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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,
D.C. 20549

FORM 10-Q/A

(Mark One)

[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2011

[   ] TRANSITION REPORT UNDER SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT

For the transition period from ______________to
_____________

Commission file number000-27397

INOVA TECHNOLOGY INC.(Exact name of small business issuer in its charter)

|Nevada                                           | 98-0204280                          
|------------------------------------------------ | ------------------------------------
|(State or other jurisdiction of incorporation or | (I.R.S. Employer Identification No.)
|organization)                                    |                                     

2300 W. Sahara Ave. Suite 800 Las Vegas, NV
89102(Address of principal executive offices)

|89146         | (800) 757-9808             
|------------- | ---------------------------
|(Postal Code) | (Issuer's telephone number)

Check whether the issuer (1) filed all reports required to be
filed by Section 13or 15(d)of the Exchange Act during the past
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days.

[ X ]
Yes       [   ] No

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such
files).

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See definition of large accelerated filler, accelerated
filer and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check
one):

Large accelerated filer
[   ]       Accelerated Filer
[   ]       Non-accelerated
Filer [   ]       Smaller
reporting Company [ X ]

Indicate by check mark whether the registrant is a shell company
  (as defined in Rule 12b-2 of the Exchange Act).

[   ]
Yes       [ X ] No

State the number of shares of outstanding of each of the
issuers classes of common equity, as of September 12, 2011: 62,273,289

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EXPLANATORY NOTE

The sole purpose of this Amendment to the Registrant’s Quarterly Report on Form 10-Q for the period ended July 31, 2011 (the “10-Q”), is to refile a corrected version of Exhibit 31.1 and Exhibit 31.2. No other changes have been made to the 10-Q, and this Amendment has not been updated to reflect events occurring subsequent to the filing of the 10-Q.

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Inova Technology Inc.

Form 10-Q

Table of Contents

|           | PART I                                                                                   | Page
|---------- | ---------------------------------------------------------------------------------------- | ----
|Item 1.    | Financial
      Statements                                                               | 3   
|Item 2.    | Management Discussion and
      Analysis of Financial Condition and Result of Operations | 11  
|Item 4.    | Submission
      of Matters to a Vote of Security Holders                                | 12  
|           | PART II                                                                                  |     
|Item 1.    | Legal
      Proceedings                                                                  | 13  
|Item 2     | Unregistered Sales of Equity
      Securities and Use of Proceeds                        | 13  
|Item 3.    | Defaults
      Upon Senior Securities                                                    | 13  
|Item 4.    | Other Information                                                                        | 13  
|Item 5.    | Exhibits                                                                                 | 13  
|           |                                                                                          |     
|Signatures | 14                                                                                      

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Item 1. Financial Statements

INOVA TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

|                                                                                |   | July 31, 2011 |   |   | April 30, 2011 |  
|------------------------------------------------------------------------------- | - | ------------- | - | - | -------------- | -
|                                                                                |   |               |   |   |                |  
|ASSETS                                                                          |   |               |   |   |                |  
|                                                                                |   |               |   |   |                |  
|Current assets                                                                  |   |               |   |   |                |  
|Cash                                                                            | $ | 395,226       |   | $ | 396,140        |  
|Accounts receivable                                                             |   | 98,320        |   |   | 184,789        |  
|Contract receivables, net of allowance
      of $21,746 and $21,822             |   | 632,056       |   |   | 782,286        |  
|Credit facility
      receivable                                                |   | 1,293,931     |   |   | 1,230,596      |  
|Inventory                                                                       |   | 107,311       |   |   | 100,471        |  
|Costs in excess of
      billing and estimated earnings                         |   | 158,221       |   |   | 229,039        |  
|Prepaid and other current assets                                                |   | 27,651        |   |   | 31,165         |  
|                                                                                |   |               |   |   |                |  
|Total
      current assets                                                      |   | 2,712,716     |   |   | 2,954,486      |  
|                                                                                |   |               |   |   |                |  
|Fixed assets, net                                                               |   | 130,249       |   |   | 149,104        |  
|Revenue earning
      equipment, net                                            |   | 783,272       |   |   | 892,690        |  
|Goodwill, net                                                                   |   | 4,157,596     |   |   | 4,157,596      |  
|Other Assets                                                                    |   | 3,481         |   |   | 6,121          |  
|                                                                                |   |               |   |   |                |  
|Total assets                                                                    | $ | 7,787,314     |   | $ | 8,159,997      |  
|                                                                                |   |               |   |   |                |  
|LIABILITIES AND STOCKHOLDERS' DEFICIT                                           |   |               |   |   |                |  
|                                                                                |   |               |   |   |                |  
|Current liabilities                                                             |   |               |   |   |                |  
|Accounts payable                                                                | $ | 809,064       |   | $ | 950,149        |  
|Accrued liabilities                                                             |   | 3,297,575     |   |   | 2,861,923      |  
|Deferred income                                                                 |   | 393,703       |   |   | 442,669        |  
|Derivative liabilities                                                          |   | 1,915,722     |   |   | 2,515,687      |  
|Notes payable - related parties                                                 |   | 1,200,000     |   |   | 1,200,000      |  
|Notes payable                                                                   |   | 10,301,230    |   |   | 10,262,206     |  
|Total
      current liabilities                                                 |   | 17,917,294    |   |   | 18,232,634     |  
|                                                                                |   |               |   |   |                |  
|Notes payable - net of current
      maturities                                 |   | -             |   |   | -              |  
|Notes payable - related
      parties, net of current maturities                |   | 142,532       |   |   | 142,532        |  
|                                                                                |   |               |   |   |                |  
|Total liabilities                                                               |   | 18,059,826    |   |   | 18,375,166     |  
|                                                                                |   |               |   |   |                |  
|Stockholders' deficit                                                           |   |               |   |   |                |  
|Convertible preferred stock, $0.001 par
      value; 25,000,000 shares          |   |               |   |   |                |  
|authorized; 1,500,000 shares issued and outstanding (As of                      |   |               |   |   |                |  
|April 30,
      2011 and 2010, shares are included in non-controlling interest) |   | -             |   |   | -              |  
|Common stock, $0.001
      par value; 150,000,000 shares                        |   |               |   |   |                |  
|authorized;
      62,263,909 and 61,263,909 shares issued and outstanding       |   | 62,264        |   |   | 61,264         |  
|Additional paid-in
      capital                                                |   | 4,971,777     |   |   | 4,937,526      |  
|Non-controlling interest                                                        |   | 1,307,506     |   |   | 1,307,506      |  
|Accumulated deficit                                                             |   | (16,614,059   | ) |   | (16,521,465    | )
|                                                                                |   |               |   |   |                |  
|Total stockholders' deficit                                                     |   | (10,272,512   | ) |   | (10,215,169    | )
|                                                                                |   |               |   |   |                |  
|Total liabilities and stockholders' deficit                                     | $ | 7,787,314     |   | $ | 8,159,997      |  

See summary of accounting
policies and notes to unaudited consolidated financial statements.

3

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INOVA TECHNOLOGY, INC.CONSOLIDATED STATEMENTS OF
OPERATIONS
For the three months ended July 31, 2011 and 2010
(Unaudited)

|                                           |   | 2011       |   |   | 2010        |  
|------------------------------------------ | - | ---------- | - | - | ----------- | -
|                                           |   |            |   |   |             |  
|Revenues                                   | $ | 5,048,112  |   | $ | 7,868,228   |  
|                                           |   |            |   |   |             |  
|Cost of revenues                           |   | (3,552,265 | ) |   | (5,727,849  | )
|Selling, general and administrative        |   | (1,575,910 | ) |   | (1,366,532  | )
|Depreciation expense                       |   | (18,855    | ) |   | (234,158    | )
|                                           |   |            |   |   |             |  
|Operating loss                             |   | (98,918    | ) |   | 539,689     |  
|                                           |   |            |   |   |             |  
|Other income (expense):                    |   |            |   |   |             |  
|Gain on derivative liabilities             |   | 690,883    |   |   | 2,335,394   |  
|Other income                               |   | 4,787      |   |   | -           |  
|Gain on debt extinguishment                |   | 87,582     |   |   | -           |  
|Interest expense                           |   | (776,928   | ) |   | (697,703    | )
|                                           |   |            |   |   |             |  
|Net loss                                   | $ | (92,594    | ) | $ | 2,177,380   |  
|                                           |   |            |   |   |             |  
|Net income (loss) per share                |   |            |   |   |             |  
|Basic                                      | $ | (0.00      | ) | $ | 0.04        |  
|Diluted                                    | $ | (0.00      | ) | $ | 0.01        |  
|Weighted average common shares outstanding |   |            |   |   |             |  
|Basic                                      |   | 61,633,872 |   |   | 49,241,200  |  
|Diluted                                    |   | 61,633,872 |   |   | 146,189,860 |  

See summary of accounting policies and notes to
consolidated financial statements.

4

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INOVA TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS

For the three months ended July 31, 2011 and 2010
(Unaudited)

|                                                                                                               |   | 2011     |   |   | 2010       |  
|-------------------------------------------------------------------------------------------------------------- | - | -------- | - | - | ---------- | -
|CASH FLOWS FROM OPERATING ACTIVITIES                                                                           |   |          |   |   |            |  
|Net income
      (loss)                                                                                        | $ | (92,594  | ) | $ | 2,177,380  |  
|Adjustments to
      reconcile net income (loss) to net cash provided by (used in) operating
      activities: |   |          |   |   |            |  
|Depreciation expense                                                                                           |   | 128,273  |   |   | 88,370     |  
|Amortization expense - loan discounts and deferred financing
      costs                                       |   | 178,500  |   |   | 22,789     |  
|Amortization expense - intangible                                                                              |   | -        |   |   | 127,172    |  
|Paid-in kind interest                                                                                          |   | 18,088   |   |   | 88,205     |  
|Gain on debt extinguishment                                                                                    |   | (87,582  | ) |   | -          |  
|Gain on derivative liabilities                                                                                 |   | (690,883 | ) |   | (2,335,394 | )
|Changes in
      operating assets and liabilities:                                                             |   |          |   |   |            |  
|Account and contract receivables                                                                               |   | 236,699  |   |   | 1,261,823  |  
|Credit facility receivable                                                                                     |   | (63,335  | ) |   | (966,214   | )
|Inventory                                                                                                      |   | (6,840   | ) |   | 10,870     |  
|Costs in excess of billing and
      estimated earnings                                                        |   | 70,818   |   |   | 171,009    |  
|Prepaid expenses and other
      current assets                                                                |   | 3,514    |   |   | (15,982    | )
|Other assets                                                                                                   |   | 2,640    |   |   | 35,862     |  
|Accounts payable and accrued
      expenses                                                                    |   | 294,567  |   |   | (560,206   | )
|Deferred revenues                                                                                              |   | (48,966  | ) |   | 54,255     |  
|Net cash provided by (used in) operating
      activities                                                      |   | (57,101  | ) |   | 159,939    |  
|                                                                                                               |   |          |   |   |            |  
|CASH FLOW INVESTING ACTIVITIES                                                                                 |   |          |   |   |            |  
|Purchase
      of fixed assets                                                                                 |   | -        |   |   | (11,746    | )
|Net cash used in investing activities                                                                          |   | -        |   |   | (11,746    | )
|                                                                                                               |   |          |   |   |            |  
|CASH FLOW FINANCING ACTIVITIES                                                                                 |   |          |   |   |            |  
|Proceeds from notes payable                                                                                    |   | 82,500   |   |   | (47,968    | )
|Proceeds from sale of common
      stock                                                                       |   | 10,000   |   |   | -          |  
|Principal payments on debt                                                                                     |   | (36,313  | ) |   | -          |  
|Net cash used in financing activities                                                                          |   | 56,187   |   |   | (47,968    | )
|                                                                                                               |   |          |   |   |            |  
|NET CHANGE IN CASH                                                                                             |   | (914     | ) |   | 100,225    |  
|CASH AT BEGINNING OF YEAR                                                                                      |   | 396,140  |   |   | 336,746    |  
|CASH AT END OF YEAR                                                                                            | $ | 395,226  |   | $ | 436,971    |  
|                                                                                                               |   |          |   |   |            |  
|SUPPLEMENTAL INFORMATION:                                                                                      |   |          |   |   |            |  
|Interest paid                                                                                                  | $ | 42,383   |   | $ | 180,843    |  
|Income taxes
      paid                                                                                        | $ | 21,361   |   | $ | 30,000     |  
|                                                                                                               |   |          |   |   |            |  
|NON-CASH INVESTINGAND FINANCING ACTIVITIES:                                                                    |   |          |   |   |            |  
|Common stock
      issued for conversion of debt                                                               | $ | 25,251   |   | $ | -          |  
|Reclassification
      of derivative liabilities to notes payable                                              |   | -        |   |   | 1,515,900  |  
|Discount on
      notes payable from derivative liabilities                                                    |   | 178,500  |   |   | -          |  

See summary of accounting
policies and notes to unaudited consolidated financial statements.

5

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INOVA TECHNOLOGY, INC.NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS(Unaudited)

NOTE 1 BASIS OF PRESENTATION

The accompanying unaudited interim consolidated financial statements of Inova Technology, Inc. (“we”, “our”, “Inova” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements and notes thereto contained in Inova’s latest Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements that would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year as reported in Form 10-K have been omitted.

Fair Value Measurements

Financial Accounting Standards Board Accounting Standards
Codification (ASC) 820 defines fair value, establishes a framework for
measuring fair value, and expands disclosures about fair value measurements. As
defined in ASC 820, fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date (exit price). The Company utilizes market
data or assumptions that market participants would use in pricing the asset or
liability, including assumptions about risk and the risks inherent in the inputs
to the valuation technique. These inputs can be readily observable, market
corroborated, or generally unobservable. The Company classifies fair value
balances based on the observability of those inputs. ASC 820 establishes a fair
value hierarchy that prioritizes the inputs used to measure fair value. The
hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (level 1 measurement) and the lowest
priority to unobservable inputs (level 3 measurement).

As of July 31, 2011, Inova measured its derivative liabilities
using Level 3 inputs as defined by ASC 820 with a total fair value of
$1,915,722.

Reclassifications

Certain prior year amounts have been reclassified to conform to
the current year presentation.

NOTE 2  GOING CONCERN

As shown in the accompanying consolidated financial statements,
we have an accumulated deficit and negative working capital and are in default
on the majority of our notes payable as of July 31, 2011. These conditions raise
substantial doubt as to our ability to continue as a going concern. The
consolidated financial statements contained herein do not include any
adjustments relating to the recoverability and classification of recorded asset
amounts or amounts and classification of liabilities that might be necessary
should we be unable to continue in existence. Our ability to continue as a going
concern is dependent upon our ability to generate sufficient cash flows to meet
our obligations on a timely basis, to obtain additional financing as may be
required, and ultimately to attain profitable operations. However, there is no
assurance that profitable operations or sufficient cash flows will occur in the
future. Management is trying to raise additional capital through sales of stock
and refinancing debt.

6

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NOTE 3  RELATED PARTY TRANSACTIONS

Note Payable to Southbase, LLC

Loans payable from Southbase, LLC consists of advances from existing shareholders. These notes are unsecured, bear interest at 7%, and are due in May 21, 2017. The amount due to Southbase, LLC, a company related to Adam Radly, was $142,532 as of July 31, 2011.

Desert Sellers

Seller notes with a balance of $1,200,000 relate to the Desert Communications, Inc. (“Desert”) purchase in December of 2007. They have interest rates of 18%, are secured by all of the common stock of Desert Communications, Inc. and were due in December of 2010. The notes are now in default.

NOTE 4 - DERIVATIVE LIABILITIES

ASC 815-40 Put Warrant Liabilities

Under ASC 815-40 “Put Warrants”, warrants for put shares should be classified as liabilities and measured at fair value at the end of each reporting period with the change in fair value recorded to earnings. As a result, the fair value of the warrants granted to Inova’s debt holders in prior years were recorded as derivative liabilities at inception. These liabilities are subsequently measured at fair value at the end of each reporting period with the changes recorded to earnings. As of July 31, 2011, Inova had $279,738 of derivative liabilities as a result of these provisions.

ASC 815-15 Conversion Option and Warrant Liabilities

During fiscal 2010, Inova determined that the instruments embedded in a convertible put note exercised by one of Inova’s lenders should be classified as liabilities and recorded at fair value due to their being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options.

Because the number of shares to be issued upon settlement cannot be determined under these instruments, Inova cannot determine whether it will have sufficient authorized shares at a given date to settle any other of its share-settleable instruments. As a result of this, under ASC 815-15 “Accounting for Derivative Financial Instruments Indexed to and Potentially Settled in, a Company's Own Stock” (formerly EITF 00-19), the conversion options noted above and all other share-settleable instruments are classified as liabilities. Inova has three conversion options embedded in notes payable agreements and 11,367,655 warrants to purchase Inova common stock that are classified as liabilities as a result of the provisions of the convertible put notes. As of July 31, 2011, Inova had $1,635,984 of derivative liabilities as a result of these provisions.

7

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The following table summarizes the derivative liabilities included in the consolidated balance sheet:

Derivative LiabilitiesBalance at April 30, 2011
    $
    2,515,687Extinguishment of derivative liabilities (see Note 8)
    
    (255,368
    )Addition of derivative liabilities (see Note 8)
    
    346,286Change in fair value
    
    (690,883
    )Balance at July 31, 2011
    $
    1,915,722


Valuation Models

Inova values its warrant derivatives and simple conversion
option derivatives using the Black-Scholes option-pricing model. Assumptions
used include (1) 4% risk-free interest rate, (2) warrant life is the remaining
contractual life of the warrants, (3) expected volatility 261% to 390%, (4) zero
expected dividends (5) exercise prices as set forth in the agreements, (6)
common stock price of the underlying share on the valuation date, and (7) number
of shares to be issued if the instrument is converted.

Inova valued the conversion options and reset provisions under
its convertible put exercise note with Boone using a Monte Carlo simulation
model utilizing present value and various probabilities of events. Assumptions
used include (1) 0.34% risk free rate, (2) conversion prices as set forth in the
agreement, (3) expected Inova stock price volatility of 261%, (4) expected
Desert stock price volatility of 25%, and (6) common stock price of the
underlying share on the valuation date. Inova valued the note as a combination
of the underlying debt payment and series of two options. Since the options are
mutually exclusive, the Monte Carlo simulation was used to estimate when either
of the options is exercisable. When both are exercisable Inova assumed that the
more valuable of the two would be exercised.

NOTE 5 SEGMENT INFORMATION

Inova has three reportable segments, one providing management support to the other subsidiaries (Edgetech Services, Inc.), one providing network solutions (Desert Communications, Inc.) and one which manufactures standards compliant and durable RFID (Radio Frequency Identification) equipment (Trakkers, LLC & RightTag, Inc). Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly in deciding how to allocate resources and in assessing performance.

The following table presents three month segment information:

|                  |   | Trakkers, |   |  | Desert          |  |  |           |   |  |           |  
|----------------- | - | --------- | - |  | --------------- |  |  | --------- | - |  | --------- | -
|                  |   | LLC &     |   |  | Communications, |  |  |           |   |  |           |  
|                  |   | RightTag, |   |  | Inc.            |  |  | Corporate |   |  | Total     |  
|                  |   | Inc.      |   |  |                 |  |  |           |   |  |           |  
|Revenues          | $ | 357,469   |   |  | 4,690,643       |  |  | -         |   |  | 5,048,112 |  
|Net income (loss) |   | (226,814  | ) |  | 167,302         |  |  | (33,082   | ) |  | (92,594   | )
|Total assets      |   | 1,866,280 |   |  | 2,552,310       |  |  | 3,368,724 |   |  | 7,787,314 |  

8

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NOTE 6  WARRANTS

The following tables summarize common stock warrants
outstanding by entity:

|                                  |  |            |  |   |                |  |   |                 |  |  | Weighted     | 
|--------------------------------- |  | ---------- |  | - | -------------- |  | - | --------------- |  |  | ------------ | 
|                                  |  |            |  |   |                |  |   |                 |  |  | average      | 
|                                  |  |            |  |   | Weighted       |  |   |                 |  |  | remaining    | 
|Warrants to purchase Inova common |  |            |  |   | average        |  |   | Aggregate       |  |  | contractual  | 
|stock                             |  | Warrants   |  |   | exercise price |  |   | intrinsic value |  |  | life (years) | 
|Outstanding at Apil 30, 2011      |  | 11,367,655 |  | $ | 0.03           |  |   | 676,196         |  |  | 2.56         | 
|                                  |  |            |  |   |                |  |   |                 |  |  |              | 
|Granted                           |  | -          |  |   | -              |  |   |                 |  |  |              | 
|                                  |  |            |  |   |                |  |   |                 |  |  |              | 
|Exercised                         |  | -          |  |   | -              |  |   |                 |  |  |              | 
|                                  |  |            |  |   |                |  |   |                 |  |  |              | 
|Forfeited                         |  | -          |  |   | -              |  |   |                 |  |  |              | 
|                                  |  |            |  |   |                |  |   |                 |  |  |              | 
|Expired                           |  | -          |  |   | -              |  |   |                 |  |  |              | 
|Outstanding at July 31, 2011      |  | 11,367,655 |  | $ | 0.03           |  | $ | 545,233         |  |  | 2.31         | 

|                              |  |          |  |   |                |  |   |                     |  |  | Weighted     | 
|----------------------------- |  | -------- |  | - | -------------- |  | - | ------------------- |  |  | ------------ | 
|                              |  |          |  |   |                |  |   |                     |  |  | average      | 
|                              |  |          |  |   | Weighted       |  |   |                     |  |  | remaining    | 
|Warrants to purchase Trakkers |  |          |  |   | average        |  |   | Aggregate           |  |  | contractual  | 
|common
      stock            |  | Warrants |  |   | exercise price |  |   | **intrinsic value** |  |  | life (years) | 
|Outstanding at April 30, 2011 |  | 13.50    |  | $ | -              |  | $ | 10,606              |  |  | 3.18         | 
|                              |  |          |  |   |                |  |   |                     |  |  |              | 
|Granted                       |  | -        |  |   | -              |  |   |                     |  |  |              | 
|                              |  |          |  |   |                |  |   |                     |  |  |              | 
|Exercised                     |  | -        |  |   | -              |  |   |                     |  |  |              | 
|                              |  |          |  |   |                |  |   |                     |  |  |              | 
|Forfeited                     |  | -        |  |   | -              |  |   |                     |  |  |              | 
|                              |  |          |  |   |                |  |   |                     |  |  |              | 
|Expired                       |  | -        |  |   | -              |  |   |                     |  |  |              | 
|                              |  |          |  |   |                |  |   |                     |  |  |              | 
|Outstanding at July 31, 2011  |  | 13.50    |  | $ | -              |  | $ | 10,606              |  |  | 2.93         | 

All warrants above were exercisable as of July 31, 2011.

9

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NOTE 7  COMMON STOCK

During the three months ended July 31, 2011, Inova issued 666,667 shares of common stock for the conversion of $25,251 of debt and sold 333,333 shares of common stock for $10,000.

NOTE 8  DEBT

The following table summarizes outstanding debt as of July 31, 2011 and April 30, 2011:

July 31,
      
      
      April 30,2011
      
      
      2011Carrying
      
      
      CarryingLender
      
      Amount
      
      
      AmountBoone Lenders, LLC
      $
      $ 6,828,060
      
      $
      6,809,972Ascendiant Opportunity Fund, LLC
      
      1,153,930
      
      
      1,153,930Agile Opportunity Fund, LLC
      
      173,499
      
      
      198,750IBM - Trakkers, LLCLease Facility
      
      177,215
      
      
      212,362Desert Communications, Inc. Sellers
      
      1,200,000
      
      
      1,200,000Trakkers, LLC Sellers
      
      1,769,686
      
      
      1,769,686Southbase, LLC - Related Party
      
      142,532
      
      
      142,532Asher Enterprises, Inc.
      
      186,000
      
      
      103,500Other debt
      
      12,840
      
      
      14,006Total
      $
      11,643,762
      
      $
      11,604,738


Of the total outstanding debt, $11,125,175 was in default as of July 31, 2011. Principal owed to Boone Lenders, LLC (“Boone”) increased due to the paid-in kind interest described below.

Boone is capitalizing and charging paid in kind interest on several of its notes. Each period, at a rate mutually agreed to by the Company and Boone, interest is recognized on the outstanding principal balance and added to the principal balance of the note. This started in May 2010 for Boone’s notes as a temporary arrangement which can be cancelled at any time. The interest rates range from 11% to 20% on various notes.

For the three months ended July 31, 2011, a total of $18,088 of interest was recognized and recorded to the principal balance of loans from Boone.

On June 20, 2011, the Agile Opportunity Fund, LLC (“Agile”) note from 2008 was amended to allow the principal to be converted to stock at the rate of $0.03 per share (previously convertible at $0.0405 per share).  Inova evaluated the amendment under ASC 470-60 “Troubled Debt Restructurings”. Because the investors did not grant a concession on this outstanding loan, the transaction was not accounted for as troubled debt restructuring. Consequently, Inova evaluated these transactions under ASC 470-50 “Debtor’s Accounting for a Modification or Exchange of Debt Instruments” to determine if the modification was substantial. Because the change in fair value of the conversion option was greater than 10% of the carrying value of the note, the debt modification was determined to be substantial and accordingly the debt was extinguished.. As a result, the Company extinguished the related derivative liability associated with the conversion option with a fair value of $255,368 on the amendment date and recorded a new derivative liability with a fair value of $346,286 on the same date.  (See Note 4) The Company recognized a full discount of $178,500 on the date of the amendment against the related note.  Because the note was already in default, the Company immediately amortized this discount to interest expense.  In addition, the Company recognized a gain on debt extinguishment of $87,582 as a result of this transaction.

During the three months ended July 31, 2011, Inova issued 666,667 shares of common stock for the conversion of $25,251 of Agile debt.

In May and July, Inova borrowed $82,500 from Asher Enterprises, Inc. (“Asher”) in an 8% convertible note. The note is convertible 180 days from the issuance date into Inova common stock at a price equal to 61% of the average of the stock’s lowest three prices during the ten trading days prior to conversion. When the conversion option becomes effective, it will be classified as a liability due to there being no explicit limit to the number of shares to be issued under ASC 815-15. The notes are due in November and January, 2012 and are unsecured.

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Item 2. Management Discussion and Analysis of Financial Condition and Result of Operations.

The information contained in this Managements Discussion and
Analysis of Financial Condition and Results of Operation contains forward
looking statements.Actual results may materially differ from those
projected in the forward looking statements as a result of certain risks and
uncertainties set forth in this report. Although our management believes that
the assumptions made and expectations reflected in the forward looking
statements are reasonable, there is no assurance that the underlying assumptions
will, in fact, prove to be correct or that actual future results will not be
materially different from the expectations expressed in this Annual Report. The
following discussion should be read in conjunction with the unaudited
Consolidated Financial Statements and related Notes included in Item 1.

RESULTS OF OPERATIONS FOR THE THREE MONTH PERIOD ENDED JULY
31, 2011

Net revenues decreased from $7,868,228 in the three-month
period ending July 31, 2010 to $5,048,112 for the three-month period ending July
31, 2011. The decrease in revenue is due to changes in the timing of various
projects in Desert.

Cost of sales decreased from $5,727,849 in the three-month period ending July 31, 2010 to $3,552,265 for the three-month period ending July 31, 2011. The decrease is a result of the revenue decrease described above.

Operating expenses increased from $1,366,532 for the three months ending July 31, 2010 to $1,575,910 for the same period in 2011. This was mainly due to the increase in bonus and professional fee expense.

Net income decreased from $2,177,380 for the three months ending July 31, 2010 to a net loss of ($150,094) for the same period in 2011. This is due to a non-cash derivative gain of $2,335,394 for the three months ended July 31, 2010.

LIQUIDITY AND CAPITAL RESOURCES

Cash used in operations for the nine month period ended July 31, 2011 was $57,101 as compared to cash provided by operations of $159,939 for the three months ended July 31, 2010. Cash used in investing activities for the three month period ended July 31, 2011 was $0, as compared to $11,746 for the three months ended July 31, 2010. Cash provided by financing activities for the period ended July 31, 2011 was $56,187, as compared to $47,968 used in financing activities for the three months ended July 31, 2010.

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Our operating activities for the three months ended July 31, 2011, have generated adequate cash to meet our operating needs. As of July 31, 2011, we had cash and cash equivalents totaling $395,226, and receivables of $2,024,307.

As of the date of the filing the Company is attempting to restructure its debt with Boone and some other creditors. If successful there would be a significant decrease in the current portion of debt outstanding, interest rate reductions and extended maturity dates. If unsuccessful, we will continue to be in default on these loans and incur additional interest expense.

EBITDA

EBITDA for the 3 month period is $206,170. EBITDA is Earnings before interest, tax, depreciation and amortization:

|EBITDA                                                     |  | 31-July-11 |  
|---------------------------------------------------------- |  | ---------- | -
|Net income                                                 |  | (92,594    | )
|Interest                                                   |  | 776,928    |  
|Extinguishment gain                                        |  | (85,944    | )
|Derivative gain                                            |  | (690,883   | )
|Loss on transfer of financial assets and
      liabilities |  | 149,029    |  
|Tax                                                        |  | 21,361     |  
|Depreciation/Amortization                                  |  | 128,273    |  
|EBITDA                                                     |  | 206,170    |  

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures.

Management has evaluated, with the participation of our Chief
Executive Officer and Chief Financial Officer, the effectiveness of our
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(f)
and 15d-15(f)) as of the end of the period covered by this report and concluded
that our disclosure controls and procedures were not effective to ensure that
all material information required to be disclosed in this Quarterly Report on
Form 10-Q has been made known to them in a timely fashion. We are in the process
of improving our internal control over financial reporting in an effort to
remediate these deficiencies through improved supervision and training of our
accounting staff. These deficiencies have been disclosed to our Board of
Directors. We believe that this effort is sufficient to fully remedy these
deficiencies and we are continuing our efforts to improve and strengthen our
control processes and procedures. Our Chief Executive Office, Chief Financial
Officer and directors will continue to work with our auditors and other outside
advisors to ensure that our controls and procedures are adequate and
effective.

(b) Changes in internal controls

There have been no significant changes in our internal controls
over financial reporting that occurred during the fiscal quarter covered by this
report that have materially affected, or are reasonably likely to materially
affect, our internal control over financial reporting.

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PART II

Item 1. Legal Proceedings.

None

Item 2. Unregistered Sales of Equity Securities and Use of
Proceeds.

None

Item 3. Defaults Upon Senior Securities

Not Applicable.

Item 4. Other Information

None

Item 5. Exhibits

(A) Exhibits

|Exhibit    |                                                                                                                                                                 
|---------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
|**Number** | Description                                                                                                                                                     
|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 Chief
      Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant
      to Section 906 of the Sarbanes- Oxley Act of 2002**
|32.2       | Certification of Chief Financial Officer
      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of
      the Sarbanes- Oxley Act of 2002**

* Filed with this Form 10-Q/A for Inova Technology Inc

** These exhibits were previously included in Inova Technology Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended July 31, 2011, filed with the Securities and Exchange Commission on September 19, 2011.

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SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant has caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

|Dated: October 17, 2011 | By: | /s/ Adam Radly             
|----------------------- | --- | ---------------------------
|                        |     | Adam Radly                 
|                        |     | Chief Executive Officer    
|                        |     |                            
|Dated: October 17, 2011 | By: | /s/ Bob Bates              
|                        |     | Bob Bates                  
|                        |     | Chief Financial
    Officer

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