**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**









**FORM
      10-QSB**




(Mark
      One)




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




For
      the
      quarter ended ended September 30, 2006




** ̈**
            **TRANSITION
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                ACT OF
                1934 (No fee required)**




For
      the
      transition period from  to




Commission
      file number l-9224




**Arrow
      Resources Development, Inc.**


**(Name
      of Small Business Issuer in Its Charter)**





**DELAWARE**
            
            **56-2346563****(State
                or Other Jurisdiction of Incorporation or
                Organization)**
            
            **(I.R.S.
                Employer Identification
                No.)**





**Carnegie
                Hall Tower, 152 W. 57****th****Street, New York, NY 10019****(Address
                of Principal Executive Offices) (Zip
                Code)**




**212-262-2300**


**(Issuer’s
      Telephone Number, including Area Code)**




Securities
      registered under Section 12(b) of the Exchange Act:




**Title
                of Each Class**
            
            **Name
                of Each Exchange on Which Registered**Common
                stock - par value $0.00001
            
            OTC:
                Bulletin Board




Securities
      registered under Section 12(g) of the Exchange Act: None







**(Title
      of Class)**









Check
      whether the issuer; (1) filed all reports required to be filed by
      Section 13 or 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.
      Yes x No  ̈




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act. Yes  ̈ No x




The
      number of shares outstanding of each of the issuer’s classes of common equity,
      as of November 6, 2006.




**Class**
            
            **Outstanding
                at November 6, 2006**Common
                stock - par value $0.00001
            
            649,543,240


















ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)


FORM
      10-QSB


NINE
      MONTHS ENDED SEPTEMBER 30, 2006








**TABLE
      OF CONTENTS**


**PART
                  I - FINANCIAL INFORMATION**
              **Page**Item
                  1. Financial Statements:Consolidated
                  Balance Sheets (At September 30, 2006 and December 31,
                  2005)
              F-1Consolidated
                  Statement of Operations (three months and nine months ended September
                  30,
                  2006 and for the period from inception November 15, 2005 to September
                  30,
                  2006)
              F-2Consolidated
                  Statement of Changes in Stockholders’ Equity (For the nine months ended
                  September 30, 2006)
              F-3Consolidated
                  Statement of Cash Flows (For the nine months ended September 30,
                  2006 and
                  for the period from inception November 15, 2005 to September 30,
                  2006)
              F-
                  4Notes
                  to the Consolidated Financial Statements
              F
                  -
                  5-13Item
                  2. Management's Discussion and Analysis of Financial Condition
                  and Results
                  of Operations
              14Item
                  3. Controls and Procedures
              17**PART
                  II - OTHER INFORMATION**Item
                  1. Legal Proceedings
              17Item
                  2. Other Information
              17Item
                  3. Exhibits
              18Signatures
              19














**PART
      I - FINANCIAL INFORMATION**





**Item 1.**
            **Financial
                Statements**





ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)





Consolidated
      Balance Sheets (during the development stage)


September
      30, 2006 and December 31, 2005


September
                  30, 2006
              
              December
                  31, 2005ASSETSCurrent:Cash
              
              $
              —
              
              $
              3,084Prepaid
                  expenses
              
              
              1,888
              
              
              —Total
                  current assets
              
              
              1,888
              
              
              3,084Amortizable
                  intangible assetMarketing
                  and distribution agreement
              
              
              125,000,000
              
              
              125,000,000Total
                  assets
              
              $
              125,001,888
              
              $
              125,003,084LIABILITIES
                  AND STOCKHOLDERS’ EQUITYCurrent:Accounts
                  and accrued expenses payable (including $2,049,066 and $844,212
                  due to
                  shareholders, respectively)
              
              $
              2,771,248
              
              $
              1,482,877Due
                  to related parties
              
              
              2,846,147
              
              
              1,332,764Notes
                  payable, including accrued interest of $20,000 (2005)
              
              
              245,000
              
              
              220,000Total
                  liabilities
              
              
              5,862,395
              
              
              3,035,641Commitments
                  and contingencies
              
              
              —
              
              
              —STOCKHOLDERS’
                  EQUITYCommon
                  stock, $0.00001 par value, 1 billion shares authorized, 649,543,240
                  issued
                  and outstanding
              
              
              6,495
              
              
              6,495Preferred
                  stock, $0.10 par value, 10 million shares authorized, none issued
                  and
                  outstanding
              
              
              —
              
              
              —Additional
                  paid-in capital
              
              
              123,433,206
              
              
              123,233,206Accumulated
                  deficit
              
              
              (4,300,208
              )
              
              (1,272,258
              )Total
                  stockholders’ equity
              
              
              119,139,493
              
              
              121,967,443Total
                  liabilities and stockholders’ equity
              
              $
              125,001,888
              
              $
              125,003,084
  *See
        accompanying notes to the consolidated financial statements.*







ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)





Consolidated
      Statement of Operations (during the development stage)


For
      the
      three months and nine months ended September 30, 2006 and for the period from
      inception (November 15, 2005) to September 30, 2006


For
                  the Three Months Ended September 30, 2006
              
              For
                  the Nine Months Ended September 30, 2006
              
              For
                  the Period From Inception (November 15, 2005) to December 31,
                  2005
              
              Accumulated
                  during the development stage for the Period From Inception (November
                  15,
                  2005) to September 30, 2006Revenue
              
              $
              -
              
              $
              -
              
              $
              -
              
              $
              -Operating
                  expenses:Consulting
                  fees and services, including $794,045, $2,442,805 and $939,401
                  incurred to
                  related parties, respectively
              
              
              807,300
              
              
              2,560,972
              
              
              1,022,087
              
              
              3,583,059General
                  and administrative
              
              
              162,503
              
              
              466,978
              
              
              919
              
              
              467,897Total
                  operating expenses
              
              
              969,803
              
              
              3,027,950
              
              
              1,023,006
              
              
              4,050,956Loss
                    from operations during thedevelopment stage
              
              
              (969,803
              )
              
              (3,027,950
              )
              
              (1,023,006
              )
              
              (4,050,956
              )Other
                  Expense:Expenses
                  incurred as part of recapitalization transaction
              
              
              -
              
              
              -
              
              
              249,252
              
              
              249,252Net
                  loss
              
              $
              (969,803
              )
              $
              (3,027,950
              )
              $
              (1,272,258
              )
              $
              (4,300,208
              )Basic
                  and diluted net loss per weighted-average shares common stock
                  outstanding
              
              $
              (0.001
              )
              $
              (0.005
              )
              $
              (0.003
              )
              $
              (0.007
              )Weighted-average
                  number of shares of common stock outstanding
              
              
              649,543,240
              
              
              649,543,240
              
              
              423,841,112
              
              
              603,016,924


*See
      accompanying notes to the consolidated financial statements.*







ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)




Consolidated
      Statement of Changes in Stockholders’ Equity (during the development
      stage)


**Common
                  Stock**
              
              **Additional**
              
              **Accumulated**
              
              **Total****Shares**
              
              **Amount**
              
              **Paid-in Capital**
              
              **Deficit**Balance,
                  November 14, 2005 pursuant to recapitalization transaction
              
              
              25,543,240
              
              $
              255
              
              $
              (2,674,761
              )
              $
              --
              
              $
              (2,674,506
              )Common
                  stock conversion and settlement of senior note pursuant to
                  recapitalization transaction
              
              
              624,000,000
              
              
              6,240
              
              
              125,907,967
              
              
              
              
              
              125,914,207Net
                  loss for the period from November 15, 2005 to December 31,
                  2005
              
              
              
              
              
              
              
              
              
              
              
              (1,272,258
              )
              
              (1,272,258
              )Balance,
                  December 31, 2005
              
              
              649,543,240
              
              $
              6,495
              
              $
              123,233,206
              
              $
              (1,272,258
              )
              $
              121,967,443Common
                  stock to be issued for cash received by Company
              
              
              
              
              
              
              
              
              200,000
              
              
              
              
              
              200,000Net
                  loss
              
              
              
              
              
              
              
              
              
              
              
              (3,027,950
              )
              
              (3,027,950
              )Balance
                  at September 30, 2006
              
              
              649,543,240
              
              $
              6,495
              
              $
              123,433,206
              
              $
              (4,300,208
              )
              $
              119,139,493


*See
        accompanying notes to the consolidated financial statements.*








ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)




Consolidated
      Statement of Cash Flows (during the development stage)


For
      the
      nine months ended September 30, 2006 and for the period from inception (November
      15, 2005) to September 30, 2006)


For
                  the Nine Months Ended September 30, 2006
              
              For
                  the Period From Inception (November 15, 2005) to December 31,
                  2005
              
              Accumulated
                  during the development stage for the Period From Inception (November
                  15,
                  2005) to September 30, 2006Net
                  loss
              
              $
              (3,027,950
              )
              $
              (1,272,258
              )
              $
              (4,300,208
              )Adjustments
                  to reconcile net loss to net cash provided by (used in) operating
                  activities:Net
                  non-cash change in stockholders’ equity due to recapitalization
                  transaction
              
              
              -
              
              
              1,264,217
              
              
              1,264,217Changes
                  in operating asset and liabilities:Increase
                  in prepaid expenses
              
              
              (1,888
              )
              
              -
              
              
              (1,888
              )Increase
                  in accounts and accrued expenses payable
              
              
              1,288,371
              
              
              246,316
              
              
              1,534,687Net
                  cash provided by (used in) operating activities
              
              
              (1,741,467
              )
              
              238,275
              
              
              (1,503,192
              )Cash
                  flows from investing activities:Cash
                  acquired as part of merger transaction
              
              
              -
              
              
              39,576
              
              
              39,576Net
                  cash provided by investing activities
              
              
              -
              
              
              39,576
              
              
              39,576Cash
                  flows from financing activities:Proceeds
                  of issuance of note payable
              
              
              25,000
              
              
              -
              
              
              25,000Net
                  increase (decrease) in due to related parties attributed to operating
                  expenses paid on the Company’s behalf by the related party
              
              
              1,513,383
              
              
              (324,767
              )
              
              1,188,616Net
                  increase in investments/capital contributed
              
              
              200,000
              
              
              -
              
              
              200,000Advances
                  from senior advisor
              
              
              -
              
              
              50,000
              
              
              50,000Net
                  cash provided by (used in) financing activities
              
              
              1,738,383
              
              
              (274,767
              )
              
              1,463,616Net
                  change in cash
              
              
              (3,084
              )
              
              3,084
              
              
              -Cash
                  balance at beginning of period
              
              
              3,084
              
              
              -
              
              
              -Cash
                  balance at end of period
              
              $
              -
              
              $
              3,084
              
              $
              -Supplemental
                  disclosures of cash flow information:Cash
                  paid during the period for:Income
                  taxes
              
              $
              -
              
              $
              -
              
              $
              -Interest
                  expense
              
              $
              -
              
              $
              -
              
              $
              -Non-cash
                  investing and financing activities:Non-cash
                  purchase of marketing and distribution agreement
              
              $
              -
              
              $
              125,000,000
              
              $
              125,000,000Settlement
                  of senior note payable through issuance of convertible preferred
                  stock
              
              $
              -
              
              $
              125,000,000
              
              $
              125,000,000Non-cash
                  acquisition of accrued expenses in recapitalization
              
              $
              -
              
              $
              421,041
              
              $
              421,041Non-cash
                  acquisition of notes payable in recapitalization
              
              $
              -
              
              $
              220,000
              
              $
              220,000


*See
        accompanying notes to the consolidated financial statements.*





ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)


NOTES
      TO
      THE CONSOLIDATED FINANCIAL STATEMENTS




NOTE
      1 -
      NATURE OF BUSINESS / ORGANIZATION




Business
      Description




Arrow
      Resources Development, Inc. and Subsidiaries (“the Company”), is a development
      stage company. The Company was subject to a change of control transaction that
      was accounted for as a recapitalization of CNE Group, Inc. (“CNE”) in November
      2005. Arrow Resources Development, Ltd., (“Arrow Ltd.” or “Arrow”) the Company’s
      wholly-owned subsidiary, was incorporated in Bermuda in May 2005. Arrow Ltd.
      provides marketing and distribution services for natural resource products
      and
      currently has an exclusive marketing and distribution agreement with Arrow
      Pacific Resources (s) Pte. Ltd. (“Arrow PNG”) to market lumber and related
      products from land leased by Arrow PNG’s timber subsidiaries in Papua, New
      Guinea. Under the agreement Arrow Ltd. will receive a commission of 10% of
      gross
      sales derived from lumber and related products.




NOTE
      2 -
      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES




Principles
      of consolidation:




The
      accompanying consolidated financial statements include the accounts of the
      Company and its wholly-owned subsidiary, Arrow. All significant inter-company
      balances and transactions have been eliminated.




Income
      taxes:




The
      Company follows SFAS No. 109, “Accounting for Income Taxes.” Under the asset and
      liability method of SFAS No. 109, deferred tax assets and liabilities are
      recognized for the future tax consequences attributable to differences between
      the financial statement carrying amounts of existing assets and liabilities
      and
      their respective tax bases. A valuation allowance has been provided for the
      Company’s net deferred tax asset, due to uncertainty of realization.




Fair
      value of financial instruments:




For
      financial statement purposes, financial instruments include cash, accounts
      and
      accrued expenses payable, and amounts due to Empire Advisory, LLC (“Empire”) (as
      discussed in Notes 6 and 7) for which the carrying amounts approximated fair
      value because of their short maturity.




Use
      of
      estimates:




The
      preparation of consolidated financial statements in conformity with accounting
      principles generally accepted in the United States of America requires
      management to make estimates and assumptions that affect the reported amounts
      of
      assets and liabilities and disclosure of contingent assets and liabilities
      at
      the date of the consolidated financial statements and the reported amounts
      of
      revenues and expenses during the reporting period. Actual results may differ
      from those estimates.









ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)


NOTES
      TO
      THE CONSOLIDATED FINANCIAL STATEMENTS




NOTE
      2 -
      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)




Loss
      per
      share:




The
      Company complies with the requirements of the Financial Accounting Standards
      Board issued Statement of Financial Accounting Standards No. 128, “Earning per
      share” (“SFAS No. 128”). SFAS No. 128 specifies the compilation, presentation
      and disclosure requirements for earning per share for entities with publicly
      held common stock or potentially common stock. Net loss per common share, basic
      and diluted, is determined by dividing the net loss by the weighted average
      number of common shares outstanding.




Net
      loss
      per diluted common share does not include potential common shares derived from
      stock options and warrants because they are anti-dilutive for the period ended
      September 30, 2006. As of September 30, 2006, there are no dilutive equity
      instruments outstanding.




Acquired
      intangibles:




Intangible
      assets are comprised of an exclusive sales and marketing agreement. In
      accordance with SFAS 142, “Goodwill and Other Intangible Assets” the Company
      assesses the impairment of identifiable intangibles whenever events or changes
      in circumstances indicate that the carrying value may not be recoverable.
      Factors the Company considers to be important which could trigger an impairment
      review include the following:




1.
                Significant underperformance relative to expected historical or projected
                future operating results;2.
                Significant changes in the manner of use of the acquired assets or
                the
                strategy for the overall business; and3.
                Significant negative industry or economic trends.





When
      the
      Company determines that the carrying value of intangibles may not be recoverable
      based upon the existence of one or more of the above indicators of impairment
      and the carrying value of the asset cannot be recovered from projected
      undiscounted cash flows, the Company records an impairment charge. The Company
      measures any impairment based on a projected discounted cash flow method using
      a
      discount rate determined by management to be commensurate with the risk inherent
      in the current business model. Significant management judgment is required
      in
      determining whether an indicator of impairment exists and in projecting cash
      flows.




The
      sales
      and marketing agreement will be amortized over 99 years, utilizing the
      straight-line method. Amortization expense has not been recorded since the
      acquisition occurred as the company has not yet made any sales.







ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)


NOTES
      TO
      THE CONSOLIDATED FINANCIAL STATEMENTS




NOTE
      2 -
      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)




Recent
      Accounting Pronouncements:




In
      May
      2005, the FASB issued SFAS 154, “Accounting Changes and Error Corrections,” that
      applies to all voluntary changes in accounting principle. This Statement
      requires retrospective application to prior periods’ financial statements of
      changes in accounting principle, unless it is impracticable to determine either
      the period-specific effects or the cumulative effect of the change. When it
      is
      impracticable to determine the period-specific effects of an accounting change
      on one or more individual prior periods presented, this Statement requires
      that
      the new accounting principle be applied to the balances of assets and
      liabilities as of the beginning of the earliest period for which retrospective
      application is practicable and that a corresponding adjustment be made to the
      opening balance of retained earnings (or other appropriate components of equity
      or net assets in the statement of financial position) for that period rather
      than being reported in an income statement. When it is impracticable to
      determine the cumulative effect of applying a change in accounting principle
      to
      all prior periods, this Statement requires that the new accounting principle
      be
      applied as if it were adopted prospectively from the earliest date practicable.
      SFAS 154 will be effective for the Company for fiscal year ended December 31,
      2007. The Company does not anticipate that the adoption of SFAS No. 154 will
      have an impact on the Company’s overall results of operations or financial
      position.







ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)


NOTES
      TO
      THE CONSOLIDATED FINANCIAL STATEMENTS




NOTE
      2 -
      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)




Recent
      Accounting Pronouncements (continued):




In
      February 2006, the FASB issued SFAS 155, “Accounting for Certain Hybrid
      Financial Instruments—an amendment of FASB Statements No. 133 and 140,” that
      allows a preparer to elect fair value measurement at acquisition, at issuance,
      or when a previously recognized financial instrument is subject to a
      remeasurement (new basis) event, on an instrument-by-instrument basis, in cases
      in which a derivative would otherwise have to be bifurcated. It also eliminates
      the exemption from applying Statement 133 to interests in securitized financial
      assets so that similar instruments are accounted for similarly regardless of
      the
      form of the instruments. This Statement is effective for all financial
      instruments acquired or issued after the beginning of an entity’s first fiscal
      year that begins after September 15, 2006. The Company does not anticipate
      that
      the adoption of SFAS No. 155 will have an impact on the Company’s overall
      results of operations or financial position.




In
      March
      2006, the FASB issued SFAS 156, “Accounting for Servicing of Financial Assets—an
      amendment of FASB Statement No. 140,” that applies to the accounting for
      separately recognized servicing assets and servicing liabilities. This Statement
      requires that all separately recognized servicing assets and servicing
      liabilities be initially measured at fair value, if practicable. An entity
      should adopt this Statement as of the beginning of its first fiscal year that
      begins after September 15, 2006. The Company does not anticipate that the
      adoption of SFAS No. 156 will have an impact on the Company’s overall results of
      operations or financial position.




In
      July
      2006, the FASB issued FASB Interpretation No. 48, Accounting for Uncertainty
      in
      Income Taxes. The Interpretation clarifies the way companies are to account
      for
      uncertainty in income tax reporting and filing and prescribes a consistent
      recognition threshold and measurement attribute for recognizing, derecognizing,
      and measuring the tax benefits of a tax position taken, or expected to be taken,
      on a tax return. The Interpretation is effective for fiscal years beginning
      after December 15, 2006, although early adoption is possible. The Company does
      not plan to adopt early and the Company is currently in the process of
      evaluating the impact, if any, the adoption of the Interpretation will have
      on
      the 2007 financial statements.




In
      September 2006, the FASB issued SFAS 157, “Fair Value Measurements,” which
      defines fair value, establishes a framework for measuring fair value in
      generally accepted accounting principles (GAAP), and expands disclosures about
      fair value measurements. This Statement applies under other accounting
      pronouncements that require or permit fair value measurements, the Board having
      previously concluded in those accounting pronouncements that fair value is
      the
      relevant measurement attribute. Accordingly, this Statement does not require
      any
      new fair value measurements. The adoption of SFAS No. 157 will not have an
      impact on the Company's overall results of operations or financial
      position.





In
      September 2006, the Financial Accounting Standards Board (“FASB”) the issued
      SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other
      Postretirement Plans, an Amendment of FASB Statements No. 87, 88, 106, and
      132(R)” (“SFAS No. 158”). SFAS No. 158 requires companies to report the funded
      status of their defined benefit pension and other postretirement benefit plans
      on their balance sheets as a net liability or asset as of December 31, 2006.
      The
      new standard does not address the accounting treatment for pension and
      postretirement benefits in the income statement. This will have no impact on
      the
      Company’s results of operations or financial position.




NOTE
      3 -
      AGREEMENT AND PLAN OF MERGER BETWEEN ARROW RESOURCES DEVELOPMENT, LTD. AND
      CNE
      GROUP, INC.




In
      August
      2005, the Company entered into an Agreement and Plan of Merger (“the Agreement”)
      with CNE Group, Inc. (“CNE”) under which, CNE was required to issue 10 million
      shares of Series AAA convertible preferred stock (“the Preferred Stock”) to the
      Company, representing 96% of all outstanding equity of CNE on a fully diluted
      basis for the Marketing and Distribution Agreement provided to the Company,
      Empire, as agent. Under the Agreement, the Company changed its name to Arrow
      Resources Development, Inc. and divested all operations not related to Arrow
      Bermuda. The Preferred Stock contained certain liquidation preferences and
      each
      share of the Preferred Stock was convertible to 62.4 shares of common stock.




The
      transaction was consummated upon the issuance of the Preferred Stock on November
      14, 2005, which was used to settle the senior secured note payable for
      $125,000,000 and $1,161,000 of cash advances from Empire. The Preferred Stock
      was subsequently converted to common stock on December 2, 2005, for a total
      of
      approximately 649 million shares of common stock outstanding. This was recorded
      as a change of control transaction that was accounted for as a recapitalization
      of CNE.







ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)


NOTES
      TO
      THE CONSOLIDATED FINANCIAL STATEMENTS




NOTE
      4 -
      INCOME TAXES




The
      significant components of the Company’s deferred tax assets as of September 30,
      2006 are as follows:




Net
                operating loss carryforward
            
            $
            2,165,783Differences
                resulting from use of cash basis for tax purposes
            
            
            -Total
                deferred tax assets
            
            
            2,165,783Less
                valuation allowance
            
            
            (2,165,783
            )Net
                deferred tax assets
            
            $
            —







As
      of
      September 30, 2006, the Company has a net operating loss carryforward of
      $6,369,950 that expires through 2026. The Company has provided a valuation
      allowance against the full amount of the deferred tax asset due to management’s
      uncertainty about its realization. During the nine months ended September 30,
      2006, the increase in the valuation allowance was $1,029,503.




Net
      operating losses carried forward from the period prior to the recapitalization
      generated from discontinued operations of CNE are not available to the Company,
      as the Company has exited the relevant business activities.




NOTE
      5 -
      NOTES PAYABLE




As
      of
      September 30, 2006 and December 31, 2005, the Company had notes payable
      outstanding as follows:







**Holder**
            
            **Terms**
            
            **September
                30,**
            
            **December
                31,****2006**
            
            **2005**Barry
                Blank (1)
            
            
            Due
                on demand, 10% interest
            
            $
            200,000
            
            $
            200,000H.
                Lawrence Logan
            
            
            Due
                on demand, non-interest bearing
            
            
            25,000
            
            
            --Accrued
                interest (1)
            
            
            
            
            
            20,000
            
            
            20,000**Total**
            
            
            
            
            $
            245,000
            
            $
            220,000




(1)
      The
      Company has a note payable outstanding for $200,000, plus $20,000 in accrued
      interest. Although the predecessor company (CNE) reserved 456,740 shares of
      its
      common stock to retire this debt pursuant to a settlement agreement, the stock
      cannot be issued until the party to whom the note was assigned by its original
      holder emerges from bankruptcy or reorganization. During the nine months ended
      September 30, 2006, no interest expense was recorded  on
      the
      note as the number of shares to be issued was determined in the settlement
      agreement, executed prior to the recapitalization.







ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)


NOTES
      TO
      THE CONSOLIDATED FINANCIAL STATEMENTS




NOTE
      6 -
      MARKETING AND DISTRIBUTION AGREEMENT AND RELATED SENIOR NOTE PAYABLE DUE TO
      EMPIRE ADVISORY, LLC




As
      discussed in Note 1, in August 2005, Arrow Ltd. executed a marketing and
      distribution agreement with Arrow PNG. This agreement was valued at fair value
      as determined based on an independent appraisal, which approximated the market
      value of 96% of the CNE public stock issued in settlement of the note.




The
      marketing and distribution agreement will be amortized over the remainder of
      99
      years (the life of the agreement) once the Company commences sales. As of
      December 31, 2005, the Company had recorded a $125,000,000 amortizable
      intangible asset for this agreement and corresponding credits to common stock
      and additional paid-in capital in conjunction with the stock settlement of
      the
      senior secured note payable to Empire and related cash advances in the same
      aggregate amount. The senior secured note payable was non-interest bearing
      and
      was repaid in the form of the preferred stock, which was subsequently converted
      to common stock (See Note 3). Any preferred stock issued under the senior
      secured note payable is considered restricted as to the sale thereof under
      SEC
      Rule 144 as unregistered securities. No amortization of the agreement was taken
      during the nine months ended September 30, 2006, as the relevant operations
      had
      not yet commenced. Operations are expected to commence during the 2007 fiscal
      year.




NOTE
      7 -
      RELATED PARTY TRANSACTIONS




**[1]** Management
      Agreement with Empire Advisory, LLC:




Effective
      August 1, 2005, Arrow Ltd. entered into a Management Agreement with Empire,
      under which Empire provides chief executive officer and administrative services
      to the Company in exchange for a) an annual fee of $300,000 for overhead
      expenses, b) $25,000 per month for rent, c) $1,000,000 per annum (subject to
      increases in subsequent years) for executive services, and d) a one-time fee
      of
      $150,000 for execution of the proposed transaction. In addition, the Board
      of
      Directors authorized a one-time payment of $500,000 to Empire upon closing
      the
      transaction.




As
      of
      September 30, 2006 and December 31, 2005, the Company had short-term borrowings
      of $2,354,722 and $1,282,764, respectively, due to Empire, consisting of cash
      advances to the Company and working capital raised by Empire, as agent, on
      behalf of the Company. In addition the Company received advances of $316,425
      and
      $50,000, respectively, from Hans Karundeng. The Company will repay the loan
      amount in cash and conversion of the balance to shares of restricted stock
      of
      Arrow Resources Development, Inc., if and when issued. These amounts are
      non-interest bearing and due on demand.




Peter
      Frugone is a member of the Board of Directors of the Company and is the owner
      of
      Empire. Empire, as agent, was the holder of the $125,000,000 senior secured
      note
      payable settled in December 2005.




Consulting
      fees and services charged in the Statement of Operations for the nine months
      ended September 30, 2006 incurred to Empire totaled $1,151,138.




During
      the nine months ended September 30, 2006, the Company received additional
      advances of $484,142 from Empire under the agreement.




**[2]** Engagement and Consulting Agreements entered into with individuals affiliated
      with Arrow PNG:




Consulting
      fees and services charged in the Statement of Operations for the nine months
      ended September 30, 2006 incurred to Hans Karundeng and Rudolph Karundeng under
      Engagement and Consulting Agreements totaled $1,291,666. In addition, as of
      September 30, 2006 and December 31, 2005, the Company owed them $2,049,066
      and
      $844,212, respectively, under these agreements. These agreements are discussed
      in detail in Note 10.




**[3]** Non-Interest Bearing Advance Received from Company Director:




In
      July
      2006, the Company received a $150,000 non-interest bearing advance from John
      E.
      McConnaughy, Jr., a Director of the Company, which is due on demand. As of
      September 30, 2006, the Company has $125,000 left to be repaid to Mr.
      McConnaughy, which is included in “Due to Related Parties.”








ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)


NOTES
      TO
      THE CONSOLIDATED FINANCIAL STATEMENTS




NOTE
      8 -
      STOCKHOLDER’S EQUITY




Arrow
      Resources Development, Ltd. was incorporated in May 2005 as a Bermuda
      corporation. Upon incorporation, 1,200,000 shares of $.01 par value common
      stock
      were authorized and issued to CNE.




On
      November 14, 2005, the Company increased its authorized shares to 1 billion
      and
      reduced the par value of its common stock to $0.00001 per share, resulting
      in a
      common stock conversion rate of 1 to 62.4.




On
      November 14, 2005, the Company completed a reverse merger with CNE Group, Inc.
      by acquiring 96% of the outstanding shares of CNE’s common stock in the form of
      convertible preferred stock issued in settlement of the senior note payable.




During
      2005, CNE divested or discontinued all of its subsidiaries in preparation for
      the reverse merger transaction. Accordingly, the results of operations for
      the
      divested or discontinued subsidiaries are not included in the consolidated
      results presented herein. In conjunction with the divestitures, CNE repurchased
      and retired all preferred stock and made certain payments to related parties.




In
      conjunction with the reverse merger transaction, the Company retired 1,238,656
      shares of Treasury Stock.




NOTE
      9 -
      GOING CONCERN




These
      consolidated financial statements are presented on the basis that the Company
      is
      a going concern. Going concern contemplates the realization of assets and the
      satisfaction of liabilities in the normal course of business over a reasonable
      period of time.




As
      shown
      in the accompanying consolidated financial statements, the Company incurred
      a
      net loss of $3,027,950 for the nine months ended September 30, 2006, and a
      net
      loss during the development stage from inception in November 15, 2005 through
      September 30, 2006 of $4,300,208. The Company’s operations are in the
      development stage, and the Company has not generated any revenue since
      inception. The Company’s existence in the current period has been dependent upon
      advances from related parties and other individuals, and the sale of senior
      notes payable.




The
      consolidated financial statements do not include any adjustments that might
      be
      necessary if the Company is unable to continue as a going concern.




NOTE
      10 -
      COMMITMENTS AND OTHER MATTERS




**[1]** Engagement and Consulting Agreements entered into with individuals affiliated
      with Arrow PNG.




Effective
      May 20, 2005, the Company entered into an Engagement Agreement with Hans
      Karundeng for business and financial consulting services for fees of $1,000,000
      per annum. The term of the agreement is five years. Payments under the agreement
      are subject to the Company's cash flow.




Effective
      August 1, 2005, the Company entered into a Consulting Agreement with Rudolph
      Karundeng for his services as Chairman of the Board of the Company for fees
      of
      $1,000,000 per annum. The term of the agreement was five years. Rudolph
      Karundeng is a son of Hans Karundeng. However, on May 1, 2006, the Company
      accepted the resignation of Rudolph Karundeng as Chairman of the Board, but
      he
      will continue to be a director of the Company. Peter Frugone has been elected
      as
      Chairman of the Board until his successor is duly qualified and elected.
      Subsequent to his resignation, it was agreed that Rudolph Karundeng’s annual
      salary is to be $500,000 as a director.




During
      the nine months ended September 30, 2006, the Company made cash payments of
      $82,758 to Hans Karundeng and $23,555 to Rudolph Karundeng under the agreements.







ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)


NOTES
      TO
      THE CONSOLIDATED FINANCIAL STATEMENTS





NOTE
      10 -
      COMMITMENTS AND OTHER MATTERS (CONTINUED)


**[2]** Management Agreement with Empire Advisory, LLC




Effective
      August 1, 2005, the Company entered into a Management Agreement with Empire,
      under which Empire provides chief executive officer and administrative services
      to the Company in exchange for a) an annual fee of $300,000 for overhead
      expenses, b) $25,000 per month for reimbursable expenses, c) $1,000,000 per
      annum (subject to increases in subsequent years) for executive services, and
      d)
      a one-time fee of $150,000 for execution of the proposed transaction.




**[3]** Litigation




The
      Company is a party to a lawsuit where the plaintiff is alleging that he is
      entitled to $60,000 and 1,300,000 of common stock based upon CNE’s failure
      to compensate him for services related to identifying financing for CNE,
      based upon an agreement that was entered into between CNE and the plaintiff
      in
      April 2005. The Company and its counsel strongly feel that the plaintiff’s
      claims against the Company have no merit, the likelihood of an unfavorable
      outcome is very low, and is prepared to vigorously defend the
      matter.




In
      May
      2006, the Company was advised that they were in default of a settlement
      agreement entered into in January of 2005 by CNE related to the release of
      unrestricted, freely-tradable, non-legend shares of stock. Management has agreed
      to release shares of the Company’s stock in consideration of the above
      matter.




**[4]** Consulting
      and Marketing Agreements




On
      April
      4, 2006, the Company entered into a consulting agreement with Dekornas GMPLH
      (“Dekornas”) (a non profit organization in Indonesia responsible for replanting
      of trees in areas that were destroyed by other logging companies) in which
      the
      Company will provide financial consultancy services to Dekornas for an annual
      fee of $1.00 for the duration of the agreement. The term of the agreement is
      effective upon execution, shall remain in effect for ten (10) years and shall
      not be terminated until the expiration of at least one (1) year. As of September
      30, 2006, the Company has not recovered any revenue from this
      agreement.





On
      April
      9, 2006, the Company entered into a marketing and distribution agreement with
      Shanghai Heyang Bio-Technology Development Co., Ltd. (“Shanghai”), a China
      limited company, in which Shanghai will supply and sell all of its timber
      resource products through the Company. The Company will market, promote,
      distribute and sell those timber resource products worldwide. The Company will
      be entitled to ten percent (10%) of the gross revenue earned by the Company
      from
      the sale of the products. The term of the agreement is effective upon execution
      and shall remain in effect for ninety-nine (99) years. As of September 30,
      2006,
      the Company has not recovered any revenue from this agreement.





On
      April
      14, 2006, the Company entered into a consulting agreement with P.T. Eucalyptus
      Alam Lestari (“Lestari”) in which the Company will provide financial consultancy
      services to Lestari for an annual fee, payable quarterly, equal to 10% of
      Lestari’s gross revenue payable commencing upon execution. The term of the
      agreement is effective upon execution, shall remain in effect for ninety-nine
      (99) years and shall not be terminated until the expiration of at least ten
      (10)
      years. As of September 30, 2006, the Company has not recovered any revenue
      from
      this agreement.




**[5]** Stock
      Purchase Agreement




On
      August
      2, 2006, the Company entered into a stock purchase agreement with Arrow Pacific
      Resources Group Limited (“APR”) wherein APR agreed to purchase up to an
      aggregate amount of 15,000,000 shares of common stock in the Company for $1.00
      per share, making this a capital contribution of $15,000,000 in total. The
      stock
      will be delivered at the time the Company files for registration. APR is
      currently the principal shareholder of the Company, owning 349,370,000 shares
      or
      53.78%. As of September 30, 2006, the Company has received $200,000 from APR
      towards the fulfillment of this agreement.










ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)


NOTES
      TO
      THE CONSOLIDATED FINANCIAL STATEMENTS




NOTE
      10 -
      COMMITMENTS AND OTHER MATTERS (CONTINUED)




The
      minimum future obligations for consulting fees and services are as follows:




**Years
                Ending September 30,**
            
            **Amounts**2007
            
            $
            3,376,0422008
            
            
            3,695,0522009
            
            
            4,093,8152010
            
            
            3,840,239$
            15,005,148






The
      Company also engages certain consultants to provide services including
      management of the corporate citizenship program and investor relation services.
      These agreements contain cancellation clauses with notice periods ranging from
      zero to sixty days.





NOTE
      11 -
      SUBSEQUENT EVENTS




In
      October 2006, the Company received an additional $335,000 capital contribution
      towards the stock purchase agreement with APR to purchase up to an aggregate
      amount of 15,000,000 shares of common stock in the Company for $1.00 per share
      (as noted in Note 10 above).











**Item 2.**
            **Management’s
                Discussion and Analysis of Financial Condition and Results of Operations**





**GENERAL**




We
      are a
      holding company whose only operating subsidiary as of November 15, 2005 is
      Arrow Bermuda. The principal business of Arrow is to provide marketing, sales,
      distribution, corporate operations and corporate finance services for the
      commercial exploitation of natural resources around the world.





**FORWARD-LOOKING
      STATEMENTS**




This
      report on Form 10-Q contains forward-looking statements relating to such matters
      as anticipated financial performance and business prospects. When used in this
      report, the words, "anticipates," "expects," "believes," "may," "intends,"
      and
      similar expressions are intended to be among the statements that identify
      forward-looking statements. From time to time, the Company may also publish
      forward-looking statements. The Private Securities Litigation Reform Act of
      1995
      provides a safe harbor for forward-looking statements. Forward-looking
      statements involve risks and uncertainties, including, but not


limited
      to, the consummation of certain events referred to in this report, technological
      changes, competitive factors, maintaining customer and vendor relationships,
      inventory obsolescence and availability, and other risks detailed in the
      Company's periodic filings with the Securities and Exchange Commission, which
      could cause the Company's actual results and experience to differ materially
      from the anticipated results or other expectations expressed in the Company's
      forward-looking statements.





**ARROW
      RESOURCES DEVELOPMENT, LTD.**




In
      August
      2005, Arrow entered into an Agreement and Plan of Merger (“the Agreement”) with
      its wholly-owned subsidiary, Arrow Bermuda, in which Arrow (formerly CNE) was
      required to issue 10,000,000 shares of Series AAA convertible preferred stock
      (“the Preferred Stock”) to Arrow Bermuda’s designees, representing 96% of all
      outstanding equity of CNE on a fully diluted basis in exchange for the Marketing
      and Distribution Agreement provided to the Company by Arrow. Under the
      Agreement, the Company discontinued all former operations (CareerEngine, Inc.,
      SRC and US Commlink.) and changed its name to Arrow Resources Development,
      Inc.





On
      August 1, 2005, Arrow Ltd. entered into the Marketing Agreement with Arrow
      Pacific and its subsidiaries in consideration for Arrow issuing a non-interest
      bearing note (the “Note”) in the principal amount of $125,000,000 to Empire
      Advisory, LLC, (“Empire”), acting as agent, due on or before December 31,
      2005. Empire is Arrow Pacific’s merchant banker. The Note permitted the Company,
      as Arrow’s sole stockholder, to cause Arrow to repay the Note in cash or with
      10,000,000 shares of the Company’s non-voting Series AAA Preferred Stock.





**CRITICAL
      ACCOUNTING POLICIES AND ESTIMATES**





The
      preparation of financial statements in accordance with U.S. generally accepted
      accounting principles requires us to make estimates and assumptions that affect
      the reported amounts of assets and liabilities at the date of the financial
      statements and the reported amounts of net revenue and expenses during the
      reporting period. On an ongoing basis, we evaluate our estimates, including
      those related to our allowance for doubtful accounts, inventory reserves,
      goodwill and purchased intangible asset valuations, and asset impairments.
      We
      base our estimates on historical experience and on various other assumptions
      that we believe to be reasonable under the circumstances, the results of which
      form the basis for making judgments about the carrying values of assets and
      liabilities. Actual results may differ from these estimates under different
      assumptions or conditions. We believe the following critical accounting
      policies, among others, affect the significant judgments and estimates we use
      in
      the preparation of our consolidated financial statements.







**VALUATION
      OF PURCHASED INTANGIBLE ASSETS**





We
      assess
      the impairment of other amortizable intangible assets and long-lived assets
      whenever events or changes in circumstances indicate that the carrying value
      may
      not be recoverable. Factors we consider important that could trigger an
      impairment review include significant underperformance to historical or
      projected operating results, substantial changes in our business strategy and
      significant negative industry or economic trends. If such indicators are
      present, we evaluate the fair value of the goodwill. For other intangible assets
      and long-lived assets we determine whether the sum of the estimated undiscounted
      cash flows attributable to the assets in question is less than their caring
      value. If less, we recognize an impairment loss based on the excess of the
      carrying amount of the assets over their respective fair values. Fair value
      of
      goodwill is determined by using a valuation model based on market
      capitalization. Fair value of other intangible assets and long-lived assets
      is
      determined by future cash flows, appraisals or other methods. If the long-lived
      asset determined to be impaired is to be held and used, we recognize an
      impairment charge to the extent the anticipated net cash flows attributable
      to
      the asset are less than the asset’s carrying value. The fair value of the
      long-lived asset then becomes the asset’s new carrying value, which we
      depreciate over the remaining estimated useful life of the asset.





**RECENT
      ACCOUNTING PRONOUNCEMENTS**





In
      May
      2005, the FASB issued SFAS 154, “Accounting Changes and Error Corrections,” that
      applies to all voluntary changes in accounting principle. This Statement
      requires retrospective application to prior periods’ financial statements of
      changes in accounting principle, unless it is impracticable to determine either
      the period-specific effects or the cumulative effect of the change. When it
      is
      impracticable to determine the period-specific effects of an accounting change
      on one or more individual prior periods presented, this Statement requires
      that
      the new accounting principle be applied to the balances of assets and
      liabilities as of the beginning of the earliest period for which retrospective
      application is practicable and that a corresponding adjustment be made to the
      opening balance of retained earnings (or other appropriate components of equity
      or net assets in the statement of financial position) for that period rather
      than being reported in an income statement. When it is impracticable to
      determine the cumulative effect of applying a change in accounting principle
      to
      all prior periods, this Statement requires that the new accounting principle
      be
      applied as if it were adopted prospectively from the earliest date practicable.
      SFAS 154 will be effective for the Company for fiscal year ended
      December 31, 2007. The Company does not anticipate that the adoption of
      SFAS No. 154 will have an impact on the Company’s overall results of
      operations or financial position.





In
      February 2006, the FASB issued SFAS 155, “Accounting for Certain Hybrid
      Financial Instruments—an amendment of FASB Statements No. 133 and 140,” that
      allows a preparer to elect fair value measurement at acquisition, at issuance,
      or when a previously recognized financial instrument is subject to a
      remeasurement (new basis) event, on an instrument-by-instrument basis, in cases
      in which a derivative would otherwise have to be bifurcated. It also eliminates
      the exemption from applying Statement 133 to interests in securitized financial
      assets so that similar instruments are accounted for similarly regardless of
      the
      form of the instruments. This Statement is effective for all financial
      instruments acquired or issued after the beginning of an entity’s first fiscal
      year that begins after September 15, 2006. The Company does not anticipate
      that
      the adoption of SFAS No. 155 will have an impact on the Company’s overall
      results of operations or financial position.





In
      March
      2006, the FASB issued SFAS 156, “Accounting for Servicing of Financial Assets—an
      amendment of FASB Statement No. 140,” that applies to the accounting for
      separately recognized servicing assets and servicing liabilities. This Statement
      requires that all separately recognized servicing assets and servicing
      liabilities be initially measured at fair value, if practicable. An entity
      should adopt this Statement as of the beginning of its first fiscal year that
      begins after September 15, 2006. The Company does not anticipate that the
      adoption of SFAS No. 156 will have an impact on the Company’s overall results of
      operations or financial position.





On
      July
      13, 2006, the FASB issued FASB Interpretation No. 48, Accounting for Uncertainty
      in Income Taxes. The Interpretation clarifies the way companies are to account
      for uncertainty in income tax reporting and filing and prescribes a consistent
      recognition threshold and measurement attribute for recognizing, derecognizing,
      and measuring the tax benefits of a tax position taken, or expected to be taken,
      on a tax return. The Interpretation is effective for fiscal years beginning
      after December 15, 2006, although early adoption is possible. The Company does
      not plan to adopt early and the Company is currently in the process of
      evaluating the impact, if any, the adoption of the Interpretation will have
      on
      the 2007 financial statements.




In
      September 2006, the FASB issued SFAS 157, “Fair Value Measurements,” which
      defines fair value, establishes a framework for measuring fair value in
      generally accepted accounting principles (GAAP), and expands disclosures about
      fair value measurements. This Statement applies under other accounting
      pronouncements that require or permit fair value measurements, the Board having
      previously concluded in those accounting pronouncements that fair value is
      the
      relevant measurement attribute. Accordingly, this Statement does not require
      any
      new fair value measurements. The adoption of SFAS No. 157 will not have an
      impact on the Company's overall results of operations or financial
      position.





In
      September 2006, the Financial Accounting Standards Board (“FASB”) the issued
      SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other
      Postretirement Plans, an Amendment of FASB Statements No. 87, 88, 106, and
      132(R)” (“SFAS No. 158”). SFAS No. 158 requires companies to report the funded
      status of their defined benefit pension and other postretirement benefit plans
      on their balance sheets as a net liability or asset as of December 31, 2006.
      The
      new standard does not address the accounting treatment for pension and
      postretirement benefits in the income statement. This will have no impact on
      the
      Company’s results of operations or financial position.







**RESULTS
      OF OPERATIONS - FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006**





In
      November 2005, we discontinued and disposed of our subsidiaries except for
      Arrow
      Bermuda in conjunction with the recapitalization of the Company. The Company
      had
      no revenue during this period as Arrow Bermuda is still in the development
      stage. For the three months and nine months ended September 30, 2006 we incurred
      consulting fees of $807,300 and $2,560,972, respectively, of which, $794,045
      and
      $2,442,805,  respectively,
      was related to services provided by the Management Agreement with Empire under
      which Empire provides the services of Chief Executive Officer and administrative
      services to the Company and consulting services provided by Hans Karundeng
      and
      Rudolph Karundeng under Engagement and Consulting Agreements.




**LIQUIDITY
      AND CAPITAL RESOURCES**




In
      November 2005 we discontinued and disposed of our subsidiaries except for Arrow
      Bermuda in conjunction with the recapitalization of the Company. The Company
      was
      recapitalized by the conversion of $125,000,000 preferred convertible note
      related to the purchase of the Marketing Agreement. As part of the
      recapitalization plan the Company settled all outstanding debt except for
      $220,000. As of September 30, 2006 and December 31, 2005 the Company had $-
      and $3,084 of cash, respectively. We had losses of approximately $1.0 million
      and $3.0 million for the three and nine months ended September 30, 2006,
      respectively, and do not currently generate any revenue. In order for us to
      survive the next twelve months we will need to secure approximately $350,000
      of
      debt or equity financing, $335,000 of which the Company has received in October
      2006 (as noted in Note 11). We expect to receive the remaining funds no later
      than November 30, 2006.




We
      expect
      to raise the additional financing in the future but there can be no guarantee
      that we will be successful.




**OFF-BALANCE
      SHEET ARRANGEMENTS**




At
      September 30, 2006 and December 31, 2005, we had no off-balance sheet
      arrangements.




**INFLATION**





We
      believe that inflation does not significantly impact our current operations.





**RECENT
      TRANSACTIONS**





None.




**Item 3.**
            **Controls
                and Procedures**





Management,
      including the Company’s Chief Executive Officer and Principle Accounting
      Officer, has evaluated the effectiveness of the Company’s disclosure controls
      and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))
      as of the end of the period covered by this report. Based upon that evaluation,
      the Chief Executive Officer and Principal Accounting Officer concluded that
      the
      disclosure controls and procedures were effective to ensure that information
      required to be disclosed in the reports the Company files and submits under
      the
      Exchange Act is (i) recorded, processed, summarized and reported as and
      when required and (ii) accumulated and communicated to the Company’s
      management, including its principal executive officer and principal financial
      officer, as appropriate to allow timely decisions regarding disclosure.





There
      have been no changes in the Company’s internal control over financial reporting
      identified in connection with the evaluation that occurred during the Company’s
      last fiscal quarter that has materially affected, or that is reasonably likely
      to materially affect, the Company’s internal control over financial reporting.





**PART
      II - OTHER INFORMATION**





**Item 1.**
            **Legal
                Proceedings**




The
      Company is a party to a lawsuit where the plaintiff is alleging that he is
      entitled to $60,000 and 1,300,000 of common stock based upon CNE’s failure
      to compensate him for services related to identifying financing for CNE,
      based upon an agreement that was entered into between CNE and the plaintiff
      in
      April 2005. The Company and its counsel strongly feel that the plaintiff’s
      claims against the Company have no merit, the likelihood of an unfavorable
      outcome is very low, and is prepared to vigorously defend the
      matter.




In
      May
      2006, the Company was advised that they were in default of a settlement
      agreement entered into in January of 2005 by CNE related to the release of
      unrestricted, freely-tradable, non-legend shares of stock. Management has agreed
      to release shares of the Company’s stock in consideration of the above
      matter.





**Item 2.**
            **Other
                Information**





None











**Item 3.**
            **Exhibits**





**Exhibit
      Index**


31.1
              Rule
                  13a-14(a)/15d-14(a) Certification of Chief Executive Officer31.2
              Rule
                  13a-14(a)/15d-14(a) Certification of the Principal Accounting Officer32.1
              Certification
                  Pursuant to 18 U.S.C. §1350 of Chief Executive Officer32.2
              Certification
                  Pursuant to 18 U.S.C. §1350 of the Principal Accounting
                  Officer____
              Consulting
                  Agreement - Dekornas GMPLH____
              Consulting
                  Agreement - P.T. Eucalyptus Alam Lestari____
              Marketing
                  and Distribution Agreement - Shanghai Heyang Bio-Technology Development
                  Co., Ltd.










**SIGNATURES**




In
      accordance with Section 13(a) 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.




ARROW
                RESOURCES DEVELOPMENT, INC.Dated:
            
            November
                14, 2006
            
            
            
            By:
            
            /S/ PETERJ.
                FRUGONEPeter
                J. Frugone
              President
                and Chief Executive Officer




Dated:
            
            November
                14, 2006
            
            
            
            By:
            
            /S/ PETERJ.
                FRUGONEPeter
                J. Frugone
              Principal
                Accounting Officer




In
      accordance with the Exchange Act, this report has been signed by the following
      persons on behalf of the registrant and in the capacities and on the dates
      indicated.




**Signatures**
            
            **Title**
            
            **Date**/s/
                Peter J. Frugone
                 **Peter
                J. Frugone**
            
            Chief
                Executive Officer and Chairman (principal executive
                officer)
            
            November
                14, 2006/s/
                Peter J. Frugone
              Peter J. Frugone
            
            Principal
                Accounting Officer (principal financial and accounting
                officer)
            
            November
                14, 2006/s/
                Rudolph Karundeng
                **Rudolph
                Karundeng**
            
            Director
            
            November
                14, 2006/s/
                John E. McConnaughy, Jr.
              
              **John
                E. McConnaughy, Jr.**
            
            Director
            
            November
                14, 2006/s/
                John W. Allen
              
              **John
                W. Allen**
            
            Director
            
            November
                14, 2006