**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


Washington,
      DC 20549




**FORM
      10−QSB**


(Mark
      One)





x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURTIES EXCHANGE ACT OF
      1934





For
      the
      quarterly period ended September 30, 2007





o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT





For
      the
      transition period from _______________ to ________________





Commission
      file number______________________________________





CYBRA
      CORPORATION





(Exact
      name of registrant as specified in its charter)




New
                York
            13-3303290(State
                or other jurisdiction of incorporated or organization)
            (IRS
                Employer Identification No.)




One
      Executive Blvd. Yonkers, New York 10701


(Address
      of principal executive offices)





(914)
      963-6600





(Issuer’s
      telephone number)





(Former
      Name, Former Address, and Former Fiscal Year, if changed since last
      report)





Check
      whether the Issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Securities 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 o





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b−2 of the Exchange Act). Yes o 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 Exchange Act after the distribution of securities
      under a plan confirmed by a court. Yes o No o





**APPLICABLE
      ONLY TO CORPORATE ISSUERS**





State
      the
      number of shares outstanding of each of the issuer's classes of common equity,
      as of


September
      30, 2007: 12,105,433





Transitional
      Small Business Disclosure Format (Check One): Yes o No o







**PART
      I - FINANCIAL INFORMATION**





**ITEM
      1. FINANCIAL STATEMENTS.**







**CYBRA
      CORPORATION**





FINANCIAL
      STATEMENTS





SEPTEMBER
      30, 2007






































**CONTENTS**




**Page**FINANCIAL
                STATEMENTS
            
            F-1BALANCE
                SHEET
            
            F-3STATEMENTS
                OF OPERATIONS
            
            F-4STATEMENTS
                OF CHANGES IN STOCKHOLDERS’ DEFICIENCY
            
            F-5CONDENSED
                STATEMENTS OF CASH FLOWS
            
            F-6NOTES
                TO FINANCIAL STATEMENTS
            
            F-7
                - F-18













CYBRA
      CORPORATION





BALANCE
      SHEET


(UNAUDITED)





September
      30, 2007





ASSETSCURRENT
                ASSETSCash
                and cash equivalents
            
            $
            645,400Accounts
                receivable, less allowance for doubtfulaccounts
                of $5,000
            
            
            335,724Prepaid
                income taxes
            
            
            -Deferred
                income taxes
            
            
            30,390Total
                Current Assets
            
            
            1,011,514PROPERTY
                  AND EQUIPMENT, at cost, less accumulateddepreciation and
                amortization
            
            
            91,379DEFERRED
                INCOME TAXES
            
            
            1,205,254DEFERRED
                FINANCE COSTS
            
            
            467,433SECURITY
                DEPOSITS AND OTHER ASSETS
            
            
            11,571$
            2,787,151LIABILITIES
                AND STOCKHOLDERS' DEFICIENCYCURRENT
                LIABILITIESAccounts
                payable and accrued expenses
            
            $
            378,231Accrued
                interest
            
            
            285,058Deferred
                revenue
            
            
            267,980Sales
                tax payable
            
            
            1,321Accrued
                liquidated damages - registration rights agreement
            
            
            110,000Total
                Current Liabilities
            
            
            1,042,590DERIVATIVE
                FINANCIAL INSTRUMENTS, LONG TERM PORTION
            
            
            -8%
                CONVERTIBLE DEBENTURES
            
            
            2,094,237Total
                Liabilities
            
            
            3,136,827COMMITMENTSTOCKHOLDERS'
                DEFICIENCYCommon
                  stock, no par value, 100,000,000 shares authorized;12,105,433 shares issued and outstanding
            
            
            1,009,545Paid
                - in capital
            
            
            564,254Accumulated
                deficit
            
            
            (1,923,475
            )Total
                Stockholders' Deficiency
            
            
            (349,676
            )$
            2,787,151










CYBRA
      CORPORATION





STATEMENTS
      OF OPERATIONS


(UNAUDITED)





Three
                Months Ended
            
            Nine
                Months EndedSeptember
                30,
            
            September
                30,2007
            
            2006
            
            2007
            
            2006REVENUES
            
            $
            410,081
            
            $
            331,797
            
            $
            1,164,161
            
            $
            1,119,675DIRECT
                COSTSCosts
                of goods sold
            
            
            167,645
            
            
            85,685
            
            
            383,694
            
            
            299,268Royalties
                and consulting
            
            
            103,338
            
            
            21,886
            
            
            303,620
            
            
            41,348Total
                Direct Costs
            
            
            270,983
            
            
            107,571
            
            
            687,314
            
            
            340,616GROSS
                MARGIN
            
            
            139,098
            
            
            224,226
            
            
            476,847
            
            
            779,059GENERAL
                AND ADMINISTRATIVE EXPENSES
            
            
            561,585
            
            
            478,592
            
            
            1,734,591
            
            
            1,194,530INCOME
                (LOSS) FROM OPERATIONS
            
            
            (422,487
            )
            
            (254,366
            )
            
            (1,257,744
            )
            
            (415,471
            )OTHER
                INCOME (EXPENSE)Interest
                expense, 2007 includes $112,219 of amortization of deferred finance
                costs
                for the nine months
            
            
            (154,567
            )
            
            (123,514
            )
            
            (439,969
            )
            
            (231,517
            )Interest
                income
            
            
            4,666
            
            
            18,509
            
            
            18,477
            
            
            35,399Gain
                and loss from derivative financial instruments
            
            
            -
            
            
            (29,963
            )
            
            -
            
            
            43,304Liquidated
                damages - registration rights agreement
            
            
            200
            
            
            (30,000
            )
            
            200
            
            
            (30,000
            )Total
                Other Income (Expense)
            
            
            (149,701
            )
            
            (164,968
            )
            
            (421,292
            )
            
            (182,814
            )INCOME
                (LOSS) BEFORE INCOME TAXES
            
            
            (572,188
            )
            
            (419,334
            )
            
            (1,679,036
            )
            
            (598,285
            )INCOME
                TAXES (RECOVERY)
            
            
            (221,827
            )
            
            (164,990
            )
            
            (595,143
            )
            
            (266,858
            )NET
                INCOME (LOSS)
            
            
            ($350,361
            )
            
            ($254,344
            )
            
            ($1,083,893
            )
            
            ($331,427
            )PER
                SHARE DATABasic
                and diluted net loss per share
            
            
            $(0.03
            )
            
            $(0.02
            )
            
            $(0.10
            )
            
            $(0.03
            )Basic
                and diluted weighted-average shares outstanding
            
            
            11,646,375
            
            
            10,956,000
            
            
            11,249,583
            
            
            10,287,136










**CYBRA
      CORPORATION**


**STATEMENTS
      OF STOCKHOLDERS DEFICIENCY**


**FOR
      THE NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006**


**(UNAUDITED)**





Common
                Stock
            
            Additional
            
            Subscription
            
            AccumulatedShares
            
            Amount
            
            paid-in-capital
            
            Receivable
            
            deficit
            
            TotalBalance
                at December 31, 2006
            
            
            10,956,000
            
            $
            176,495
            
            $
            12,344
            
            $
            (1,826
            )
            $
            (839,582
            )
            $
            (652,569
            )Common
                stock issuance
            
            
            1,149,433
            
            
            833,050
            
            
            -
            
            
            -
            
            
            -
            
            
            833,050Stock
                Subscription Paid
            
            
            
            
            
            
            
            
            
            
            
            1,826
            
            
            
            
            
            1,826Derivative
                instruments converted in APIC
            
            
            -
            
            
            -
            
            
            551,910
            
            
            -
            
            
            -
            
            
            551,910Net
                loss for the period
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (1,083,893
            )
            
            (1,083,893
            )Balance
                at September 30, 2007
            
            
            12,105,433
            
            $
            1,009,545
            
            $
            564,254
            
            $
            -
            
            $
            (1,923,475
            )
            $
            (349,676
            )Balance
                at December 31, 2005
            
            
            9,130,000
            
            $
            1,800
            
            $
            12,344
            
            $
            -
            
            $
            (343,920
            )
            $
            (329,776
            )Common
                stock issuance as placement fee
            
            
            1,826,000
            
            
            174,695
            
            
            -
            
            
            (1,826
            )
            
            -
            
            $
            172,869Net
                loss for the period
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (331,427
            )
            $
            (331,427
            )Balance
                at September 30, 2006
            
            
            10,956,000
            
            $
            176,495
            
            $
            12,344
            
            $
            (1,826
            )
            $
            (675,347
            )
            $
            (488,334
            )







The
        accompanying notes are an integral part of these condensed financial
        statements










CYBRA
      CORPORATION





STATEMENTS
      OF CASH FLOWS


(UNAUDITED)





Nine
                Months EndedSeptember
                30,2007
            
            2006CASH
                FLOWS FROM OPERATING ACTIVITIESNet
                income (loss)
            
            $
            (1,083,893
            )
            $
            (331,427
            )Adjustments
                to reconcile net loss to net cashprovided
                by (used in) operating activitiesDepreciation
            
            
            (16,533
            )
            
            10,389Deferred
                income tax expense (recovery)
            
            
            (595,143
            )
            
            (267,143
            )Interest
                expense - amortization of debt discount
            
            
            176,083
            
            
            93,625Amortization
                of deferred finance cost
            
            
            112,219
            
            
            33,913Accrued
                liquidated damages - registration rights agreement
            
            
            -
            
            
            30,000Gain
                on derivative financial instruments
            
            
            -
            
            
            (43,304
            )Change
                in:
            
            
            
            
            
            -Accounts
                receivable
            
            
            (60,918
            )
            
            235,455Prepaid
                corporate taxes/corporate taxes payable
            
            
            105
            
            
            35Security
                deposits and other assets
            
            
            (190
            )
            
            (114
            )Accounts
                payable and accrued expenses
            
            
            75,953
            
            
            (38,996
            )Accrued
                interest
            
            
            188,767
            
            
            96,291Deferred
                revenue
            
            
            10,836
            
            
            (22,618
            )Sales
                tax payable
            
            
            (89
            )
            
            (1,629
            )Net
                Cash Used in Operating Activities
            
            
            (1,192,803
            )
            
            (205,523
            )CASH
                FLOWS FROM INVESTING ACTIVITIESAcquisition
                of property and equipment
            
            
            (10,043
            )
            
            (21,518
            )Net
                Cash Used in Investing Activities
            
            
            (10,043
            )
            
            (21,518
            )CASH
                FLOWS FROM FINANCING ACTIVITIESProceeds
                from loan payable - bank
            
            
            -
            
            
            54,100Repayments
                of loan payable - bank
            
            
            -
            
            
            (145,058
            )Proceeds
                from note payable
            
            
            -
            
            
            19,000Payments
                of deferred finance costs
            
            
            -
            
            
            (120,503
            )Paid
                to former stockholder
            
            
            (250,000
            )Proceeds
                from Stock Subscription
            
            
            1,826Proceeds
                from Stock Sales
            
            
            833,050Proceeds
                from private placement
            
            
            -
            
            
            2,080,000Net
                Cash Used In Financing Activities
            
            
            584,876
            
            
            1,887,539INCREASE
                (DECREASE) IN CASH AND CASH EQUIVALENTS
            
            
            (617,970
            )
            
            1,660,498CASH
                AND CASH EQUIVALENTSBeginning
                of period
            
            
            1,263,370
            
            
            10,859End
                of period
            
            $
            645,400
            
            $
            1,671,357SUPPLEMENTAL
                DISCLOSURES OF CASH FLOW INFORMATION:Cash
                paid during the period for:Interest
            
            $
            -
            
            $
            7,688












CYBRA
      CORPORATION





NOTES
      TO
      FINANCIAL STATEMENTS


FOR
      THE
      NINE MONTHS ENDED SEPTEMBER 30, 2007


(UNAUDITED)








1.
      BASIS OF PRESENTATION





The
      unaudited financial information of CYBRA Corp. has been prepared by the Company
      pursuant to the rules and regulations of the Securities and Exchange Commission
      (the “SEC”) and reflects all adjustments, which in the opinion of management are
      necessary to fairly state the Company’s interim financial position and the
      results of its operations for the periods presented. Certain information and
      note disclosures normally included in financial statements prepared in
      accordance with GAAP have been condensed or omitted from these statements
      pursuant to such rules and regulations and, accordingly, this report on FORM
      10-QSB should be read in conjunction with the Company’s financial statements and
      notes thereto included in the Company’s Form 10-KSB for the fiscal year ended
      December 31, 2006. The Company assumes that the users of the interim financial
      information herein have read or have access to the audited financial statements
      for the preceding fiscal year and that the adequacy of additional disclosure
      needed for a fair presentation may be determined in that context. Accordingly,
      footnote disclosure, which would substantially duplicate the disclosure
      contained in the Company’s Form 10-KSBfor the fiscal year ended December 31,
      2006, has been omitted. The results of operations for the three and nine months
      periods ended September 30, 2007 are not necessarily indicative of results
      for
      the entire fiscal year ending December 31, 2007 .





2.  NATURE
      OF OPERATIONS AND FINANCIAL STATUS OF COMPANY





CYBRA
      Corporation (“the Company”) is a software developer, publisher, and systems
      integrator in the IBM midrange market. Its flagship product,
      MarkMagic TM ,
      is an
      online bar code software product for IBM i Series (AS/400) computers.
      Substantially all of the Company's accounts receivables are due from
      manufacturing companies and software vendors located throughout the United
      States.





At
      September 30, 2007, the Company had cash and cash equivalents of $645,400,
      a
      working capital deficit of $31,076 and an accumulated deficit of $1,923,475.
      Additionally, the Company has incurred a net loss of $1,083,893 for the nine
      months ended September 30, 2007.





Management
      has focused all resources on development and release of a new RFID product
      line,
      (EdgeMagic TM) with
      revenue potential far in excess of the current product mix. In line with this
      objective, CYBRA formed a strategic partnership with Solzon Corporation of
      Nashua, NH to deliver comprehensive RFID solutions to IBM System i customers.
      Instead of competing with Solzon’s existing RFID for iSeries product, CYBRA
      agreed to acquire Solzon’s licensing rights to the product and collaborate on
      the development of CYBRA’s new EdgeMagic product. Under terms of the agreement,
      Solzon will provide professional services as CYBRA’s Premier Integration Partner
      in support of EdgeMagic TM and will
      resell CYBRA’s MarkMagic TM and
      EdgeMagic TM product
      lines. Solzon will discontinue their RFID for iSeries product and will offer
      their customers an upgrade path to EdgeMagic TM .
      The
      alliance of the two companies establishes a high caliber team of IBM System
      i
      Auto-Id product development expertise coupled with System i systems integration
      proficiency, delivering a total end to end RFID solution centered on the
      EdgeMagicTM and MarkMagicTM offerings.




3.  SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES





Research
      and Development Costs




In
      the
      second quarter 2005, the Company began development of MarkMagic Version 6 and
      has incurred research and development expense of $182,620 and $135,120 for
      the
      nine months ended September 30, 2007 and 2006, respectively. The cumulative
      development costs for Version 6 are $493,438 at September 30, 2007.










CYBRA
      CORPORATION





NOTES
      TO
      FINANCIAL STATEMENTS


FOR
      THE
      NINE MONTHS ENDED SEPTEMBER 30, 2007


(UNAUDITED)





In
      the
      first quarter 2007, the Company began development of EdgeMagic and has incurred
      research and development expense of $365,655 for the nine months ended September
      30, 2007. Total research and development expense for the nine months ended
      September 30, 2007 and 2006 were $642,961 and $241,829, respectively ($61,535
      for Version 5.1 and $135,120 for Version 6). These costs have been included
      in
      general and administrative expenses. ****








Reclassification


Sales
      and
      marketing expenses were moved from Cost of Goods Sold to General and
      Administrative expense in the prior year so they can conform to the current
      year
      classifications.





Warrants
      - Adoption of New Accounting Pronouncement




Warrants
      issued in conjunction with equity financing were accounted for under the
      Emerging Issues Task Force FSP (“EITF”) Issue No. 00-19, ‘Accounting for
      Derivative Financial Instruments Indexed to and Potentially Settled in a
      Company’s Own Stock’. In December 2006, the FASB approved FSP EITF 00-19-2
      Accounting for Registration Payment Arrangements, which establishes the standard
      that contingent obligations to make future payments under a registration rights
      arrangement shall be recognized and measured separately in accordance with
      Statement 5 and FASB Interpretation No. 14, Reasonable Estimation of the
      Amount of a Loss. The Company has evaluated the effect of how FSP EITF 00-19-2
      and FSP EITF Topic D-98 affected these accompanying financial statements. The
      adoption of FSP EITF 00-19-2 accounting pronouncement on January 1, 2007 changed
      the classification of the warrant liability, total $551,910 at January 1, 2007,
      to stockholders’ equity (additional paid in capital).





Derivative
      Financial Instruments





The
      Company accounts for its warrants which were issued in a private placement
      of
      the 8% Convertible Debentures with detachable warrants on April 10, 2006, as
      derivatives under the guidance of Statement of Financial Accounting Standards
      No. 133 - *Accounting for Derivative Instruments and Hedging Activities* (“SFAS
      133”), and Emerging Issues Task Force Issue 00-19 - *Accounting for Derivative Financial Instruments Indexed to and Potentially
      Settled In, a Company's Own Stock* (“EITF
      00-19”). The Company considers these standards applicable by adopting “View A”
of the Issue Summary relating to Emerging Issues Task Force Issue 05-04
      - *The
      Effect of a Liquidated Damages Clause on a Freestanding Financial Instrument
      Subject to Issue No. 00-19* (“EITF
      05-04”) in which the warrants and the related registration rights agreement are
      viewed together as a combined instrument that is indexed to the Company's stock.
      The embedded conversion feature of the debentures has not been classified as
      a
      derivative financial instrument because the Company believes that they are
      “conventional” as defined in Emerging Issues Task Force Issue 05-02
      - *The
      Meaning of “Conventional Convertible Debt Instrument” in Issue No.
      00-19* (“EITF
      05-02”)




Use
      of
      Estimates




The
      preparation of financial statements, in conformity with accounting principles
      generally accepted in the United States of America, requires management to
      make
      estimates and assumptions that affect the reported amounts of assets and
      liabilities and disclosure of contingent assets and liabilities at the date
      of
      the financial statements, and the reported amounts of revenue and expenses
      during the reporting period. Actual results could differ from those
      estimates.





4.
      8%
      CONVERTIBLE DEBENTURES AND DERIVATIVE FINANCIAL INSTRUMENTS




On
      April
      10, 2006, the Company issued 8% Convertible Debentures (the “Debentures”) with a
      principal (“face”) value of $2,500,000, along with 7,500,000 detachable Stock
      Warrants (the “Warrants”) to several investors. The gross proceeds of this
      transaction were $2,500,000, consisting of $2,080,000 cash, $151,000








CYBRA
      CORPORATION





NOTES
      TO
      FINANCIAL STATEMENTS


FOR
      THE
      NINE MONTHS ENDED SEPTEMBER 30, 2007


(UNAUDITED)





from
      the
      cancellation of debt incurred in 2005, $19,000 from the cancellation of debt
      incurred earlier in 2006 and $250,000 applied as finders' fees. The convertible
      debenture balance at September 30, 2007 was $2,094,237. The amortization of
      deferred finance costs was $112,219 for the nine months ended September 30,
      2007
      and $ 43,012 for the 3 months ended September 30, 2007. The deferred finance
      cost balance at September 30, 2007 was $467,433.





The
      investors also received 7,500,000 Warrants, 2,500,000 of Class A and 5,000,000
      of Class B. Each Class A Warrant gives the holder the right to buy one share
      of
      common stock for $0.75. Each Class B Warrant gives the holder the right to
      buy
      one share of common stock for $1.75. The Warrants are exercisable at any time
      through April 10, 2011. The 7,500,000
      warrants are the
      only outstanding warrants at September 30, 2007.





5.
      STOCKHOLDERS’ DEFICIENCY




During
      the nine months ended September 30, 2007, the Company issued 116,100 shares
      of
      common stock, at $0.50 per share and 1,033,333 shares of common stock, at $0.75
      per share for total proceeds of $833,050.





6.
      COMMITMENT AND LITIGATION





The
      Company occupies office space under a lease agreement that expires on January
      31, 2010.







The
      minimum annual rental commitment is as follows:




2007
            
            $
            77,0002008
            
            
            77,2502009
            
            
            77,2502010
            
            
            6,438$
            237,938




LITIGATION





A
      complaint was filed against the Company and its CEO on December 28, 2006 in
      Magistrate's court in Herzeliya, Israel by Raz-Lee Security Ltd., a former
      distributor of the Company's products (Case No. 8443/06). The action seeks
      $50,000 in damages for alleged unpaid license fees. The Company has filed a
      motion to dismiss the case on jurisdictional grounds, which is pending with
      the
      court.  The
      Company believes that it has meritorious defenses to this lawsuit, as well
      as
      counterclaims against the plaintiff, and intends to vigorously defend this
      action. Management feels that this matter will be resolved and will not have
      a
      material affect on the Company's financial position.




7.
      EARNINGS PER SHARE





Earnings
      per share for the three and six months ended September 30, 2007 do not
      include the effects of the 7,500,000 warrants or the 5,000,000 shares into
      which
      the 8% Convertible Debentures are convertible because the effects would be
      anti-dilutive.












**ITEM
      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF
      OPERATION**





This
      report on Form 10QSB contains forward-looking statements. Forward-looking
      statements are statements not based on historical information and that relate
      to
      future operations, strategies, financial results or other developments.
      Forward-looking statements are necessarily based upon estimates and assumptions
      that are inherently subject to significant business, economic and competitive
      uncertainties and contingencies, many of which are beyond our control and many
      of which, with respect to future business decisions, are subject to change.
      These uncertainties and contingencies can affect actual results and could cause
      actual results to differ materially from those expressed in any forward-looking
      statements made by us or on our behalf. We disclaim any obligation to update
      forward-looking statements.





**OFF-BALANCE
      SHEET ARRANGEMENTS**





We
      do not
      currently have any off-balance sheet arrangements that have or are reasonably
      likely to have a current or future affect on our financial condition, change
      in
      financial condition, revenues or expenses, results of operations, liquidity
      capital expenditures, or capital resources that are material to our
      shareholders.








**RESULTS
      OF OPERATIONS**





**Critical
      accounting policies**





We
      follow
      the guidance of the SEC Staff Accounting Bulletin 104 for revenue
      recognition.  In general, we record revenue when persuasive evidence of an
      arrangement exists, services have been rendered or product delivery has
      occurred, the sales price to the customer is fixed or determinable, and
      collectability is reasonably assured.





We
      recognize income when products have been shipped or services have been
      performed. In cases where a customer prepays a subscription for services to
      be
      delivered in a period which extends from one accounting period into a subsequent
      period, we only recognize the portion of income due for services in the current
      reporting period. In cases where there is an acceptance period during which
      a
      customer may cancel their agreement without penalty, we defer the revenue
      recognition until the end of that acceptance period.




The
      Company accounts for software development costs in accordance with Statement
      of
      Financial Accounting Standards No. 86, Accounting for the Costs of Computer
      Software to be Sold, Leased or Otherwise Marketed (“SFAS 86”), SFAS 86 requires
      that costs related to the development of enhancements to Mark Magic be
      capitalized as an asset when incurred subsequent to the point at which
      technological feasibility of the enhancement is established.  SFAS 86
      specifies that “technological feasibility” for purposes of SFAS 86 can only be
      established by the completion of a “detailed program design” or if no such
      design is prepared, upon the completion of a “working model” of the
      software.  The Company’s development process does not include a detailed
      program design.  Management believes that such a design could be produced
      in the early stages of development but would entail significant wasted expense
      and delay.  Consequently, SFAS 86 requires the development costs to be
      recorded as expense until the completion of a “working model”.  In the
      Company’s case, the completion of a working model does not occur until almost
      the time when the software is ready for sale.




**Impact
      of Recently Issued Accounting Pronouncements**





We
      do not
      believe that any recently issued, but not yet effective accounting standards
      will have a material effect on our financial position, results of operations
      or
      cash flows.








**THREE
      MONTHS ENDED SEPTEMBER 30, 2007 COMPARED TO THE THREE MONTHS ENDED SEPTEMBER
      30,
      2006.**




**RESULTS
      OF OPERATIONS**


**Operating
      Revenues**





Sales
      for
      the three months ended September 30, 2007 increased 24% over the prior year,
      from $331,797 to $410,081, primarily due to an increase of $112,590 in ancillary
      supplies and hardware sold to our existing MarkMagic and RFID customers. This
      increase was offset by a decrease in MarkMagic sales and support of
      $27,161.








We
      are
      currently working on developing new software for the RFID market called
      EdgeMagic TM .
      This
      software has undergone preliminary beta testing in the third quarter 2007 and
      will undergo actual beta testing in the fourth quarter 2007. It will be released
      sometime during the first quarter of 2008. We feel that the future sales of
      this
      new software product, once it is tested and released, will have a significant
      positive impact on our operating results and increase our future revenues and
      profit margins.





**Cost
      of Sales and Gross Margin**





Cost
      of
      sales including royalty and consulting increased, 152%, from $107,571 to
      $270,983 and increased as a percentage of sales from 33% of sales to 66% of
      sales. Overall, gross margin decreased from $224,226 to $139,098, a decrease
      of
      38%. This decrease in the gross margin was due to an increase in software
      development costs on our new RFID product line, (EdgeMagic TM) and
      maintenance on existing software already sold to customers through use of
      programming consultants.





**General
      and Administrative Expenses**





General,
      Selling and Administrative costs increased $82,993 from $478,592 in 2006 to
      $561,585 in 2007, due to an increase in research and development costs of
      approximately $98,700 for the development of our software products and an
      increase in legal and administrative expenses of $64,000. There was also $97,500
      in commissions and consulting fees. These amounts were offset by the
      reclassification of sales and marketing expense to general and administrative
      expenses for the prior year.





**Provision
      for Income Taxes**





The
      Company had a pre-tax loss of $572,188 and $419,334 for the three months ended
      September 30, 2007 and 2006, respectively. Accordingly, there has been no
      provision for current income taxes in 2007 or 2006. Deferred income tax assets
      have been provided for the likely benefits of net operating loss carryovers
      and
      other temporary differences between financial statement and taxable
      income.




**NINE
      MONTHS ENDED SEPTEMBER 30, 2007 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER
      30,
      2006.**




**RESULTS
      OF OPERATIONS**


**Operating
      Revenues**





Sales
      for
      the nine months ended September 30, 2007 increased 4% over the prior year,
      from
      $1,119,675 to 1,164,161, primarily due to an increase of $88,085 in ancillary
      supplies and hardware sold to our existing MarkMagic and RFID customers. This
      increase was offset by a decrease in MarkMagic sales and support of
      $30,500.


.





We
      are
      currently working on developing new software for the RFID market called
      EdgeMagic TM .
      This
      software has undergone preliminary beta testing in the third quarter 2007 and
      will undergo actual beta testing in the fourth quarter 2007. It will be released
      sometime during the first quarter of 2008. We feel that the future sales of
      this
      new software product, once it is tested and released, will have a significant
      positive impact on our operating results and increase our future revenues and
      profit margins.




**Cost
      of Sales and Gross Margin**





Cost
      of
      sales including royalty and consulting increased, 102%, from $340,616 to
      $687,314 and increased as a percentage of sales from 31% of sales to 59% of
      sales. Overall, gross margin decreased from $779,059 to $476,847, a decrease
      of
      39%. This decrease in the gross margin was due to an increase in software
      development costs on our new RFID product line, (EdgeMagic TM) and
      maintenance on existing software already sold to customers through use of
      programming consultants








**Selling,
      General, and Administrative Costs**





General,
      Selling and Administrative costs increased $540,061 from $ 1,194,530 in 2006
      to
      $1,734,591 in 2007, due to an increase in research and development costs of
      approximately $405,000 for the development of our software products and an
      increase in our professional fees incurred to maintain our public reporting
      status of approximately $85,000. There was also $97,500 in commissions and
      consulting fees.





**Provision
      for Income Taxes**





The
      Company had a pre-tax loss of $1,679,036 and $598,285 for the nine months ended
      September 30, 2007 and 2006, respectively. Accordingly, there has been no
      provision for current income taxes in 2007 or 2006. Deferred income tax assets
      have been provided for the likely benefits of net operating loss carryovers
      and
      other temporary differences between financial statement and taxable
      income.




**Liquidity
      and Capital Resources**





As
      of
      September 30, 2007, the Company had approximately $1,011,500 in current assets.
      On April 10, 2006 the Company sold $2,500,000 of its 8% Convertible Debenture
      to
      a group of accredited investors. The net proceeds of this placement were
      approximately $2,027,500 after payment of commissions, expenses and repayment
      of
      a short term loan. In June through September 2007, 900,000 shares were sold
      to
      investors. The net proceeds of these sales were $675,000. In October 2007 an
      additional 266,667 shares were sold to investors. The net proceeds of these
      sales were $200,000. Hence, we expect to be adequately funded for the next
      twelve months. Further, with the registration of our shares, the cost of
      registering additional shares will be lower, giving us increased access to
      both
      private and public capital markets should our capital needs increase within
      the
      next twelve months or thereafter.





However,
      our operations were not yet profitable, and we continue to require additional
      funding in order to continue business operations. To date, we have funded our
      cash shortage and obtained the cash necessary to continue operations primarily
      through debt and equity transactions with management and through debt and equity
      private placements.




**Capital
      Commitments**





The
      Company currently has no material commitments for capital
      expenditures.





**Trends**





The
      industry in which the Company operates is in a state of significant change.
      RFID
      software and services are gaining acceptance in the marketplace and the Company
      intends to take advantage of that trend by attempting to sell into a more
      willing marketplace, despite the increased competition.





**Changes
      in income elements**





There
      are
      no expected changes in the sources of income for the Company, with the exception
      that the liquid assets held by the Company are earning interest income
      currently, whereas there was no significant interest income in past years.
      The
      Company believes operating income will come from newly acquired customers for
      our services.





**Material
      changes in our financial statements**





None.




**Seasonal
      Fluctuations**


There
      have been no fluctuations in our business to date which can be attributed to
      seasonality.





**ITEM
      3. CONTROLS AND PROCEDURES**





*Evaluation
      of Disclosure Controls and Procedures* .    The
      Company’s Management under the supervision and with the participation of the
      Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”)
      are responsible for establishing and maintaining “disclosure controls and
      procedures” (as defined in rules promulgated under the Securities Exchange Act
      of 1934, as amended) for the Company. Based on their evaluation of the Company’s
      disclosure controls and procedures as of September 30, 2007, the CEO and CFO
      have concluded that the Company’s disclosure controls and procedures were
      effective to ensure that the information required to be disclosed by the Company
      in this Quarterly Report on Form 10-QSB was (i) recorded, processed,
      summarized and reported within the time periods specified in the Securities
      and
      Exchange Commission’s rules and (ii) accumulated and communicated to the
      Company’s management, including the Company’s principal executive and principal
      financial officers, to allow timely decisions regarding required
      disclosure.








*Changes
      in Internal Control over Financial Reporting.* During
      the third quarter of the Company’s 2007 fiscal year, there were no changes
      in the Company’s internal control over financial reporting during the period
      covered by this report that have materially affected, or are reasonably likely
      to materially affect, the Company’s internal control over financial
      reporting.





*Limitations
      on the Effectiveness of Controls.* A
      control system, no matter how well conceived and operated, can provide only
      reasonable, not absolute, assurance that the objectives of the control system
      are met. Because of the inherent limitations in all control systems, no
      evaluation of controls can provide absolute assurance that all control issues,
      if any, within a company have been detected. The Company’s disclosure controls
      and procedures are designed to provide reasonable assurance of achieving their
      objectives, and the CEO and CFO have concluded that these controls and
      procedures are effective at the “reasonable assurance” level.








**PART
      II**





**ITEM
      1. LEGAL PROCEEDINGS**





A
      complaint was filed against the Company and its CEO on December 28, 2006 in
      Magistrate’s court in Herzeliya, Israel by Raz-Lee Security Ltd., a former
      distributor of the Company’s products (Case No. 8443/06). The action seeks
      $50,000 in damages for alleged unpaid license fees. The Company has filed a
      motion to dismiss the case on jurisdictional grounds, which is pending with
      the
      court. The Company believes that it has meritorious defenses to this lawsuit,
      as
      well as counterclaims against the plaintiff, and intends to vigorously defend
      this action. The Company is not party to any other pending or threatened legal
      proceedings.





**ITEM
      2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
      PROCEEDS**




During
      the quarter ended September 30, 2007, the Company sold 900,000 shares of its
      restricted common stock to 8 individuals and one corporation in private
      transactions exempt under Section 4 (2) of the Securities Act of 1933, as
      amended. The price per share was $.75 and gross proceeds received were
      $675,000.




**ITEM
      3. DEFAULTS UPON SENIOR SECURITIES**





(a)  None.





(b)  None.





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





None.





**ITEM
      5. OTHER INFORMATION**





None.










**ITEM
      6. EXHIBITS**





The
      following Exhibits are being filed herewith:


**Exhibit
                No.**
            **Exhibit
                Description**31.1
            Section
                302 Sarbanes Oxley Certification - CEO31.2
            Section
                302 Sarbanes Oxley Certification - CFO32.1
            Section
                906 Sarbanes Oxley Certification - CEO32.2
            Section
                906 Sarbanes Oxley Certification - CFO








**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.


CYBRA
                CORPORATION
              (Registrant)Date: November
              13, 2007
            By:
            /s/ Harold
              BrandHarold
                Brand
                Chief
                  Executive Officer and
                Acting
                  Chief Financial Officer