|   | Form 10-QSB |   |
|--------|-------------|--------|

|   |
|--------|

|   | SECURITIES AND EXCHANGECOMMISSION Washington, D.C. |   |
|--------|----------------------------------------------------|--------|

|   |
|--------|

|   | [ X ]  Quarterly Report Pursuant to Section 13 or 15(d) of the SecuritiesExchange Act of 1934 For the quarterly period ended September 30, 2003 |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|

| OR |
|----|

|   | [   ]  Transition Report Pursuant to Section 13 or 15(d) of the SecuritiesExchange Act of 1934 For the transition period from _______ to _______. |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   |
|--------|

|   | Commission File No. 33-19961 |   |
|--------|------------------------------|--------|

|   |
|--------|

|   | Air-Q Wi-Fi Corporation                                          |   |
|--------|------------------------------------------------------------------|--------|
|   | (Exact Name of Small Business Issuer as Specified in itsCharter) |   |

|   | DELAWARE |   | 01-0623010 |   |
|--------|----------|--------|------------|--------|

|   | (State or Other Jurisdiction ofincorporation or organization) |   | (I.R.S. Employer IdentificationNumber) |   |
|--------|---------------------------------------------------------------|--------|----------------------------------------|--------|

|   | 5555 Hilton Avenue, Suite 207, Baton Rouge, Louisiana 70808 |   |
|--------|-------------------------------------------------------------|--------|

|   | (Address of Principal Executive Offices, including Zip Code) |   |
|--------|--------------------------------------------------------------|--------|

|   | (225) 923-1034 |   |
|--------|----------------|--------|

|   | (Issuer’s telephone number, including area code) |   |
|--------|--------------------------------------------------------|--------|

|   |
|--------|

| Indicate by check mark whether Registrant (1) has filed all reports required to be filed bySection 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that Registrant as required to file such reports), and (2) has beensubject to such filing requirements for the past 90 days: Yes [ X ]     No [   ] |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Indicate the number of shares outstanding of each of the issuer’s classes of common stock asof the latest practicable date: |
|-----------------------------------------------------------------------------------------------------------------------------------|

|   | Class |   | Outstanding as of 11-18-03 |   |
|--------|-------|--------|----------------------------|--------|

|   | Common Stock, $.0001 par value |   | 20,236,703 |   |
|--------|--------------------------------|--------|------------|--------|

|   |
|--------|

| <PAGE> |
|--------------|

|   |
|--------|

| PART I - FINANCIAL INFORMATION |
|--------------------------------|

|   |
|--------|

| Item 1.  Financial Statements. |   |
|--------------------------------|--------|

|   |
|--------|

| INDEX TO CONSOLIDATED FINANCIAL STATEMENTS |
|--------------------------------------------|
| Air-Q Wi-Fi Corporation and Subsidiaries   |

|   |   | Page |
|--------|--------|------|

|   | Balance Sheet as of September 30, 2003 (unaudited) | 3 |
|--------|----------------------------------------------------|---|

|   | Statements of Expenses for the Three Months Ended September 30, 2003, and forthe Period from June 17, 2003 (Inception), Through September 30, 2003(unaudited) | 4 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|---|

|   | Statement of Cash Flows for the Period from June 17, 2003 (Inception), ThroughSeptember 30, 2003 (unaudited) | 5 |
|--------|--------------------------------------------------------------------------------------------------------------|---|

|   | Notes to Financial Statements | 6 |
|--------|-------------------------------|---|

|   |
|--------|

| <PAGE> |
|--------------|

|   |
|--------|

|   | AIR-Q WI-FI CORPORATION ANDSUBSIDIARIES |   |
|--------|-----------------------------------------|--------|

|   | (Formerly Covenant FinancialCorporation) (A DEVELOPMENTSTAGE COMPANY) |   |
|--------|-----------------------------------------------------------------------|--------|

|   |
|--------|

|   | BALANCESHEETSEPTEMBER 30,2003 (Unaudited) |   |
|--------|-------------------------------------------|--------|

| ASSETS |
|--------|

| Current assets: |   |   |
|-----------------|--------|--------|

|   | Cash | $247,407 |   |
|--------|------|----------|--------|

|   | Total Current Assets | 247,407 |   |
|--------|----------------------|---------|--------|

|   |
|--------|

| Equipment | 36,887 |   |
|-----------|--------|--------|

|   | Total Assets | $284,294 |   |
|--------|--------------|----------|--------|

|   |
|--------|

| LIABILITIES AND STOCKHOLDERS' EQUITY |
|--------------------------------------|

| Current Liabilities: |   |   |
|----------------------|--------|--------|

|   | Accounts payable | $4,600 |   |
|--------|------------------|--------|--------|

| Stockholders’ equity: |   |   |
|-----------------------------|--------|--------|

|   | Preferred stock, $.001 par value, 50,000,000 sharesauthorized, none issued |   |   |
|--------|----------------------------------------------------------------------------|--------|--------|

|   | Common stock, $.001 par value; 200,000,000 sharesauthorized, 20,194,204 shares issued and outstanding | 20,194 |   |
|--------|-------------------------------------------------------------------------------------------------------|--------|--------|

|   | Additional paid-in capital | 2,229,134 |   |
|--------|----------------------------|-----------|--------|

|   | Deficit accumulated during the development stage | (1,969,634) |   |
|--------|--------------------------------------------------|-------------|--------|

|   | Total Stockholders' Equity | 279,694 |   |
|--------|----------------------------|---------|--------|

| Total Liabilities and Stockholders’ Equity | $284,294 |   |
|--------------------------------------------------|----------|--------|

|   |
|--------|

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|   |
|--------|

|   |
|--------|

| <PAGE> |
|--------------|

|   |
|--------|

|   | AIR-Q WI-FI CORPORATION ANDSUBSIDIARIES |   |
|--------|-----------------------------------------|--------|

|   | (Formerly Covenant FinancialCorporation) (A DEVELOPMENTSTAGE COMPANY) |   |
|--------|-----------------------------------------------------------------------|--------|

|   |
|--------|

|   | STATEMENT OFEXPENSES Three MonthsEnded September 30, 2003,and Period from June 17, 2003(Inception), ThroughSeptember 30, 2003(Unaudited) |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | ThreeMonthsEndedSeptember30 |   | InceptionthroughSeptember30 |
|--------|-----------------------------|--------|-----------------------------|

| Operating Expenses: |   |   |   |
|---------------------|--------|--------|--------|

|   | General and administrative | $159,084 |   | $162,384 |
|--------|----------------------------|----------|--------|----------|

|   | Stock issued for services | 1,727,250 |   | 1,807,250 |
|--------|---------------------------|-----------|--------|-----------|

| Net loss | $(1,886,334) |   | $(1,969,634) |
|----------|--------------|--------|--------------|

|   |   |   |
|--------|--------|--------|

| Net loss per share: |   |   |   |
|---------------------|--------|--------|--------|

|   | Basic and diluted | $(.14) |   | $(.10) |
|--------|-------------------|--------|--------|--------|

|   |   |   |
|--------|--------|--------|

| Weighted number shares outstanding: |   |   |   |
|-------------------------------------|--------|--------|--------|

|   | Basic and diluted | 13,712,232 |   | 19,048,552 |
|--------|-------------------|------------|--------|------------|

|   |
|--------|

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|   |
|--------|

|   |
|--------|

| <PAGE> |
|--------------|

|   |
|--------|

|   | AIR-Q WI-FI CORPORATION ANDSUBSIDIARIES |   |
|--------|-----------------------------------------|--------|

|   | (Formerly Covenant FinancialCorporation) (A DEVELOPMENTSTAGE COMPANY) |   |
|--------|-----------------------------------------------------------------------|--------|

|   |
|--------|

|   | STATEMENT OF CASHFLOWS Period from June 17,2003 (Inception), ThroughSeptember 30, 2003(Unaudited) |   |
|--------|---------------------------------------------------------------------------------------------------|--------|

|   | InceptionthroughSeptember 30,2003 |   |
|--------|-----------------------------------|--------|

| CASH FLOWS FROM OPERATING ACTIVITIES |   |   |
|--------------------------------------|--------|--------|

|   | Net loss | $(1,969,634) |   |
|--------|----------|--------------|--------|

|   | Adjustments to reconcile net loss to net cash used inoperating activities: |   |   |
|--------|----------------------------------------------------------------------------|--------|--------|

|   | Stock issued for services | 1,807,250 |   |
|--------|---------------------------|-----------|--------|

|   | Changes in assets and liabilities: |   |   |
|--------|------------------------------------|--------|--------|

|   | Accounts payable, net of amounts assumed inreverse merger | (4,322) |   |
|--------|-----------------------------------------------------------|---------|--------|

|   | Cash flows used in operating activities | (166,706) |   |
|--------|-----------------------------------------|-----------|--------|

| CASH FLOWS FROM INVESTING ACTIVITIES |   |   |
|--------------------------------------|--------|--------|

|   | Purchase of equipment | (36,887) |   |
|--------|-----------------------|----------|--------|

|   | Cash flows used in investing activities | (36,887) |   |
|--------|-----------------------------------------|----------|--------|

| CASH FLOWS FROM FINANCING ACTIVITIES |   |   |
|--------------------------------------|--------|--------|

|   | Sale of common stock, net | 451,000 |   |
|--------|---------------------------|---------|--------|

|   | Cash flows provided by financing activities | 451,000 |   |
|--------|---------------------------------------------|---------|--------|

| Net increase in cash | 247,407 |   |
|----------------------|---------|--------|

| Cash, beginning of period | 0 |   |
|---------------------------|---|--------|

| Cash, end of period | $247,407 |   |
|---------------------|----------|--------|

|   |
|--------|

| Supplemental information: |
|---------------------------|

|   | Income taxes paid | $0 |   |
|--------|-------------------|----|--------|

|   | Interest paid | $0 |   |
|--------|---------------|----|--------|

|   |
|--------|

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|   |
|--------|

| <PAGE> |
|--------------|

|   |
|--------|

|   | AIR-Q WI-FI CORPORATION ANDSUBSIDIARIES |   |
|--------|-----------------------------------------|--------|

|   | (Formerly Covenant FinancialCorporation) (A DEVELOPMENTSTAGE COMPANY) |   |
|--------|-----------------------------------------------------------------------|--------|

|   |
|--------|

|   | NOTES TO FINANCIALSTATEMENTS September 30,2003 (Unaudited) |   |
|--------|------------------------------------------------------------|--------|

|   |
|--------|

| Note 1.  Basis of Presentation |   |
|--------------------------------|--------|

| The accompanying unaudited interim financial statements of Air-Q Wi-Fi Corporation ("Wi-Fi") have been prepared in accordance with accounting principles generally accepted in theUnited 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 theretocontained in the audited financial statements filed with the SEC on Form 8- K/A.  In theopinion of management, all adjustments, consisting of normal recurring adjustments, necessaryfor a fair presentation of financial position and the results of operations for the interim periodspresented have been reflected herein. The results of operations for interim periods are notnecessarily indicative of the results to be expected for the full year. Notes to the financialstatements which would substantially duplicate the disclosure contained in the auditedfinancial statements for 2003 as reported in the 8-K/A have been omitted. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| On June 20, 2003, Wi-Fi, an inactive public corporation then known as “Covenant FinancialCorporation”, issued 11,000,000 shares of common stock for all of the outstanding commonstock of Air-Q Corp., a private corporation. After the merger, Air-Q Corp. stockholders ownedapproximately 95% of Wi-Fi. For accounting purposes, the merger will be treated as anacquisition of Wi-Fi and a recapitalization of Air-Q Corp. Air-Q Corp.’s historical financialstatements replace Wi-Fi’s in the accompanying financial statements; therefore, no 2002financial information is presented because Air-Q Corp. was formed on June 17, 2003. Inaddition, the statements of operations and cash flows for the nine-month period endedSeptember 30, 2002, were not included because the date of inception was June 17, 2003. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| On June 27, 2003, Covenant Financial Corporation changed its name to Air-Q Wi-FiCorporation. |
|----------------------------------------------------------------------------------------------|

|   | Recent Accounting Pronouncements |   |
|--------|----------------------------------|--------|

|   | The Company accounts for its stock-based compensation plans under AccountingPrinciples Board ("APB") Opinion No. 25, Accounting for Stock Issued to Employees.Statement of Financial Accounting Standard ("FAS") No. 148, Accounting forStock-Based Compensation-Transition and Disclosure, issued in December 2002 requirespro forma net income (loss) and pro forma net income (loss) per share to be disclosed ininterim financial statements. For the period ended September 30, 2003, Wi-Fi’s pro formanet loss and net loss per share are equal to the net loss and net loss per share reportedherein. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 2. Common Stock |   |
|----------------------|--------|

| In June 2003, Wi-Fi sold 5,000,000 shares of common stock for $.10 per share. Wi-Fi receivednet proceeds of $450,000 after financing costs of $50,000. As part of the securities purchaseagreements, Wi-Fi issued warrants to acquire 5,000,000 shares of common stock at .$20 pershare, 5,000,000 shares of common stock at $.30 per share, 5,000,000 shares of common stockat $.40 and 5,000,000 shares of common stock at $.50 per share. These warrants expire in June2008. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In June 2003, the majority stockholder contributed $1,000 to Wi-Fi. |
|---------------------------------------------------------------------|

| On June 30, 2003, Wi-Fi issued 800,000 shares of common stock for services. The serviceswere valued at $.10 per share and recorded as expense during the period ended September 30,2003. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In July and August 2003, Wi-Fi issued 2,275,000 shares of common stock for services. Theservices were valued using the market price on the date issued, resulting in $1,727,250 incompensation expense. 500,000 shares of the stock valued at $470,000 was issued to thesecretary and vice president as an employment bonus to serve as an officer of Wi-Fi withouttaking cash consideration. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In September 2003, Wi-Fi issued warrants to acquire 1,000,000 shares of common stock at..$20 per share, 1,000,000 shares of common stock at $.30 per share, 1,000,000 shares ofcommon stock at $.40 and 1,000,000 shares of common stock at $.50 per share. Thesewarrants expire on September 14, 2008. These warrants were issued as a cost of raising thefunding obtained during the period ended September 30, 2003. The warrants were valuedusing “black scholes” and charged against equity as a financing cost, resulting in no change innet equity. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| On September 23, 2003, Wi-Fi amended and restated its certificate of incorporation to increasethe number of authorized shares of stock to 250,000,000. Wi-Fi is authorized to issue200,000,000 shares of common and 50,000,000 shares of preferred stock. The board ofdirectors is authorized to determine the designation, preferences and rights of the preferredstock. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 3.  Employment Agreements |   |
|--------------------------------|--------|

| In September 2003, Wi-Fi entered into three-year employment agreements with its president,David Loflin, and vice-president and secretary, Waddell D. Loflin. The annual compensationunder these agreements is $150,000 and $100,000 for the president and vice-president,respectively. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| <PAGE> |
|--------------|

|   |
|--------|

| FORWARD-LOOKING STATEMENTS |
|----------------------------|

| This report by Air-Q Wi-Fi Corporation contains forward-looking statements. These arestatements regarding financial and operating performance and results and other statements thatare not historical facts. The words "expect", "project", "estimate", "believe", "anticipate","intend", "plan", "forecast" and similar expressions are intended to identify forward-lookingstatements. Certain important risks could cause results to differ materially from thoseanticipated by some of the forward-looking statements. Some, but not all, of the importantrisks that could cause actual results to differ materially from those suggested by theforward-looking statements include, among other things: |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Events that deprive us of the services of our president and largest shareholder, DavidLoflin; |
|---|-----------------------------------------------------------------------------------------------|

| - | Whether or not we can successfully introduce our Wi-Fi Internet access services in ourchosen markets; |
|---|-------------------------------------------------------------------------------------------------------|

| - | Whether we are able to obtain adequate capital with which to pursue our full businessplan; and |
|---|------------------------------------------------------------------------------------------------|

| - | Other uncertainties, all of which are difficult to predict and many of which are beyondour control. |
|---|-----------------------------------------------------------------------------------------------------|

| We do not intend to update forward-looking statements. |
|--------------------------------------------------------|

|   |
|--------|

| Item 2. Management’s Discussion and Analysis of Financial Condition and Results ofOperations. |   |
|-----------------------------------------------------------------------------------------------------|--------|

| Background. |   |
|-------------|--------|

| On June 20, 2003, there occurred a change in control of Air-Q Wi-Fi Corporation, formerlyCovenant Financial Corporation. Following the change in control transaction, ourthen-directors resigned and our new board of directors was installed. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Also, on June 20, 2003, pursuant to a stock purchase agreement, we acquired all of theoutstanding capital stock of Air-Q Corp., a Nevada corporation ("Air-Q NV"), by issuing atotal of 11,000,000 shares of our common stock to the shareholders of Air-Q NV. Our board ofdirectors did not employ any standard valuation formula or any other standard measure ofvalue. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Change in Business Plan. |   |
|--------------------------|--------|

|   | General. |   |
|--------|----------|--------|

|   | We are a start-up business. Our new management has committed all available current andfuture  capital and other resources to the commercial exploitation of our "Wi-Fi" (wirelessfidelity) Internet access products (these proprietary products are referred to as our Wi-Fiproducts). Our first market is Baton Rouge, Louisiana. Our business plan is based on themarketing of our wireless Internet access services (these services are referred to as ourWi-Fi services) to businesses and residential customers using our Wi-Fi products. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | What is Wi-Fi? |   |
|--------|----------------|--------|

|   | The term "Wi-Fi" is short for "wireless fidelity" and refers to an industry standard forwireless equipment that meets published 802.11(x) standards. Wi-Fi equipment operates inunlicensed spectra, such as 2.4 and 5.8 GHz. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Recent Sales of Equity. |   |
|-------------------------|--------|

| On June 20, 2002, we entered into a securities purchase agreement with Douglasdale CapitalLtd., whereby we issued securities for cash in the amount of $125,000. We sold DouglasdaleCapital (1) 1,250,000 shares of our common stock, (2) 1,250,000 common stock purchasewarrants to purchase a like number of shares at an exercise price of $.20 per share, (3)1,250,000 common stock purchase warrants to purchase a like number of shares at an exerciseprice of $.30 per share, (4) 1,250,000 common stock purchase warrants to purchase a likenumber of shares at an exercise price of $.40 per share and (5) 1,250,000 common stockpurchase warrants to purchase a like number of shares at an exercise price of $.50 per share. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| On June 20, 2002, we entered into a securities purchase agreement with Douglasbank CapitalLtd., whereby we issued securities for cash in the amount of $125,000. We sold DouglasbankCapital (1) 1,250,000 shares of our common stock, (2) 1,250,000 common stock purchasewarrants to purchase a like number of shares at an exercise price of $.20 per share, (3)1,250,000 common stock purchase warrants to purchase a like number of shares at an exerciseprice of $.30 per share, (4) 1,250,000 common stock purchase warrants to purchase a likenumber of shares at an exercise price of $.40 per share and (5) 1,250,000 common stockpurchase warrants to purchase a like number of shares at an exercise price of $.50 per share. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| On June 27, 2002, we entered into a securities purchase agreement with Heyer Capital Fund,whereby we issued securities for cash in the amount of $125,000. We sold Heyer Capital (1)1,250,000 shares of our common stock, (2) 1,250,000 common stock purchase warrants topurchase a like number of shares at an exercise price of $.20 per share, (3) 1,250,000 commonstock purchase warrants to purchase a like number of shares at an exercise price of $.30 pershare, (4) 1,250,000 common stock purchase warrants to purchase a like number of shares atan exercise price of $.40 per share and (5) 1,250,000 common stock purchase warrants topurchase a like number of shares at an exercise price of $.50 per share. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| On June 27, 2002, we entered into a securities purchase agreement with 1008212 Alberta Ltd.,whereby we issued securities for cash in the amount of $125,000. We sold 1008212 Alberta(1) 1,250,000 shares of our common stock, (2) 1,250,000 common stock purchase warrants topurchase a like number of shares at an exercise price of $.20 per share, (3) 1,250,000 commonstock purchase warrants to purchase a like number of shares at an exercise price of $.30 pershare, (4) 1,250,000 common stock purchase warrants to purchase a like number of shares atan exercise price of $.40 per share and (5) 1,250,000 common stock purchase warrants topurchase a like number of shares at an exercise price of $.50 per share. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Critical Accounting Policies. |   |
|-------------------------------|--------|

| There were no material changes to our critical accounting policies during the period endedSeptember 30, 2003. |
|---------------------------------------------------------------------------------------------------------------|

| Management's Discussion and Analysis discusses the results of operations and financialcondition as reflected in our financial statements, which have been prepared in accordancewith accounting principles generally accepted in the United States of America. The preparationof financial statements in conformity with accounting principles generally accepted in theUnited States of America requires management to make estimates and assumptions that affectthe reported amounts of assets and liabilities,  disclosure of contingent assets and liabilities atthe date of the financial statements and reported amounts of revenues and expenses during thereporting period. On an ongoing basis, management evaluates its estimates and judgments,including those related to accounts receivable, inventory valuation, amortization andrecoverability of long-lived assets,  including  goodwill,  litigation accruals and revenuerecognition. Management bases its estimates and judgments on our historical experience andother relevant factors, the results of which form the basis for making judgments about thecarrying values of assets and liabilities that are not readily apparent from other sources. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| While we believe that the historical experience and other factors considered provide ameaningful basis for the accounting  policies applied in the preparation of our consolidatedfinancial statements, we cannot guarantee that our estimates and assumptions will be accurate.If such estimates and assumptions prove to be inaccurate, we may be required to makeadjustments to these estimates in future periods. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Results of Operations. |   |
|------------------------|--------|

| During the period ended September 30, 2003, we did not generate revenues from our businessoperations.  However, since September 30, 2003, we have begun to derive small amounts ofrevenues from our Baton Rouge Wi-Fi system. Our statement of operations for the fourthquarter of 2003 will reflect these revenues. We currently lack the capital necessary to pursueour full-scale business plan, and we may never possess enough capital with which to do so. Inthis circumstance, it is likely that we would never earn a profit. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Due to our severe lack of capital, during the period ended September 30, 2003, we issued atotal of 3,075,000 shares of our common stock to consultants in payment of their services. Thefair value of the shares issued to consultants is $1,807,250 and is included in our statement ofexpenses. Issuing shares of our common stock was the only means by which we could obtainthe consultants' services. The full value of the consulting services received by us under eachagreement has been expensed. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Liquidity and Capital Resources. |   |
|----------------------------------|--------|

| Since our inception, we have lacked adequate capital with which to accomplish our businessobjectives. Currently, we are moderately liquid; we believe that we possess enough cash,through the result of recent securities sales, to complete the construction of our Baton RougeWi-Fi system and to begin the marketing of our Wi-Fi services there, as well as to enter intohotspot development agreements designed to expand our “footprint”.  We have structured ourbusiness plan around the funds to be derived from the recent sales of our securities and fromthe exercise of the warrants issued in connection with such sales of securities. There is noassurance that any of these warrants will be exercise. Our business will be materially adverselyaffected, should these warrants not be exercised by their holders. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Our Capital Needs. |   |
|--------|--------------------|--------|

|   | Our current level of operations can be maintained for the next year, as we received fundsfrom our recent sales of securities. However, to accomplish our business objectives, wewill require at least $2 million. If we are unable to obtain this needed capital, we could beforced to cease our operations. Currently we do not possess enough capital to accomplishour business objectives on a full-scale basis. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Management's Plans Relating to Future Liquidity. |   |
|--------------------------------------------------|--------|

| To sustain our current level of operations for the next twelve months, we will requireadditional capital of approximately $100,000. To accomplish our business objectives, we willrequire at least $2 million. Our best opportunity for obtaining needed funds is through theexercise of the 24,000,000 outstanding warrants, which, if exercised, would provide a total of$7,000,000. There is no assurance that these warrants will be exercised. We do not currentlypossess a source of capital on the scale necessary for us to accomplish our business objectives. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Capital Expenditures. |   |
|-----------------------|--------|

| Through September 2003, we made only small expenditures for needed equipment. Wecurrently have limited capital with which to make any significant capital expenditures. Shouldwe obtain significant funding, of which there is no assurance, we would be able to makesignificant expenditures on equipment. The amount of these equipment purchases cannot bepredicted due to the uncertainty of funding levels and timing. However, without additionalcapital, we will make no capital expenditures. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| Item 3. Controls and Procedures. |   |
|----------------------------------|--------|

| Our Chief Executive Officer and Acting Chief Financial Officer has reviewed and evaluatedthe effectiveness of our disclosure controls and procedures (as defined in the SecuritiesExchange Act of 1934 Rules 240.13a-14(c) and 15d-14(c)) as of the end of the period coveredby this report and has concluded that such disclosure controls and procedures are effective intimely alerting him and other members of management to material information about ourcompany required to be disclosed by us in our periodic reports that we file or submit under theSecurities Exchange Act of 1934. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| There have not been any significant changes in our internal controls over financial reporting(as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of1934) during the fiscal quarter to which this report relates that have materially affected, or arereasonably likely to materially affect, our internal control over financial reporting. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| PART II - OTHER INFORMATION |
|-----------------------------|

| Item 1. Legal Proceedings. |   |
|----------------------------|--------|

| We are not currently involved in any legal proceeding. |
|--------------------------------------------------------|

|   |
|--------|

| Item 2. Changes in Securities. |   |
|--------------------------------|--------|

| During the three months ended September 30, 2003, we issued securities as follows: |
|------------------------------------------------------------------------------------|

| 1.     | (a) | Securities Sold. In July 2003, 400,000 shares of Company Common Stock wereissued.                                                                                                                                                                                                                                                                          |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such shares of Common Stock were issued toSteven Viegas.                                                                                                                                                                                                                                                                  |
|   | (c) | Consideration. Such shares of Common Stock were issued pursuant to aconsulting agreement and were valued at $40,000.                                                                                                                                                                                                                                       |
|   | (d) | Exemption from Registration Claimed. These securities are exempt fromregistration under the Securities Act of 1933, as amended, pursuant to theprovisions of Section 4(2) thereof and Rule 506 thereunder, as a transaction notinvolving a public offering. This purchaser was a sophisticated investor capable ofevaluating an investment in the Company. |

| 2.     | (a) | Securities Sold. In July 2003, 250,000 shares of Company Common Stock wereissued.                                                                                                                                                                                                                                                                          |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such shares of Common Stock were issued to B.Edward Haun & Company.                                                                                                                                                                                                                                                   |
|   | (c) | Consideration. Such shares of Common Stock were issued pursuant to aconsulting agreement and were valued at $25,000.                                                                                                                                                                                                                                       |
|   | (d) | Exemption from Registration Claimed. These securities are exempt fromregistration under the Securities Act of 1933, as amended, pursuant to theprovisions of Section 4(2) thereof and Rule 506 thereunder, as a transaction notinvolving a public offering. This purchaser was a sophisticated investor capable ofevaluating an investment in the Company. |

| 3.     | (a) | Securities Sold. In July 2003, 500,000 shares of Company Common Stock wereissued.                                                                                                                                                                                                                                                                          |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such shares of Common Stock were issued toWaddell D. Loflin.                                                                                                                                                                                                                                                              |
|   | (c) | Consideration. Such shares of Common Stock were issued as a bonus and werevalued at $50,000.                                                                                                                                                                                                                                                               |
|   | (d) | Exemption from Registration Claimed. These securities are exempt fromregistration under the Securities Act of 1933, as amended, pursuant to theprovisions of Section 4(2) thereof and Rule 506 thereunder, as a transaction notinvolving a public offering. This purchaser was a sophisticated investor capable ofevaluating an investment in the Company. |

| 4.     | (a) | Securities Sold. In August 2003, 625,000 shares of Company Common Stock wereissued.                                                                                                                                                                                                                                                                        |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such shares of Common Stock were issued toCamelot Lakes, Ltd.                                                                                                                                                                                                                                                             |
|   | (c) | Consideration. Such shares of Common Stock were issued pursuant to aconsulting agreement and were valued at $468,750.                                                                                                                                                                                                                                      |
|   | (d) | Exemption from Registration Claimed. These securities are exempt fromregistration under the Securities Act of 1933, as amended, pursuant to theprovisions of Section 4(2) thereof and Rule 506 thereunder, as a transaction notinvolving a public offering. This purchaser was a sophisticated investor capable ofevaluating an investment in the Company. |

| 5.     | (a) | Securities Sold. In August 2003, 500,000 shares of Company Common Stock wereissued.                                                                                                                                                                                                                                                                        |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such shares of Common Stock were issued toIntegrity Securities, LLC.                                                                                                                                                                                                                                                      |
|   | (c) | Consideration. Such shares of Common Stock were issued pursuant to aconsulting agreement and were valued at $375,000.                                                                                                                                                                                                                                      |
|   | (d) | Exemption from Registration Claimed. These securities are exempt fromregistration under the Securities Act of 1933, as amended, pursuant to theprovisions of Section 4(2) thereof and Rule 506 thereunder, as a transaction notinvolving a public offering. This purchaser was a sophisticated investor capable ofevaluating an investment in the Company. |

| 6.     | (a) | Securities Sold. In September 2003, a total of 4,000,000 common stock purchasewarrants of the Company were issued.                                                                                                                                                                               |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such options were issued to Shelter Capital Ltd.                                                                                                                                                                                                                |
|   | (c) | Consideration. Such warrants were issued pursuant to a finder’s fee agreement.                                                                                                                                                                                                             |
|   | (d) | Exemption from Registration Claimed. These securities were sold to a singlenon-U.S. purchaser and are exempt from registration under the Securities Act of1933, as amended, pursuant to the provisions of Regulation S thereunder.                                                               |
|   | (e) | Terms of Conversion or Exercise. Exercise prices of the warrants: 1,000,000shares at $.20 per share; 1,000,000 shares at $.30 per share; 1,000,000 shares at$.40 per share; and 1,000,000 shares at $.50 per share. All of the warrants areexercisable for a period of five years from issuance. |

|   |
|--------|

| Item 3. Defaults upon Senior Securities. |   |
|------------------------------------------|--------|

|   | None. |
|--------|-------|

|   |
|--------|

| Item 4. Submission of Matters to a Vote of Security Holders. |   |
|--------------------------------------------------------------|--------|

|   | None. |
|--------|-------|

|   |
|--------|

| Item 5. Other Information. |   |
|----------------------------|--------|

|   | None. |
|--------|-------|

|   |
|--------|

| Item 6. Exhibits and Reports on Form 8-K. |   |
|-------------------------------------------|--------|

| (a) Exhibits. |   |
|---------------|--------|

|   | Exhibit No. |   | Description |   |
|--------|-------------|--------|-------------|--------|

|   | 31.1 |   | Certification of Chief Executive Officer required by Rule13a-14(a) or Rule 15d-14(b) |   |
|--------|------|--------|--------------------------------------------------------------------------------------|--------|

|   | 31.2 |   | Certification of Chief Financial Officer required by Rule13a-14(a) or Rule 15d-14(b) |   |
|--------|------|--------|--------------------------------------------------------------------------------------|--------|

|   | 32.1 |   | Certification of Chief Executive Officer Pursuant to 18U.S.C. Section 1350 |   |
|--------|------|--------|----------------------------------------------------------------------------|--------|

|   | 32.2 |   | Certification of Chief Financial Officer Pursuant to 18U.S.C. Section 1350 |   |
|--------|------|--------|----------------------------------------------------------------------------|--------|

| (b) Reports on Form 8-K. |   |
|--------------------------|--------|

|   | During the three months ended September 30, 2003, we two Current Reports on Form8-K, as follows: |
|--------|--------------------------------------------------------------------------------------------------|

| - | Amendment No. 1 to a Current Report on Form 8-K, date of event: June 20, 2003,wherein we reported a change in control, was filed on August 15, 2003; thisCurrent Report on Form 8- K, as amended, is incorporated herein by this reference;and |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Date of Event: September 26, 2003, wherein we reported an amendment andrestatement of our certificate of incorporation and adoption of new bylaws; thisCurrent Report on Form 8- Kis incorporated herein by this reference. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| SIGNATURES |
|------------|

| In accordance with the requirements of the Securities Exchange Act of 1934, Registrant hasduly caused this report to be signed on its behalf by the undersigned, thereunto dulyauthorized. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Date: November 19, 2003 | AIR-Q WI-FI CORPORATION |
|-------------------------|-------------------------|

|   |
|--------|

|   |   | By: | /s/ DAVID LOFLIN |   |
|--------|--------|-----|------------------|--------|

|   | David Loflin |   |
|--------|--------------|--------|

|   | President and Acting ChiefFinancial Officer [PrincipalAccounting Officer] |   |
|--------|---------------------------------------------------------------------------|--------|