| Nevada                                                                   |   | 74-2849995          |
|--------------------------------------------------------------------------|--------|---------------------|
| (State or Other Jurisdiction of                                          |   | (I.R.S. Employer    |
| Incorporation or Organization)                                           |   | Identification No.) |
|                                                                     |   |                |
| 3201 Cherry Ridge                                                        |   |                |
| Building C, Suite 300                                                    |   |                |
| San Antonio, Texas                                                       |   | 78230               |
|  (Address of Principal Executive Offices)                           |   | (Zip Code)          |
|                                                                     |
| (210) 614-7240(Registrant’s Telephone Number, Including Area Code) |

| Large accelerated filer     |  ̈ | Accelerated filer  ̈    |
|-----------------------------|--------|-----------------------------|
| Non-accelerated filer  |  ̈ | Smaller reporting Company x |

| Number of Shares | Class Common Stock | As of         |
|------------------|--------------------|---------------|
| 65,882,410       | $.001 par value    | June 13, 2011 |

----

|                          |                                                                                     | Page                      |
|-------------------------------|------------------------------------------------------------------------------------------|---------------------------|
| PART I. FINANCIAL INFORMATION |                                                                                     |                      |
|                          |                                                                                     |                      |   |   |
| Item 1.                       | Financial Statements                                                                     |                      |   |
|                          |                                                                                     |                      |   |   |
|                          | Consolidated Balance Sheets as of April 30, 2011 and July 31, 2010 (unaudited)           |                      |   3 |
|                          | Consolidated Statements of Operations for the Three and Nine Months Ended April 30, 2011 |                      |   |
|                          | and 2010 (unaudited)                                                                     |                      |   4 |
|                          | Consolidated Statement of Changes in Stockholders’ Deficit for the Nine Months     |                      |   |
|                          | Ended April 30, 2011 (unaudited)                                                         |                      |   5 |
|                          | Consolidated Statements of Cash Flows for the Nine Months                                |                      |   |
|                          | Ended April 30, 2011 and 2010 (unaudited)                                                |                      |   6 |
|                          | Notes to Consolidated Financial Statements (unaudited)                                   |                      |   7 |
|                          |                                                                                     |                      |   |   |
| Item 2.                       | Management’s Discussions and Analysis of Financial Condition                       |                      |   |
|                          |                                                                                     | and Results of Operations |   | 10 |
|                          |                                                                                     |                      |   |   |
| Item 3.             | Quantitative and Qualitative Disclosures about Market Risk                               |                      | 14 |
|                          |                                                                                     |                      |   |   |
| Item 4.             | Controls and Procedures                                                                  |                      | 14 |
|                          |                                                                                     |                      |   |   |
| PART II. OTHER INFORMATION    |                                                                                     |                      |
|                          |                                                                                     |                      |   |   |
| Item 6.                       | Exhibits                                                                                 |                      | 15 |

----

| PART 1. FINANCIAL INFORMATION                                                                                                        |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                 |   |   |   |   |   |   |
| ITEM 1. FINANCIAL STATEMENTS                                                                                                         |   |   |   |   |   |   |
| DIGERATI TECHNOLOGIES, INC. AND SUBSIDIARIES                                                                                         |
| CONSOLIDATED BALANCE SHEETS                                                                                                          |
| (Unaudited; In thousands, except per share amounts)                                                                                  |
|                                                                                                                                 |   | April 30, |   |   | July 31, |   |
|                                                                                                                                 |   | 2011 |   |   | 2010 |   |
|                                                                                                                                 |   |   |   |   |   |   |
| ASSETS                                                                                                                               |   |   |   |   |   |   |
| CURRENT ASSETS:                                                                                                                      |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                            |   | $ | 18 |   |   | $ | 73 |   |
| Accounts receivable, net of allowance for bad debt of $0 and $10, respectively                                                       |   |   | 802 |   |   |   | 526 |   |
| Prepaid and other current assets                                                                                                     |   |   | 34 |   |   |   | 48 |   |
|      Total current assets                                                                                   |   |   | 854 |   |   |   | 647 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| LONG-TERM ASSETS:                                                                                                                    |   |   |   |   |   |   |   |   |
| Deferred financing fees                                                                                                              |   |   | 46 |   |   |   | - |   |
| Intangible assets, net of accumulated amortization of $43 and $31, respectively                                                      |   |   | 107 |   |   |   | 119 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| Property and equipment                                                                                                               |   |   | 875 |   |   |   | 856 |   |
| Less - accumulated depreciation                                                                                                      |   |   | (792 | ) |   |   | (727 | ) |
|      Net property and equipment                                                                             |   |   | 83 |   |   |   | 129 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
|      Total assets                                                                                           |   | $ | 1,090 |   |   | $ | 895 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                                                                 |   |   |   |   |   |   |   |   |
| Accounts payable                                                                                                                     |   | $ | 760 |   |   | $ | 637 |   |
| Accrued liabilities                                                                                                                  |   |   | 148 |   |   |   | 106 |   |
| Current portion of long term debt, net of unamortized discount of $0                                                                 |   |   | 390 |   |   |   | 409 |   |
| Derivative liability                                                                                                                 |   |   | 10 |   |   |   | 85 |   |
|      Total current liabilities                                                                              |   |   | 1,308 |   |   |   | 1,237 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| LONG-TERM LIABILITIES:                                                                                                               |   |   |   |   |   |   |   |   |
| Long term debt, net of current portion                                                                                               |   |   | 977 |   |   |   | 639 |   |
| Customer deposits                                                                                                                    |   |   | 120 |   |   |   | 16 |   |
|      Total long-term liabilities                                                                            |   |   | 1,097 |   |   |   | 655 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| Total liabilities                                                                                                                    |   |   | 2,405 |   |   |   | 1,892 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| STOCKHOLDERS' DEFICIT:                                                                                                               |   |   |   |   |   |   |   |   |
| Preferred stock, 16,063,000 shares authorized, none issued and  outstanding                                                |   |   | - |   |   |   | - |   |
| Common stock, $0.001 par value, 150,000,000 shares authorized, 65,882,410 and 45,504,120 shares issued and outstanding, respectively |   |   | 66 |   |   |   | 46 |   |
| Additional paid in capital                                                                                                           |   |   | 74,211 |   |   |   | 73,276 |   |
| Accumulated deficit                                                                                                                  |   |   | (75,455 | ) |   |   | (74,182 | ) |
| Other comprehensive income                                                                                                           |   |   | 1 |   |   |   | 1 |   |
|      Total Digerati Technologies, Inc. stockholders' deficit                                                |   |   | (1,177 | ) |   |   | (859 | ) |
| Noncontrolling interest                                                                                                              |   |   | (138 | ) |   |   | (138 | ) |
|      Total stockholders' deficit                                                                            |   |   | (1,315 | ) |   |   | (997 | ) |
|      Total liabilities and stockholders' deficit                                                            |   | $ | 1,090 |   |   | $ | 895 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| See accompanying notes to the unaudited financial statements                                                                         |

----

| DIGERATI TECHNOLOGIES, INC. AND SUBSIDIARIES                                           |   |
|----------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS                                                  |   |
| (Unaudited; In thousands, except per share amounts)                                    |   |
|                                                                                   |   | Three months ended April 30, |   |   | Nine months ended April 30, |   |
|                                                                                   |   | 2011 |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |
| OPERATING REVENUES:                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| VoIP services                                                                          |   | $ | 3,423 |   |   | $ | 6,550 |   |   | $ | 11,470 |   |   | $ | 16,413 |   |
| Hosted services                                                                        |   |   | 74 |   |   |   | 24 |   |   |   | 192 |   |   |   | 43 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating revenues                                                               |   |   | 3,497 |   |   |   | 6,574 |   |   |   | 11,662 |   |   |   | 16,456 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES:                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of services (exclusive of depreciation and amortization)                          |   |   | 3,208 |   |   |   | 6,089 |   |   |   | 10,660 |   |   |   | 15,309 |   |
| Selling, general and administrative expense (exclusive of legal and professional fees) |   |   | 762 |   |   |   | 368 |   |   |   | 1,763 |   |   |   | 1,094 |   |
| Legal and professional fees                                                            |   |   | 106 |   |   |   | 52 |   |   |   | 240 |   |   |   | 191 |   |
| Bad debt                                                                               |   |   | - |   |   |   | - |   |   |   | 40 |   |   |   | - |   |
| Depreciation and amortization expense                                                  |   |   | 26 |   |   |   | 44 |   |   |   | 77 |   |   |   | 131 |   |
| Total operating expenses                                                               |   |   | 4,102 |   |   |   | 6,553 |   |   |   | 12,780 |   |   |   | 16,725 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING INCOME (LOSS)                                                                |   |   | (605 | ) |   |   | 21 |   |   |   | (1,118 | ) |   |   | (269 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE):                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss on debt extinguishment                                                            |   |   | - |   |   |   | - |   |   |   | (100 | ) |   |   | - |   |
| Gain on forgiveness of accrued interest                                                |   |   | - |   |   |   | - |   |   |   | 92 |   |   |   | - |   |
| Interest expense                                                                       |   |   | (49 | ) |   |   | (34 | ) |   |   | (147 | ) |   |   | (116 | ) |
| Total other expense                                                                    |   |   | (49 | ) |   |   | (34 | ) |   |   | (155 | ) |   |   | (116 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS                                                                               |   |   | (654 | ) |   |   | (13 | ) |   |   | (1,273 | ) |   |   | (385 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST                                       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 24 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS ATTRIBUTABLE TO DIGERATI TECHNOLOGIES, INC.                                   |   | $ | (654 | ) |   | $ | (13 | ) |   | $ | (1,273 | ) |   | $ | (361 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS PER SHARE - BASIC AND DILUTED                                                     |   | $ | (0.01 | ) |   | $ | (0.00 | ) |   | $ | (0.02 | ) |   | $ | (0.01 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED                         |   |   | 65,463,240 |   |   |   | 45,504,120 |   |   |   | 58,745,655 |   |   |   | 45,504,120 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to unaudited financial statements                               |

----

| DIGERATI TECHNOLOGIES, INC. AND SUBSIDIARIES               |
|------------------------------------------------------------|
| CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT |
| FOR THE NINE MONTHS ENDED APRIL 30, 2011                   |
| (Unaudited; In thousands, except share amounts)            |
|                                                       |   |   |   |   |   |   |   | Additional |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   | Common |   |   | Paid-in |   |   | Noncontrolling |   |   | Accumulated |   |   | Other Comp. |   |   |   |   |
|                                                       |   | Shares |   |   | Par |   |   | Capital |   |   | interest |   |   | Deficit |   |   | Income/Loss |   |   | Totals |   |
| BALANCE, July 31, 2010                                     |   |   | 45,504,120 |   |   | $ | 46 |   |   | $ | 73,276 |   |   | $ | (138 | ) |   | $ | (74,182 | ) |   | $ | 1 |   |   | $ | (997 | ) |
| Stock option expense                                       |   |   | - |   |   |   | - |   |   |   | 186 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 186 |   |
| Stock issued for settlement of debt                        |   |   | 5,000,000 |   |   |   | 5 |   |   |   | 195 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 200 |   |
| Stock issued for services                                  |   |   | 15,378,290 |   |   |   | 15 |   |   |   | 554 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 569 |   |
| Net loss                                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,273 | ) |   |   | - |   |   |   | (1,273 | ) |
| BALANCE, April 30, 2011                                    |   |   | 65,882,410 |   |   | $ | 66 |   |   | $ | 74,211 |   |   | $ | (138 | ) |   | $ | (75,455 | ) |   | $ | 1 |   |   | $ | (1,315 | ) |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to unaudited financial statements   |

----

| DIGERATI TECHNOLOGIES, INC. AND SUBSIDIARIES                                                          |
|-------------------------------------------------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                 |
| (Unaudited; In thousands, except per share amounts)                                                   |
|                                                                                                  |   | Nine months ended April 30, |   |
|                                                                                                  |   | 2011 |   |   | 2010 |   |
|                                                                                                  |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                 |   |   |   |   |   |   |
| Net loss                                                                                              |   | $ | (1,273 | ) |   | $ | (385 | ) |
| Adjustments to reconcile net loss to cash used in operating activities:                               |   |   |   |   |   |   |   |   |
|       Loss on debt extinguishment                                       |   |   | 100 |   |   |   | - |   |
|       Gain on forgiveness of accrued interest                           |   |   | (92 | ) |   |   | - |   |
|       Depreciation and amortization                                     |   |   | 77 |   |   |   | 131 |   |
|       Write-off accounts receivables                                    |   |   | 40 |   |   |   | - |   |
|       Amortization of deferred financing fees                           |   |   | 27 |   |   |   | - |   |
|       Issuance of stock grants and options for services                 |   |   | 755 |   |   |   | 21 |   |
|       Amortization of debt discount                                     |   |   | 1 |   |   |   | 28 |   |
|       Changes in operating assets and liabilities:                      |   |   |   |   |   |   |   |   |
|           Accounts receivable                       |   |   | (316 | ) |   |   | (347 | ) |
|           Prepaid expenses and other current assets |   |   | 14 |   |   |   | 34 |   |
|           Accounts payable                          |   |   | 123 |   |   |   | 248 |   |
|           Accrued liabilities                       |   |   | 61 |   |   |   | 14 |   |
|           Customer deposits                         |   |   | 104 |   |   |   | - |   |
| Net cash used in operating activities                                                                 |   |   | (379 | ) |   |   | (256 | ) |
|                                                                                                  |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                 |   |   |   |   |   |   |   |   |
|      Investment in certificates of deposit                                   |   |   | - |   |   |   | 301 |   |
|      Purchases of property & equipment                                   |   |   | (18 | ) |   |   | (61 | ) |
| Net cash (used in) provided by investing activities                                                   |   |   | (18 | ) |   |   | 240 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                 |   |   |   |   |   |   |   |   |
|      Payment of deferred financing fees                                      |   |   | (73 | ) |   |   | - |   |
|      Payments on debt                                                        |   |   | (407 | ) |   |   | (561 | ) |
|      Proceeds from debt                                                      |   |   | 897 |   |   |   | 250 |   |
|      Acquisition of put option on warrants                                   |   |   | (75 | ) |   |   | - |   |
|      Principal payments on capital lease obligation                          |   |   | - |   |   |   | (1 | ) |
| Net cash provided by (used in) financing activities                                                   |   |   | 342 |   |   |   | (312 | ) |
|                                                                                                  |   |   |   |   |   |   |   |   |
| DECREASE IN CASH AND CASH EQUIVALENTS                                                                 |   |   | (55 | ) |   |   | (328 | ) |
| CASH AND CASH EQUIVALENTS, beginning of period                                                        |   |   | 73 |   |   |   | 637 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS, end of period                                                              |   | $ | 18 |   |   | $ | 309 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES:                                                                             |   |   |   |   |   |   |   |   |
|     Cash paid for interest                                                        |   | $ | 99 |   |   | $ | 69 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| NON-CASH  INVESTING AND FINANCING TRANSACTIONS                                              |   |   |   |   |   |   |   |   |
|     Stock issued for settlement of debt                                           |   | $ | 200 |   |   | $ | - |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| See accompanying notes to unaudited financial statements                                              |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |          | April 30,    |   |         | July 31,     |         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|--------------|--------|--------------|--------------|--------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |          | 2011         |   |         | 2010         |         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |          |         |   |         |         |         |
| Note payable to Alfonso Torres, payable upon maturity, bearing interest of 6.00% per annum, maturing July 31, 2012, unsecured.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |          | $            | 365    |         |         | $            | 537 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |          |         |   |         |         |         |   |   |
| Note payable to ATVF, Scott Crist, Roderick Ciaccio & Vencore Solutions, payable in monthly installments, bearing interest at 10.00% per annum, matured on September 10, 2010, collateralized by Digerati's accounts receivables (other than accounts factored with Wells Fargo), $100,000 certificate of deposit with Wells Fargo and Digerati's ownership in ATSICOM. Additionally, issued 425,000 warrants to the note holders, at an exercise price per warrant of $0.19. The warrants have the following “Put” and “Call” rights: Put right. From and after the second anniversary of the notes payable, the holder shall have the right to request from Digerati, upon five (5) business days prior notice, to acquire from the holders the warrants at a price $0.39 per warrant. Call right. At any time any warrants are outstanding, if the last sale price of Digerati's common stock is greater than $.80 per share for ten (10) consecutive trading days, Digerati shall be entitled to require the purchaser to exercise the warrants and pay the exercise price upon five (5) business days written notice. Net of unamortized discount of $0 and $1, respectively |          |         | -      |         |         |         | 133 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |          |         |   |         |         |         |   |   |
| Note payable to San Antonio National Bank payable in monthly installments, bearing interest at 8.00% per annum, maturing October 25, 2011, collateralized by Digerati's assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |          |         | 78     |         |         |         | 189 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |          |         |   |         |         |         |   |   |
| Note payable to ATV Texas Ventures payable in monthly installments, bearing interest at 12.00% per annum, maturing November 10, 2011, collateralized by Digerati's assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |          |         | 32     |         |         |         | 69 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |          |         |   |         |         |         |   |   |
| Note payable to ATV Texas Ventures payable in monthly installments, bearing interest at 12.00% per annum, maturing January 10, 2012, collateralized by Digerati's assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |          |         | 40     |         |         |         | 77 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |          |         |   |         |         |         |   |   |
| Note payable to ATV Texas Ventures payable in monthly installments, bearing interest at 12.00% per annum, maturing March 10, 2012, collateralized by Digerati's assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |          |         | 24     |         |         |         | 43 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |          |         |   |         |         |         |   |   |
| Note payable to ATV Texas Ventures IV payable in monthly installments, bearing interest at 12.00% per annum, maturing October 10, 2012, collateralized by Digerati's assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |         | 155    |         |         |         | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |          |         |   |         |         |         |   |   |
| Note payable to Recap Marketing & Consulting LLP, bearing interest at 3% per annum, maturing October 1, 2011. If the note is not extinguished by the maturity date, the note may be converted to Digerati's common stock at a rate per share mutually agreeable by the parties, however, if converted; the company will issue no more than 1,666,666 common shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |     |    | 20     |    |    |    | - |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |          |         |   |         |         |         |   |   |
| Note payable to ATVF II payable in monthly installments, bearing interest at 12% for the first year and 18% during the second year, maturing January 10, 2013, collateralized by Digerati's assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |          |         | 177    |         |         |         | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |          |         |   |         |         |         |   |   |
| Note payable to Thermo Credit, LLC., interest payment for the first twenty-three months with a balloon payment on the twenty-fourth month, maturing August 2, 2012, collateralized by Digerati's accounts receivable. Bearing an annual interest rate equivalent to the lesser of the maximum rate and the greater of the prime rate plus 8.25% and 11.5%, a commitment fee of 2% and weekly monitoring fee of .05%. Digerati is required to maintain the following financial covenants: 1) A consolidated debt service coverage ratio, for the 12-month period, of not less than 1.0 as of the last day of each quarter and 2) A consolidated operating income, for the 12-month period, of not less than zero as of the last day of each fiscal year.                                                                                                                                                                                                                                                                                                                                                                                                                                                       |          |         | 476    |         |         |         | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |          |         |   |         |         |         |   |   |
| Total outstanding long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |          |         | 1,367  |         |         |         | 1,048 |   |
| Current portion of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |          |         | (390   | )            |         |         | (409 | ) |
| Long-term debt, net of current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |          | $            | 977    |         |         | $            | 639 |   |

| Payments on long-term debt of Digerati are due as follows: |   |   |   |   |   |           |   |   |
|------------------------------------------------------------|--------|--------|--------|--------|--------|----------------|--------|--------|
|                                                       |   |   |   |   |   | (in thousands) |   |
| Fiscal 2011                                                |   |   |   |   |   | $              | 390    |   |
| Fiscal 2012                                                |   |   |   |   |   |           | 417    |   |
| Fiscal 2013                                                |   |   |   |   |   |           | 560    |   |
| Total payments                                             |   |   |   |   |   | $              | 1,367  |   |

----

----

|   | - | 1,333,333 common shares to its directors for services rendered.  The Company recognized stock-based compensation expense of $40,000 equivalent to the value of the shares calculated based on the share’s closing price at the grant date. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | 888,888 common shares to its directors for services rendered.  The Company recognized stock-based compensation expense of $40,000 equivalent to the value of the shares calculated based on the share’s closing price at the grant date. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | 2,350,000 common shares to consultants for services.  The Company recognized stock-based compensation expense of $94,000 equivalent to the value of the shares calculated based on the share’s closing price at the date of issuance. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | 300,000 common shares to a consultant for services.  The Company recognized stock-based compensation expense of $15,000 equivalent to the value of the shares calculated based on the share’s closing price at the date of issuance. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | 10,506,069 common shares to various employees as part of the Company’s profit sharing plan contribution.  The Company recognized stock-based compensation expense of $380,162 equivalent to the value of the shares calculated based on the share’s closing price at the grant dates. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | extended the term of 7,359,000 existing options to July 31, 2015 and recognized incremental compensation expense of $34,501. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------|

|   | - | 375,000 warrants were cancelled as a result of the warrant holders exercising their related put rights (see Note 2). |
|--------|---|----------------------------------------------------------------------------------------------------------------------|

|   | - | 1,785,000 options to purchase common shares to various employees with exercise prices ranging from $0.03 to $0.05 per share and a term of 7 years. The options vest equally over a period of three years.  The options have a fair market value of $96,867. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | 3,150,000 options to purchase common shares to various employees with an exercise price of $0.045 per share and a term of 7 years. The options vested upon issuance.  The Company recognized stock-based compensation expense of $136,742 equivalent to the fair market value of the options granted. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Expected dividend yield         | 0.00%             |
|---------------------------------|-------------------|
| Expected stock price volatility | 218.67% - 223.86% |
| Risk-free interest rate         | 2.04% - 3.12%     |
| Expected term                   | 3.5 - 4.75 years  |

----

|                                                                              |   | Three months ended April 30, |   |   | Nine months ended April 30, |   |
|----------------------------------------------------------------------------------------|--------|--------------------------------------------------|--------|--------|-------------------------------------------------|--------|
|                                                                                   |   | 2011                                             |   |   | 2010                                            |   |   | Variances |   |   | % |   |   | 2011 |   |   | 2010 |   |   | Variances |   |   | % |   |
| OPERATING REVENUES:                                                                    |   |                                             |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Global VoIP services                                                                   |   | $                                                | 3,423  |   |                                            | $      | 6,550 |   |   | $ | (3,127 | ) |   |   | -48 | % |   | $ | 11,470 |   |   | $ | 16,413 |   |   | $ | (4,943 | ) |   |   | -30 | % |
| Cloud-based hosted services                                                            |   |                                             | 74     |   |                                            |   | 24 |   |   |   | 50 |   |   |   | 208 | % |   |   | 192 |   |   |   | 43 |   |   |   | 149 |   |   |   | 347 | % |
|                                                                                   |   |                                             |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating revenues                                                               |   |                                             | 3,497  |   |                                            |   | 6,574 |   |   |   | (3,077 | ) |   |   | -47 | % |   |   | 11,662 |   |   |   | 16,456 |   |   |   | (4,794 | ) |   |   | -29 | % |
|                                                                                   |   |                                             |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of services (exclusive of depreciation and amortization, shown below)             |   |                                             | 3,208  |   |                                            |   | 6,089 |   |   |   | (2,881 | ) |   |   | -47 | % |   |   | 10,660 |   |   |   | 15,309 |   |   |   | (4,649 | ) |   |   | -30 | % |
| GROSS MARGIN                                                                           |   |                                             | 289    |   |                                            |   | 485 |   |   |   | (196 | ) |   |   | -40 | % |   |   | 1,002 |   |   |   | 1,147 |   |   |   | (145 | ) |   |   | -13 | % |
|                                                                                   |   |                                             |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expense (exclusive of legal and professional fees) |   |                                             | 762    |   |                                            |   | 368 |   |   |   | 394 |   |   |   | 107 | % |   |   | 1,763 |   |   |   | 1,094 |   |   |   | 669 |   |   |   | 61 | % |
| Legal and professional fees                                                            |   |                                             | 106    |   |                                            |   | 52 |   |   |   | 54 |   |   |   | 104 | % |   |   | 240 |   |   |   | 191 |   |   |   | 49 |   |   |   | 26 | % |
| Bad debt                                                                               |   |                                             | -      |   |                                            |   | - |   |   |   | - |   |   |   | - |   |   |   | 40 |   |   |   | - |   |   |   | 40 |   |   |   | 100 | % |
| Depreciation and amortization expense                                                  |   |                                             | 26     |   |                                            |   | 44 |   |   |   | (18 | ) |   |   | -41 | % |   |   | 77 |   |   |   | 131 |   |   |   | (54 | ) |   |   | -41 | % |
| OPERATING PROFIT (LOSS)                                                                |   |                                             | (605   | )      |                                            |   | 21 |   |   |   | (626 | ) |   |   | -2981 | % |   |   | (1,118 | ) |   |   | (269 | ) |   |   | (849 | ) |   |   | 316 | % |
|                                                                                   |   |                                             |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE):                                                                |   |                                             |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss on debt extinguishment                                                            |   |                                             | -      |   |                                            |   | - |   |   |   | - |   |   |   | - |   |   |   | (100 | ) |   |   | - |   |   |   | (100 | ) |   |   | 100 | % |
| Gain on forgiveness of accrued interest                                                |   |                                             | -      |   |                                            |   | - |   |   |   | - |   |   |   | - |   |   |   | 92 |   |   |   | - |   |   |   | 92 |   |   |   | 100 | % |
| Interest expense                                                                       |   |                                             | (49    | )      |                                            |   | (34 | ) |   |   | (15 | ) |   |   | 44 | % |   |   | (147 | ) |   |   | (116 | ) |   |   | (31 | ) |   |   | 27 | % |
| Total other expense, net                                                               |   |                                             | (49    | )      |                                            |   | (34 | ) |   |   | (15 | ) |   |   | 44 | % |   |   | (155 | ) |   |   | (116 | ) |   |   | (39 | ) |   |   | 34 | % |
|                                                                                   |   |                                             |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS                                                                               |   | $                                                | (654   | )      |                                            | $      | (13 | ) |   | $ | (641 | ) |   |   | 4931 | % |   | $ | (1,273 | ) |   | $ | (385 | ) |   | $ | (888 | ) |   |   | 231 | % |
|                                                                                   |   |                                             |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST                                       |   |                                             | -      |   |                                            |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 24 |   |   |   | (24 | ) |   |   | -100 | % |
|                                                                                   |   |                                             |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS ATTRIBUTABLE TO DIGERATI TECHNOLOGIES, INC.                                   |   | $                                                | (654   | )      |                                            | $      | (13 | ) |   | $ | (641 | ) |   |   | 4931 | % |   | $ | (1,273 | ) |   | $ | (361 | ) |   | $ | (912 | ) |   |   | 253 | % |

----

----

----

----

| Number |         | Description                                                                                                                     |
|--------|--------------|---------------------------------------------------------------------------------------------------------------------------------|
|   |         |                                                                                                                            |
| 10.1   |         | Promissory note payable and security agreement with ATVF II, LP., dated May 10, 2011 in the principal amount of $200,000.       |
|   |         |                                                                                                                            |
| 31.1   |         | Certification of our President and Chief Executive Officer, under Section 302 of the Sarbanes-Oxley Act of 2002.                |
|   |         |                                                                                                                            |
| 31.2   |         | Certification of our Corporate Controller and Principal Financial Officer, under Section 302 of the Sarbanes-Oxley Act of 2002. |
|   |         |                                                                                                                            |
| 32.1   |         | Certification of our President and Chief Executive Officer, under Section 906 of the Sarbanes-Oxley Act of 2002.                |
|   |         |                                                                                                                            |
| 32.2   |    | Certification of our Corporate Controller and Principal Financial Officer, under Section 906 of the Sarbanes-Oxley Act of 2002. |

|                | DIGERATI TECHNOLOGIES, INC.                                                                                   |
|---------------------|---------------------------------------------------------------------------------------------------------------|
|                |                  (Registrant) |
|                |                                                                                                          |   |
| Date: June 13, 2011 | By:                                                                                                           | /s/ Arthur L. Smith |
|                | Name:                                                                                                         | Arthur L. Smith |
|                | Title:                                                                                                        | President and |
|                |                                                                                                          | Chief Executive Officer |
|                |                                                                                                          |   |
| Date: June 13, 2011 | By:                                                                                                           | /s/ Antonio Estrada Jr. |
|                | Name:                                                                                                         | Antonio Estrada Jr. |
|                | Title:                                                                                                        | Sr. VP of Finance & CorporateController |
|                |                                                                                                          | (Principal Accounting and PrincipalFinancial Officer) |

----

| Number |   | Description                                                                                                                     |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                            |
| 10.1   |   | Promissory note payable and security agreement with ATVF II, LP., dated May 10, 2011 in the principal amount of $200,000.       |
|   |   |                                                                                                                            |
| 31.1   |   | Certification of our President and Chief Executive Officer, under Section 302 of the Sarbanes-Oxley Act of 2002.                |
|   |   |                                                                                                                            |
| 31.2   |   | Certification of our Corporate Controller and Principal Financial Officer, under Section 302 of the Sarbanes-Oxley Act of 2002. |
|   |   |                                                                                                                            |
| 32.1   |   | Certification of our President and Chief Executive Officer, under Section 906 of the Sarbanes-Oxley Act of 2002.                |
|   |   |                                                                                                                            |
| 32.2   |   | Certification of our Corporate Controller and Principal Financial Officer, under Section 906 of the Sarbanes-Oxley Act of 2002. |

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