**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 | (I.R.S.                Employer Identification No.) |
| Organization)                                                   |                                                |

| One                Executive Blvd. Yonkers, New York    | 10701                     |
|---------------------------------------------------------|---------------------------|
| (Address                of Principal Executive Offices) | (Zip                Code) |

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

----

**CYBRA      Corporation**

|                    |                                                                                                                            |   | Page   |
|-------------------------|---------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                    |                                                                                                                            |   |   |
| Part                I.  | Financial                Information                                                                                            |   | 1      |
|                    |                                                                                                                            |   |   |
| Item                1.  | Financial                Statements                                                                                             |   | 1      |
|                    |                                                                                                                            |   |   |
|                    | Balance                Sheets as of June 30,                2008 and December 31,                2007                 |   | 1      |
|                    |                                                                                                                            |   |   |
|                    | Statements                of Operations for the three and six months ended June 30, 2008 and                2007           |   | 2      |
|                    |                                                                                                                            |   |   |
|                    | Statements                of Cash Flows for the six months ended June 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                                                 |   | 10     |
|                    |                                                                                                                            |   |   |
| Item                4T. |  Controls                and Procedures                                                                                    |   | 10     |
|                    |                                                                                                                            |   |   |
| Part                II. | Other                Information                                                                                                |   | 12     |
|                    |                                                                                                                            |   |   |
| Item                2.  | Unregistered                Sales of Equity Securities and Use of Proceeds                                                      |   |   |
|                    |                                                                                                                            |   |   |
| Item                6.  |  Exhibits                                                                                                                  |   | 12     |
|                    |                                                                                                                            |   |   |
| Signatures              |                                                                                                                            | 13     |

----

**PART      I. FINANCIAL INFORMATION**

**ITEM      1. FINANCIAL STATEMENTS.**

CYBRA      CORPORATION

|                                                                                                                                                                                                                                                         |   | June 30, |       | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|-------------------|--------|
|                                                                                                                                                                                                                                                         |   | 2008          |       | 2007              |   |
|                                                                                                                                                                                                                                                         |   | (Unaudited)   |       | (Audited)         |   |
| ASSETS                                                                                                                                                                                                                                                       |   |          |       |              |   |   |   |
| CURRENT                ASSETS                                                                                                                                                                                                                                |   |          |       |              |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                                                                     |   | $             | 119,697    |              | $      | 787,156 |   |
| Accounts                  receivable, less allowance for doubtful accounts                  of $5,000                                                                                                                                                        |   |          | 230,209    |              |   | 352,647 |   |
| Loan                receivable                                                                                                                                                                                                                               |   |          | -          |              |   | 6,000 |   |
| Deferred                income taxes                                                                                                                                                                                                                         |   |          | 62,427     |              |   | 104,093 |   |
|                                                                                                                                                                                                                                                         |   |          |       |              |   |   |   |
| Total                Current Assets                                                                                                                                                                                                                          |   |          | 412,333    |              |   | 1,249,896 |   |
|                                                                                                                                                                                                                                                         |   |          |       |              |   |   |   |
| PROPERTY                  AND EQUIPMENT, at cost, less accumulated depreciation                  and amortization                                                                                                                                            |   |          | 90,132     |              |   | 98,495 |   |
|                                                                                                                                                                                                                                                         |   |          |       |              |   |   |   |
| OTHER                ASSETS                                                                                                                                                                                                                                  |   |          | 318,333    |              |   | 318,333 |   |
|                                                                                                                                                                                                                                                         |   |          |       |              |   |   |   |
| DEFERRED                INCOME TAXES                                                                                                                                                                                                                         |   |          | 1,554,163  |              |   | 1,156,304 |   |
|                                                                                                                                                                                                                                                         |   |          |       |              |   |   |   |
| DEFERRED                FINANCE COSTS                                                                                                                                                                                                                        |   |          | 281,812    |              |   | 414,857 |   |
|                                                                                                                                                                                                                                                         |   |          |       |              |   |   |   |
| SECURITY                DEPOSITS AND OTHER ASSETS                                                                                                                                                                                                            |   |          | 18,632     |              |   | 11,685 |   |
|                                                                                                                                                                                                                                                         |   |          |       |              |   |   |   |
|                                                                                                                                                                                                                                                         |   | $             | 2,675,405  |              | $      | 3,249,570 |   |
|                                                                                                                                                                                                                                                         |   |          |       |              |   |   |   |
| LIABILITIES                AND STOCKHOLDERS' DEFICIENCY                                                                                                                                                                                                      |   |          |       |              |   |   |   |
|                                                                                                                                                                                                                                                         |   |          |       |              |   |   |   |
| CURRENT                LIABILITIES                                                                                                                                                                                                                           |   |          |       |              |   |   |   |
| Accounts                payable and accrued expenses                                                                                                                                                                                                         |   | $             | 382,689    |              | $      | 550,397 |   |
| Accrued                interest                                                                                                                                                                                                                              |   |          | 437,281    |              |   | 336,169 |   |
| Deferred                revenue                                                                                                                                                                                                                              |   |          | 304,918    |              |   | 284,990 |   |
| Accrued                liquidated damages - registration rights agreement                                                                                                                                                                                    |   |          | 110,000    |              |   | 110,000 |   |
| Total                Current Liabilities                                                                                                                                                                                                                     |   |          | 1,234,888  |              |   | 1,281,556 |   |
|                                                                                                                                                                                                                                                         |   |          |       |              |   |   |   |
| 8%                CONVERTIBLE DEBENTURES                                                                                                                                                                                                                     |   |          | 2,267,016  |              |   | 2,160,800 |   |
|                                                                                                                                                                                                                                                         |   |          |       |              |   |   |   |
| COMMITMENT                AND LITIGATION                                                                                                                                                                                                                     |   |          |       |              |   |   |   |
|                                                                                                                                                                                                                                                         |   |          |       |              |   |   |   |
| STOCKHOLDERS'                DEFICIENCY                                                                                                                                                                                                                      |   |          |       |              |   |   |   |
| Common                  stock, no par value, 100,000,000 shares authorized; 12,757,621                  and                  12,610,954 shares                  issued and outstanding at June 30, 2008 and December 31, 2007,                  respectively |   |          | 1,439,545  |              |   | 1,329,545 |   |
| Additional                paid - in capital                                                                                                                                                                                                                  |   |          | 727,603    |              |   | 727,603 |   |
| Accumulated                deficit                                                                                                                                                                                                                           |   |          | (2,993,647 | )                 |   | (2,249,934 | ) |
|                                                                                                                                                                                                                                                         |   |          |       |              |   |   |   |
| Total                Stockholders' Deficiency                                                                                                                                                                                                                |   |          | (826,499   | )                 |   | (192,786 | ) |
|                                                                                                                                                                                                                                                         |   |          |       |              |   |   |   |
|                                                                                                                                                                                                                                                         |   | $             | 2,675,405  |              | $      | 3,249,570 |   |

----

|                                                                                                                                                                                    |   | Three Months Ended |       | Six Months Ended |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|------------|----------------------------|--------|
|                                                                                                                                                                                    |   | June 30,                |       | June 30,              |   |
|                                                                                                                                                                                    |   | 2008                         |       | 2007                       |   | 2008 |   | 2007 |   |
|                                                                                                                                                                                    |   | (Unaudited)                  |       | (Unaudited)                |   | (Unaudited) |   | (Unaudited) |   |
|                                                                                                                                                                                    |   |                         |       |                       |   |   |   |   |   |
| REVENUES                                                                                                                                                                                |   | $                            | 354,487    |                       | $      | 385,833 |   | $ | 630,944 |   | $ | 754,080 |   |
|                                                                                                                                                                                    |   |                         |       |                       |   |   |   |   |   |   |   |   |   |
| DIRECT                COSTS                                                                                                                                                             |   |                         |       |                       |   |   |   |   |   |   |   |   |   |
| Costs                of goods sold                                                                                                                                                      |   |                         | 63,925     |                       |   | 106,893 |   |   | 97,417 |   |   | 216,049 |   |
| Royalties                and consulting                                                                                                                                                 |   |                         | 10,000     |                       |   | 112,782 |   |   | 21,537 |   |   | 19,531 |   |
|                                                                                                                                                                                    |   |                         |       |                       |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                    |   |                         | 73,925     |                       |   | 219,675 |   |   | 118,954 |   |   | 235,580 |   |
|                                                                                                                                                                                    |   |                         |       |                       |   |   |   |   |   |   |   |   |   |
| GROSS                MARGIN                                                                                                                                                             |   |                         | 280,562    |                       |   | 166,158 |   |   | 511,990 |   |   | 518,500 |   |
|                                                                                                                                                                                    |   |                         |       |                       |   |   |   |   |   |   |   |   |   |
| GENERAL                AND ADMINISTRATIVE EXPENSES                                                                                                                                      |   |                         | 610,692    |                       |   | 571,028 |   |   | 1,275,514 |   |   | 1,353,758 |   |
|                                                                                                                                                                                    |   |                         |       |                       |   |   |   |   |   |   |   |   |   |
| LOSS                FROM OPERATIONS                                                                                                                                                     |   |                         | (330,130   | )                          |   | (404,870 | ) |   | (763,524 | ) |   | (835,258 | ) |
|                                                                                                                                                                                    |   |                         |       |                       |   |   |   |   |   |   |   |   |   |
| OTHER                INCOME (EXPENSE)                                                                                                                                                   |   |                         |       |                       |   |   |   |   |   |   |   |   |   |
| Interest                  expense, 2008 includes $128,227of amortization of                  deferred finance costs for the six months and $69,681for the three                  months |   |                         | (189,311   | )                          |   | (149,591 | ) |   | (340,373 | ) |   | (285,402 | ) |
| Interest                income                                                                                                                                                          |   |                         | 280        |                       |   | 5,046 |   |   | 3,656 |   |   | 13,811 |   |
| Miscellaneous                income                                                                                                                                                     |   |                         | 135        |                       |   | - |   |   | 335 |   |   | - |   |
|                                                                                                                                                                                    |   |                         |            |                       |   |  |   |   |  |   |   |  |   |
|                                                                                                                                                                                    |   |                         | (188,896   | )                          |   | (144,545 | ) |   | (336,382 | ) |   | (271,591 | ) |
|                                                                                                                                                                                    |   |                         |       |                       |   |   |   |   |   |   |   |   |   |
| LOSS                BEFORE INCOME TAXES                                                                                                                                                 |   |                         | (519,026   | )                          |   | (549,415 | ) |   | (1,099,906 | ) |   | (1,106,849 | ) |
|                                                                                                                                                                                    |   |                         |       |                       |   |   |   |   |   |   |   |   |   |
| INCOME                TAXES (RECOVERY)                                                                                                                                                  |   |                         | (262,943   | )                          |   | (164,522 | ) |   | (356,193 | ) |   | (373,316 | ) |
|                                                                                                                                                                                    |   |                         |       |                       |   |   |   |   |   |   |   |   |   |
| NET                LOSS                                                                                                                                                                 |   | $                            | (256,083   | )                          | $      | (384,893 | ) | $ | (743,713 | ) | $ | (733,533 | ) |
|                                                                                                                                                                                    |   |                         |       |                       |   |   |   |   |   |   |   |   |   |
| LOSS                PER SHARE                                                                                                                                                           |   |                         |       |                       |   |   |   |   |   |   |   |   |   |
| Basic                and diluted net loss per share                                                                                                                                     |   | $                            | (0.02      | )                          | $      | (0.03 | ) | $ | (0.06 | ) | $ | (0.07 | ) |
|                                                                                                                                                                                    |   |                         |       |                       |   |   |   |   |   |   |   |   |   |
| Basic                and diluted weighted-average shares outstanding                                                                                                                    |   |                         | 12,655,789 |                       |   | 11,079,426 |   |   | 12,633,495 |   |   | 11,046,779 |   |

----

|                                                                                                     |   | Six Months Ended |     |
|----------------------------------------------------------------------------------------------------------|--------|----------------------------|----------|
|                                                                                                     |   | June 30,              |     |
|                                                                                                     |   | 2008                       |     | 2007 |   |
|                                                                                                     |   |                       |     |   |   |
|                                                                                                     |   | (Unaudited)                |     | (Unaudited) |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES                                                      |   |                       |     |   |   |   |   |
| Net                loss                                                                                  |   | $                          | (743,713 | ) | $ | (733,533 | ) |
| Adjustments                to reconcile net loss to net cash used in operating                activities |   |                       |     |   |   |   |   |
| Depreciation                                                                                             |   |                       | 13,349   |   |   | 10,512 |   |
| Deferred                income tax recovery                                                              |   |                       | (356,192 | ) |   | (373,316 | ) |
| Interest                expense - amortization of debt discount                                          |   |                       | 106,216  |   |   | 115,639 |   |
| Amortization                of deferred finance cost                                                     |   |                       | 133,045  |   |   | 69,207 |   |
| Change                in operating assets and liabilities                                                |   |                       |     |   |   |   |   |
| Accounts                receivable                                                                       |   |                       | 122,437  |   |   | 38,247 |   |
| Loan                Receivable                                                                           |   |                       | 6,000    |   |   | - |   |
| Prepaid                income taxes/income taxes payable                                                 |   |                       | -        |   |   | 105 |   |
| Security                deposits and other assets                                                        |   |                       | (6,947   | ) |   | (76 | ) |
| Accounts                payable and accrued expenses                                                     |   |                       | (167,708 | ) |   | 64,906 |   |
| Accrued                interest                                                                          |   |                       | 101,112  |   |   | 88,774 |   |
| Deferred                revenue                                                                          |   |                       | 19,928   |   |   | 4,833 |   |
| Sales                tax payable                                                                         |   |                       |     |   |   | (326 | ) |
|                                                                                                     |   |                       |     |   |   |   |   |
| Net                Cash Used in Operating Activities                                                     |   |                       | (772,473 | ) |   | (715,028 | ) |
|                                                                                                     |   |                       |     |   |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES                                                      |   |                       |     |   |   |   |   |
| Acquisition                of property and equipment                                                     |   |                       | (4,986   | ) |   | (31,483 | ) |
|                                                                                                     |   |                       |     |   |   |   |   |
| Net                Cash Used in Investing Activities                                                     |   |                       | (4,986   | ) |   | (31,483 | ) |
|                                                                                                     |   |                       |     |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES                                                      |   |                       |     |   |   |   |   |
| Repayments                of loan payable - bank                                                         |   |                       | -        |   |   | (250,000 | ) |
| Proceeds                from private placement                                                           |   |                       | 110,000  |   |   | 158,050 |   |
|                                                                                                     |   |                       |     |   |   |   |   |
| Net                Cash Provided by (Used in) Financing Activities                                       |   |                       | 110,000  |   |   | (91,950 | ) |
|                                                                                                     |   |                       |     |   |   |   |   |
| DECREASE                IN CASH AND CASH EQUIVALENTS                                                     |   |                       | (667,459 | ) |   | (838,461 | ) |
|                                                                                                     |   |                       |     |   |   |   |   |
| CASH                AND CASH EQUIVALENTS                                                                 |   |                       |     |   |   |   |   |
| Beginning                of period                                                                       |   |                       | 787,156  |   |   | 1,263,370 |   |
|                                                                                                     |   |                       |     |   |   |   |   |
| End                of period                                                                             |   | $                          | 119,697  |   | $ | 424,909 |   |
|                                                                                                     |   |                       |     |   |   |   |   |
| Supplemental                disclosures of cash flow information:                                        |   |                       |     |   |   |   |   |
| Cash                paid during the quarter for:                                                         |   |                       |     |   |   |   |   |
| Interest                                                                                                 |   | $                          | -        |   | $ | - |   |
| Income                Taxes                                                                              |   | $                          | 490      |   | $ | - |   |

----

**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 six months ended June 30, 2008 to the three and six months      ended June 30, 2007.**

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

|                                                      |   | Three Months Ended June 30, |     | Six Months Ended June 30, |   |
|-----------------------------------------------------------|--------|-------------------------------------------------|----------|-----------------------------------------------|--------|
|                                                      |   |  2008                                      |     |  2007                                    |   |  Change $ |   | Change % |   |  2008 |   |  2007 |   |  Change $ |   | Change % |   |
|                                                      |   |                                            |     |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Revenues**                                              |   | $                                               | 354,488  |                                          | $      | 385,833 |   | $ | (31,345 | ) |  (8.0%) |   | $ | 630,944 |   | $ | 754,080 |   | $ | (123,136 | ) |   | (16.0%) |   |
|                                                      |   |                                            |     |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Direct                  Costs**                         |   |                                            |     |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Hardware                  and Supplies                    |   | $                                               | 63,925   |                                          | $      | 106,893 |   | $ | (42,968 | ) |  (40.0%) |   | $ | 97,417 |   | $ | 216,049 |   | $ | (118,632 | ) |   | (55.0%) |   |
| Royalties                  & Consulting               |   |                                            | 10,000   |                                          |   | 112,782 |   |   | (102,782 | ) |  (91.0%) |   |   | 21,537 |   |   | 19,531 |   |   | 2,006 |   |   | 10.0% |   |
|                                                      |   |                                            |     |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Total                  Direct Costs**                   |   | $                                               | 73,925   |                                          | $      | 219,675 |   | $ | (145,750 | ) |  (66.0%) |   | $ | 118,954 |   | $ | 235,580 |   | $ | (116,626 | ) |   | (50.0%) |   |
| %                  of total revenues                      |   |                                            | 21.0     | %                                             |   | 57.0 | % |   |   |   |   |   |   | 19.0 | % |   | 31.0 | % |   |   |   |   |   |   |
|                                                      |   |                                            |     |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Gross                  margin**                         |   | $                                               | 280,563  |                                          | $      | 166,158 |   | $ | 114,405 |   |  69.0% |   | $ | 511,990 |   | $ | 518,500 |   | $ | (6,510 | ) |   | (1.0%) |   |
| %                  of total revenues                      |   |                                            | 79.0     | %                                             |   | 43.0 | % |   |   |   |   |   |   | 81.0 | % |   | 69.0 | % |   |   |   |   |   |   |
|                                                      |   |                                            |     |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Software                  development costs**           |   | $                                               | 72,230   |                                          | $      | 100,751 |   | $ | (28,521 | ) |  (28.0%) |   | $ | 381,918 |   | $ | 433,256 |   | $ | (51,338 | ) |   | (12.0%) |   |
| %                  of total revenues                      |   |                                            | 20.0     | %                                             |   | 26.0 | % |   |   |   |   |  |   | 61.0 | % |   | 57.0 | % |   |   |   |   |   |   |
|                                                      |   |                                            |     |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Sales                  and marketing expenses**         |   | $                                               | 72,937   |                                          | $      | 168,217 |   | $ | (95,280 | ) |  (57.0%) |   | $ | 144,277 |   | $ | 282,406 |   | $ | (138,129 | ) |   | (49.0%) |   |
| %                  of total revenues                      |   |                                            | 12.0     | %                                             |   | 22.0 | % |   |   |   |   |   |   | 23.0 | % |   | 37.0 | % |   |   |   |   |   |   |
|                                                      |   |                                            |     |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **General                  and administrative expenses**  |   | $                                               | 465,525  |                                          | $      | 302,060 |   | $ | 163,465 |   |  54.0% |   | $ | 749,319 |   | $ | 638,096 |   | $ | 111,223 |   |   | 17.0% |   |
| %                  of total revenues                      |   |                                            | 74.0     | %                                             |   | 40.0 | % |   |   |   |   |   |   | 119.0 | % |   | 85.0 | % |   |   |   |   |   |   |
|                                                      |   |                                            |     |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Interest                  expense**                     |   | $                                               | 189,311  |                                          | $      | 149,591 |   | $ | 39,720 |   |  27.0% |   | $ | 340,373 |   | $ | 285,402 |   | $ | 54,971 |   |   | 19.0% |   |
| %                  of total revenues                      |   |                                            | 53.0     | %                                             |   | 39.0 | % |   |   |   |   |   |   | 54.0 | % |   | 38.0 | % |   |   |   |   |   |   |
|                                                      |   |                                            |     |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Other                  Income -Expenses)**              |   | $                                               | 415      |                                          | $      | 5,046 |   | $ | (4,631 | ) |  (92.0%) |   | $ | 3,991 |   | $ | 13,811 |   | $ | (9,820 | ) |   | (71.0%) |   |
| %                  of total revenues                      |   |                                            | 0.0      | %                                             |   | 1.0 | % |   |   |   |   |   |   | 1.0 | % |   | 2.0 | % |   |   |   |   |   |   |
|                                                      |   |                                            |     |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)                  Income Before Taxes               |   | $                                               | (519,025 | )                                             | $      | (549,415 | ) | $ | 30,390 |   |  (6.0%) |   | $ | (1,099,906 | ) | $ | (1,106,849 | ) | $ | 6,943 |   |   | (1.0%) |   |
|                                                      |   |                                            |     |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  |
| **Provision                  (benefit) for income taxes** |   | $                                               | (262,943 | )                                             | $      | (164,522 | ) | $ | (98,421 | ) |  60.0% |   | $ | (356,193 | ) | $ | (373,316 | ) | $ | 17,123 |   |   | (5.0%) |   |
| Effective                  tax rate                       |   |                                            | 51.0     | %                                             |   | 30.0 | % |   |   |   |   |   |   | 32.0 | % |   | 34.0 | % |   |   |   |   |   |   |
|                                                      |   |                                            |     |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                  loss**                             |   | $                                               | (256,082 | )                                             | $      | (384,893 | ) | $ | 128,811 |   |  (33.0%) |   | $ | (743,713 | ) | $ | (733,533 | ) | $ | (10,180 | ) |   | 1.0% |   |
| %                  of total revenues                      |   |                                            | (72.0    | %)                                            |   | (100.0 | %) |   |   |   |   |   |   | (118.0 | %) |   | (97.0 | %) |   |   |   |   |   |   |

**Revenues**

**Direct      Costs**

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**Gross      Margins**

**Software      Development Costs**

**Sales      and Marketing Expenses**

**General      and Administrative Expense**

**Interest      Expense**

 

**Other      Income, Net**

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**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.

**Liquidity      and Capital Resources**

|                                                               |   | 2008   |         | 2007          |   | Change $ |          | Change % |         |
|--------------------------------------------------------------------|--------|--------|--------------|---------------|--------|---------------|---------------|---------------|--------------|
|                                                               |   |   |         |          |   |          |          |          |         |
| Cash                and cash equivalents                           |   | $      | 119,697      |          | $      | 424,909       |          |          | (305,212     | ) |   | -72 | % |
|                                                               |   |   |              |          |   |          |          |          |         |   |   |   |   |
| Working                capital (deficit) surplus                   |   | $      | (822,555     | )   | $      | (201,629      | )   |          | (620,926     | ) |   | 308 | % |
|                                                                    |   |   |    |          |   |     |          |          |    |   |   |    |   |
| Net                cash used in operating activities               |   | $      | (772,473     | )             | $      | (715,028      | )             |          | (57,445      | )   |   | 8 | % |
|                                                               |   |   |         |          |   |          |          |          |         |   |   |   |   |
| Net                cash used in investing activities               |   | $      | (4,986       | )             | $      | (31,483       | )             |          | 26,497       |   |   | -84 | % |
|                                                               |   |   |         |          |   |          |          |          |         |   |   |   |   |
| Net                cash provided by (used in) financing activities |   | $      | 110,000      |          | $      | (91,950       | )             |          | 201,950      |   |   | -220 | % |
|                                                               |   |   |         |          |   |          |          |          |         |   |   |   |   |
| Long-term                debt, less current portion                |   | $      | 2,267,016    |          | $      | 2,033,793     |          |          | 233,223      |   |   | 11 | % |

** **

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

**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 |   |
|----------------------------------|--------|-----------------------------------|--------|-----------------------------------|--------|---------------|--------|-----------------------------------|--------|
| 80,000                           |   |                              | 40,000 |                              |   | 80,000        |   | $                                 | 60,000 |   |   | 5/20/2008 |   |
| 66,667                           |   |                              | 33,333 |                              |   | 66,667        |   | $                                 | 50,000 |   |   | 6/18/2008 |   |

**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:                August 15, 2008 |   | **CYBRA                Corporation**           |   |
|--------------------------------------|--------|------------------------------------------------|--------|
|                                 |   |                                           |   |
|                                 | By:    | /s/                Harold Brand                |   |
|                                 |   | Harold                Brand                    |   |
|                                 |   | Chief                Executive Officer and     |   |
|                                 |   | Interim                Chief Financial Officer |   |

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