U.S. Securities and Exchange Commission

Washington, D.C. 20549

Form 10-QSB

[X] Quarterly report pursuant section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended:  March 31, 2007.

[ ] Transition report pursuant section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from  to.

Commission file number:  000-51918



|iBroadband, Inc.
(Name of small business issuer in its charter) | Nevada
(State or other jurisdiction of incorporation or organization)        
|--------------------------------------------------------------- | -----------------------------------------------------------------------------
|88-0464894
(I.R.S. Employer Identification No.)                 | 14286 Gillis Rd.  Farmers Branch, TX
(Address of principal executive offices)
|Issuer's telephone number:  (972) 458-0909                      | 75244
(Zip Code)                                                             



Check whether the issuer:

(1) Filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 shell company (as defined in Rule 12b-2 of the Exchange Act).



Yes.[ ]  No [X]

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 20,147,373 Common Shares, as of April 17, 2007.

Transitional Small Business Disclosure Format:

Yes.[  ]  No[ X ]





Table of Contents

|Part I:  Financial Information                               | 3    
|------------------------------------------------------------ | -----
|Item 1:  Financial Statements                                | 3    
|Consolidated Balance Sheets                                  | 3 - 4
|Consolidated Statement of Operations                         | 5    
|Statement of Cash Flow                                       | 6    
|Notes to Financial Statements                                | 7    
|Item 2:  Managements Discussion & Analysis                   | 9    
|Item 3:  Controls and Procedures                             | 14   
|Part II:  Other Information                                  | 14   
|Item 1:  Legal Proceedings                                   | 14   
|Item 2:  Changes in Securities                               | 14   
|Item 3:  Defaults Upon Senior Securities                     | 14   
|Item 4:  Submission of Matters to a Vote to Security Holders | 14   
|Item 5:  Other Information                                   | 14   
|Item 6:  Exhibits and Reports 8-K                            | 15   
|Signatures                                                   | 16   















Part I:  Financial Information
Item 1:  Financial Statements



iBroadBand, Inc.

Consolidated Balance Sheets

(Unaudited)





|                                                                                                                                                | Fiscal Year Ended September 30, 2006 | Six Months Ended March 31, 2007
|----------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------ | -------------------------------
|ASSETS                                                                                                                                          |                                      |                                
|Current Assets                                                                                                                                  |                                      |                                
|Cash and equivalents                                                                                                                            | $1,175                               | $79,083                        
|Restricted Cash                                                                                                                                 |                                      | 2,531,843                      
|Accounts receivable, net of allowance for uncollectible
accounts of  $5,975  and $9,035, at September 30, 2006 and March 31, 2007, respectively | 6,517                                | 110,388                        
|Inventory                                                                                                                                       | 55,122                               | 126,550                        
|Prepaid expenses                                                                                                                                | 6,935                                | 2,850                          
|                                                                                                                                                |                                      |                                
|Total current assets                                                                                                                            | 69,749                               | 2,850,714                      
|                                                                                                                                                |                                      |                                
|Fixed Assets:                                                                                                                                   |                                      |                                
|Property and Equipment                                                                                                                          | 1,992,093                            | 3,228,946                      
|Less: accumulated depreciation                                                                                                                  | (1,970,134)                          | (2,069,323)                    
|Total Fixed Assets                                                                                                                              | 21,959                               | 1,159,623                      
|                                                                                                                                                |                                      |                                
|Other Assets:                                                                                                                                   |                                      |                                
|Deposits                                                                                                                                        | 3,594                                | 175,943                        
|Total Other Assets                                                                                                                              | 3,594                                | 175,943                        
|                                                                                                                                                |                                      |                                
|Total Assets                                                                                                                                    | $95,302                              | $4,186,280                     



The accompanying notes are an integral part of the financial statements.















iBroadBand, Inc.

Consolidated Balance Sheets (Continued)

(unaudited)







|                                                                                                                                                                   | Fiscal Year Ended September 30, 2006 | Six Months Ended March 31, 2007
|------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------ | -------------------------------
|Liabilities and Stockholders' Deficit                                                                                                                              |                                      |                                
|Liabilities                                                                                                                                                        |                                      |                                
|Accounts payable                                                                                                                                                   | $585,467                             | $782,807                       
|Accrued expenses                                                                                                                                                   | 1,179,485                            | 851,557                        
|Accrued liabilities-employees                                                                                                                                      | 7,128                                |                                
|Notes payable-                                                                                                                                                     |                                      |                                
|Majority Shareholder                                                                                                                                               | 2,118,867                            | 2,726,829                      
|Others                                                                                                                                                             | 653,799                              | 5,281,799                      
|Deferred revenues                                                                                                                                                  | 1,491                                | 6,102                          
|Total  liabilities                                                                                                                                                 | 4,546,237                            | 9,649,094                      
|                                                                                                                                                                   |                                      |                                
|Stockholders' Deficit:                                                                                                                                             |                                      |                                
|Common stock, $0.001 par value; 200,000,000 shares authorized, 19,638,804 and 19,650,135 issued and outstanding at September 30 and December 31, 2005 respectively | 19,650                               | 19,639                         
|Additional paid-in-capital                                                                                                                                         | 10,766,945                           | 11,067,056                     
|Retained deficit                                                                                                                                                   | (15,237,530)                         | (16,549,509)                   
|Total stockholders' deficit                                                                                                                                        | (4,450,935)                          | (5,462,814)                    
|Total liabilities and stockholders' deficit                                                                                                                        | 95,302                               | 4,186,280                      



The accompanying notes are an integral part of the financial statements.













iBroadband, Inc.

Consolidated Statements of Operations

(unaudited)



|                                                | For the Three Months Ended March 31, 2006 | For the Three Months Ended March 31, 2007 | For the Six Months Ended March 31, 2006 | For the Six Months Ended March 31, 2007
|----------------------------------------------- | ----------------------------------------- | ----------------------------------------- | --------------------------------------- | ---------------------------------------
|REVENUE:                                        |                                           |                                           |                                         |                                        
|Service Revenue                                 | $180,107                                  | $642,033                                  | $329,090                                | $1,125,756                             
|Total Revenues                                  | $180,107                                  | $642,033                                  | $329,090                                | $1,125,756                             
|Costs of Revenues:                              |                                           |                                           |                                         |                                        
|Cost of Services                                | $61,606                                   | $462,972                                  | $123,645                                | $741,948                               
|Gross Profit                                    | $118,501                                  | $179,061                                  | $205,445                                | $383,808                               
|Expenses:                                       |                                           |                                           |                                         |                                        
|Salaries and Benefits                           | 186,347                                   | 348,416                                   | 363,224                                 | 650,802                                
|Depreciation & amortization                     | 4,787                                     | 58,782                                    | 12,358                                  | 99,187                                 
|Other Expenses                                  | 78,999                                    | 212,494                                   | 123,315                                 | 633,187                                
|Total Expenses                                  | 270,133                                   | 619,692                                   | 498,897                                 | 1,383,176                              
|                                                |                                           |                                           |                                         |                                        
|Net income (loss) before other income (expense) | (151,632)                                 | (440,631)                                 | (293,452)                               | (999,368)                              
|                                                |                                           |                                           |                                         |                                        
|Other Income (Expense):                         |                                           |                                           |                                         |                                        
|Interest Expense                                | (56,380)                                  | (213,414)                                 | (111,571)                               | (345,375)                              
|Interest Income                                 | 0                                         | 11,798                                    | 0                                       | 32,761                                 
|Inventory revaluation and adjustment            | 0                                         | 0                                         | 0                                       | 0                                      
|Net loss before income taxes                    | (208,012)                                 | (642,247)                                 | (405,023)                               | (1,311,982)                            
|                                                |                                           |                                           |                                         |                                        
|Provision for income taxes                      | 0                                         | 0                                         | 0                                       | 0                                      
|                                                |                                           |                                           |                                         |                                        
|Net Loss                                        | (208,012)                                 | (642,247)                                 | (405,023)                               | (1,311,982)                            
|Basic loss per share                            | (0.01)                                    | (0.03)                                    | (0.02)                                  | (0.07)                                 
|Fully diluted loss per share                    | (0.01)                                    | (0.02)                                    | (0.02)                                  | (0.05)                                 
|Weighted average common shares - basic          | 19,638,804                                | 19,650,135                                | 19,638,804                              | 19,650,135                             
|Weighted average common shares  fully diluted  | 19,638,804                                | 28,778,135                                | 19,638,804                              | 28,778,135                             







The accompanying notes are an integral part of the financial statements.











iBroadband, Inc.

Consolidated Statements of Cash Flow

(Unaudited)





|                                                                            | For the Six Months Ended March 31, 2006 | For the Six Months Ended March 31, 2007
|--------------------------------------------------------------------------- | --------------------------------------- | ---------------------------------------
|Cash from operating activities:                                             |                                         |                                        
|Net (Loss)                                                                  | (405,023)                               | (1,311,982)                            
|                                                                            |                                         |                                        
|Adjustments to reconcile net loss to net cash used in operating activities: |                                         |                                        
|Depreciation and amortization                                               | 12,357                                  | 99,189                                 
|Accrued interest converted to note payable                                  |                                         | 589,962                                
|Change in operating assets and liabilities:                                 |                                         |                                        
|Inventory                                                                   | (6,750)                                 | (71,428)                               
|Accounts receivable                                                         | 465                                     | (103,871)                              
|Prepaid expenses                                                            | (3,325)                                 | 4,085                                  
|Other assets                                                                | 200                                     | (172,349)                              
|Accounts payable                                                            | 10,497                                  | 197,340                                
|Accrued liabilities                                                         | 111,396                                 | (327,825)                              
|Accrued liabilities - employees                                             | (486)                                   | (7,128)                                
|Deferred revenues                                                           | 2,863                                   | 4,611                                  
|                                                                            |                                         |                                        
|Net cash used in operating activities                                       | (277,806)                               | (1,099,396)                            
|                                                                            |                                         |                                        
|Cash flows from investing activities:                                       |                                         |                                        
|Purchase of fixed assets                                                    | (7,330)                                 | (1,236,853)                            
|Common stock pledged in acquisition                                         |                                         | 300,000                                
|                                                                            |                                         |                                        
|Cash flows from financing activities:                                       |                                         |                                        
|Notes payable borrowings                                                    |                                         | 5,068,000                              
|Repayment of notes payable                                                  | 294,000                                 | (422,000)                              
|                                                                            |                                         |                                        
|Increase (decrease) in cash                                                 | 8,864                                   | 2,609,751                              
|                                                                            |                                         |                                        
|Cash balance, beginning of period                                           | 2,623                                   | 1,175                                  
|Cash balance, end of period                                                 | 11,487                                  | 2,610,926                              



The accompanying notes are an integral part of the financial statements.











iBroadband, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MARCH 31, 2007



NOTE 1: Loss per Common Share



Basic loss per share is computed using the weighted average number of common shares outstanding during the period. The 19,650,135 common shares outstanding resulting from the post merger exchange with iBroadband of Texas, Inc. were issued and outstanding during the entire financial periods in this report.

The company has issued warrants to purchase its common stock totaling 6,578,000 shares during the period as described in Note 3 below. These potential shares are included as a part of fully diluted earnings per share.

Additionally, during the same period, 2,550,000 options were granted to certain officers and directors as described in Note 2 below. These options have no vesting period and are included in the fully diluted earnings per calculation in total. Also, 460,000 options were granted to others with vesting at either 33% or 25%. None of these options are exercisable as of March 31, 2007 and are therefore not included as part of fully diluted earnings per share.

The Company has also pledged $300,000 worth of common stock as part of the acquisition of iBroadband Networks, Inc. with the number of shares issued to be based on the opening market price when trading commences. These shares were not issued as of March 31, 2007 and are not included as a part of fully diluted earnings per share.

NOTE 2: Stock Options

In November 2006 the Company adopted a Stock Incentive Plan for officers, directors, employees, consultants and other individuals who may perform services for the Company. The total number of shares which may be delivered pursuant to awards granted under the plan through the fiscal year ending September 30, 2007 shall not exceed 5,000,000 shares. Each year thereafter, awards shall not exceed 10 percent (10%) of the issued and outstanding shares of common stock as of the last day of the preceding fiscal year.

Pursuant to the Stock Incentive Plan the Company issued awards on December 4, 2006 to two of its officers. Executive Vice-president and General Counsel Bruce A. Heidecke was awarded an option to purchase 500,000 shares of common stock at two cents ($0.02) per share. Chief Executive Officer Matthew Hutchins was awarded an option to purchase 2,000,000 shares of common stock at two cents ($0.02) per share. These options are fully vested on the date of grant and expire on (a) December 3, 2016, (b) three months after termination from the Company or (c) one year after death.

Also, 300,000 options were granted to the Companys Chief Operating Officer at an option price of two cents ($0.02) per share. These options become exercisable at 33% per year beginning at the end of the first year from date of grant. They expire on (a) December 3, 2016, (b) three months after termination from the Company or (c) one year after death.

On 3/13/07 the Company issued an option to purchase 50,000 shares of common stock to Victor Glover, a Director of the Company, at two cents ($0.02) per share. These options are fully vested on the date of grant and expire on (a) March 12, 2016, (b) three months after termination from directorship of the Company or (c) one year after death.

Additionally, 160,000 options were granted to certain other employees at an option price of two cents ($0.02) per share. These options become exercisable at 25% per year beginning at the end of the first year from date of grant. They expire on (a) December 3, 2016, (b) three months after termination from the Company or (c) one year after death.





Note 3: Warrants

On November 7, 2006, in connection with a Securities Purchase agreement with a lender as described earlier in this report, the Company issued to the lender a warrant to purchase 4,000,000 shares of the Companys common stock at its par value of $0.001 per share. There is no vesting period and the warrants do not expire.

On December 4, 2006 the Company issued to its majority shareholder, Raymond J. Nawara, a warrant to purchase up to 2,578,000 of the Companys common stock at its par value of $0.001 per share. There is no vesting period and the warrants do not expire.

NOTE 4: Related Party Transactions

During the three months ended March 31, 2007, the Company converted $589,982 of the accrued interest payable to its majority shareholder to Notes Payable.  Also, the company made interest payments to the majority shareholder in the quarter totaling $35,262.17. Total borrowings from the majority shareholder were $2,136,867 at period end.

NOTE 5: Restricted Cash

The Company has a restricted cash balance of $2,531,843 as of March 31, 2007.These funds are restricted based on the terms of a secured non-convertible term note with a lender. The Company may request all or any portion of the amounts in the restricted account following, or in connection with, the consummation of an acquisition by the company; however, the release of the funds must be approved by the lender in its sole discretion.



NOTE 6: Subsequent events



On 4/17/06 the Company issued 497,238 shares of common stock in connection with the acquisition of iBroadband Networks, Inc (formerly named Cedar Valley Communications, Inc.). The stock was issued at sixty cents ($0.60) at a total value of $300,000.



On 4/30/07 the company issued  a warrant to purchase 600,000 of the Companys common stock to its majority shareholder at $0.001 per share. There is no vesting period and the warrants do not expire.













Item 2: MANAGEMENTS DISCUSSION AND ANALYSIS AND RESULTS OF OPERATIONS





Overview



iBroadband, Inc. (the Company) (formerly Transcontinental Trading Center, Inc.) was incorporated on January 21, 1997 under the laws of the State of Nevada. It was incorporated to develop and engage in broadband and related business and searched for a viable entity with which to merge and/or acquire.  Until September 29, 2005, it conducted no business and had no operating history.



On September 29, 2005, the Company was acquired in a reverse merger by the shareholders of iBroadband of Texas, Inc., a Delaware corporation (IBT) (formerly T-Speed Broadband Communications, Inc.), and the IBT directors and executive officers replaced those of the Companys. The Company became a holding company, and from that date until November 9, 2006, IBT was its sole operating subsidiary. IBT had been incorporated on February 1, 2000 to provide high-speed broadband, fixed wireless Internet access to small and midsized businesses in the Southwest. Currently, IBT provides high-speed broadband, fixed wireless Internet connectivity in the Dallas/Fort Worth metroplex and Austin, Texas. As of December 31, 2006, IBT was servicing approximately 240 small and medium enterprise customers in those markets. Using license-exempt radio frequencies and off-the-shelf equipment, IBT can provide its business customers up to 10 Mbps of Internet access starting at $99 each month with installation in less than 48 hours.



On November 9, 2006 the Company, through its newly formed subsidiary, iBroadband Networks, Inc., a Texas corporation (IBN), acquired from bankruptcy certain assets and the continuing business of Cedar Valley Communications, Inc., a competitive local exchange carrier based in Athens, Texas. Since this acquisition, the IBN subsidiary has provided wireline telephone and wireline and wireless data communication services to approximately 2,800 customers in 3 counties located southeast of the Dallas/Ft. Worth metroplex.



The Companys strategy envisions acquiring additional qualified fixed wireless, and in some opportunistic cases, wireline broadband providers in markets throughout the Southwest region and beyond.





Summary Discussion of Liquidity



The IBT subsidiary has incurred operating losses since its inception. On a consolidated basis, the Company had net losses of $987,860 for the fiscal year ended September 30, 2006 and $1,311,982 for the 6 months ended March 31, 2007. Management anticipates losses in the foreseeable future.  As of September 30, 2006 and March 31, 2007, the Company had unrestricted cash and accounts receivable totaling $7,692 and $189,471, respectively.



The Companys independent certified public accountants have stated in their report for the fiscal year ended September 30, 2006 that:



The Company is in default of covenants and repayment schedules with most creditors.  The financial statements have been prepared on the basis the Company is a going concern. Without any debt forgiveness from creditors, the Company cannot pay its debts. The Management of the Company does not believe that any material adjustments to the values of assets or liabilities would be necessary to reflect the liquidation basis.   The Management is of the opinion that the Company can become a going concern again in the future but hinges this opinion on the willingness of the creditors to grant debt forgiveness.  It could also become a going concern by incorporating other business activities into the Company.  There is no current plan to place the Company into liquidation.



Since  its inception, IBT had funded its cash requirements through; (i) operating revenues, (ii) sales of its common stock pursuant to offerings in accordance with SEC Regulation D, Rule 506, (iii) a bank loan, (iv) loans from unaffiliated individuals, and (v) since July 29, 2002, on-going loans by a shareholder/director.  Following the reverse merger on September 29, 2005, the shareholder/director continued to advance the Company funds that were necessary for its continuation in business.



On November 7, 2006 the Company entered into a Securities Purchase agreement with a lender pursuant to which the Company issued and sold to the lender two promissory notes. One is a secured term note in the principal amount of $2,500,000 and the other a secured non-convertible term note in an additional principal amount of $2,500,000, and a warrant to purchase up to 4,000,000 shares of the Companys stock. Each note has a three year term and bears an interest rate equivalent to the prime rate published by the Wall Street Journal plus 2%, subject to a floor of 10% per annum. The transaction closed on November 8, 2006 and the funds from the secured term note were released to the company. Net proceeds to the Company after payment of fees and expenses were $2,208,500. From the net proceeds, $1,000,000 was used to acquire certain assets of Cedar Valley Communications, Inc., as previously discussed, and $251,015 was used to retire senior secured debt. The remainder of the proceeds of the secured term note was reserved for general working capital purposes. As already noted, as of December 31, 2006, the Company had unrestricted cash and accounts receivable totaling $500,904.



The funds from the secured non-convertible term note were released and deposited into a restricted account to be released to the Company under certain terms and conditions. The company may request all or any portion of the amounts in the restricted account following, or in connection with, the consummation of an acquisition by the Company; however, the release of the funds to the Company must be approved by the lender in its sole discretion.



As of March 31, 2007, the Company lacked sufficient cash and cash equivalents to fund operations for the next 12 months. The Company suffers monthly losses and, absent debt forgiveness from creditors, has insufficient cash or cash equivalents to pay its overdue (as of March 31, 2007) $782,807 in Accounts Payable and $851,557 in Accrued Expenses.



As of March 31, 2007, the Company had no further agreements in place for financing and was engaging in efforts to raise additional capital. The Company can only continue in business within the next 12 months if sufficient additional capital is raised and/or obtains substantial debt relief from creditors. The Company cannot guarantee that it will be able to raise the necessary capital to continue operations, or if it does raise such capital, that it will be able to operate profitably.



Material Trends and Events



As noted above, the Company is in default of covenants and repayment schedules with most creditors.  The Companys material capital commitments for the fiscal year 2007 and beyond include, among other things, (as of March 31, 2007) (and assuming no debt forgiveness or significant change in operations) $782,807 in Accounts Payable and $851,557 in Accrued Expenses. The Company also owes $8,008,628 in notes payable, which are not yet overdue.  Assuming no significant changes in operations, the Companys capital commitments to fund net operating loss (which include the interest due on notes payable) and principal repayment on certain notes for the next 12 months alone is estimated at $3,600,000. The Company can only continue in business within the next 12 months if sufficient additional capital is raised and/or obtains substantial debt relief from creditors. The Company cannot guarantee that it will be able to raise the necessary capital to continue operations, or if it does raise such capital, that it will be able to operate profitably.



















Financial Statements



General:

The consolidated financial statements for the Company for the quarter ended March 31, 2007 include the results of the recently acquired iBroadband Networks, Inc. (formerly named Cedar Valley Communications, Inc.). The Company began operations of this newly acquired subsidiary on November 9, 2006.



Revenues:

The Companys primary sources of revenue result from monthly billings for its Internet Connection service and Local Telephone Exchange services.  Other revenues include fees for installation of telephone and Internet connection, certain other Internet services, routine sales of equipment required for service connections, and other non-recurring sales. Below is a comparison of the revenue results for the quarters ended March 31, 2006 and March 31, 2007 and the six months ended March 31, 2006 and March 31, 2007.



|Category             | Qtr                                                                           Ended
03/31/06 | Qtr                 Ended           3/31/07 | Change  | 6 Mos Ended 3/31/06 | 6 Mos Ended 3/31/07 | Change 
|-------------------- | -------------------------------------------------------------------------------------------- | ------------------------------------------- | ------- | ------------------- | ------------------- | -------
|Internet Svc Revenue | 130,050                                                                                      | 188,495                                     | 58,445  | 260,567             | 358,908             | 98,341 
|Local Exchange Rev   | -0-                                                                                          | 425,202                                     | 425,202 | -0-                 | 721,695             | 721,695
|Installation Rev     | 5,120                                                                                        | 14,651                                      | 9,531   | 11,784              | 25,681              | 13,897 
|Other Recur Web Svc  | 2,925                                                                                        | 2,406                                       | -519    | 5,463               | 4,825               | -638   
|Equipment Sales      | 900                                                                                          | 650                                         | -250    | 2,100               | 1,149               | -951   
|Other Misc Rev       | 41,112                                                                                       | 10,631                                      | -30,481 | 49,176              | 13,498              | -35,678
|Total Revenue        | 180,107                                                                                      | 642,035                                     | 461,928 | 329,090             | 1,125,756           | 796,666





Internet Service Revenue for the quarter ended March 31, 2007 has increased over the year ago comparable quarter as shown is the above table. This is due to the addition of $63,997 in additional billings provided from the acquired subsidiary offset by cancellations exceeding new customer sales in the pre-existing customer base. The acquired company also provided the Local Exchange Revenue shown plus $12,302 in installation revenue and $7,903 in other revenue.



For the six months ended March 31, 2007 revenues were $796,666 higher than the six months ended March 31, 2006. The acquired company accounted for $857,598 of increases. By category, $106,759 in Internet revenue, $18,781 in installation revenue, $10,363 in other revenue and $721,695 in local exchange revenue was realized. This results in $60,932 lower revenues from the pre-existing business. This is primarily accounted for by a $46,041 drop in other revenues due to lower sales of excess inventory in the current period as compared to the year ago period. The remainder is due to customer cancellations exceeding new sales during the current period.



Costs of Revenues:

Costs of Revenues include Broadband Services, Local Exchange Operating Expenses, Rooftop/Tower Rents, Cost of Equipment Sold and certain other miscellaneous costs. The chart below describes these costs by category for the compared quarters and six month periods ended March 31, 2006 and March 31, 2007.





|Category              | Qtr                                                                           Ended
03/31/06 | Qtr                 Ended           3/31/07 | Change  | 6 Mos Ended 3/31/06 | 6 Mos Ended 3/31/07 | Change 
|--------------------- | -------------------------------------------------------------------------------------------- | ------------------------------------------- | ------- | ------------------- | ------------------- | -------
|Broadband Services    | 30,831                                                                                       | 27,807                                      | -3,024  | 61,880              | 57,907              | -3,973 
|Local Excng Oper Exp  | -0-                                                                                          | 410,140                                     | 410,140 | -0-                 | 627,769             | 627,769
|Rooftop/Tower Rents   | 30,202                                                                                       | 24,923                                      | -5,279  | 60,424              | 55,859              | -4,565 
|Cost of equip. sold   | 573                                                                                          | 406                                         | -167    | 1,341               | 716                 | -625   
|Other                 | -0-                                                                                          | -304                                        | -304    | -0-                 | -303                | -303   
|                      |                                                                                              |                                             |         |                     |                     |        
|Total Cost of Revenue | 61,606                                                                                       | 462,972                                     | 401,366 | 123,645             | 741,948             | 618,303





Broadband Services represents the purchase of bandwidth from major carriers for resale to customers and is slightly lower due to lower demand. The Company rents space on rooftops and towers for placement of its infrastructure links. The expense for rooftops and towers is lower in the current periods due to an internal audit of the roof contracts resulting in the termination of certain contracts for rooftops that are not likely to be used in the future. Local exchange operating expenses represent a new category of expenses assumed as part of the acquisition of iBroadband Networks, Inc (formerly Cedar Valley Communications, Inc.).



Salaries and Benefits:

Salaries and Benefits expenses for the three months ended March 31, 2007 have increased by $162.069 as compared to the same quarter of 2006. This is primarily due to $147,482 in salaries and benefits paid for the acquired company during the current quarter, $63,000 in executive salary increases, and offset by approximately $48,000 in staff reductions.

For the six months ended March 31, 2007 salaries and benefits expenses are higher by $287,578 over the same period of 2006. The majority of this increase results from $214,472 in expense for the acquired company. Additionally, there was $124,524 in executive salary increases offset by approximately $51,000 in staff reduction as compared to the six months ended March 31, 2006.



Depreciation & Amortization:

Depreciation expense increased $53,995 for the quarter ended March 31, 2007 compared the same quarter of 2006. This is the result of $54,972 in depreciation from the acquired subsidiary offset by certain assets in the pre-existing company becoming fully depreciated after December 2005.

For the six months ended March 31, 2007 versus the six months ended March 31, 2006, depreciation expense increased $86,829. The acquired company accounted for $91,620 in additional depreciation expense while some assets in the pre-existing company became fully depreciated.



Other Expenses:

Other Expenses include General & Administration Cost, Facility Costs, Network Operating Costs and certain other charges. Other Expenses increased $133,495 in the second quarter of 2007 versus the same quarter of 2006. The acquired company accounted for an additional $123,878 in Other Expenses. Additionally, there were $31,185 higher travel related expenses, $8,456 higher contract labor cost, $4,500 higher cost for IP address subscription, $4,717 higher office supply expense, $6,466 higher facility costs, offset by $45,000 lower audit fees in the current quarter as compared to the same quarter of the previous year. The higher travel expense is related to travel required to accomplish the acquisition of iBroadband, Inc.

Higher contract labor resulted from additional contract accounting needs. The $4,500 for IP address subscription represent two years of billing as the vendor failed to invoice the Company for the previous year. Higher office supplies are related to the purchase of new computers, which were expensed during the period. The Company leased additional space at it current hone office site resulting in higher facility costs.



For the six months ended March 31, 2007 Other Expenses were higher by $509,872. In addition to the differences described above the Company paid $285,000 in financing fees, and $33,762 in higher legal fees related to the acquisition. Also, the acquired company added an additional $44,316 in other expenses that are not already accounted for in the above categorical items. All other increases in Other Expense total $13,299 in the aggregate.



Interest Expense:

Interest Expense was higher by $157,034 in the quarter ended March 31, 2007 as compared to the quarter ended March 31, 2006 and $233,804 higher for the six months ended March 31, 2007 as compared to the same period a year ago due to higher net borrowings. See Notes Payable comments below.



Inventory:

Inventory balances are higher by $71,428 since the September 30, 2006 fiscal year end primarily due to $69,612 in inventory added from the acquisition of iBroadband Networks, Inc.



Fixed Assets:

Property and equipment has increased $1,236,853 since the fiscal year end due to $1,230,388 in assets purchased in the aforementioned acquisition plus $6,465 in additions to the pre-existing network infrastructure.



Deposits:

Deposits moved higher during the first quarter due to a $172,349 deposit required by a telecom vendor for local exchange services provided to the newly acquired company. This deposit is refundable after one year of service.



Accrued Expenses:

Accrued Expenses have decreased since the last fiscal year end by $327,928. This is the result of a net increase in accrued interest of $99,999, the accrual of $160,000 in local exchange services costs not yet billed by vendors, offset by the conversion of $589,962 in accrued interest to Notes Payable. All other accruals were higher by $2,035.



Notes Payable:

Notes Payables increased from $2,772,666 as of September 30, 2006 to $8,008,628 as of March 31, 2007. This is due to additional advances to the Company from its majority shareholder of $18,000, the conversion of $589,962 of the majority shareholders accrued interest to Notes Payable, $50,000 in additional borrowings from a bank, and $5,000,000 in borrowings from a lender. Additionally, the Company retired senior secured bank debt of $250,000 and notes payable to individuals totaling $172,000.



























ITEM 3: CONTROLS AND PROCEDURES



Disclosure Controls and Procedures



The Companys management, with the participation of the Companys Chief Executive and Principal Financial Officer, has evaluated the effectiveness of the Companys disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2006

.

Based on such evaluation, the Companys Chief Executive and Principal Financial Officer has concluded that, as of the end of such period, the Companys disclosure controls and procedures are effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act.



There have not been any changes in the Companys internal control over financial reporting during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Companys internal control over financial reporting.





PART II   OTHER INFORMATION



ITEM 1: LEGAL PROCEEDINGS



None.



ITEM 2: UNREGISTERED SALES OF EQUITY





ITEM 3:  DEFAULTS UPON SENIOR SECURITIES



None.





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



There were no matters submitted to a vote of security holders during the period covered by this report.





ITEM 5.  OTHER INFORMATION



None.

















Item 6:  Exhibits

(a) Exhibits Schedule

The exhibits marked with an * were filed with the companys 10SB on April 19, 2006.
*3.1 Articles of Incorporation
*3.2 Bylaws

31 Rule 13a-14(a)/15d-14(a) Certification

32  Section 1350 Certification









Signatures

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.iBroadband, Inc.(Registrant)

By: /s/  Matthew Hutchins

--------------------------------------

Title:  President/CEO/ Principal Financial Officer and Principal Accounting Officer 
 
Date:   May 29, 2007