**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
      quarterly period ended March 31, 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


















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 May 5, 2006.




**Class**
            
            **Outstanding
                at May 5, 2006**Common
                stock - par value $0.00001
            
            649,543,240














ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)


FORM
      10-QSB


THREE
      MONTHS ENDED MARCH 31, 2006








TABLE
      OF
      CONTENTS





**Page****PART
                I -****FINANCIAL
                INFORMATION**Item
                1.
            Financial
                Statements:Consolidated
                Balance Sheets at March 31, 2006 and December 31, 2005
            1Consolidated
                Statement of Operations for the three months ended March 31,
                2006
            2Consolidated
                Statement of Changes in Stockholders’ Equity for the three months ended
                March 31, 2006
            3Consolidated
                Statement of Cash Flows for the three months ended March 31,
                2006
            4Notes
                to the Consolidated Financial Statements
            5-12Item
                2.
            Management's
                Discussion and Analysis of Financial Condition and Results of
                Operations
            13-15Item
                3.
            Controls
                and Procedures
            16**PART
                II -****OTHER
                INFORMATION**Item
                1.
            Legal
                Proceedings
            16Item
                2.
            Other
                Information
            16Item
                3.
            Exhibits
            17Signatures
            18














**PART
      I - FINANCIAL INFORMATION**





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





ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)





Consolidated
      Balance Sheets


March
      31,
      2006 and December 31, 2005




March
                31, 2006
            
            December
                31, 2005ASSETSCurrent:Cash
            
            
            
            
            $
            3,852
            
            $
            3,084Prepaid
                expenses
            
            
            
            
            
            4,405
            
            
            —Total
                current assets
            
            
            
            
            
            8,257
            
            
            3,084Amortizable
                intangible assetMarketing
                and distribution agreement
            
            
            
            
            
            125,000,000
            
            
            125,000,000Total
                assets
            
            
            
            
            $
            125,008,257
            
            $
            125,003,084LIABILITIES
                AND STOCKHOLDERS’ EQUITYCurrent:Accounts
                and accrued expenses payable (including $1,292,821 and $844,212 due
                to
                shareholders, respectively)
            
            
            
            
            $
            1,855,124
            
            $
            1,482,877Due
                to related parties
            
            
            
            
            
            2,060,970
            
            
            1,332,764Note
                payable, including accrued interest of $20,000
            
            
            
            
            
            245,000
            
            
            220,000Total
                liabilities
            
            
            
            
            
            4,161,094
            
            
            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
            
            
            
            
            
            123,233,206
            
            
            123,233,206Accumulated
                deficit
            
            
            
            
            
            (2,392,538
            )
            
            (1,272,258
            )Total
                stockholders’ equity
            
            
            
            
            
            120,847,163
            
            
            121,967,443Total
                liabilities and stockholders’ equity
            
            
            
            
            $
            125,008,257
            
            $
            125,003,084




*See
      accompanying notes to the consolidated financial statements.*


1


ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)





Consolidated
      Statement of Operations (during the development stage)






For
                the Three Months Ended March 31, 2006
            
            For
                the Period From Inception (November 15, 2005) to December 31,
                2005
            
            Accumulated
                during the development stage Period From Inception (November 15,
                2005) to
                March 31, 2006Revenue
            
            $
            --
            
            $
            --
            
            $
            --Operating
                expenses:Consulting
                fees and services, including $864,676 and $939,401 incurred torelated
                parties, respectively
            
            
            936,614
            
            
            1,022,087
            
            
            1,958,701General
                and administrative
            
            
            183,666
            
            
            919
            
            
            184,585Total
                operating expenses
            
            
            1,120,280
            
            
            1,023,006
            
            
            2,143,286Loss
                from operations during the development stage
            
            
            (1,120,280
            )
            
            (1,023,006
            )
            
            (2,143,286
            )Other
                Expense:Expenses
                incurred as part of recapitalization transaction
            
            
            --
            
            
            249,252
            
            
            249,252Net
                loss
            
            $
            (1,120,280
            )
            $
            (1,272,258
            )
            $
            (2,392,538
            )Basic
                and diluted net loss per weighted-average shares common stock
                outstanding
            
            $
            (0.001
            )
            $
            (0.003
            )
            $
            (0.004
            )Weighted-average
                number of shares of common stock outstanding
            
            
            649,543,240
            
            
            423,841,112
            
            
            572,112,583







*See
      accompanying notes to the consolidated financial statements.*




2


ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)









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








**Common
                Stock****Shares**
            
            **Amount**
            
            **Additional
                  Paid-in Capital**
            
            **AccumulatedDeficit**
            
            **Total**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
            )
            $
            121,967,443Net
                loss
            
            
            
            
            
            
            
            
            
            
            
            (1,120,280
            )
            
            (1,120,280
            )Balance
                at March 31, 2006
            
            
            649,543,240
            
            $
            6,495
            
            $
            123,233,206
            
            $
            (2,392,538
            )
            $
            120,847,163







*See
      accompanying notes to the consolidated financial statements.*




3


ARROW
      RESOURCES DEVELOPMENT, INC. AND SUBSIDIARIES


(A
      DEVELOPMENT STAGE COMPANY)







Consolidated
      Statement of Cash Flows (during the development stage)






For
                the Three Months Ended March 31, 2006
            
            For
                the Period From Inception (November 15, 2005) to December 31,
                2005
            
            For
                the Period From Inception (November 15, 2005) to March 31,
                2006Net
                loss
            
            $
            (1,120,280
            )
            $
            (1,272,258
            )
            $
            (2,392,538
            )Adjustments
                to reconcile net loss to net cash provided by 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 accounts and accrued expenses payable
            
            
            372,247
            
            
            246,316
            
            
            618,563Increase
                in prepaid expenses
            
            
            (4,405
            )
            
            --
            
            
            (4,405
            )Net
                cash used in operating activities
            
            
            (752,438
            )
            
            238,275
            
            
            (514,163
            )Cash
                flows from financing activities:Cash
                acquired as part of merger transaction
            
            
            --
            
            
            39,576
            
            
            39,576Proceeds
                of issuance of note payable
            
            
            25,000
            
            
            --
            
            
            25,000Net
                increase in due to related parties attributed to operating expenses
                paid
                on the Company’s behalf by the related party
            
            
            728,206
            
            
            (324,767
            )
            
            403,439Advances
                from senior advisor
            
            
            --
            
            
            50,000
            
            
            50,000Net
                cash provided by financing activities
            
            
            753,206
            
            
            (235,191
            )
            
            518,015Net
                change in cash
            
            
            768
            
            
            3,084
            
            
            3,852Cash
                balance at beginning of period
            
            
            3,084
            
            
            --
            
            
            --Cash
                balance at end of period
            
            $
            3,852
            
            $
            3,084
            
            $
            3,852Supplemental
                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.*


4


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.”) 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 Resources Development, Ltd.
      (“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 instruments including cash, accounts and accrued expenses
      payable, and amounts due to Empire Advisory, LLC (as discussed in Notes 6 and
      7), 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.






5


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
      March 31, 2006. As of March 31, 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; and




3.
            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.










6


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
      December 2004, the FASB issued SFAS No. 123(R), “Share-Based Payment”, which
      establishes standards for transactions in which an entity exchanges its equity
      instruments for goods or services. This standard requires a public entity to
      measure the cost of employee services received in exchange for an award of
      equity instruments based on the grant date fair value of the award. This
      eliminates the exception to account for such awards using the intrinsic method
      previously allowable under APB Opinion No. 25. SFAS No. 123 (R) became effective
      for the interim period beginning July 1, 2005. The Company adopted SFAS No.
      123(R) on January 1, 2006. It had no impact on the Company’s overall results of
      operations or financial position.




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.




7


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.




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
      by
      Empire Advisory, LLC (“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
      million 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.









8


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 are as follows:




Net
                operating loss carryforward
            
            $
            1,517,175Total
                deferred tax assets
            
            
            1,517,175Less
                valuation allowance
            
            
            (1,517,175
            )Net
                deferred tax assets
            
            $
            —




As
      of
      March 31, 2006, the Company has a net operating loss carryforwards of
      approximately $4,462,000 that expire 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 three months ended
      March 31, 2006, the increase in the valuation allowance was
      $380,895.




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
      March 31, 2006 and December 31, 2005, the Company had notes payable outstanding
      as follows:




Holder
            
            Terms
            
            
            March
                31,2006
            
            
            December
                31,2005Barry
                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
            
            
            20,000Total
            
            
            
            $
            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 three months ended
      March 31, 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.




9


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 three months ended March 31, 2006, as the relevant operations had
      not
      yet commenced. Operations are expected to commence during the 2006 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
      authorized a one-time payment of $500,000 to Empire upon closing the
      transaction.




As
      of
      March 31, 2006 and December 31, 2005, the Company had short-term borrowings
      of
      $1,674,545 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 $336,425
      and
      $50,000, respectively, from Hans Karundeng. 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 million senior secured
      note
      payable settled in December 2005.




Consulting
      fees and services charged in the Statement of Operations for the three months
      ended March 31, 2006 incurred to Empire totaled $364,676.




During
      the three months ended March 31, 2006, the Company received additional advances
      of $27,105 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 three months
      ended March 31, 2006 incurred to Hans Karundeng and Rudolph Karundeng under
      Engagement and Consulting Agreements totaled $500,000. In addition, as of March
      31, 2006 and December 31, 2005, the Company owed them a $1,292,821 and $844,212,
      respectively, under these agreements. These agreements are discussed in detail
      in Note 10.


10


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 $1,120,280 for the three months ended March 31, 2006, and a net
      loss
      during the development stage from inception in November 15, 2005 through March
      31, 2006 of $2,392,538. 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 Pacific Resources (s) Pte. Ltd. (“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 is five years. Rudolph Karundeng
      is a son of Hans Karundeng.




During
      the three months ended March 31, 2006, the Company made cash payments of $45,296
      to Hans Karundeng and $6,093 to Rudolph Karundeng under the
      agreements.




11


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
      Advisory, LLC (“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 has no current pending litigation.




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




Years
                Ending March 31,
            
            Amounts2007
            
            $
            3,766,6672008
            
            
            4,058,3332009
            
            
            4,422,9172010
            
            
            4,878,6462011
            
            
            1,486,052$
            18,612,614




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




On
      April
      4, 2006, the Company entered into a consulting agreement with Dekornas GMPLH
      (“Dekornas”) (a non-profit organization in Indonesia responsible for
      reforestation in areas that were destroyed by illegal logging) 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.





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 fees 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.





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.







12





**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 million 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.


13





**VALUATION
      OF PURCHASED INTANGIBLE ASSETS**





We
      perform goodwill impairment tests on an annual basis and on an interim basis
      if
      an event or circumstance indicates that it is more likely than not that
      impairment has occurred. 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
      December 2004, the FASB issued SFAS No. 123(R), “Share-Based Payment”,
      which establishes standards for transactions in which an entity exchanges its
      equity instruments for goods or services. This standard requires a public entity
      to measure the cost of employee services received in exchange for an award
      of
      equity instruments based on the grant date fair value of the award. This
      eliminates the exception to account for such awards using the intrinsic method
      previously allowable under APB Opinion No. 25. SFAS No. 123
      (R) became effective for the interim period beginning July 1, 2005.
      The Company does not anticipate that the adoption of SFAS No. 123(R) will
      have a significant impact on the Company’s overall results of operations or
      financial position.


14


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.





**RESULTS
      OF OPERATIONS - FOR THE THREE MONTHS ENDED MARCH 31, 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 ended March 31, 2006 we incurred consulting
      fees of $936,614 of which, $864,676 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.




15





**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 million 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 March 31, 2006 and December 31, 2005 the Company had $3,852
      and $3,084 of cash, respectively. We had losses of approximately $1.1 million
      for the three months ended March 31, 2006, and do not currently generate any
      revenue. In order for us to survive during the next twelve months we will need
      to secure approximately $3 million of debt or equity financing. As of March
      31,
      2006 we have secured approximately $411,000 of equity financing through
      non-interest bearing notes for future sales of shares of $25,000 by investors
      and $386,000 by a shareholder .




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
      March
      31, 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 not a party to any litigation.





**Item 5.**
            **Other
                Information**





None


16





**Item 6.**
            **Exhibits**





**Exhibit
      Index**




31.1  Rule
      13a-14(a)/15d-14(a) Certification of Chief Executive Officer




31.2  Rule
      13a-14(a)/15d-14(a) Certification of the Principal Accounting Officer




32.1  Certification
      Pursuant to 18 U.S.C. §1350 of Chief Executive Officer




32.2  Certification
      Pursuant to 18 U.S.C. §1350 of the Principal Accounting Officer


17


**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:
            
            May
                15, 2006
            
            
            
            By:
            
            /S/    PETERJ.
                FRUGONEPeter
                J. Frugone
              President
                and Chief Executive Officer




Dated:
            
            May
                15, 2006
            
            
            
            By:
            
            /S/    PETERJ.
                FRUGONEPeter
                J. Frugone
              Principal
                Accounting Officer














18