diluted Weighted Average Common Shares Outstanding

6,391,700

5,618,675

6,486,789

5,616,451  See notes to condensed consolidated
financial statements.  - 2 -       CORDIA
CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(UNAUDITED)  For
the Six Months EndedJune 30,2008

2007Cash Flows From
Operating ActivitiesNet
loss  from operations
$(1,720,498)

$(1,673,357)Adjustments
to reconcile net loss to net cashprovided
by operationsCompensatory
stock expense
99,358

145,655Bad
debts
1,669,133

1,574,116Impairment
of goodwill
-

284,117Depreciation
and amortization expense
960,883

511,598Equity
in loss of affiliate
71,569

-Deferred
income taxes
(2,004)

-Minority
interest
-

(2,745)(Increase)
decrease in assets:Restricted
cash
31,808

861,633Accounts
receivable
(3,951,788)

(1,585,998)Inventory
(98,303)

-Prepaid
expenses and other current assets
(414,154)

(40,576)Accrued
usage receivable
82,196

(301,440)Security
deposits
(113,716)

(56,014)Increase
(decrease) in liabilities:Accounts
payable
3,383,300

97,779Accrued
expenses
211,011

(130,356)Billed
taxes payable
1,334,719

1,605,703Deferred
revenue
175,017

121,358Deferred
rent
(6,668)

(2,882)NET
CASH PROVIDED  BY OPERATING ACTIVITIES
1,711,863

1,408,591Cash Flows from
Investing ActivitiesCapitalized
software costs
(270,599)

(354,945)Leasehold
improvements
-

(687)Purchase
of property and equipment
(194,376)

(525,721)Purchase
of customer lists
(224,375)

-Acquisition
of TSI operations
(797,164)

-Investment
in unconsolidated affiliate
(6,750)

-Loans
receivable
(71,479)

(25,000)NET
CASH (USED) BY INVESTING ACTIVITIES
(1,564,743)

(906,353)Cash Flows From
Financing ActivitiesPrincipal
payments on capital leases
(6,352)

(5,880)Payments
of notes payable
(262,483)

-Purchase
of treasury stock
(19,976)

(15,725)NET
CASH (USED) BY FINANCING ACTIVITIES
(288,811)

(21,605)Effect
of exchange rate changes on cash
(15,022)

18,192(Decrease)
 Increase in Cash and Cash Equivalents
(156,713)

498,825Cash
and cash equivalents, beginning
999,039

370,832Cash
and cash equivalents, ending
$
        842,326

$
        869,657Supplemental
Disclosures of Cash Flow Information:Cash
paid during the period  for:Interest
$
          59,692

$
            1,855Income
Tax
-

-Supplemental
Disclosure of Non-Cash Investing and Financing Activities:Stock
and stock options issued in TSI acquisition
$
        284,014

$
                   -Notes
issued in TSI acquisition
$
     1,326,403

$
                   -   See notes to condensed consolidated financial statements   - 3 -


CORDIA CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Period Ended June 30, 2008 Unaudited   Note 1: Basis of Presentation/Going Concern  Our interim unaudited condensed
consolidated financial statements have been prepared in accordance with the
instructions to Form 10-Q and do not include all of the information and
disclosures required by accounting principles generally accepted in the United
States of America. Therefore, these financial statements should be read in
conjunction with the financial statements and related footnotes included in our
Annual Report on Form 10-K and Amendment No. 1 on Form 10-K/A for the year ended
December 31, 2007. These financial statements reflect all adjustments that are,
in the opinion of management, necessary to fairly state the results for the
interim periods reported. The results of operations for the three and six-month
periods ended June 30, 2008, are not necessarily indicative of the results to be
expected for the full year. The interim condensed consolidated
financial statements include the accounts of Cordia Corporation (Cordia) and
the accounts of our wholly owned subsidiaries Cordia Communications Corp.
(CCC), My Tel Co, Inc (MTC), and its subsidiaries, Cordia International
Corp. (CIC), and its subsidiaries, and CordiaIP Corp. (80% owned) (CordiaIP)
and its subsidiaries as of June 30, 2008, and December 31, 2007, and for the
three and six months ended June 30, 2008 and June 30, 2007.  Cordia and its
subsidiaries are collectively referred to herein as the Company. All material
intercompany balances and transactions have been eliminated.  Certain amounts as previously reported have
been reclassified to conform with the current period presentation.  Going Concern  These condensed consolidated financial
statements have been prepared assuming that the Company will continue as a going
concern.  The Company has incurred a net loss of approximately $(1,720,000)
for the six month period ended June 30, 2008 and also has a negative working
capital of approximately $12,468,000 and a deficiency in stockholders equity of
approximately $5,290,000 as of June 30, 2008. These conditions raise substantial
doubt about the Companys ability to continue as a going concern.
 Management believes that the Company will be able to generate sufficient
cash flows from operations to meet its obligations as they come due during 2008.
 In its efforts to strengthen its financial position the Company may also
have to raise cash from additional sources such as short-term funding, to cover
short-term cash deficiencies that may arise.  New Significant Accounting Policies  Prepaid services revenue is recognized when
there is persuasive evidence of an arrangement, delivery has occurred, the sales
price is determinable, and collectability is reasonably assured. Inventory is
valued at the lower of cost or market value, and consists of prepaid calling
cards.  Note 2: (Loss) Per Share  (Loss) per common share is calculated under
the provisions of SFAS No. 128, Earnings per Share. SFAS No. 128 requires the
Company to report both basic earnings per share, which is based on the
weighted-average number of common shares outstanding, and diluted earnings per
share, which is based on the weighted-average number of common shares
outstanding plus all potential dilutive common shares outstanding. Diluted
(loss) per share for 2008, and  2007, is the same as basic earnings per
share as the effect of the common stock purchase options and warrants
outstanding, on such calculation, would have been anti-dilutive.  Weighted average number of shares
outstanding was 6,391,700 and 5,618,675, for basic and diluted loss per share,
for the six months ended June 30, 2008 and 2007 respectively, and 6,486,789 and
5,616,451, for three months ended June 30, 2008 and 2007, respectively.
  Potentially dilutive weighted average shares that were excluded in
the calculation of diluted earnings per share, as their impact would be
anti-dilutive, aggregated 917,000 and 1,136,000 vested stock options for the six
months ended June 30, 2008 and 2007, respectively.    - 4 -       CORDIA CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Period Ended June 30, 2008 Unaudited    Note 3: Recent Accounting Pronouncements
Affecting the Company  Statement of Financial Accounting
Standard No. 161, Disclosures about Derivative Instruments and Hedging
Activities (SFAS No. 161)  In March 2008, the Financial Accounting
Standards Board (FASB) issued FASB Statement No. 161, Disclosures About
Derivative Instruments and Hedging Activities.  The new standard is
intended to improve financial reporting about derivative instruments and hedging
activities by requiring enhanced disclosures to enable investors to better
understand their effects on an entitys financial position, financial
performance, and cash flows.  It is effective for financial statements
issued for fiscal years and interim periods beginning after November 15, 2008,
with early application encouraged.  The Company is currently evaluating the
impact of adopting SFAS No. 161 on its financial statements.  Statement of Financial Accounting Standard 141 Revised
(SFAS No. 141(R)): Business Combinations  In December 2007, the FASB issued Statement
of Financial Accounting Standards (SFAS) No. 141 (revised 2007),
Business Combinations, which replaces SFAS No 141. The statement retains
the purchase method of accounting for acquisitions, but requires a number of
changes, including changes in the way assets and liabilities are recognized in
the purchase accounting. It also changes the recognition of assets acquired and
liabilities assumed arising from contingencies, requires the capitalization of
in-process research and development at fair value, and requires the expensing of
acquisition-related costs as incurred. SFAS No. 141R is effective
for business combinations for which the acquisition date is on or after the
beginning of the first annual reporting period beginning on or after December
15, 2008. Statement of Financial Standard No.
160 (SFAS No. 160) Noncontrolling interest in Consolidated Financial
Statements  an amendment of ARB 51  In December 2007, the FASB issued SFAS No.
160,  Noncontrolling Interests in Consolidated Financial
Statements-and Amendment of ARB No. 51.   SFAS 160 establishes
accounting and reporting standards pertaining to ownership interests in
subsidiaries held by parties other than the parent, the amount of net income
attributable to the parent and to the noncontrolling interest, changes in a
parents ownership interest, and the valuation of any retained noncontrolling
equity investment when a subsidiary is deconsolidated.  This statement
also establishes disclosure requirements that clearly identify and distinguish
between the interests of the parent and the interests of the noncontrolling
owners.  SFAS 160 is effective for fiscal years beginning on or after
December 15, 2008.  The adoption of SFAS 160 is not currently expected
to have a material effect on the Companys consolidated financial position,
results of operations, or cash flows.  Statement of Financial Accounting Standard
No. 157, Fair Value Measurements (SFAS No. 157) In September 2006,
the FASB issued SFAS No. 157,Fair Value Measurements, which defines
fair value, establishes a framework for measuring fair value in generally
accepted accounting principles, and expands disclosures about fair value
measurements. This statement does not require any new fair value measurements,
but provides guidance on how to measure fair value by providing a fair value
hierarchy used to classify the source of the information. SFAS No. 157 is
effective for fiscal years beginning after November 15, 2007, and all interim
periods within those fiscal years. In February 2008, the FASB released FASB
Staff Position (FSP FAS 157-2 Effective Date of FASB Statement
No. 157) which delays the effective date of SFAS No. 157 for all
nonfinancial assets and nonfinancial liabilities, except those that are
recognized or disclosed at fair value in the financial statements on a recurring
basis (at least annually), to fiscal years beginning after November 15, 2008 and
interim periods within those fiscal years. The implementation of SFAS
No. 157 for financial assets and liabilities, effective January 1,
2008, did not have an impact on the Companys financial position and results of
operations.  The Company is currently evaluating the impact of adoption of
this statement on its non-financial assets and liabilities in the first quarter
of fiscal 2009.  -5-      CORDIA CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Period Ended June 30, 2008 Unaudited   Note 4: Restricted Cash  As a result of expanding our wireline
service offerings into additional states covered by our commercial services
agreement with Qwest Communications International, Inc. (Qwest) CCC obtained a
Letter of Credit (LOC) for the benefit of Qwest in the amount of approximately
$142,000.  The LOC is secured by funds which we deposited into a restricted
money market account.  The LOC, originally effective for a term of one (1)
year with an expiration date of June 25, 2008, was renewed for an additional one
(1) year period.   In addition, Northstar Telecom, Inc. (NST) had at
December 31, 2007 a $30,000 LOC with Verizon Communications, Inc., raising our
amount of restricted cash at December 31, 2007 to approximately $174,000, which
included interest of $1,000.   Note 5: Acquisition  TSI Prepaid, LLC  On June 5, 2008, the Companys subsidiary
Cordia Prepaid Corp. (CPC) completed an asset purchase agreement with TSI
Prepaid, LLC (TSI). The assets included, among other items, inventory, fixed
assets, intellectual property, billing systems and management information
systems, including underlying source code, all rights and title under all
contracts and agreements, customer lists, vendor lists and any and all assets
necessary to carry out the business of TSI Prepaid, LLC.  The purchase was
limited to assets, and CPC did not agree to assume, pay, perform, or discharge
any existing or later incurred liabilities of the Seller. CPC is the newly
formed wholly-owned subsidiary of Cordias majority (80% following completion of
this transaction) owned subsidiary CordiaIP.  The Company entered into an employment
agreement with the president of TSI which included the issuance of restricted
stock and stock options (see Note 10).  The following table
summarized the estimated fair values of assets acquired and liabilities assumed
at the date of acquisition:   Purchase
Price:Notes Payable
(see Note 15)

$
          1,323,000Cash
payment

250,000Advance to
Sellers

405,000500,000 Shares
of Restricted Common Stock

235,000Option for
200,000 Restricted Shares of Common Stock

49,000Minority
interest in CordiaIP (20%)

1,000Total Purchase
Price

2,263,000Expenses related
to the acquisition

143,000Total
Investment

$
          2,406,000Inventory

$
             408,000Intangible
Assets

864,000Fixed
Assets

54,000Reserve for
Contingencies

(100,000)Goodwill

1,180,000Total
Investment

$
          2,406,000  -6-      CORDIA CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Period Ended June 30, 2008 Unaudited   Note 5: Acquisition (contd)  Midwest Marketing Group, Inc.  On August 15, 2007, the Company completed
the purchase of Midwest Marketing Group, Inc. (Midwest), a Nebraska
corporation. MTC purchased all of the outstanding common stock of Midwest
resulting in the acquisition of both Midwest and its wholly-owned subsidiary
Northstar Telecom (NST), a Nebraska corporation that operates as a competitive
local exchange carrier primarily in the Qwest territory. The following unaudited pro forma
information of the Company for the six and three months ended June 30, 2008 and
2007 and is provided to give effect to the Midwest and TSI acquisitions assuming
they occurred as of January 1, 2007.    2007



2008Six
Months
Three
Months

Six
Months

Three MonthsNet sales
$
   48,236,000
$
  24,106,000

$44,775,000

$22,630,000Net loss
(3,391,000)
(2,106,000)

(1,760,000)

(918,000)Net loss per
share:Basic
(0.53)
(0.33)

(0.26)

(0.13)Diluted
(0.53)
(0.33)

(0.26)

(0.13)   The pro forma information presented above
is for illustrative purposes only and is not indicative of results that may have
been achieved if the acquisition had occurred as of the beginning of the
Companys 2007 fiscal year or of future operating performance.    Note 6:  Impairment of
Goodwill  The Company accounts for its goodwill in
accordance with Statement of Financial Accounting Standards (SFAS) No. 142,
Goodwill and Other Intangible Assets, which requires the company to test
goodwill for impairment annually or whenever events or changes in circumstances
indicate that the carrying value of an asset may not be recoverable. Goodwill
acquired in the purchase of Midwest and TSI will be reviewed for possible
impairment at least annually. During the quarter ended March 31, 2007, the
Company determined that the carrying amount of the goodwill associated with the
purchase of Triamis Group Limited exceeded its fair value, which was estimated
based on the present value of expected future cash inflows.  Accordingly, a
goodwill impairment loss of $284,000 was recognized. Management does not believe
that there is any impairment at June 30, 2008.  Note 7: Foreign Currency Transactions  The functional currency of Triamis and
Cordia HK Limited (Cordia HK) is the local currency, the Hong Kong dollar
(HK$), the functional currency of CC Brazil f/k/a Canal West is the local
currency, the Brazilian Real (R$), and the functional currency of Cordia
Phils, Inc. is the local currency, the Filipino Peso (P$). For these foreign
operations, the assets and liabilities have been translated into US dollars
using period-end exchange rates in effect as of the balance sheet date and
revenue and expenses have been translated using average daily exchange rates for
the period. The resulting cumulative translation adjustment of approximately
($61,000) is included in comprehensive (loss) as a separate component of
stockholders equity in the condensed consolidated balance sheet.     -7-       CORDIA CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Period Ended June 30, 2008 Unaudited   Note 8: Intangible Assets  Intangible assets are included in security
deposits and other assets on our condensed consolidated balance sheet. At June
30, 2008, and December 31, 2007, our intangible assets are as follows:  Gross Carrying
Amount

Accumulated Amortization

Net
Carrying
AmountJune
30, 2008
$
     1,696,000

$
           196,000

$
       1,500,000December 31, 2007
$
        713,000

$
           156,000

$
          557,000  The intangible assets increased $864,000 as
a result of the transaction with TSI and $224,000 related to the acquisition of
CLEC retail customer lists during the first half of 2008. The aggregate
intangible amortization expense was $145,000 and $11,000 for the six months
ended June 30, 2008 and 2007, respectively. In addition, in 2008 the Company
retired $105,000 of fully amortized intangible assets, impacting both the gross
carrying amount and accumulated amortization by this amount.  Note 9: Receivable Financing  The Company sells its trade accounts
receivable on a pre-approved, non-recourse basis. The accounts are sold at the
invoice amount subject to a factor commission of 1.25% and other miscellaneous
fees. Trade accounts receivable not sold remain in the Company's custody and
control and the Company maintains all credit risk on those accounts.  As of June 30, 2008, approximately
$1,089,000 of the Companys trade accounts receivable were non-recourse
receivables due from the factor.  Summarized below are the components of
the Companys trade accounts receivable:  Trade accounts
receivable


$
 4,747,000Less: allowance
for bad debts


(1,376,000)3,371,000Due from
factor


1,089,000Net accounts
receivable


$
 4,460,000  During the second quarter of 2008, the
Company received $8,550,935 under this agreement.   Note 10:  Employee Stock
Compensation  Stock based compensation cost is measured
at grant date, based on the fair value of the award, and is recognized over the
employee requisite service period.  Stock based compensation of
approximately $99,000 and $52,000 and $146,000 and $71,000 was recognized in the
six and three months ended June 30, 2008, and 2007, respectively.  This
amount was included in general and administrative expense.  No deferred tax
benefit has been recognized for share based compensation arrangements.  On April 1, 2008, the Board of Directors
voted unanimously to grant incentive stock options to its directors and various
key employees to purchase an aggregate 560,500 shares of the Companys common
stock pursuant to the Amendment to the 2001 Equity Incentive Plan. The options
were granted with an exercise price of $0.52 per share, said exercise price
being equal to 100% of the fair market value of the Common Stock on April 1,
2008.  On June 2, 2008, the Board of Directors
voted unanimously to grant 150,000 restricted shares of the Company common stock
and incentive stock options to purchase 100,000 shares of the Companys common
stock to Mohammed Markatia, President of Cordia Prepaid Corp. It was granted as
partial compensation pursuant to the Companys Amendment to the 2001 Equity
Incentive Plan. The stock options were granted with an exercise price of $0.56
per share, said exercise price being equal to 100% of the fair market value on
the grant date.  -8-      CORDIA CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Period Ended June 30, 2008 Unaudited   Note 10:  Employee Stock
Compensation (contd)  The options granted on April 1, 2008 and
June 2, 2008, shall vest and become exercisable with 50% of the shares granted
vesting and exercisable upon the first anniversary of the grant date, and 25%
vesting and exercisable on the second and third anniversaries of the grant date.
 The options shall terminate on the fifth anniversary of the grant date or
immediately upon the grantees resignation or termination from his/her service
to the Company. The assumptions used to calculate the fair value of options
issued using the Black-Scholes option pricing model are: dividend yield 0%;
expected volatility 92%; risk free interest rates 2.5%; and expected holding
period, three years.  As of June 30, 2008 the total unrecognized
compensation cost of $328,000 related to non-vested awards is expected to be
recognized over a weighted-average period of approximately 2.1 years. The following
table summarizes our stock option activity:  Weighted-AverageStock Options
Exercise PriceOutstanding,
beginning of year
1,
795,000
$1.20Exercised
-Granted
860,500
$0.53Cancelled/Forfeited
(900,500)
$0.71Options
outstanding, June 30, 2008
1,755,000
$1.13  The weighted-average remaining contractual
term was approximately 3.2 years for stock options outstanding as of June 30,
2008.    Note 11: Purchase of Treasury Stock  On May 30, 2007, the Board of Directors of
Cordia unanimously authorized Cordias management to spend an aggregate of
$500,000, until such time that the authorized amount is exhausted, to
re-purchase Cordias common and preferred stock so long as the market price did
not exceed $1 per share and when market conditions favorable for that purpose
prevail.  The Company did not make any purchases during the three-month
period ended June 30, 2008.  Note 12:  Commitments  Employee Benefit Plan  In 2004, the Company began the Cordia
Corporation 401(k) Profit Sharing Plan covering all eligible employees. Under
the plan, the Company matches on an elective basis, 50% of the first 6%
contributed by the employee, for an aggregate maximum of 3%. Participating
employees shall become vested in employer contributions after three (3) years of
service. If a participating employee is terminated or resigns before the three
(3) year vesting period employer contributions shall be forfeited.  The
plan became effective January 1, 2004, and employee and employer contributions
commenced April 16, 2004.  For the plan years beginning on January 1,
2007 and 2008, the Company implemented a fully-vested safe harbor matching
contribution to all eligible participants.  Under the safe harbor matching
contribution, the Company matches 100% of employee deferrals up to 3% of
compensation, plus 50% of cash deferrals in excess of 3% of compensation not to
exceed 5% of compensation.  For the six months ended June 30, 2008,
employee contributions totaled $93,662 and employer contributions totaled
$51,154, as compared to $56,550 and $33,676, respectively for the same period in
2007. For the three months ended June 30, 2008, employee contributions totaled
$38,360 and employer contributions totaled $23,639, as compared to $26,198 and
$15,452, respectively for the same period in 2007.  -9-      CORDIA CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Period Ended June 30, 2008 Unaudited   Note 12:  Commitments
(Contd)  Network Commitments  The Company has minimum line commitments
with a wireline network provider through 2012.  Under these commitments the
aggregate minimum commitment is approximately $3,000,000 in 2008 increasing to
approximately $4,000,000 per annum in 2012      CORDIA CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Period Ended June 30, 2008 Unaudited   .  Tax Contingencies  The Company complies with the provisions of
FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes  An
Interpretation of FASB Statement No. 109 (FIN No. 48).  There have
been no material changes in the total unrecognized tax benefits, interest or
penalties attributable to uncertain tax positions during the second quarter
2008.   Note 13: Business Segment and Geographic
Information  The Company is a global telecommunications
firm generating revenue from the provision of telecommunications services
domestically and internationally to business, residential, and wholesale
customers providing both local and long distance services. The Company operates
in the wireline and VoIP markets, as well as in prepaid telecommunications
services. Although the Companys business is primarily conducted in the United
States, operations are also carried out overseas through our foreign
subsidiaries in the Philippines, Hong Kong, Brazil and India.  Information
about the Companys operations by geographic area is as follows:   Six
Months Ended June 30,

Three Months
Ended June 30,2008

2007

2008

2007RevenuesUnited
States

$
26,874,000

$20,069,000

$15,233,000

$9,875,000Foreign

717,000

77,000

342,000

34,000$27,591,000

$20,146,000

$15,575,000

$9,909,000    June
30, 2008

December 31, 2007Long-lived
assetsUnited
States

$
       8,257,000

$
             5,999,000Foreign

739,000

988,000$
       8,996,000

$
             6,987,000Total
assetsUnited
States


$
     15,367,000

$
           10,559,000Foreign

1,637,000

1,522,000$
     17,004,000

$
           12,081,000        -10-      CORDIA CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Period Ended June 30, 2008 Unaudited   Note 13: Business Segment and Geographic Information
(contd)  Segment Information:  Six
Months Ended June 30,


Three Months Ended June 30,2008

2007

2008

2007External
RevenuesWireline
$
      23,049,000

$
             19,565,000

$
       11,692,000

$
            9,612,000VoIP
1,243,000

328,000

588,000

161,000Prepaid
Services
3,290,000

-

3,290,000

-Other
9,000

253,000

5,000

136,000$
     27,591,000

$
             20,146,000

$
        15,575000

$
            9,909,000Operating
IncomeWireline
$
       1,736,000

$
                  810,000

$
           987,000

$
               234,000VoIP
(1,501,000)

(1,515,000)

(795,000)

(745,000)Prepaid
Services
(69,000)

-

(69,000)

-166,000

(705,000)

(123,000)

(511,000)Corporate
Overhead
(1,330,000)

(819,000)

(751,000)

(431,000)(1,164,000)

(1,524,000)

(628,000)

(942,000)Other Income
and (Expense)
(555,000)

(152,000)

(256,000)

(90,000)Pre-tax
Loss
(1,719,000)

(1,676,000)

(884,000)

(1,032,000)Tax
Expense
1,000

-

(2,000)

-Net Loss
$
     (1,720,000)

$
           (1,676,000)

$
         (882,000)

$
         (1,032,000)  Assets June 30,

December 31,2008

2007Wireline


$
    10,024,000

$
  10,446,000VoIP


1,512,000

1,284,000Prepaid
Services


5,196,000

-Other


272,000

351,000Total


$
    17,004,000

$
  12,081,000  Note 14: Other Income and (Expense)  Other income and expense consist of the following:  Six
Months Ended June 30,

Three Months
Ended June 30,2008

2007

2008

2007Equity in
Loss

$
   (72,000)

$
               -

$
   (39,000)

$
                   -Exchange Rate
Differences

(33,000)

-

(18,000)

-Factor Financing
Fees

(297,000)

-

(148,000)

-Late Fee
Charges

(103,000)

(180,000)

(18,000)

(94,000)Other

5,000

-

-

-$
 (500,000)

$
 (180,000)

$
 (223,000)

$
       (94,000)   Note 15: Debt  In connection with the TSI acquisition, the
Company issued a non interest bearing note in the face amount of $1,595,000. The
note was recorded at its present value of $1,323,000 and is to be paid in 16
monthly payments, commenced July 2008. The payments consist of twelve
installments of $50,000, followed by three installments of $250,000 and a final
installment of $245,000.   -11-      CORDIA CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Period Ended June 30, 2008 Unaudited    Note 16: Subsequent Events  (a) Second Amendment to Factoring and
Security Agreement with Thermo Credit LLC  The Thermo Credit, LLC (Thermo) purchase
commitment amount with the Company was increased by Five Hundred Thousand
dollars ($500,000) to an aggregate Five Million Five Hundred Thousand dollars
($5,500,000) on July 18, 2008.  As a result of the increase, the Company
shall pay to Thermo a Commitment Fee equal to Eight Thousand Seven Hundred Fifty
($8,750) payable in three (3) installments.  (b) Legal Proceedings  On July 27, 2008, subsequent to the balance
sheet date, Cordia Corporation, VOzsIP, Corp. and CordiaIP Corp. were served by
Plaintiff, Rates Technology, Inc. the holder of two (2) separate US Patents, for
patent infringement.  The Company does not believe it infringes on
Plaintiffs patents and further that Plaintiffs claims are without merit. The
lawsuit was filed against the Company in the Southern District of New York on
June 26, 2008.                                       -12-        ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OR
PLAN OF OPERATIONS Certain statements in this Report
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors that may cause
our actual results, performance or achievements to be materially different from
any future results, performance or achievements expressed or implied by such
forward-looking statements. Factors that might cause such a difference include,
among others, uncertainties relating to general economic and business
conditions; industry trends; changes in demand for our products and services;
uncertainties relating to customer plans and commitments and the timing of
orders received from customers; announcements or changes in our pricing policies
or that of our competitors; unanticipated delays in the development, market
acceptance or installation of our products and services; changes in government
regulations; availability of management and other key personnel; availability,
terms and deployment of capital; relationships with third-party equipment
suppliers; and worldwide political stability and economic growth. The words
"believe," "expect," "anticipate," "intend," "plan," and similar expressions
identify forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
the statement was made.  Critical Accounting Policies and
Estimates  The preparation of financial statements and
related disclosures in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates and
assumptions that affect the amounts reported in the unaudited interim Condensed
Consolidated Financial Statements and accompanying notes.  Management bases
its estimates on historical experience and on various other assumptions that are
believed to be reasonable under the circumstances. Actual results could
differ from these estimates under different assumptions or
conditions.  The Company believes there have been no significant
changes during the three and six month periods ended June 30, 2008, to the
items disclosed as significant accounting policies in management's Notes to
Consolidated Financial Statements in the Company's Annual Report on Form 10-K
and Amendment No. 1 to Annual Report on Form 10-K/A for the year ended December
31, 2007. The Company filed a 10-K/A after identifying errors related to certain
intercompany transactions and the recognition of expense during the fourth
quarter of 2007.  Overview  We are a global telecommunications firm
generating our revenue from the provision of telecommunications services
domestically and internationally to business, residential, and wholesale
customers. We provide both local and long distance services utilizing
traditional wireline and VoIP technologies on both a pre-paid and post-paid
basis.  Historically, our traditional bundled wireline service offerings
have represented a majority of our revenue, followed by revenue derived from our
VoIP service offerings and business process outsourced services. We believe that
this trend will continue throughout 2008, as we continue our expansion
domestically into new states and internationally into new markets. In addition,
we expect that the revenue derived from our recent purchase of prepaid service
assets from TSI will become a significant contributor to the overall revenue of
the Company.  We believe that the acquisition of Midwest Marketing and
Northstar Telecom, a telemarketing firm and competitive local exchange carrier,
along with the launch of our call center in the Philippines, will continue to
encourage this trend as it has resulted in an increased line count and has given
us the ability to lower our customer acquisition costs.  Our traditional wireline service offerings
include local exchange, local access, domestic and international long distance
telephone services, and a full suite of local features and calling plans to
small business and consumers in various states throughout the country, primarily
in the Qwest and Verizon territories.  We also have a commercial agreement
in place with another non-incumbent local exchange carrier in an effort to
expand our footprint, keep costs low, and reduce our reliance on the incumbent
carriers.  Our VoIP service offerings include a flat
rate plan starting as low as $14.95 per month, combined with a full suite of
enhanced features which make our service an attractive value proposition to
existing and potential customers. Customers also have the option of choosing
their desired area code with this service, being able to choose from more than
forty (40) countries and hundreds of cities worldwide for their telephone number
regardless of their physical location  making any long distance or
international call local. As a complement to our mainstream VoIP service
offering we also provide a fully integrated Spanish language VoIP service
through our wholly owned subsidiary VOszIP, Corp. (VOszIP).  -13-       We recently formed CPC for the purpose of
acquiring the assets of TSI Prepaid, LLC.  The acquisition allows us to
diversify our position in the telecommunications marketplace by introducing
prepaid international phone cards to our service portfolio, as well as prepaid
wireline and VoIP services.  We believe that providing prepaid phone cards,
as well as serving as one of the underlying network service providers for these
cards, will comprise approximately 40% of the Companys overall revenues during
the next twelve months.  Further, our entrance into prepaid services will
also contribute to the expansion of the sales and distribution channels of our
wireline and VoIP services by promoting these services in prepaid calling card
retail outlets.  Our service portfolio also includes our
MagellanÒ service which is supported by
our internally developed VoIP network.  MagellanÒ customers get their own personal
international telephone number or extension that is routed through our IP
platform to the customers landline or mobile phone allowing customers to be
reached anywhere in the world at local rates.  We believe this service
offering will be attractive to executives traveling abroad and ex-patriates who
need to stay in touch with their colleagues, friends and family.  We use
this product internally to keep in touch with our offices and employees located
abroad and/or on field assignment.   As a result, we are constantly
testing the integrity of the service and making improvements on functionality
based on our experience with the service.  We also offer an extensive outsourced
service product line, which includes as its primary offering outsourced billing
on a wholesale basis to telecommunications service providers. Our wholesale
customers have access to our secure Internet enabled software systems in which
user-friendly web client front-ends called WorkspacesÒ serve as an interface for integration with
our software systems. The full suite of services available is described in its
entirety in the Business Process Outsourcing (BPO) Service below.  Wireline Services  We offer small business and residential
consumers wireline service by leasing a portion of the network owned by other,
larger telecommunications carriers, namely Verizon and Qwest.  These
leasing arrangements are controlled by multi-state, multi-year interconnection
and commercial services agreements that allow us to offer telecommunications
services to consumers without incurring the capital expenditures associated with
building our own network.   We have executed amendments to these
agreements securing long-term extensions and continued access to their networks.
 We also have a commercial services agreement with McLeodUSA, Inc., which
will allow for the expansion of our geographic footprint as well as broaden our
underlying service provider portfolio and diminish our reliance on larger
telecommunications carriers.  We offer local exchange, local access,
domestic and international long distance telephone services, and a full suite of
local features and calling plans to small business and residential consumers in
Colorado, Idaho, Iowa, Maryland, Massachusetts, Minnesota, Nebraska, New Jersey,
New Mexico, New York, North Dakota, Oregon, Pennsylvania, Utah, Virginia,
Washington, and Wisconsin through Cordia Communications Corp. (CCC), My Tel
Co, Inc. (MTC), and Northstar Telecom Inc. (NST).  Subsequent to the
balance sheet date, we began conducting test sales and provisioning pursuant to
our relationship with McLeodUSA, Inc., by offering services to customers in
Illinois, Michigan, and Ohio. We are also licensed to provide local and/or long
distance telecommunications services, but are not actively marketing or
providing services, in Connecticut, Florida, Georgia, Indiana, Kentucky,
Louisiana, Missouri, North Carolina, Oklahoma, and Texas.  Applications for
authorization to operate as a local and long distance telecommunications carrier
are pending in Arizona and Kansas.  MTC distinguishes itself from CCC and NST
by targeting consumers in the secondary consumer credit market.  Sales
associated with MTC have been positive, however due to our serving consumers who
would otherwise have difficulty in obtaining telecommunications services because
of their credit history our bad debt results were higher than anticipated.
 As a result, during the fourth quarter of 2007, we ceased targeting the
secondary consumer credit market      -14-       Prepaid Services  As a complement to our wireline services,
we have launched prepaid calling services through Cordia Prepaid, Corp. (CPC).
 CPC recently completed an asset purchase with TSI Prepaid, LLC, a
distributor of prepaid telecommunications services, in which it acquired any and
all assets necessary to carry out the business of TSI Prepaid, LLC, including
but not limited to inventory, fixed assets, intellectual property, billing
systems and management information systems, agreements, customer lists and
vendor lists. In a related transaction, Cordia entered into an investment
agreement to acquire a minority interest in Wholetel, Inc., a startup company
affiliated with TSI that operates a turnkey products and services delivery
system for retailers and consumers. The Company believes the purchase will boost
overall revenue adding a retail distribution network that reaches approximately
7,000 locations. This asset purchase should expand and diversify our revenue
stream, as well as allow us to greatly increase the number of potential
customers we can reach with our products and services. We further expect to
begin providing network services to the calling card industry by utilizing our
existing worldwide network and established relationships with partners around
the world.  VoIP Services  We launched the commercial roll-out of our
VoIP service offering, a voice over broadband solution enabling delivery of
voice services over any broadband Internet Protocol (IP) connection through
our wholly-owned subsidiary CordiaIP Corp. (CordiaIP) in January 2006.
 We believe VoIP is the logical extension of our traditional wireline
telecommunications service offerings. To this end we have hired additional
personnel and built our own proprietary VoIP network, including our own network
software and operating support systems.  We offer a wide range of service plans,
including a flat rate plan starting as low as $14.95 per month. Along with a
full suite of enhanced features, our service is an attractive value proposition
to existing and potential customers. We strive to be the worlds local phone
company® and give our customers the option of choosing their desired area code,
offering telephone numbers from more than forty (40) countries and hundreds of
cities worldwide. This will allow consumers to make international calls at local
rates, a feature not available with traditional wireline service.  We also
recognize that a large percentage of the United States population speaks Spanish
as a primary language. To accommodate these users we launched VozsIP, a fully
integrated Spanish language VoIP service.  This service, which is identical
in quality and functionality to its English counterpart, was designed to be a
purely Spanish language experience and includes all Spanish user interfaces,
voice prompts, invoices, customer service and targeted country calling plans.
 While the target market for our VoIP service is small business and
consumers, we also offer our service on both a wholesale and resale basis.  International Services  We have focused on creating a niche in the
international VoIP marketplace as the worlds local phone company® by
providing value added services worldwide and creating partnerships and/or
acquiring international VoIP providers on a global scale.  In 2005, we
formed Cordia International Corp. (CIC) to serve as a holding and management
company for our overseas assets, which include our foreign based subsidiaries
and affiliates in Brazil, Hong Kong, India, and the Philippines.  We have
made significant investments in our international services and have not yet
reached a point of profitability relative to these efforts.  To date we
have incurred losses in executing our plan, and these investments have detracted
from the true value of our wireline business, which on a stand alone basis would
report a profit that is not apparent when reporting on a consolidated basis.
 In spite of our current costs and losses, we believe that our
international services, which had revenue growth of approximately 300% for the
period ended December 31, 2007, as compared to the same period in 2006, have
long term value and we will continue our efforts to develop these businesses so
that they may become self-sustaining.          -15-        We have been laying the foundation for the
commercial launch of our VoIP product in Brazil by test marketing resold VoIP
services of another licensed Brazilian entity.  We have been promoting our
services through in house telemarketing and have been receiving a positive
response from the Brazilian market.  On June 25, 2008, the Agéncia Nacional
de Telecomunicações (ANATEL), the Brazilian equivalent to the FCC, issued our
Brazilian subsidiary a Serviçe Comunicação Multimídia (SCM) license. The
license allows the Company to offer VoIP and value added services, including its
Magellan® service line, internationally and domestically throughout Brazil,
targeting small and medium business and residential customers. In addition, the
license will allow us to move forward with the commercial launch of our VoIP
product in Brazil utilizing our own network giving us the ability to ensure the
quality of the services delivered to our customers while reducing expenses.
 In addition to our telemarketing efforts we anticipate rolling out an
agent sales program designed to facilitate our rapid entry into this newly
emerging industry, giving the Company the opportunity to play a central role in
the deployment of IP based communications networks in Brazil.  In addition, during the first quarter of
2008, though our Indian joint venture, Cordia LT Communication Private Limited,
we launched VoIP service offerings on a nationwide basis throughout India
pursuant to the license granted by the Ministry of Communications.  This
license also allows us to operate as an Internet Service Provider in India,
although to date we are only providing VoIP to our customers.  In Hong Kong, we have the authority to
offer telecommunications services under a Public Non-Exclusive
Telecommunications Services (PNETS) License.  We recently opted not to
renew our previously issued Services-Based Operator (SBO) license with the
Office of Telecommunications Authority (OFTA), which covers VoIP services.
While OFTA requires SBO holders to interconnect with the incumbent carriers in
Hong Kong the regulatory authority does not impose the same requirement on the
incumbent carriers. Therefore, due to the lack of regulatory guidance on
interconnection and the incumbent carriers unwillingness to interconnect we
believed it was in the best interest of the company not to renew this license.
We still believe that Hong Kong serves as the gateway to Asia and represents the
opportunity to serve the more than 40% of the worlds internet and broadband
subscribers located in that region, and will renew our efforts in the future.  In the Philippines, we launched our
offshore call center during 2007.  The center provides the Company with
various services including outbound telemarketing, customer service, welcome
calls, and collections.  The launch of this location has allowed us to
better serve our customers at a reduced cost .In addition, capitalizing on the
recent growth of outsourced call center locations in the country, we are
expanding our service portfolio to include underlying service provider, offering
a call center package utilizing our worldwide network.  In addition to our overseas holdings we
continue to foster bilateral relationships with international VoIP carriers,
such as our network interconnection with Bayan Telecommunications, Inc.
(Bayan), the second largest Philippine landline provider.  This will
allow unlimited calling from Cordias international network to Bayans wire-line
and wireless customers sold by Cordia. Our goal in seeking out these global
partnerships is to gain low cost access to their networks, allowing us to
deliver high quality, low cost global communications services to our domestic
and international customers.  To date, our VoIP network includes
international Direct Inward Dial (DID) telephone numbers from more than forty
(40) countries; network points of presence in Hong Kong, India, Brazil and the
United States; and peering agreements with approximately ten (10) carriers.
 We believe that by blending our marketing capabilities, proprietary
billing and operation support systems (OSS), IP communications technology and
international bilateral agreements we can take advantage of the large disparity
between wholesale costs in some markets and retail rates in other markets to
create a competitive advantage in the international communications market.
 We believe that by offering a wide range of international numbers
integrated with broadband, wireline, wireless and VoIP services bundled from our
network and those of our peering partners we can create bundled service
offerings that present an attractive value proposition to our customers.       -16-       Business Process Outsourcing Service (BPO Services)  We offer an extensive outsourced service
product line, which includes as its primary offering outsourced billing on a
wholesale basis to telecommunications service providers.  Our wholesale
customers have access to our secure Internet enabled software systems in which
user-friendly web client front-ends called Workspaces® serve as an interface for
integration with our software systems.  The services available to
wholesalers through our Workspaces® are the same services utilized internally
for the provision of our own traditional wireline and VoIP services to our
customers.  As such, we are continuously updating and improving these
processes to ensure optimal functionality.  We believe our outsourced
solutions are an attractive offering because it is not a pre-packaged all or
nothing product; the wholesale customer has the power to assess their
organization and then adopt and utilize only the functions they believe will
increase their own profitability.  Our goal is to tailor our services to
our clients needs and create a mutually beneficial and profitable relationship.
 We believe this is achieved by offering process driven software whereby
client required modifications to our systems are made at the server level and
then instantly passed onto the clients end users, promoting our commitment to
the continuous development and improvement of our Workspaces®.  We bill
these services on a predominantly per line basis and have experienced a decrease
in BPO Services revenues as a result of the decreased line count experienced by
our wholesale customers operations.  Accordingly, revenue derived from our BPO
Services has become a less material part of our total revenue.  Plan of Operation  With the extensions of our commercial
wholesale agreements in place, we will continue to promote our traditional
wireline services expanding into new service territories, targeting small
business customers, and offering stand alone long distance services to customers
in over ten (10) new territories.   The stock purchase and acquisition
of Midwest Marketing Group, Inc., a Nebraska based telemarketing firm with
approximately 250 seats, and its wholly owned subsidiary Northstar Telecom Inc.,
a Nebraska based competitive local exchange carrier operating in primarily in
the Qwest territory, has facilitated the promotion of our wireline offerings
while keeping cost of acquisition low.  This acquisition increased our
subscriber base by adding approximately 18,000 lines and approximately $10
million in revenue.   In addition, the acquisition has allowed us to
bring our sales and support efforts in house, at a significantly reduced cost.  Another long term means of cost reduction
was the launch of our call center in Cebu, Philippines.   The decision
to open the call center was made after successfully transitioning a portion of
our sales and marketing efforts offshore, reducing our customer acquisition
costs during the latter half of 2006.  We have saved approximately 50% on
our costs associated with acquiring new customers and believe that having our
own domestic based telemarketing firm and our own overseas call center will also
contribute to the increased growth of our wireline, VoIP, and Magellan customer
base.  We anticipate nearly 90% of future sales will be handled between the
Midwest call center and our newly established call center in Cebu, Philippines
and that this increase in revenue, coupled with lower acquisition costs and
improved operating efficiency, will have a positive effect on our 2008 results
of operations.  In addition to concentrating on promoting
growth and revenue relative to our wireline offerings, we will continue to focus
on our international VoIP initiative, which includes our recently launched
Magellan service offerings.  With Magellan,  customers get their own
personal international phone number that is routed, utilizing our IP network, to
their mobile or landline phone allowing the customer to be contacted anywhere in
the world at local rates.  While we continue to believe in the long term
value of our international services and businesses we recognize the financial
strain it has placed on our wireline service offerings and its overall effect on
our financial profile.  We are optimistic about the growth of our VoIP and
International services and believe that in time these businesses can become
self-sustaining.  The recent trend in our VoIP related revenues is
encouraging, and we will continue to invest in our international VoIP
initiatives. During the first six months of 2008, we launched our VoIP services
in Brazil and India.  To date we are only providing VoIP service, but our
long-term objective in both of these countries is to deploy our own next
generation wireless IP network utilizing WiMAX technology capable of providing
mobile voice, data and value added services.      -17-       With the addition of CPC and its recently
acquired prepaid assets we are diversifying our position in the
telecommunications marketplace by including prepaid international phone cards to
our service portfolio as well as prepaid wireline and VoIP services. We expect
to continue utilizing the distributor network in place at the time of
acquisition as well as expanding this network internationally utilizing Cordias
established global relationships. In addition, we will expand the sales and
distribution channels of our existing wireline and VoIP products through the
7,000 plus retail distributors that are in place though the purchase of the TSI
assets.  We believe this will have a positive effect on our revenue
growth.  Results of Operations  The following table compares our operating
revenue for the six and three month periods ended June 30, 2008 and 2007:  Operating Revenues Six
Months Ended June 30,

Three Months
Ended June 30,2008

2007

2008

2007Wireline
services

$23,049,000

$
19,565,000

$11,693,000

$9,612,000VoIP
services

1,243,000

328,000

588,000

161,000Prepaid
services

3,290,000

-

3,290,000

-Business Process
Outsourced Services

9,000

253,000

4,000

136,000$27,591,000

$20,146,000

$15,575,000

$9,909,000  Total operating revenues for the six and
three month periods ended June 30, 2008, increased by approximately $7,445,000
and $5,666,000, respectively, to approximately $27,591,000 and $15,575,000,
respectively, as compared to approximately $20,146,000 and $9,909,000,
respectively, reported in same periods ended June 30, 2007.  Our primary source of revenue is through
our wireline services and is earned primarily through the provisioning of
services to business, residential and wholesale customers for basic telephone
service, including local and long distance service, as well as ancillary
services such as voice mail and call waiting and to a lesser extent from CABS
billing.  For the six and three month periods ended June 30, 2008, our
wireline services revenue increased by approximately $3,484,000 (18%) and
$2,081,000 (22%)to approximately $23,049,000 and $11,693,000, respectively from
approximately $19,565,000 and $9,612,000 reported in the same periods last year.
This increase is attributable to a 27% and 32%, respectively, increase in lines,
which is primarily due to the acquisition of NST in August 2007 offset, in part,
by lower average rates.  For the six and three month periods ended
June 30, 2008, our VoIP services revenue increased by approximately $915,000 and
$427,000, respectively, to approximately $1,243,000 and $588,000, as compared to
the same period ended 2007.  Included in 2008 revenue were equipment sales
of approximately $35,000 and $196,000, respectively.  Approximately
$390,000 of the increase in VoIP revenue for the six month period was related to
our international services and approximately $525,000 was related to our
domestic services.  For the six and three month periods ended
June 30, 2008, billing services revenue, consisting primarily of income earned
through our outsourcing of billing services, data, and website technology to
wholesale telecommunications providers, decreased by approximately $244,000 and
$132,000 to approximately $9,000 and $4,000 , as compared to approximately
$253,000 and $136,000 reported in the same periods in 2007.  This change
occurred as a result of our wholesale customers decreased line counts.  We
expect this revenue source to be insignificant over the next couple of quarters
due to decreasing line counts experienced by our BPO customers.  From June 5, 2008 the Company generated prepaid services
revenues of approximately $3,290,000.     -18-       COST OF REVENUES  The following table compares our cost of revenues for the
six and three month periods ended June 30, 2008 and 2007:  Six
Months Ended June 30,

Three Months
Ended June 30,2008

2007

2008

2007Wireline
Services

$13,379,000

$10,501,000

$6,889,000

$5,152,000VoIP
Services

1,062,000

383,000

515,000

202,000Prepaid
Services

3,161,000

-

3,161,000

-$17,602,000

$10,884,000

$10,565,000

$5,354,000  Wireline Services  Cost of revenue from wireline services
consists of resale and wholesale line charges and represent our network access
fees paid in order to provide local and long distance telephone service to our
customers. These expenses vary in direct correlation to the size of our
telecommunications customer base. We have experienced an increase of
approximately $2,878,000 (27%) and $1,737,000 (34%) for the six and three months
ended June 30, 2008, respectively, as compared to the same periods in 2007. The
majority of this increase is due to the increase in our line count and higher
wholesale line charges for the six month period.  VoIP Services  Cost of revenue for VoIP services increased
$679,000 and $313,000 for the six and three month periods ended June 30, 2008,
respectively, as compared to the same periods in 2007. Approximately, $419,000
of this increase was related to international operations and $259,000 was
related to domestic operations for the 6 month period.  Included in the
international costs was $122,000 related to the sale of equipment.  Prepaid Services  From June 5, 2008, the Companys cost of
prepaid services was $3,161,000.  Gross Profit Margin  For the six and three month periods ended
June 30, 2008, we experienced a decrease of our gross profit margin to
 36.20% and 32.16%, respectively, from approximately  45.97% and
45.96% reported for the same periods on 2007. The decrease is due, in part, to
prepaid services with gross margins of 3.9%. Gross margin for the wireline
decrease is due to lower average rates and an increase of wholesale line
charges. Gross margin for VoIP services improved from (16.96) % to 14.58%. VoIP
services have disproportionately higher expenses associated with its continuing
roll out of VOIP.  In addition BPO revenue decreased with no reduction in
expenses.                 -19-        OPERATING EXPENSES  The following tables compare our operating
expenses for the six and three month periods ended June 30, 2008 and 2007:  Six
Months Ended
Six
Months EndedJune 30, 2008
June 30, 2007Corporate




CorporateTotal
Overhead
Prepaid
Wireline
VoIP
Total
Overhead
Wireline
VoIPSales and
Marketing
$
 2,469,000
$
             -
$
 22,000
$2,109,000
$
  338,000
$
 2,126,000
$
           -
$1,944,000
$
  182,000Bad Debts
1,669,000

-
1,598,000
71,000
1,574,000
-
1,535,000
39,000General and
Administrative
6,211,000
1,330,000
159,000
3,538,000
1,184,000
6,289,000
818,000
4,569,000
902,000Impairment of
Goodwill
-
-
-
-
-
284,000
-
-
284,000Depreciation and
Amortization
804,000
-
16,000
704,000
84,000
512,000
1,000
460,000
51,000$11,153,000
$
1,330,000
$197,000
$7,949,000
$1,677,000
$10,785,000
$
819,000
$8,508,000
$1,458,000   Three Months Ended

Three Months EndedJune 30, 2008

June 30, 2007Corporate




CorporateTotal
Overhead
Prepaid
Wireline
VoIP
Total
Overhead
Wireline
VoIPSales and
Marketing
$1,252,000
$
             -
$
   22,000
$1,076,000
$154,000
$
 1,012,000
$
           -
$
  861,000
$151,000Bad Debts
800,000
-
-
732,000
68,000
979,000
-
969,000
10,000General and
Administrative
3,168,000
752,000
159,000
1,652,000
605,000
3,245,000
431,000
2,298,000
516,000Impairment of
Goodwill
-
-
-
-
-
-
-
-
-Depreciation and
Amortization
418,000
-
16,000
355,000
47,000
261,000
-
235,000
26,000$5,638,000
$
752,000
$
 197,000
$3,815,000
$874,000
$
 5,497,000
$
431,000
$4,363,000
$703,000  Consolidated operating expenses increased
by approximately $367,000 and $141,000, respectively, to approximately
$11,153,000 and $5,638,000, respectively, for the six and three month periods
ended June 30, 2008, as compared to approximately $10,785,000 and $5,497,000,
respectively, reported during the comparable periods in 2007.
 Approximately $101,000 of the increase is related to our VoIP and
international operations and $206,000 is related to our wireline and corporate
operations for the six months ended June 30, 2008.  Sales and Marketing    For the six and three months ended June 30,
2008, sales and marketing expenses increased by approximately $343,000 and
$240,000, respectively, to approximately $2,469,000 and $1,252,000,
respectively, as compared to approximately $2,126,000 and $1,012,000,
respectively, reported in the prior year. These increases are primarily due to
the growth of our CLEC customer base and marketing expenses to promote our
international VoIP product.  Bad Debts  For the six months ended June 30, 2008, our
bad debt expense increased by approximately $95,000 to approximately $1,669,000
compared to the prior year and decreased by approximately $179,000 for the three
month period, from approximately $979,000 reported in the prior year to
approximately $800,000 for the three months ended June 30, 2008. We expect that
our increased efforts and close monitoring of our receivables will enable us to
effectively manage our bad debt exposure throughout the remainder of 2008.   -20-       General and Administrative  General and administrative (G&A)
expenses include, but are not limited to salaries, rent, office expenses,
insurance, commissions, telephone, bank and credit card processing fees, license
expense and registration fees. G&A expenses   decreased by
approximately $78,000 and $77,000, respectively, for the six and three month
periods ended June 30, 2008, as compared to the same periods in 2007.  This
was due primarily to a decrease in costs associated with both our domestic and
international VoIP initiatives. For the six month period approximately $170,000
is an increase relating to our VoIP and international operations, $116,000 is
related to our prepaid operations and a decrease of $424,000 is related to our
wireline and corporate operations. We believe that G&A expense will increase
throughout 2008, as compared to 2007, due to the expansion of our international
operations, the inclusion of Midwest and NST for the full year, and Cordia
Prepaid Corps launch of prepaid services.  Impairment of Goodwill  At March 31, 2007, the Company evaluated
the goodwill associated with the purchase of Triamis and deemed the carrying
value of the goodwill to be impaired. In accordance with FASB 142 the Company
wrote down the goodwill with an impairment charge of $284,000.  For the
period ended June 30, 2008, the Company deemed that no impairment charge was
needed.  Depreciation and Amortization  Depreciation and amortization expense
increased approximately $292,000 and $157,000, respectively, for the six and
three month periods ended June 30, 2008, as compared to the same periods in
2007.  This increase was due to the amortization of the customer lists
associated with the acquisition of Midwest and NST, additions of depreciable
office equipment and labor costs associated with our rollout of VoIP, which was
capitalized and depreciated in accordance with Statement of Position (SOP)
98-1.   Depreciation and amortization associated with Midwest and NST
totaled approximately $122,000 and $64,000 for the six and three month periods,
respectively.  Depreciation on equipment and capitalized
software costs are calculated using the straight line method and declining
balance method over a three (3) year period. Amortization of leasehold
improvements and other assets is computed using the straight-line method over
the lesser of the estimated useful lives of the asset or the remaining lease
term.  Liquidity and Capital Resources  At June 30, 2008, we had cash and cash
equivalents, including restricted cash, of approximately $984,000, a decrease of
approximately $189,000 from amounts reported at December 31, 2007, and negative
working capital of approximately $12,485,000, as compared to negative working
capital of approximately $9,781,000 reported at December 31, 2007.  The
decrease in working capital is primarily related to the increase in accounts
payable and billed taxes payable, purchase of customer lists and payment on
notes payable.  Net cash provided by operating activities
for the six month period ended June 30, 2008, aggregated approximately
$1,712,000, an increase of approximately $303,000, from approximately $1,409,000
provided during the same period in 2007.  The principal source of net cash
for the six month period ended June 30, 2008 was primarily the net income from
operations (net of non cash expenses of compensatory stock, bad debts and
depreciation and amortization) of $1,078,000 and an increase in accounts payable
and taxes payable aggregating approximately $4,718,000 offset, in part, by
increases in accounts receivable of $3,952,000. The principal source of cash for
the six-month period ended June 30, 2007, was primarily the net income from
operations (net of non cash expenses of compensatory stock, bad debts and
depreciation and amortization) of $558,000 and an increase in accounts payable
and taxes payable of $1,703,000, offset, in part, by increases in accounts
receivable, $1,586,000, prepaid expenses and other current assets, $41,000,
accrued usage receivable, $301,000 and an increase in accounts payable,
$98,000.       -21-       Net cash used by investing activities for
the six month period ended June 30, 2008, aggregated approximately $1,565,000
compared to net cash used of approximately $906,000 during the same period in
2007. For the six months ended June 30, 2008, net cash used by investing
activities consisted primarily of the acquisition of TSI operations of
approximately $797,000, expenditures for internally developed software for our
VoIP platform of approximately $271,000 ($355,000 in 2007), the purchase of
customer lists of approximately $224,000, loans receivable of approximately
$71,000 and purchase of property plant and equipment of $194,000 ($526,000 in
2007).  For the period ending June 30, 2008, net
cash used by financing activities was approximately $289,000 as compared to
approximately $22,000 for the 2007 period. Financing expenditures consisted
primarily of payments of loans amounting to $262,000.  Long-term debt (including interest) and
operating lease obligations as of June 30, 2008, mature as follows:  Less than





More ThanObligations

Total

1
year

2-3
years

4-5
years

5
yearsNotes
Payable

$
 2,677,000

$
 954,000

$1,723,000

$
           -

$
            -Telephone
Capital Lease

31,000

13,000

18,000

-

-Rental
(Office)

2,073,000

587,000

980,000

506,000

-TOTAL
OBLIGATIONS

$
 4,781,000

$
 1,554,000

$2,721,000

$
506,000

$
            -  During the six months ended June 30, 2008,
we had sales and marketing expenses of approximately $2,469,000, or
approximately 8.9% of revenues. Starting in the second half of 2006, we
transitioned a portion of our sales and marketing efforts offshore resulting in
lower customer acquisition costs.  In addition, we opened our own call
center in the Philippines and have purchased a 250 seat call center based in
Nebraska where we expect to see significant savings in our customer acquisition
costs.  At June 30, 2008, our balance sheet showed
$142,000 in restricted cash in the form of a LOC for the benefit of Qwest
secured by funds deposited into a restricted money market account. The LOC was
originally effective for a term of one (1) year, however Qwest renewed it for an
additional one (1) year period. The LOC was due to expanding our wireline
service offerings into additional states covered by our commercial services
agreement with Qwest. Additionally, at the December 31, 2007 date we had an LOC
of $30,000 for NST. This was acquired in the Midwest Acquisition in August of
2007 and was obtained for the benefit of Verizon, and is included in the
December 31, 2007 balance sheet. The remaining amount represents interest on the
LOCs.  The Company has incurred losses and also
has a negative working capital and a deficiency in stockholders' equity as of
June 30, 2008 and December 31, 2007. These conditions raise substantial doubt
about the Company's ability to continue as a going concern. Management, however,
believes that the Company will be able to generate sufficient cash flows from
operations to meet its obligations as they come due during the next twelve month
period.  The Company recognized the need for
additional working capital to strengthen its financial position, maintain
growth, payment of tax obligations and continue to carry out its plans for its
international expansion of VoIP and related value added services and entered
into Factoring and Security Agreement (Factoring Agreement) with Thermo
Credit, LLC (Thermo), a Colorado limited liability company, in September 2007.
 Subsequent to the balance sheet date, in July 2008, the parties entered
into an amendment to the Factoring Agreement increasing the Companys purchase
commitment amount by Five Hundred Thousand dollars ($500,000) to an aggregate
Five Million Five Hundred Thousand dollars ($5,500,000).  Management believes that with the increase
in sales from NST, the entry into the prepaid market, and the cost savings
generated from our lower customer acquisition costs, the Company will generate
sufficient cash flows from operations to meet its obligations as they come due
during the next twelve month period.   We do, however, recognize the
limiting effect that our liquidity has on our growth rate and management may
seek additional sources of capital in the future, including but not limited to a
private placement of the Companys common stock, to neutralize this limitation
in the future. -22-       The Company recognizes the financial strain
the losses of its VoIP and international initiatives have put on the rest of the
business and the manner in which it detracts from the overall value of the
Company.  We still, however, believe that our VoIP and international
initiatives have the potential for long term shareholder value as we have seen
revenue growth associated with these services increase by approximately 265%
this quarter as compared to the same period last year.   Further, we
believe that the current market price of our common stock is not an accurate
reflection of its true value and that it may take a significant amount of time
for these benefits to be realized.  Off balance sheet arrangements  We have not entered into any transactions
with unconsolidated entities whereby we have financial guarantees, or other
contingent arrangements that exposes us to material continuing risks, contingent
liabilities or any other obligations that provide financing, liquidity, market
risk or credit risk support to the Company.   ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK.  We earn a majority of our revenue in U.S.
dollars where our primary operating activities are located.  We also
maintain offices and operate in Brazil, Hong Kong, and the Philippines which
creates an exposure to loss if any of those currencies appreciate against the
dollar.  We believe however, than any risk due to currency rate exchange
fluctuations are immaterial as our operations overseas do not represent a
majority of our business.   ITEM 4.  CONTROLS AND PROCEDURES. (a) Disclosure controls and procedures
are to ensure that information required to be disclosed in our reports that we
file or submit under the Exchange Act is recorded, processed, summarized, and
reported within the time periods specified in the Commissions rules and forms.
In addition, the evaluation is to ensure that information required to be
disclosed in the reports we file or submit under the Exchange Act is accumulated
and communicated to the Companys management, including Companys principal
executive and principal financial officer to allow timely decisions regarding
required disclosure and that our internal controls are effective to provide
reasonable assurances that our financial condition, results of operations and
cash flows are fairly presented in all material respects. Based on that
evaluation of the Companys disclosure controls and procedures as of the end of
the period covered by this report, the Companys management, including its Chief
Executive Officer and Chief Financial Officer, concluded that the Companys
disclosure controls and procedures were not effective as of June 30, 2008
because it has not yet been concluded that the material weaknesses in the
Companys internal control over financial reporting reported as of December 31,
2007 in the Companys Form 10-K/A have been remediated.  Subsequent to December 31, 2007, the
Company has implemented, or plans to implement, certain measures to remediate
the identified material weaknesses and to enhance the Companys internal control
over its quarterly and year-end financial reporting processes. As of the date of
the filing of this Quarterly Report on Form 10-Q, the Company has implemented
the following measures:  

Increased the size, expertise and training of the
finance and accounting staff to include adequate resources for ensuring
GAAP.  

Enhanced the accounting policies and procedures to
provide adequate, sufficient, and useful guidance.  

Increased the level of interdepartmental
communication in a way that will foster information sharing between our
finance staff and operational personnel.  The Company anticipates that these
remediation actions represent ongoing improvement measures.  Furthermore, while the Company has taken
steps to remediate the material weaknesses, these steps may not be adequate to
fully remediate those weaknesses, and additional measures may be required. The
Company believes that the identified weaknesses will be fully remediated by its
year ended December 31, 2008.    -23-       PART II OTHER INFORMATION   ITEM 1.  LEGAL PROCEEDINGS  On June 26, 2008, Cordia Corporation,
VOzsIP, Corp. and CordiaIP Corp. were named by Plaintiff, Rates Technology, Inc.
the holder of two (2) separate US Patents, for patent infringement in the
Southern District of New York.  The Company was served on July 27, 2008,
and filed its Answer and Counterclaims on August 12, 2008. The Company does not
believe it infringes on Plaintiffs patents and that Plaintiffs claims are
without merit.  ITEM 1A. RISK FACTORS  The Companys Risk Factors as disclosed in
its Form 10-K for the period ended December 31, 2007 have not changed except for
the following:  Intellectual property infringement
claims against us could harm our business.Our business activities,
service offerings, and related technologies may infringe upon the proprietary
rights of third parties, and these parties may assert infringement claims
against us.  In the event of litigation to determine the validity of any
third-party claims, such litigation could result in significant expense to the
Company and could invalidate our proprietary rights. We could be required to
enter into royalty and licensing agreements, which may prove costly or otherwise
burdensome. Furthermore, such agreements may not be available on terms
acceptable to or in the best interests of the Company.   ITEM 2.  UNREGISTERED SALES OF EQUITY
SECURITIES AND USE OF PROCEEDS  Pursuant to the asset purchase agreement
with TSI the Company issued 500,000 shares of its restricted common stock (see
Note 5).   ITEM 3.  DEFAULTS UPON SENIOR SECURITIES  We have no defaults upon senior securities to
report.   ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS  Our annual meeting of shareholders was held May 21, 2008
in Winter Garden, Florida.  The shareholders elected each of the five
nominees to the Board of Directors for a one-year term:  Director

For

WithholdJoel
Dupré

5,627,279

126,200Kevin
Griffo

5,627,279

126,200John
Scagnelli

5,627,279

126,200Yoshiyasu
Takada

5,627,279

126,200Robert
Majernik

5,621,979

131,500  The shareholders ratified the selection of
Lazar, Levine & Felix, LLP as Independent Registered Public Accountants for
fiscal year 2008.  For

Against

Abstained5,750,724

0

2,755       -24-        The shareholders voted to authorize
compensation for the Companys Board of Directors.  For

Against

Abstained5,051,458

695,264

6,755  The shareholders voted to consider and act
upon any other business as may properly come before the meeting.  For

Against

Abstained5,656,984

77,940

18,555   ITEM 5.  OTHER INFORMATION  We have no additional information to report that would
require disclosure in a report on Form 8-K during the period ended June 30, 2008
for which we did not file a Form 8-K report.   ITEM 6.  EXHIBITS  (a) Exhibits. The following
exhibits are filed herewith.  31.1
Certification of
Cordia Corporation's Principal Executive Officer, Joel Dupré,pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.31.2
Certification of
Cordia Corporation's Principal Financial Officer, Gandolfo Verra,pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.32.1
Certificate of
Cordia Corporation's Principal Executive Officer, Joel Dupré,pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.32.2
Certification of
Cordia Corporation's Principal Financial Officer, Gandolfo Verra,pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.     SIGNATURES In accordance
Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.  CORDIA
CORPORATIONDate: August 14, 2008 By: /s/
Joel
Dupré                                                                                                    Joel
Dupré                                                                                                    Chief
Executive OfficerDate: August 14, 2008 By: /s/
Gandolfo
Verra Gandolfo
Verra Chief Financial Officer  -25-