**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

| x | **QUARTERLY                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                  ACT OF                  1934** |
|---|------------------------------------------------------------------------------------------------------------------------------------------------|

| o | **TRANSITION                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                  ACT OF                  1934** |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------|

**CYBRA      CORPORATION**

| New                York                                                       | 13-3303290                                          |
|-------------------------------------------------------------------------------|-----------------------------------------------------|
| (State                or Other Jurisdiction of Incorporation or Organization) | (I.R.S.                Employer Identification No.) |
|                                                                          |                                                |
| One                Executive Blvd. Yonkers, New York                          | 10701                                               |
| (Address                of Principal Executive Offices)                       | (Zip                Code)                           |

| Large                accelerated filer  ̈     | Accelerated                filer  ̈                |
|--------------------------------------------------------|-------------------------------------------------------------|
| Non-accelerated                filer   ̈ | Smaller                Reporting Company þ   |

----

**CYBRA      Corporation**

|                    |                                                                                                                                  | Page   |
|-------------------------|---------------------------------------------------------------------------------------------------------------------------------------|--------|
|                    |                                                                                                                                  |   |
| Part                I.  | Financial                Information                                                                                                  |   |
|                    |                                                                                                                                  |   |
| Item                1.  | Financial                Statements                                                                                                   |   |
|                    |                                                                                                                                  |   |
|                    | Balance                Sheets as of September 30, 2008 and December 31, 2007                                                          | 1      |
|                    |                                                                                                                                  |   |
|                    | Statements                of Operations for the three and nine months ended September 30, 2008                and                2007 | 2      |
|                    |                                                                                                                                  |   |
|                    | Statements                of Cash Flows for the nine months ended September 30, 2008 and                2007                          | 3      |
|                    |                                                                                                                                  |   |
|                    |  Notes                to Consolidated Interim Financial Statements                                                               | 4      |
|                    |                                                                                                                                  |   |
| Item                2.  |  Management’s                Discussion and Analysis of Financial Condition and Results of                Operations       | 7      |
|                    |                                                                                                                                  |   |
| Item                3.  |  Quantitative                and Qualitative Disclosures About Market Risk                                                       | 11     |
|                    |                                                                                                                                  |   |
| Item                4T. |  Controls                and Procedures                                                                                          | 11     |
|                    |                                                                                                                                  |   |
| Part                II. | Other                Information                                                                                                      |   |
|                    |                                                                                                                                  |   |
| Item                2.  | Unregistered                Sales of Equity Securities and Use of Proceeds                                                            | 12     |
|                    |                                                                                                                                  |   |
| Item                6.  |  Exhibits                                                                                                                        | 12     |
|                    |                                                                                                                                  |   |
| Signatures              | 13                                                                                                                                    |

----

**PART      I. FINANCIAL INFORMATION**

**ITEM      1. FINANCIAL STATEMENTS**

CYBRA      CORPORATION

|                                                                                                                                                                                                                                                              |   | September                  30, |       | December                  31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|------------|-------------------------------|--------|
|                                                                                                                                                                                                                                                              |   | 2008                           |       | 2007                          |   |
|                                                                                                                                                                                                                                                              |   | (Unaudited)                    |       | (Audited)                     |   |
| ASSETS                                                                                                                                                                                                                                                            |   |                           |       |                          |   |
| CURRENT                  ASSETS                                                                                                                                                                                                                                   |   |                           |       |                          |   |
| Cash                  and cash equivalents                                                                                                                                                                                                                        |   | $                              | 265,694    |                          | $      | 787,156 |   |
| Accounts                  receivable, less allowance for doubtful accounts of $5,000                                                                                                                                                                              |   |                           | 181,815    |                          |   | 352,647 |   |
| Loan                  receivable                                                                                                                                                                                                                                  |   |                           | -          |                          |   | 6,000 |   |
| Deferred                  income taxes                                                                                                                                                                                                                            |   |                           | 62,427     |                          |   | 104,093 |   |
|                                                                                                                                                                                                                                                              |   |                           |       |                          |   |   |   |
| Total                  Current Assets                                                                                                                                                                                                                             |   |                           | 509,936    |                          |   | 1,249,896 |   |
|                                                                                                                                                                                                                                                              |   |                           |       |                          |   |   |   |
| PROPERTY                  AND EQUIPMENT, at cost, less accumulated depreciation and                  amortization                                                                                                                                                 |   |                           | 85,352     |                          |   | 98,495 |   |
|                                                                                                                                                                                                                                                              |   |                           |       |                          |   |   |   |
| OTHER                  ASSETS, at cost, less accumulated amortization                                                                                                                                                                                             |   |                           | 291,805    |                          |   | 318,333 |   |
|                                                                                                                                                                                                                                                              |   |                           |       |                          |   |   |   |
| DEFERRED                  INCOME TAXES                                                                                                                                                                                                                            |   |                           | 1,554,163  |                          |   | 1,156,304 |   |
|                                                                                                                                                                                                                                                              |   |                           |       |                          |   |   |   |
| DEFERRED                  FINANCE COSTS                                                                                                                                                                                                                           |   |                           | 204,315    |                          |   | 414,857 |   |
|                                                                                                                                                                                                                                                              |   |                           |       |                          |   |   |   |
| SECURITY                  DEPOSITS AND OTHER                                                                                                                                                                                                                      |   |                           | 18,632     |                          |   | 11,685 |   |
|                                                                                                                                                                                                                                                              |   |                           |       |                          |   |   |   |
|                                                                                                                                                                                                                                                              |   | $                              | 2,664,203  |                          | $      | 3,249,570 |   |
|                                                                                                                                                                                                                                                              |   |                           |       |                          |   |   |   |
| LIABILITIES                  AND STOCKHOLDERS' DEFICIENCY                                                                                                                                                                                                         |   |                           |       |                          |   |   |   |
|                                                                                                                                                                                                                                                              |   |                           |       |                          |   |   |   |
| CURRENT                  LIABILITIES                                                                                                                                                                                                                              |   |                           |       |                          |   |   |   |
| Accounts                  payable and accrued expenses                                                                                                                                                                                                            |   | $                              | 376,035    |                          | $      | 550,397 |   |
| Accrued                  interest                                                                                                                                                                                                                                 |   |                           | 488,392    |                          |   | 336,169 |   |
| Deferred                  revenue                                                                                                                                                                                                                                 |   |                           | 328,859    |                          |   | 284,990 |   |
| Accrued                  liquidated damages - registration rights agreement                                                                                                                                                                                       |   |                           | 110,000    |                          |   | 110,000 |   |
| 8%                  Convertible debentures                                                                                                                                                                                                                        |   |                           | 2,336,520  |                          |   |  - |   |
| Total                  Current Liabilities                                                                                                                                                                                                                        |   |                           | 3,639,806  |                          |   | 1,281,556 |   |
|                                                                                                                                                                                                                                                              |   |                           |       |                          |   |   |   |
|                                                                                                                                                                                                                                                              |   |                           |       |                          |   |   |   |
| 8%                  CONVERTIBLE DEBENTURES                                                                                                                                                                                                                        |   |                           | -          |                          |   | 2,160,800 |   |
|                                                                                                                                                                                                                                                              |   |                           |       |                          |   |   |   |
| STOCKHOLDERS'                  DEFICIENCY                                                                                                                                                                                                                         |   |                           |       |                          |   |   |   |
| Common                  stock, no par value, 100,000,000 shares authorized; 13,465,476                  and                  12,610,954 shares issued and outstanding at September 30, 2008                  and                  December 31, 2007, respectively |   |                           | 1,757,745  |                          |   | 1,329,545 |   |
| Additional                  paid - in capital                                                                                                                                                                                                                     |   |                           | 727,603    |                          |   | 727,603 |   |
| Accumulated                  deficit                                                                                                                                                                                                                              |   |                           | (3,460,951 | )                             |   | (2,249,934 | ) |
|                                                                                                                                                                                                                                                              |   |                           |       |                          |   |   |   |
| Total                  Stockholders' Deficiency                                                                                                                                                                                                                   |   |                           | (975,603   | )                             |   | (192,786 | ) |
|                                                                                                                                                                                                                                                              |   |                           |       |                          |   |   |   |
|                                                                                                                                                                                                                                                              |   | $                              | 2,664,203  |                          | $      | 3,249,570 |   |

----

CYBRA      CORPORATION

|                                                                   |   | Three                  Months Ended |       | Nine                  Months Ended |   |
|------------------------------------------------------------------------|--------|-------------------------------------|------------|------------------------------------|--------|
|                                                                   |   | September                  30,      |       | September                  30,     |   |
|                                                                   |   | 2008                                |       | 2007                               |   | 2008 |   | 2007 |   |
|                                                                   |   | (Unaudited)                         |       | (Unaudited)                        |   | (Unaudited) |   | (Unaudited) |   |
|                                                                   |   |                                |       |                               |   |   |   |   |   |
| REVENUES                                                               |   | $                                   | 328,573    |                               | $      | 410,081 |   | $ | 959,517 |   | $ | 1,164,161 |   |
|                                                                   |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| DIRECT                  COSTS                                          |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| Costs                  of goods sold                                   |   |                                | 22,693     |                               |   | 167,645 |   |   | 120,110 |   |   | 383,694 |   |
| Royalties                  and consulting                              |   |                                | 29,049     |                               |   | 103,338 |   |   | 50,586 |   |   | 303,620 |   |
|                                                                   |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                                | 51,742     |                               |   | 270,983 |   |   | 170,696 |   |   | 687,314 |   |
|                                                                   |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| GROSS                  MARGIN                                          |   |                                | 276,831    |                               |   | 139,098 |   |   | 788,821 |   |   | 476,847 |   |
|                                                                   |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| GENERAL                  AND ADMINISTRATIVE EXPENSES                   |   |                                | 546,247    |                               |   | 561,585 |   |   | 1,821,761 |   |   | 1,734,591 |   |
|                                                                   |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| LOSS                  FROM OPERATIONS                                  |   |                                | (269,416   | )                                  |   | (422,487 | ) |   | (1,032,940 | ) |   | (1,257,744 | ) |
|                                                                   |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| OTHER                  INCOME (EXPENSE)                                |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| Interest                  expense                                      |   |                                | (198,112   | )                                  |   | (154,567 | ) |   | (538,485 | ) |   | (439,969 | ) |
| Interest                  income                                       |   |                                | 146        |                               |   | 4,666 |   |   | 3,802 |   |   | 18,477 |   |
| Miscellaneous                  income                                  |   |                                | 78         |                               |   | - |   |   | 413 |   |   | - |   |
| Liquidated                  damages - registration rights agreement    |   |                                | -          |                               |   | 200 |   |   | - |   |   | 200 |   |
|                                                                   |   |                                |            |                               |   |  |   |   |  |   |   |  |   |
|                                                                   |   |                                | (197,888   | )                                  |   | 4,866 |   |   | (534,270 | ) |   | (421,292 | ) |
|                                                                   |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| LOSS                  BEFORE INCOME TAXES                              |   |                                | (467,304   | )                                  |   | (417,621 | ) |   | (1,567,210 | ) |   | (1,679,036 | ) |
|                                                                   |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| INCOME                  TAXES (RECOVERY)                               |   |                                | -          |                               |   | (221,827 | ) |   | (356,193 | ) |   | (595,143 | ) |
|                                                                   |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| NET                  LOSS                                              |   | $                                   | (467,304   | )                                  | $      | (195,794 | ) | $ | (1,211,017 | ) | $ | (1,083,893 | ) |
|                                                                   |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| LOSS                  PER SHARE                                        |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| Basic                  and diluted net loss per share                  |   | $                                   | (0.04      | )                                  | $      | (0.02 | ) | $ | (0.09 | ) | $ | (0.10 | ) |
|                                                                   |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| Basic                  and diluted weighted-average shares outstanding |   |                                | 12,981,130 |                               |   | 11,646,375 |   |   | 12,750,647 |   |   | 11,249,583 |   |

----

CYBRA      CORPORATION

|                                                                                                         |   | Nine                  Months Ended |                                             |
|--------------------------------------------------------------------------------------------------------------|--------|------------------------------------|--------------------------------------------------|
|                                                                                                         |   | September                  30,     |                                             |
|                                                                                                         |   | 2008                               |                                             | 2007 |   |
|                                                                                                         |   | (Unaudited)                        |                                             | (Unaudited) |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES                                                        |   |                               |                                             |   |   |
| Net                  loss                                                                                    |   | $                                  | (1,211,017                                       | ) | $ | (1,083,893 | ) |
| Adjustments                  to reconcile net loss to net cash used in operating                  activities |   |                               |                                             |   |   |   |   |
| Depreciation                                                                                                 |   |                               | 46,340                                           |   |   | (16,533 | ) |
| Deferred                  income tax recovery                                                                |   |                               | (356,192                                         | ) |   | (595,143 | ) |
| Interest                  expense - amortization of debt discount                                            |   |                               | 175,720                                          |   |   | 176,083 |   |
| Amortization                  of deferred finance cost                                                       |   |                               | 210,542                                          |   |   | 112,219 |   |
| Change                  in operating assets and liabilities                                                  |   |                               |                                             |   |   |   |   |
| Accounts                  receivable                                                                         |   |                               | 170,832                                          |   |   | (60,918 | ) |
| Loan                  receivable                                                                             |   |                               | 6,000                                            |   |   | - |   |
| Prepaid                  income taxes/income taxes payable                                                   |   |                               | -                                                |   |   | 105 |   |
| Security                  deposits and other assets                                                          |   |                               | (6,947                                           | ) |   | (190 | ) |
| Accounts                  payable and accrued expenses                                                       |   |                               | (174,361                                         | ) |   | 75,953 |   |
| Accrued                  interest                                                                            |   |                               | 152,223                                          |   |   | 188,767 |   |
| Deferred                  revenue                                                                            |   |                               | 43,869                                           |   |   | 10,836 |   |
| Sales                  tax payable                                                                           |   |                               |          |   |   | (89 | ) |
|                                                                                                         |   |                               |                                             |   |   |   |   |
| Net                  Cash Used in Operating Activities                                                       |   |                               | (942,991                                         | ) |   | (1,192,803 | ) |
|                                                                                                         |   |                               |                                             |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES                                                        |   |                               |                                             |   |   |   |   |
| Acquisition                  of property and equipment                                                       |   |                               | (6,671                                           | ) |   | (10,043 | ) |
|                                                                                                         |   |                               |                                             |   |   |   |   |
| Net                  Cash Used in Investing Activities                                                       |   |                               | (6,671                                           | ) |   | (10,043 | ) |
|                                                                                                         |   |                               |                                             |   |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES                                                        |   |                               |                                             |   |   |   |   |
| Repayments                  of loan payable - bank                                                           |   |                               | -                                                |   |   | (250,000 | ) |
| Proceeds                  from stock subscription                                                            |   |                               | -                                                |   |   | 1,826 |   |
| Proceeds                  from private placement                                                             |   |                               | 428,200                                          |   |   | 833,050 |   |
|                                                                                                         |   |                               |                                             |   |   |   |   |
| Net                  Cash Provided by Financing Activities                                                   |   |                               | 428,200                                          |   |   | 584,876 |   |
|                                                                                                         |   |                               |                                             |   |   |   |   |
| DECREASE                  IN CASH AND CASH EQUIVALENTS                                                       |   |                               | (521,462                                         | ) |   | (617,970 | ) |
|                                                                                                         |   |                               |                                             |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS                                                                   |   |                               |                                             |   |   |   |   |
| Beginning                  of period                                                                         |   |                               | 787,156                                          |   |   | 1,263,370 |   |
|                                                                                                         |   |                               |                                             |   |   |   |   |
| End                  of period                                                                               |   | $                                  | 265,694                                          |   | $ | 645,400 |   |

----

**Notes      to Consolidated Interim Financial Statements**

----

----

| 2008   |   |   | 77,250  |   |
|--------|--------|--------|---------|--------|
| 2009   |   |   | 77,250  |   |
| 2010   |   |   | 6,438   |   |
|   |   | $      | 160,938 |   |

----

**ITEM      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS****.**

**FORWARD-LOOKING      STATEMENTS**

----

**Comparison      of the three and nine months ended September 30, 2008 to the three and nine      Months Ended September 30, 2007 **

**The      following table summarizes certain aspects of the Company’s results of      operations for the three and nine months ended September 30, 2008 to the three      and nine months ended September 30, 2007.**

|                                                       |   | Three                    Months Ended September                    30, |     |   |   |   |     |          |   |   |  Nine                    Months Ended September                    30, |   |   |   |   |   |   |   |
|------------------------------------------------------------|--------|------------------------------------------------------------------------|----------|--------|--------|--------|----------|---------------|--------|--------|-----------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                       |   | 2008                                                                   |     |   | 2007   |   |     | Change $ |   |   | Change %                                                               |   |   | 2008   |   |   | 2007   |   |   | Change $ |   |   | Change % |   |
|                                                       |   |                                                                   |     |   |   |   |     |          |   |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Revenues**                                               |   | $                                                                      | 328,573  |   |   | $      | 410,081  |          |   | $      | (81,508                                                                     | )      |   |   | -20    | %      |   | $      | 959,517 |   |   | $ | 1,164,161 |   |   | $ | (204,644 | ) |   |   | -18 | % |
|                                                       |   |                                                                   |          |   |   |   |          |          |   |   |                                                                             |   |   |   |        |   |   |   |  |   |   |   |  |   |   |   |  |   |   |   |  |   |
| **Direct                    Costs**                        |   |                                                                   |          |   |   |   |          |          |   |   |                                                                             |   |   |   |        |   |   |   |  |   |   |   |  |   |   |   |  |   |   |   |  |   |
| Hardware                    and Supplies                   |   | $                                                                      | 22,693   |   |   | $      | 167,645  |          |   | $      | (144,952                                                                    | )      |   |   | -86    | %      |   | $      | 120,110 |   |   | $ | 383,694 |   |   | $ | (263,584 | ) |   |   | -69 | % |
| Royalties                    & Consulting              |   |                                                                   | 29,049   |   |   |   | 103,338  |          |   |   | (74,289                                                                     | )      |   |   | -72    | %      |   |   | 50,586 |   |   |   | 303,620 |   |   |   | (253,034 | ) |   |   | -83 | % |
|                                                       |   |                                                                   |          |   |   |   |          |          |   |   |                                                                             |   |   |   |        |   |   |   |  |   |   |   |  |   |   |   |  |   |   |   |  |   |
| **Total                    Direct Costs**                  |   | $                                                                      | 51,742   |   |   | $      | 270,983  |          |   | $      | (219,241                                                                    | )      |   |   | -81    | %      |   | $      | 170,696 |   |   | $ | 687,314 |   |   | $ | (516,618 | ) |   |   | -75 | % |
| %                    of total revenues                     |   |                                                                   | 16       | %      |   |   | 66       | %             |   |   |                                                                             |   |   |   |        |   |   |   | 18 | % |   |   | 59 | % |   |   |  |   |   |   |  |   |
|                                                       |   |                                                                   |          |   |   |   |          |          |   |   |                                                                             |   |   |   |        |   |   |   |  |   |   |   |  |   |   |   |  |   |   |   |  |   |
| **Gross                    margin**                        |   | $                                                                      | 276,831  |   |   | $      | 139,098  |          |   | $      | 137,733                                                                     |   |   |   | 99     | %      |   | $      | 788,821 |   |   | $ | 476,847 |   |   | $ | 311,974 |   |   |   | 65 | % |
| %                    of total revenues                     |   |                                                                   | 84       | %      |   |   | 34       | %             |   |   |                                                                             |   |   |   |        |   |   |   | 82 | % |   |   | 41 | % |   |   |  |   |   |   |  |   |
|                                                       |   |                                                                   |          |   |   |   |          |          |   |   |                                                                             |   |   |   |        |   |   |   |  |   |   |   |  |   |   |   |  |   |   |   |  |   |
| **Software                    development costs**          |   | $                                                                      | 123,594  |   |   | $      | 211,455  |          |   | $      | (87,861                                                                     | )      |   |   | -42    | %      |   | $      | 505,513 |   |   | $ | 642,961 |   |   | $ | (137,448 | ) |   |   | -21 | % |
| %                    of total revenues                     |   |                                                                   | 38       | %      |   |   | 52       | %             |   |   |                                                                             |   |   |   |        |   |   |   | 53 | % |   |   | 55 | % |   |   |  |   |   |   |  |   |
|                                                       |   |                                                                   |          |   |   |   |          |          |   |   |                                                                             |   |   |   |        |   |   |   |  |   |   |   |  |   |   |   |  |   |   |   |  |   |
| **Sales                    and marketing expenses**        |   | $                                                                      | 60,123   |   |   | $      | 51,023   |          |   | $      | 9,100                                                                       |   |   |   | 18     | %      |   | $      | 204,399 |   |   | $ | 496,273 |   |   | $ | (291,874 | ) |   |   | -59 | % |
| %                    of total revenues                     |   |                                                                   | 6        | %      |   |   | 4        | %             |   |   |                                                                             |   |   |   |        |   |   |   | 21 | % |   |   | 43 | % |   |   |  |   |   |   |  |   |
|                                                       |   |                                                                   |          |   |   |   |          |          |   |   |                                                                             |   |   |   |        |   |   |   |  |   |   |   |  |   |   |   |  |   |   |   |  |   |
| **General                    and administrative expenses** |   | $                                                                      | 362,530  |   |   | $      | 299,107  |          |   | $      | 63,423                                                                      |   |   |   | 21     | %      |   | $      | 1,111,849 |   |   | $ | 595,357 |   |   | $ | 516,492 |   |   |   | 87 | % |
| %                    of total revenues                     |   |                                                                   | 38       | %      |   |   | 26       | %             |   |   |                                                                             |   |   |   |        |   |   |   | 116 | % |   |   | 51 | % |   |   |  |   |   |   |  |   |
|                                                       |   |                                                                   |          |   |   |   |          |          |   |   |                                                                             |   |   |   |        |   |   |   |  |   |   |   |  |   |   |   |  |   |   |   |  |   |
| **Interest                    expense**                    |   | $                                                                      | 198,112  |   |   | $      | 154,567  |          |   | $      | 43,545                                                                      |   |   |   | 28     | %      |   | $      | 538,485 |   |   | $ | 439,969 |   |   | $ | 98,516 |   |   |   | 22 | % |
| %                    of total revenues                     |   |                                                                   | 60       | %      |   |   | 38       | %             |   |   |                                                                             |   |   |   |        |   |   |   | 56 | % |   |   | 38 | % |   |   |  |   |   |   |  |   |
|                                                       |   |                                                                   |          |   |   |   |          |          |   |   |                                                                             |   |   |   |        |   |   |   |  |   |   |   |  |   |   |   |  |   |   |   |  |   |
| **Other                    Income (Expenses)**             |   | $                                                                      | 224      |   |   | $      | 4,866    |          |   | $      | (4,642                                                                      | )      |   |   | -95    | %      |   | $      | 4,215 |   |   | $ | 18,677 |   |   | $ | (14,462 | ) |   |   | -77 | % |
| %                    of total revenues                     |   |                                                                   | 0        | %      |   |   | 1        | %             |   |   |                                                                             |   |   |   |        |   |   |   | 0 | % |   |   | 2 | % |   |   |  |   |   |   |  |   |
|                                                       |   |                                                                   |          |   |   |   |          |          |   |   |                                                                             |   |   |   |        |   |   |   |  |   |   |   |  |   |   |   |  |   |   |   |  |   |
| Loss                    Before Taxes                       |   | $                                                                      | (467,304 | )      |   | $      | (572,188 | )             |   | $      | 104,884                                                                     |   |   |   | -18    | %      |   | $      | (1,567,210 | ) |   | $ | (1,679,036 | ) |   | $ | 111,826 |   |   |   | -7 | % |
|                                                       |   |                                                                   |          |   |   |   |          |          |   |   |                                                                             |   |   |   |        |   |   |   |  |   |   |   |  |   |   |   |  |   |   |   |  |   |
|                                                       |   |                                                                   |          |   |   |   |          |          |   |   |                                                                             |   |   |   |        |   |   |   |  |   |   |   |  |   |   |   |  |   |   |   |  |   |
| **Benefit                    for income taxes**            |   | $                                                                      | -        |   |   | $      | (221,827 | )             |   | $      | 221,827                                                                     |   |   |   | -100   | %      |   | $      | (356,193 | ) |   | $ | (595,143 | ) |   | $ | 238,950 |   |   |   | -40 | % |
| Effective                    tax rate                      |   |                                                                   | 0        | %      |   |   | 39       | %             |   |   |                                                                             |   |   |   |        |   |   |   | 23 | % |   |   | 35 | % |   |   |  |   |   |   |  |   |
|                                                       |   |                                                                   |          |   |   |   |          |          |   |   |                                                                             |   |   |   |        |   |   |   |  |   |   |   |  |   |   |   |  |   |   |   |  |   |
| **Net                    loss**                            |   | $                                                                      | (467,304 | )      |   | $      | (350,361 | )             |   | $      | (116,943                                                                    | )      |   |   | 33     | %      |   | $      | (1,211,017 | ) |   | $ | (1,083,893 | ) |   | $ | (127,124 | ) |   |   | 12 | % |
| %                    of total revenues                     |   |                                                                   | -142     | %      |   |   | -85      | %             |   |   |                                                                             |   |   |   |        |   |   |   | -126 | % |   |   | -93 | % |   |   |  |   |   |   |  |   |

**Revenues**

**Direct      Costs**

----

**Gross      Margins**

**Software      Development Costs**

**Sales      and Marketing Expenses**

**General      and Administrative Expense**

**Interest      Expense**

 

**Other      Income, Net**

----

**Provision      for Income Taxes**

Although      the Company has presently determined that a valuation allowance is not required      with respect to the U.S. federal deferred tax asset, recovery is dependent      on      achieving our forecast of future operating income over a protracted period      of      time. The Company will review the forecast in relation to actual results and      expected trends on an ongoing basis. Failure to achieve our operating income      targets may change the Company’s assessment regarding the recoverability of its      net deferred tax assets and such change could result in a valuation allowance      being recorded against some or all of the deferred tax assets. Any increase      in a      valuation allowance would result in additional tax expense and could have a      significant impact on the Company’s earnings in future periods. During the three      months ended September 30, 2008 a valuation allowance was provided for the      full      value of the tax benefit which would otherwise have been recorded due to the      net      loss for that period.

**Liquidity      and Capital Resources**

|                                                     |   | 2008   |       | 2007   |   | Change $ |   | Change % |       |
|----------------------------------------------------------|--------|--------|------------|--------|--------|---------------|--------|---------------|------------|
|                                                     |   |   |       |   |   |          |   |          |       |
| Cash                and cash equivalents                 |   | $      | 265,694    |   | $      | 645,400       |   |          | (379,706   | ) |   | -59 | % |
|                                                     |   |   |            |   |   |               |   |          |            |   |   |  |   |
| Working                capital deficit                   |   | $      | (3,129,870 | )      | $      | (31,076       | )      |          | (3,098,794 | ) |   | 9972 | % |
|                                                     |   |   |            |   |   |               |   |          |            |   |   |  |   |
| Net                cash used in operating activities     |   | $      | (942,991   | )      | $      | (1,192,803    | )      |          | 249,812    |   |   | -21 | % |
|                                                     |   |   |            |   |   |               |   |          |            |   |   |  |   |
| Net                cash used in investing activities     |   | $      | (6,671     | )      | $      | (10,043       | )      |          | 3,372      |   |   | -34 | % |
|                                                     |   |   |            |   |   |               |   |          |            |   |   |  |   |
| Net                cash provided by financing activities |   | $      | 428,200    |   | $      | 584,876       |   |          | (156,676   | ) |   | -27 | % |
|                                                     |   |   |            |   |   |               |   |          |            |   |   |  |   |
| Long-term                debt, less current portion      |   | $      | 0          |   | $      | 2,094,237     |   |          | (2,094,237 | ) |   | -100 | % |

** **

----

**We      May Not Be Able To Raise Sufficient Capital To Successfully Operate Or Expand      Our Business.** 

**We      May Not Be Able To Pay, Refinance Or Otherwise Satisfy Our Obligations Under      The      Debentures.**

**ITEM      3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK**

**ITEM      4T. CONTROLS AND PROCEDURES**
* *

***Disclosure      Controls and Procedures***

***Internal      Controls Over Financial Reporting***

***Limitations      on the Effectiveness of Controls.  ***

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**PART      II. OTHER INFORMATION**

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

** **
** **

| Shares                of Stock |   | Class                A Warrants |   | Class                B Warrants |   | Consideration |   | Date                of Purchase |      |
|--------------------------------|--------|---------------------------------|--------|---------------------------------|--------|---------------|--------|---------------------------------|-----------|
| 66,667                         |   |                            | 33,333 |                            |   | 66,667        |   | $                               | 50,000.25 |   |   | 7/8/2008 |   |
| 56,000                         |   |                            | 28,000 |                            |   | 56,000        |   | $                               | 42,000.00 |   |   | 7/25/2008 |   |
| 66,667                         |   |                            | 33,333 |                            |   | 66,667        |   | $                               | 50,000.00 |   |   | 8/18/2008 |   |
| 66,667                         |   |                            | 33,333 |                            |   | 66,667        |   | $                               | 50,000.00 |   |   | 8/18/2008 |   |
| 33,334                         |   |                            | 16,667 |                            |   | 33,334        |   | $                               | 25,000.50 |   |   | 9/2/2008 |   |
| 33,333                         |   |                            | 16,667 |                            |   | 33,333        |   | $                               | 25,000.00 |   |   | 9/5/2008 |   |
| 66,667                         |   |                            | 33,333 |                            |   | 66,667        |   | $                               | 50,000.25 |   |   | 9/11/2008 |   |
| 34,667                         |   |                            | 17,333 |                            |   | 34,667        |   | $                               | 26,000.00 |   |   | 9/25/2008 |   |

**ITEM      6.**
**EXHIBITS.**

| 31.1   | Certification                of the Chief Executive Officer required by Rule 13a-14(a) or Rule                15d-14(a).                    |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                        |
| 31.2   | Certification                of the Chief Financial Officer required by Rule 13a-14(a) or Rule                15d-14(a).                    |
|   |                                                                                                                                        |
| 32.1   | Certification                of the Chief Executive Officer required by Rule 13a-14(b) or Rule                15d-14(b) and 18 U.S.C. 1350. |
|   |                                                                                                                                        |
| 32.2   | Certification                of the Chief Financial Officer required by Rule 13a-14(b) or Rule                15d-14(b) and 18 U.S.C. 1350. |

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**SIGNATURES**

|                                 |                                                                                                                                       |                               |
|--------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|
| Date:              November 10, 2008 | **CYBRA                Corporation**                                                                                                       |
|                            |                                                                                                                                  |                          |
|                                 | By:                                                                                                                              | /s/ Harold              Brand |
|                                 | Harold                Brand Chief                  Executive Officer and Interim                  Chief Financial                  Officer |

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