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 SEPTEMBER 30, 2006

                                       OR

[ ]    TRANSITION  REPORT  PURSUANT  TO  SECTION 13 OR 15(d) OF THE SECURITIES
       EXCHANGE  ACT  OF  1934

                    For the transition period from to ______

                          Commission file number 114800

                             DEER VALLEY CORPORATION
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


                FLORIDA                                    20-5256635
    (State or other jurisdiction of                     (I.R.S. employer
    incorporation or organization)                     identification  no.)

4902 EISENHOWER BLVD., SUITE 185, TAMPA, FL                   33634
(Address of principal executive offices)                    (Zip code)

       Registrant's telephone number, including area code:  (813) 885-5998

                              CYTATION CORPORATION
             Former name of Registrant, if changed since last report

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding  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 an accelerated filer (as
defined  in  Rule  12b-2  of  the  Exchange  Act).  Yes  [ ]  No  [X]

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 Registrant had 7,928,263 shares of Common Stock, par value $0.001 per share,
outstanding  as  of  November  16,  2006.

<PAGE>

                                TABLE OF CONTENTS

PART  I        FINANCIAL  INFORMATION                                    PAGE

Item  1     Financial  Statements

           Consolidated  Balance  Sheets
               As  of  September  30,  2006  (unaudited)
               As  of  December  31,  2005  (audited)                      F-2

           Consolidated  Statements  of  Operations
               Three  Months  ended September  30,  2006 (unaudited)
               Three  Months  ended September  30,  2005 (unaudited)
               Nine  Months  ended September  30,  2006 (unaudited) and
               Nine  Months  ended September  30,  2005 (unaudited)        F-3

           Consolidated  Statements  of  Cash  Flows
               Nine  Months  ended  September  30,  2006  (unaudited)
               Nine  Months  ended  September  30,  2005  (unaudited)      F-4

          Notes  to  Consolidated  Financial  Statements                F-5-F-19

Item  2     Management's Discussion and Analysis or Plan of Operation        3

Item  3     Controls  and  Procedures                                       10


PART  II     OTHER  INFORMATION

Item  1     Legal  Proceedings                                              11

Item  2     Unregistered  Sales  of Equity Securities and Use of Proceeds   11

Item  3     Defaults  Upon  Senior  Securities                              11

Item  4     Submission  of  Matters  to  a  Vote  of  Security  Holders     11

Item  5     Other  Information                                              11

Item  6     Exhibits                                                        12

<PAGE>

     Unless otherwise indicated or the context otherwise requires, all
references below in this filing to "we," "us," the "Company," and "Deer Valley"
are to Deer Valley Corporation, a Florida corporation, together with its
wholly-owned subsidiary, Deer Valley Homebuilders, Inc., an Alabama corporation.


PART I     FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

                             DEER VALLEY CORPORATION
                     [FORMERLY KNOWN AS CYTATION CORPORATION
                             THROUGH JULY 24, 2006]


UNAUDITED FINANCIAL STATEMENT
--------------------------------------------------------------------------------

CONTENT:

BALANCE  SHEETS  AS  OF  SEPTEMBER  30,  2006  (UNAUDITED) AND
DECEMBER 31, 2005 (AUDITED)                                               F-2

STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTH PERIODS ENDING
SEPTEMBER 30, 2006 (UNAUDITED) AND SEPTEMBER 30, 2005 (UNAUDITED)         F-3

STATEMENTS OF CASH FLOWS FOR THE NINE MONTH PERIODS ENDING
SEPTEMBER 30, 2006 (UNAUDITED) AND SEPTEMBER 30, 2005 (UNAUDITED)         F-4

NOTES TO FINANCIAL STATEMENTS                                           F-5-F-19

--------------------------------------------------------------------------------

<PAGE>

<TABLE>
<CAPTION>
                             DEER VALLEY CORPORATION
         [FORMERLY KNOWN AS CYTATION CORPORATION THROUGH JULY 24, 2006]
                           CONSOLIDATED BALANCE SHEETS


                                     ASSETS

                                                           SEPTEMBER 30,  DECEMBER 31,
                                                               2006           2005
                                                          -------------  -------------
                                                            (UNAUDITED)    (AUDITED)
<S>                                                            <C>            <C>
CURRENT ASSETS:
  Cash                                                    $  4,304,911   $        221
  Accounts Receivable                                        3,468,852
  Notes Receivable, Other                                       15,715              -
  Inventory                                                  2,318,671
  Prepaid expenses and other current assets                    137,530              -
                                                          -------------  -------------
Total Current Assets                                        10,245,679            221

Property and Equipment, Net                                  2,537,987              -

  Loan Cost                                                     92,351
  Goodwill                                                   5,523,895              -
                                                          -------------  -------------

TOTAL ASSETS                                              $ 18,399,911   $        221
                                                          =============  =============


                  LIABILITIES AND STOCKHOLDERS'EQUITY(DEFICIT)

CURRENT LIABILITIES:
  Current Maturities of Long Term Debt                    $     19,448   $          -
  Accounts payable and Accrued Expenses                      2,069,842         48,416
  Accounts Payable Under Dealer Incentive Programs             685,559
  Estimated Warranties                                       1,550,000
  Compensation and Related Accruals                            803,033
  Other Accruals                                                11,641
  Income Tax Payable                                            34,940              -
  Accrued Preferred Dividends                                   95,772
  Notes payable and Accrued Interest                                 -          5,500
                                                          -------------  -------------
Total Current Liabilities                                    5,270,235         53,916

LONG TERM LIABILITIES:
  Long-Term Debt, Net of Current Maturities                  3,776,798         85,000
                                                          -------------  -------------

TOTAL LIABILITIES                                            9,047,031        138,916
                                                          -------------  -------------

STOCKHOLDERS' EQUITY (DEFICIT):

  Series A Preferred stock, $0.01 par value, 750,000
  shares authorized, 705,025 and 0 shares issued and
  outstanding, respectively                                  7,050,245              -

  Series B Preferred stock, $0.01 par value, 49,451
  shares authorized, 0 shares issued and outstanding                 -              -

  Series C Preferred stock, $0.01 par value, 26,750
  shares authorized, 26,750 shares issued and outstanding         267              -

  Series D Preferred stock, $0.01 par value, 132,081
  shares authorized, 0 shares issued and outstanding                -              -

  Common stock, $0.001 par value, 2,000,000 shares
  authorized, 8,115,298 and 982,622 shares issued and
  outstanding, respectively                                     8,115             982

  Additional paid-in capital                                42,485,178     32,723,371

  Retained Earnings and Accumulated deficit                (40,190,925)   (32,863,048)
                                                          -------------  -------------

TOTAL STOCKHOLDERS EQUITY (DEFICIT)                          9,352,880       (138,695)
                                                          -------------  -------------

TOTAL LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)       $ 18,399,911   $        221
                                                          =============  =============
</TABLE>

                                      F-2
<PAGE>

<TABLE>
<CAPTION>
                            DEER VALLEY CORPORATION
         [FORMERLY KNOWN AS CYTATION CORPORATION THROUGH JULY 24, 2006]
                     CONSOLIDATED STATEMENTS OF OPERATIONS
 FOR THE THREE AND NINE MONTH PERIODS ENDING SEPTEMBER 30, 2006 (UNAUDITED) AND
                         SEPTEMBER 30, 2005 (UNAUDITED).


                                          FOR THE THREE MONTHS ENDED    FOR THE NINE MONTHS ENDED

                                           SEPTEMBER 30,  SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
                                               2006          2005          2006           2005
                                            ------------  ------------  ------------  ------------
                                            (UNAUDITED)   (UNAUDITED)   (UNAUDITED)    (UNAUDITED)
<S>                                             <C>           <C>           <C>
REVENUE                                     $16,901,751   $    49,114   $48,767,224   $     49,114

COST OF REVENUE                              14,688,814           181    41,289,963          1,738
                                            ------------  ------------  ------------  ------------

GROSS PROFIT                                  2,212,937        48,933     7,477,261         47,376

OPERATING EXPENSES:
  Depreciation                                        -             -             -          1,037
  Selling, general and administrative         1,565,801        88,548     4,544,792        223,952
                                            ------------  ------------  ------------  ------------

TOTAL OPERATING EXPENSES                      1,565,801        88,548     4,544,792        224,989
                                            ------------  ------------  ------------  ------------

OPERATING INCOME/(LOSS)                         647,136       (39,615)    2,932,469       (177,613)

OTHER INCOME (EXPENSES)
  Gain on sale and distribution of investment         -        31,902        31,902         31,902
  Loss on termination of ARE agreement                -             -             -         (5,000)
  Loss on sale of property and equipment              -             -                       (4,270)
  Interest expense, net                         (37,077)       (1,385)      (72,742)        (4,659)
  Other Income                                   34,496             -        65,740              -
                                            ------------  ------------  ------------  ------------

TOTAL OTHER INCOME/(EXPENSES)                    (2,581)       30,517        (7,002)        17,973
                                            ------------  ------------  ------------  ------------

INCOME/(LOSS) BEFORE INCOME TAXES               644,555        (9,098)    2,925,467       (159,640)

INCOME TAX EXPENSE                             (240,019)            -    (1,064,628)             -
                                            ------------  ------------  ------------  ------------

NET INCOME/(LOSS)                           $   404,536   $    (9,098)  $ 1,860,840   $    159,640

  Dividends to preferred stockholders          (114,957)            -      (356,739)             -
  Deemed dividend to preferred stockholders
  on beneficial conversion feature           (5,206,294)            -    (8,777,025)             -
                                            ------------  ------------  ------------  ------------

NET INCOME/(LOSS)AVAILABLE TO
COMMON SHAREHOLDERS                         $(4,916,715)  $    (9,098)  $(7,272,925)  $    159,640


NET INCOME/(LOSS) PER SHARE (BASIC)         $     (0.84)  $     (0.01)  $     (2.79)  $     (0.18)
NET INCOME/(LOSS) PER SHARE (FULLY DILUTED) $     (0.84)  $     (0.01)  $     (2.79)  $     (0.18)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING    5,824,933       922,662*    2,608,311        898,144
WEIGHTED AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING                 5,824,933       922,662*    2,608,311        898,144
</TABLE>

* REFLECTS 2 FOR 1 STOCK SPLIT

                                      F-3
<PAGE>

<TABLE>
<CAPTION>
                            DEER VALLEY CORPORATION
         [FORMERLY KNOWN AS CYTATION CORPORATION THROUGH JULY 24, 2006]
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
  FOR THE NINE MONTH PERIODS ENDING SEPTEMBER 30, 2006 (UNAUDITED) AND SEPTEMBER
                             30, 2005 (UNAUDITED).

                                                                               2006         2005
                                                                            ------------  ----------
<S>                                                                            <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                                                          $ 1,860,840   $(159,640)
  Adjustments to reconcile net income (loss) to net cash
  provided for/used in operating activities:
    Depreciation and Amortization                                                137,213       1,036
    Gain on sale and distribution of investment                                        -     (31,902)
    Accrued interest on note payable                                                   -       9,155
    Stock based compensation                                                       8,651      49,601
    Loss on Termination of ARE Agreement                                               -       5,000
    (Gain) or loss on sale of property and equipment                             (14,624)      4,270
    Non-cash consulting income                                                         -     (49,114)
    Non-cash consulting fee                                                            -     113,944
    Changes in assets and liabilities:
    Increase/Decrease in Receivables                                          (1,328,448)          -
    Increase/Decrease in Other Receivables                                        (8,214)          -
    Increase/Decrease in Inventories                                          (1,203,113)          -
    Increase/Decrease in Prepayments and other assets                            (85,109)      8,706
    Increase/Decrease in Accounts Payable                                        844,480     (38,390)
    Increase/Decrease in Accounts Payable under dealer incentives                345,127           -
    Increase/Decrease in Income Taxes Payable                                  1,054,339           -
    Increase/Decrease in estimated warranties                                    800,000           -
    Increase/Decrease in Compensation and related accruals                       389,038           -
    Increase/Decrease in Accrued shareholder distributions                      (925,000)          -
    Increase/Decrease in Accrued Expenses                                     (1,242,034)          -
                                                                             ------------  ----------
CASH FLOW PROVIDED FOR/USED IN OPERATING ACTIVITIES                          $   633,146   $ (87,334)
                                                                             ------------  ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of equipment                                                      (1,042,447)       (812)
  Proceeds from sale of property and equipment                                         -           2
  Purchase of Company                                                         (6,475,000)          -
  Proceeds from sales of marketable securities                                   151,418           -
                                                                             ------------  ----------
CASH FLOW USED IN INVESTING ACTIVITIES                                       $(7,366,029)  $    (810)
                                                                             ------------  ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds (Repayment) of Notes Payable                                          476,481           -
  Proceeds from Preferred issuances                                            7,728,780           -
  Loan Costs                                                                     (98,950)          -
  Proceeds from issuance of common stock                                               -      23,500
  Collections (issuance) of note receivable                                            -       5,000
                                                                             ------------  ----------
CASH FLOW PROVIDED BY FINANCING ACTIVITIES                                   $ 8,106,311   $  28,500
                                                                             ------------  ----------

NET INCREASE (DECREASE) IN CASH                                              $ 1,373,427   $ (59,644)
CASH, BEGINNING                                                              $ 2,931,484   $  65,644
                                                                             ------------  ----------
CASH, ENDING                                                                 $ 4,304,911   $   6,000
                                                                             ============  ==========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
  Cash paid during the Quarter for:
    Interest                                                                 $    42,839   $     828
    Taxes                                                                    $   775,000   $       -

SUPPLEMENTAL DISCLOSURE OF NON CASH INVESTING AND FINANCING ACTIVITIES:
  Additional purchase price accrued under earnout provision                  $ 1,811,901   $       -
  Accrual of dividends on preferred stock                                    $   356,739   $       -
  Deemed dividend on beneficial conversion feature                           $ 8,777,025   $       -
</TABLE>

                                      F-4
<PAGE>

                             DEER VALLEY CORPORATION
         [FORMERLY KNOWN AS CYTATION CORPORATION THROUGH JULY 24, 2006]
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1. BASIS OF PRESENTATION
------------------------

The  accompanying  unaudited consolidated financial statements for the three and
nine  month  periods  ended  September 30, 2006 and September 30, 2005 have been
prepared  in  accordance  with  accounting  principles generally accepted in the
United  States  of America for interim financial information and pursuant to the
rules  and regulations of the  Securities and Exchange Commission for Form 10-Q.
Accordingly,  they  do not include all the information and footnotes required by
accounting  principles  generally  accepted in  the United States of America for
complete  financial  statements.

The  unaudited  financial  information  included  in  this  report  includes all
adjustments which are, in the opinion of management, necessary to reflect a fair
statement  of  the results for the interim periods. The operations for the three
and  nine  month periods ended September 30, 2006 and September 30, 2005 are not
necessarily  indicative  of  the  results  of  the  full  fiscal  year.

The  condensed  consolidated financial statements included in this report should
be  read in conjunction with the financial statements and notes thereto included
in  the  Registrant's  December  31,  2005  Annual  Report  on  Form  10-KSB and
subsequent  filings  on  Form  8-K  and  Schedule  14C.

2.ORGANIZATIONAL  MATTERS
-------------------------

On July 24, 2006, the Company held a Special Meeting of Stockholders not in lieu
of  an  annual  meeting.  At  the  Meeting  the  following  actions  were taken:

1.   The approval  of an amendment to the Company's Certificate of Incorporation
     to  increase  the authorized preferred stock, par value $0.01 per share, of
     the  Company  from  1,140,000  shares  to  10,000,000  shares;

2.   The approval  of an amendment to the Company's Certificate of Incorporation
     to increase the authorized common stock, par value $0.001 per share, of the
     Company  from  2,000,000  shares  to  100,000,000  shares;

3.   The approval  of an amendment to the Company's Certificate of Incorporation
     to  change the name of the Company from Cytation Corporation to Deer Valley
     Corporation.;  and

                                      F-5
<PAGE>


                             DEER VALLEY CORPORATION
         [FORMERLY KNOWN AS CYTATION CORPORATION THROUGH JULY 24, 2006]
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


4.   The approval of a merger with a Florida corporation, solely for purposes of
     establishing  the  Company's  domicile  in  Florida.

The  Company's  directors proposed increasing the Company's authorized shares of
common  stock  in  order  to facilitate the conversion or exercise of derivative
securities  which  are  convertible  to  common  stock,  such  as  the Company's
convertible  preferred  stock.  Until  the  increase,  the  Company did not have
sufficient  common stock to satisfy the conversion provisions of its outstanding
convertible securities.  Upon the increase in authorized shares of common stock,
49,451 shares of Series B Convertible Preferred Stock automatically converted to
4,945,100  shares  of  common  stock, and 132,081 shares of Series D Convertible
Preferred  Stock  automatically  converted  to  880,544  shares of common stock.


3.  INVENTORIES
---------------

Inventories  are  stated  at  the  lower of cost (first-in, first-out method) or
market. Work-in-process and finished goods inventories include an allocation for
labor  and  overhead  costs.  Inventories at September 30, 2006 and December 31,
2005  are  summarized  as  follows:


                                           SEPTEMBER 30,         DECEMBER 31,
                                                2006                 2005
                                          --------------         -----------
                                            (UNAUDITED)

            Raw materials                 $   1,065,008          $         -
            Work-in-process                     452,091                    -
            Finished goods                      801,572                    -
                                          --------------         -----------
              TOTALS                      $   2,318,671          $         -
                                          ==============         ===========

4. ACCOUNTING FOR STOCK BASED COMPENSATION
------------------------------------------

At  September  30,  2006, the Company had not yet created a stock incentive plan
which  authorizes  the  issuance  of  options to purchase common stock. Prior to
January  1,  2006,  the  Company  accounted  for  Stock  Options and Stock Based
Compensation under the recognition and measurement provisions of APB Opinion No.
25,  "Accounting for Stock Issued to Employees", and related Interpretations, as
permitted  by FASB Statement No. 123, "Accounting for Stock-Based Compensation".
No  stock-based  employee  compensation  cost was recognized in the Statement of
Operations  for the three and nine months ended June 30, 2005. Effective January


                                      F-6
<PAGE>


                             DEER VALLEY CORPORATION
         [FORMERLY KNOWN AS CYTATION CORPORATION THROUGH JULY 24, 2006]
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


1,  2006,  the Company adopted the fair value recognition provisions of SFAS No.
123(R),  Share-Based  Payment, using the modified-prospective-transition method.
Under  that  transition  method,  compensation cost for all share-based payments
granted  prior to, but not yet vested as of January 1, 2006 are based on (a) the
grant  date  fair  value estimated in accordance with the original provisions of
SFAS  No.  123,  and  (b) compensation cost for all share-based payments granted
subsequent  to  January 1, 2006 are based on the grant-date fair value estimated
in  accordance  with the provisions of SFAS No.123(R). Results for prior periods
have  not  been  restated.

As  a  result  of adopting SFAS No.123(R) on January 1, 2006, this statement did
not  have  any  effect on the Company's net income and earning per share for the
periods  ended  September  30,  2006  since  no  options  were  granted.

STOCK  OPTIONS  AND  WARRANTS:

The following table summarizes the activity related to all Company stock options
and  warrants  for  the three months ended September 30, 2006 and the year ended
December  31,  2005:

<TABLE>
<CAPTION>
                                                                                          WEIGHTED AVERAGE
                                                                      EXERCISE PRICE       EXERCISE PRICE
                                                           STOCK         PER SHARE           PER SHARE
                                         WARRANTS         OPTIONS   WARRANTS   OPTIONS   WARRANTS   OPTIONS
                                   ---------------------  -------  ----------  --------  ---------  --------
<S>                                       <C>               <C>        <C>       <C>       <C>        <C>
OUTSTANDING AT JANUARY 1, 2005                        -         -  $        -  $      -  $      -  $      -
  Granted                                             -         -           -         -         -         -
  Exercised                                           -         -           -         -         -         -
  Cancelled or expired                                -         -           -         -         -         -
                                   ---------------------  -------  ----------  --------  ---------  --------
OUTSTANDING AT DECEMBER 31, 2005                      -         -           -         -          -         -
  Granted                                    21,210,368         -  $0.75-2.25         -  $    1.52         -
  Exercised                                           -         -           -         -          -         -
  Cancelled or expired                                -         -           -         -          -         -
                                   ---------------------  -------  ----------  --------  ---------  --------
OUTSTANDING AT APRIL 1, 2006                 21,210,368         -  $0.75-2.25         -  $    1.52         -
  Granted                                     1,609,284         -  $0.75-3.00         -  $    2.38         -
  Exercised                                           -         -           -         -          -         -
  Cancelled or expired                                -         -           -         -          -         -
                                   ---------------------  -------  ----------  --------  ---------  --------
OUTSTANDING AT JULY 1, 2006                  22,819,652         -  $0.75-3.00         -  $    1.58         -
  Granted                                         6,968         -  $     1.50         -  $    1.50         -
  Exercised                                    (919,162)        -  $     0.00         -  $    0.00         -
  Cancelled or expired                                -         -           -         -          -         -
                                   ---------------------  -------  ----------  --------  ---------  --------
OUTSTANDING AT SEPTEMBER 30, 2006            21,907,458         -  $0.75-3.00         -  $    1.61         -
                                   ---------------------  -------  ----------  --------             --------
EXERCISABLE AT SEPTEMBER 30, 2006            21,907,458         -  $0.75-3.00         -  $    1.61         -
                                   =====================  =======  ==========  ========  =========  ========
</TABLE>

During  the  three month period ending September 30, 2006 certain holders of the

                                      F-7
<PAGE>


                             DEER VALLEY CORPORATION
         [FORMERLY KNOWN AS CYTATION CORPORATION THROUGH JULY 24, 2006]
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


Company's  BD-1  warrants, pursuant to the cashless provisions contained in such
warrants, converted 919,162 warrants into 641,769 shares of the Company's common
stock.

The  warrants  expire  at  various dates ranging from January 2011 through March
2013.

5. EARNINGS PER SHARE
---------------------

<TABLE>
<CAPTION>
                                                 THREE MONTHS ENDED          NINE MONTHS ENDED
                                             SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
                                                 2006          2005         2006          2005
                                             ------------  ------------  ------------  ----------
<S>                                              <C>           <C>           <C>           <C>
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS  ($4,916,715)     ($9,098)  ($7,272,925)  ($159,640)
                                             ------------  ------------  ------------  ----------

Weighted average shares outstanding:
     Basic                                     5,824,933      922,622     2,608,311     898,144

EARNINGS PER SHARE:
     BASIC                                        ($0.84)      ($0.01)       ($2.79)     ($0.18)
                                             ============  ============  ============  ==========
     DILUTED*                                     ($0.84)      ($0.01)       ($2.79)     ($0.18)
                                             ============  ============  ============  ==========

</TABLE>

*Diluted weighted average per share outstanding for three and nine month periods
ended  September 30, 2006 does not include the effect of dilutive Series A and C
Preferred  Stock  and  Series  A,  B,  C, D, E, BD-2, BD-3, BD-4 and BD-Warrants
because  to do so would have been antidilutive (see detailed list of antidiluted
shares below). Accordingly, basic and diluted net loss per share for this period
is  the  same.

                                             COMMON
                                              STOCK
SECURITIES                                 EQUIVALENTS
----------                                ------------

Preferred:

Series A Preferred                          9,400,326
Series B Preferred                                  -
Series C Preferred                          2,675,000
Series D Preferred                                  -

Warrants:

Class A Warrants                           10,545,105
Class B Warrants                            4,970,824
Class C Warrants                            2,000,000
Class D Warrants                            2,000,000
Class E Warrants                              880,544
Class BD-1 Warrants                                 -
Class BD-2 Warrants                           919,162
Class BD-3 Warrants                           459,581
Class BD-4 Warrants                            66,121
Class BD-5 Warrants                            66,121
                                          ------------

Total antidilutive shares                  33,982,784
                                          ============

                                      F-8
<PAGE>


                             DEER VALLEY CORPORATION
         [FORMERLY KNOWN AS CYTATION CORPORATION THROUGH JULY 24, 2006]
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


6. PRODUCT WARRANTIES
---------------------

The  Company provides the retail home buyer a one-year limited warranty covering
defects  in  material or workmanship in home structure, plumbing, and electrical
systems.  The  Company's estimated warranty costs are accrued at the time of the
sale  to  the  dealer following industry standards and historical warranty costs
incurred.  Periodic  adjustments  to  the estimated warranty accrual are made as
events occur which indicate changes are necessary. As of September 30, 2006, the
Company  has  provided  a  liability  of $1,550,000 for estimated warranty costs
relating  to  homes  sold,  based  upon  management's  assessment  of historical
experience  factors  and  current  industry  trends.

Management  reviews  its  warranty  requirements  at the close of each reporting
period  and adjusts the reserves accordingly. The following tabular presentation
reflects  activity  in  warranty  reserves  during  the  periods  presented:

                                            SEPTEMBER 30,         DECEMBER 31,
                                                2006                 2005
                                            -------------          --------
                                             (unaudited)
     BALANCE AT BEGINNING OF PERIOD          $1,150,000            $      -
        Warranty Charges                      1,963,411                   -
        Warranty Payments                    (1,563,411)                  -
                                            -------------          --------
     BALANCE AT END OF PERIOD                $1,550,000            $      -
                                            =============          =========

7. CRITICAL ACCOUNTING POLICIES AND ESTIMATES
---------------------------------------------

The  Company applies judgment and estimates, which may have a material effect in
the eventual outcome of assets, liabilities, revenues and expenses, for accounts
receivable,  inventory  and  goodwill.  The following explains the basis and the
procedure  for  each  asset  account  where  judgment and estimates are applied.

REVENUE  RECOGNITION

The  Company  recognizes  revenues  for  manufactured  homes sold to independent
dealers  when  all  of  the  following  conditions  have  been  met:

     -    an  order  for  the  home  has  been  received  from  the  dealer,
     -    an agreement  with  respect  to  payment  terms  (usually  in the form

                                      F-9
<PAGE>

                            DEER VALLEY CORPORATION
         [FORMERLY KNOWN AS CYTATION CORPORATION THROUGH JULY 24, 2006]
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)

          of  a  written  or  verbal  approval  for  payment  has  been received
          from  the  dealer's  inventory  financing  institution),
     -    the home has been shipped, and
     -    risk of loss has passed to the independent dealer.

ADVERTISING COSTS

Advertising  costs  are  charged to operations when incurred and are included in
operating  expenses.  Advertising  costs  for  the  three and nine month periods
ending  September  30, 2006 were $25,800 and $86,034, respectively.  Advertising
costs for the three and nine month periods ending June 30, 2005 were $0, and $0,
respectively.

GOODWILL

As  a result of the acquisition of DeerValley Acquisitions Corp. and Deer Valley
Homebuilders,  Inc.,  on  January  18,  2006,  goodwill  is  reflected  on  the
consolidated balance sheets. A valuation was performed by the Company and it was
determined  that  the  estimated  fair  value  of  the  goodwill in the accounts
exceeded  its  book value by $3,611,994. Additional adjustments to Goodwill have
been  booked  since  that  time  bringing  the total balance to $5,523,895 as of
September  30, 2006.  The adjustments which have been included are an additional
$100,000 which was paid and represented a purchase price adjustment and accruals
related  to  the Earnout Agreement totaling: $496,407 for 2005, $823,298 for the
1st  and  2nd Quarters of 2006, and $492,196 for the Quarter ended September 30,
2006.  There  is  no  assurance that the value of the acquired entities will not
decrease  in  the  future  due  to  changing  business  conditions.

DEALER  INCENTIVE  PROGRAMS

The  Company  provides  rebates  to  dealers  based upon a predetermined formula
applied to the volume of homes sold to the dealer during the year. These rebates
are  recorded  at  the  time  the  dealer  sales  are  consummated.

RESERVE  FOR  REPURCHASE  COMMITMENTS

Deer Valley Homebuilders, Inc. ("DVH") is contingently liable under the terms of
repurchase  agreements with financial institutions providing inventory financing
for retailers of DVH's products.  These arrangements, which are customary in the
industry,  provide for the repurchase of products sold to retailers in the event
of  default  by the retailer.  The risk of loss under these agreements is spread
over  numerous  retailers.  The price DVH is obligated to pay generally declines
over  the  period  of  the agreement (typically 18 to 24 months) and the risk of
loss  is  further  reduced  by the sale value of repurchased homes.  The maximum
amount  for  which  the  Company  is  contingently  liable  under

                                      F-10
<PAGE>

                             DEER VALLEY CORPORATION
         [FORMERLY KNOWN AS CYTATION CORPORATION THROUGH JULY 24, 2006]
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


repurchase agreements is approximately $15,375,000 at September 30, 2006.  As of
September  30,  2006  the  Company  had  reserved  $67,325 for future repurchase
losses,  based  on  prior  experience  and  an  evaluation of dealers' financial
conditions.  DVH  to  date  has  not  experienced significant losses under these
agreements,  and management does not expect any future losses to have a material
effect  on  the  accompanying  financial  statements.


8. RECENT ACCOUNTING PRONOUNCEMENTS
-----------------------------------

The  Financial  Accounting  Standards  Board  (FASB)  has  recently  issued  the
following  accounting  standards,  which  are  effective  as of January 1, 2007.

FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48)
is  an  interpretation  which  clarifies  FASB  No.  109, "Accounting for Income
Taxes".  This  Statement  addresses uncertainty in income taxes recognized in an
enterprise's  financial  statements  and  prescribes a recognition threshold and
measurement of a tax position taken or expected to be taken in a tax return. Any
cumulative  impact resulting from the adoption of FIN 48 would be recorded as an
adjustment  to  beginning retained earnings. The Company is currently evaluating
the  impact  of  FIN  48  on  the  Company's  Consolidated Financial Statements.

SFAS  No. 155, "Accounting for Certain Hybrid Financial Instruments-an amendment
of  FASB Statements No. 133 and 140" (SFAS No. 155) addresses the application of
beneficial  interests  in securitized financial assets. The adoption of SFAS No.
155 is not anticipated to have an impact on the Company's Consolidated Financial
Statements.

9. COMMITMENTS AND CONTINGENT LIABILITIES
-----------------------------------------

LITIGATION

The  Company  in  the  normal  course  of  business  is  subject  to  claims and
litigation.  Management  of  the  Company  is  of  the  opinion  that, based  on
information  available,  such  legal matters will not ultimately have a material
adverse effect on the financial position or results of operation of the Company.

EARNOUT  AGREEMENT

On  January  18,  2006,  the  Company's  wholly-owned  subsidiary,  DeerValley

                                      F-11
<PAGE>


                             DEER VALLEY CORPORATION
         [FORMERLY KNOWN AS CYTATION CORPORATION THROUGH JULY 24, 2006]
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


Acquisitions  Corp.  (dissolved  on  July  1,  2006),  entered  into  an Earnout
Agreement  (the  "Earnout  Agreement"),  between Deer Valley Homebuilders, Inc.,
DeerValley  Acquisitions  Corp.,  and  the  former  owners  of  Deer  Valley
Homebuilders,  Inc. In connection with the Capital Stock Purchase Agreement, the
Company  entered  into  the  Earnout  Agreement,  pursuant  to which, additional
payments  may be paid to the former owners of Deer Valley Homebuilders, Inc., as
an  earnout, based upon the Net Income Before Taxes of Deer Valley Homebuilders,
Inc.  during  the  next  five  (5) years, up to a maximum of $6,000,000.  In any
given  year  during the term of the Earnout Agreement, 50% of the pre-tax profit
exceeding  $1,000,000  per  year will be accrued and become distributable to the
prior  shareholders.  For  the  fourth  quarter of 2005, such pre-tax profit was
reduced to $250,000.  During the nine month period ending September 30, 2006 the
Company's  wholly  owned subsidiary, Deer Valley Homebuilders, Inc., had pre-tax
profit  in the amount of $3,630,987, of which $2,630,987 was above the Company's
earnout  threshold  of  $1,000,000.  The  Company  accrued  50% of the amount in
excess  of earnout threshold in the amount of $1,315,494.  The maximum remaining
potential  accrual  under  the  Earnout  Agreement  is  $4,188,099.

LOAN AND LETTER OF CREDIT

On  April 12, 2006, DVH entered into a Loan and Security Agreement providing for
a  revolving  line of credit in an amount not to exceed Two Million Five Hundred
Thousand  and  No/100 Dollars ($2,500,000) (the "Loan") evidenced by a revolving
credit  note  (the  "Note")  and  secured  by  accounts  receivable,  inventory,
equipment  and  all  other  tangible  and  intangible  personal property of DVH,
DeerValley  Acquisitions Corp. (a subsidiary of the Company, now dissolved), and
the  Company. The purpose of the Loan was to provide working capital, to provide
Letter  of  Credit  support,  to replace DVH's previous revolving line of credit
with  State Bank and Trust, and to provide interim financing for the acquisition
of  the  real property on which DVH operates a plant in Sulligent, Alabama.  The
Loan  has a one year term and has a variable interest rate at 2.60% above LIBOR.
Upon issuance of a letter of credit, DVH is charged a letter of credit fee equal
1.00%  of  the  face  amount  of  the  letter  of credit.  The Loan provides for
conditions  to  meet  prior  to  each  advance,  including  financial  ratios.

In  addition  to  the  revolving  line  of  credit  described  in  the preceding
paragraph,  DVH,  during  its  normal  course  of business, is required to issue
irrevocable  standby  letters  of credit in the favor of independent third party
beneficiaries  to  cover  obligations  under  repurchase  agreements.

All  of  the  Letters  of  Credit  above  are  required  under  the terms of the


                                      F-12
<PAGE>

                             DEER VALLEY CORPORATION
         [FORMERLY KNOWN AS CYTATION CORPORATION THROUGH JULY 24, 2006]
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


Repurchase  Agreements  described  above  in  the  section entitled "Reserve for
Repurchase  Commitments." As of September 30, 2006, no amounts had been drawn on
the  above  irrevocable  letters  of  credit  by  the  beneficiaries.

On  May  26,  2006, DVH entered into a Loan Agreement with Fifth Third Bank (the
"Lender")  providing  for  a loan of Two Million and No/100 Dollars ($2,000,000)
(the  "Loan")  evidenced by a promissory note and secured by a first mortgage on
DVH's  properties  in  Guin,  Alabama  and  Sulligent,  Alabama,  including  the
structures  and fixtures located thereon, as well as DVH's interest in any lease
thereof.  The  purpose  of  the loan is to pay off an existing loan from another
bank secured by the Guin property and to reduce the outstanding balance on DVH's
revolving  credit  facility with the Lender.  The net effect of the reduction in
the  revolving credit balance is to increase the credit available to the Company
for  working capital under its revolving facility.  The Loan has a term from May
26,  2006  through  June 1, 2011 and has a variable interest rate at 2.25% above
LIBOR.  There is no prepayment penalty.  Future advances are available under the
Loan  Agreement,  subject  to approval by the Lender.  Also on May 26, 2006, the
Company  and  DVA  guaranteed  the  Loan.  Should  Deer  Valley default, thereby
triggering acceleration of the Loan, the Company would become liable for payment
of  the  Loan.

EXECUTIVE AGREEMENT

On  June  29, 2006 the Company elected Charles G. Masters to serve as President,
Chief  Executive  Officer,  and  Chief  Financial  Officer.  As compensation for
services  rendered relative to the integration of Deer Valley Homebuilders, Inc.
and  the  ongoing operations of Deer Valley Corporation from January 18, 2006 to
June  30,  2006  the  Company authorized a lump-sum payment of $60,000 (prior to
deductions  for  federal  or  state  withholding requirements).  In addition the
Board  of  Directors  for the Company authorized $120,000 as annual compensation
for services rendered as President, Chief Executive Officer, and Chief Financial
Officer.  Mr.  Masters  will  continue to pay for his own medical insurance, but
shall  be  entitled  to  be reimbursed for reasonable business related expenses.

DIVIDENDS PAYABLE

On  July 18, 2006, a dividend to holders of Series A Preferred Stock became due.
On  September 20, 2006 the Company issued 106,412 shares of the Company's common
stock  to  Series  A  Preferred  shareholders as payment for $260,968 of accrued
dividends.  As  of  September  30,  2006  the total dividend payable to Series A
Preferred  shareholders is $356,739, of which $95,771 is accrued but unpaid. The


                                      F-13
<PAGE>

                             DEER VALLEY CORPORATION
         [FORMERLY KNOWN AS CYTATION CORPORATION THROUGH JULY 24, 2006]
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


Company's Series A Preferred stock is not registered with the United States
Securities and Exchange Commission, but ranks prior to the Company's registered
common stock.


10. EQUITY TRANSACTIONS
-----------------------

CAPITAL STOCK PURCHASE AGREEMENT

Pursuant  to  the  Capital  Stock  Purchase Agreement dated November 1, 2005, as
amended (the "Capital Stock Purchase Agreement"), DeerValley Acquisitions Corp.,
a wholly-owned subsidiary of the Company, acquired, immediately after completion
of  the Series A Financing and the Share Exchange, one hundred percent (100%) of
the  issued and outstanding capital stock of Deer Valley Homebuilders, Inc. Upon
completion  of the acquisition of the capital stock of Deer Valley Homebuilders,
Inc.,  Deer  Valley  Homebuilders,  Inc.  became  an  indirectly  wholly-owned
subsidiary  of  the  Company.  (With  the dissolution of DeerValley Acquisitions
Corp.,  Deer  Valley  Homebuilders, Inc. is now a wholly-owned subsidiary of the
Company.)

In  order  to  effectuate  the  Capital  Stock  Purchase  Agreement, Deer Valley
Corporation f.k.a Cytation Corporation completed a series of transactions exempt
from  the  registration  requirements of the Securities Act of 1933, as amended,
pursuant  to  Section  4(2)  of  the Act for transactions not involving a public
offering  and  Rule 506 promulgated by the United States Securities and Exchange
Commission under the Securities Act of 1933, as amended. As of the date of these
financials,  the  Company  has  closed  on  a private placement of approximately
745,622  shares of Series A Preferred Stock. Pursuant to the Securities Purchase
and  Share  Exchange  Agreement,  dated  as of January 18, 2006, the Company (a)
issued  and  sold  to  the  Purchasers,  and  the  Purchasers purchased from the
Company,  (a)  Series  A  Preferred  Stock,  (b)  Series A Common Stock Purchase
Warrants,  and  (c) Series B Common Stock Purchase Warrants. Also on January 18,
2006,  the  Company  completed  a  share  exchange pursuant to which the Company
acquired  100%  of  the  issued  and  outstanding  capital  stock  of DeerValley
Acquisitions,  Corp.  Pursuant  to the Share Exchange Agreement, in exchange for
100%  of  the  issued  and  outstanding common stock of DeerValley Acquisitions,
Corp.,  the  Company  issued  the  following  securities  to the shareholders of
DeerValley  Acquisitions,  Corp.:  (a)  Series  B  Preferred Stock, (b) Series C
Preferred  Stock,  and  (c)  Series  C  Common  Stock  Purchase  Warrants.

In  connection  with  the  Securities  Purchase and Share Exchange Agreement, on
January  18,  2006,  the  Company  issued  to  a  Lender  an  Interest  Bearing
Non-Convertible  Installment  Promissory  Note  ("the  Note"),  in  the original
principal

                                      F-14
<PAGE>

                             DEER VALLEY CORPORATION
         [FORMERLY KNOWN AS CYTATION CORPORATION THROUGH JULY 24, 2006]
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


amount  of  One  Million  Five Hundred Thousand and No/100 Dollars ($1,500,000),
together  with  interest  accruing  thereon  at an annual rate of twelve percent
(12%)  per  annum.  The  business  purpose of executing the Note was to fund the
acquisition  of  Deer  Valley  Homebuilders,  Inc.  On March 17, 2006 the Lender
decided  to  convert  the  Note  to  stock.

Pursuant  to  the  terms  of  a  Debt Exchange Agreement, the Company issued the
Lender its Series A Convertible Preferred Stock, Series A Warrants, and Series B
Warrants  to  the investor, in exchange for the retirement of its obligations to
repay  such  promissory  note.

In  January  2006,  the Company issued 17,338 common shares to Sequence Advisors
Corporation,  an  affiliate  of  two  former  directors.

On  January  18, 2006, DeerValley Acquisitions, Corp., a wholly-owned subsidiary
of  Deer Valley Corporation, acquired 100% of the issued and outstanding capital
stock of Deer Valley Homebuilders, Inc. The results of Deer Valley Homebuilders,
Inc.  will  be  included  in consolidated financial statements for periods after
January  18, 2006. Deer Valley Homebuilders, Inc. is an Alabama corporation with
its business offices located at 205 Carriage Street, P.O. Box 310, Guin, Alabama
35563 and is engaged in the production, sale and marketing of manufactured homes
in  the  southeastern  and  south  central  U.S.  housing  market.  Deer  Valley
Corporation  purchased  Deer  Valley  Homebuilders, Inc. to serve as its primary
operating  company  and  to  gain  entry into the manufactured home market. Deer
Valley  Homebuilders,  Inc.  comprises  substantially  all  of  Deer  Valley
Corporation's  operations.

The  aggregate purchase price for Deer Valley Homebuilders, Inc. was $6,000,000,
including  $5,500,000  cash  and  $500,000 of Deer Valley Corporation's Series A
Convertible Preferred Stock, Series A Common Stock Purchase Warrants, and Series
B  Common Stock Purchase Warrants. In addition, an Earnout Agreement was entered
into,  pursuant to which additional payments may be paid to the former owners of
Deer  Valley Homebuilders, Inc., as an earnout, based upon the Net Income Before
Taxes  of Deer Valley Homebuilders, Inc. during the next five (5) years, up to a
maximum  of  $6,000,000. The Company is accounting for the $6,000,000 earnout as
contingent  consideration  in  accordance  with paragraphs 25 through 28 of SFAS
141.  Because  the  amount,  if  any,  of  contingent  consideration  was  not
determinable  at  the  acquisition  date,  no amount for the contingency will be
recorded  in  the  Company's  financial  statements  until  the  contingency  is
resolved,  or  the  consideration  is  issued  or  becomes  issuable.

The  Company  considered  the  effect of EITF 95-8 and based its analysis on the

                                      F-15
<PAGE>

                             DEER VALLEY CORPORATION
         [FORMERLY KNOWN AS CYTATION CORPORATION THROUGH JULY 24, 2006]
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


fact  that  the  contingent  consideration  of  a minimum of $0 and a maximum of
$6,000,000  over the next five years was nothing more than a way for the Company
to defer payments of purchase price so that the Company did not have to pay Deer
Valley  Homebuilders Inc.'s shareholders the full purchase price up front. Since
Deer  Valley  Homebuilders,  Inc.  had  a  pre-tax  profit  in 2005 in excess of
$3,000,000, the Company concluded that Deer Valley Homebuilders, Inc.'s business
was  worth  in excess of $6,000,000, or approximately two times pre-tax profits.
The  sellers  were  interested  in  receiving  all $12 million up front, but the
Company  was  unwilling to pay in this fashion because Deer Valley Homebuilders,
Inc.  had been in business less than two years and because to do so would be too
dilutive to shareholders to raise all monies up front. Therefore the Company and
previous  shareholders  of  Deer  Valley  Homebuilders, Inc. agreed to the price
adjustment  target  account  ("PATA"). So long as Deer Valley Homebuilders, Inc.
continues to have pre-tax profits in excess of one million dollars over the next
five  years,  the shareholders, pursuant to their interest sold, will be given a
pro-rata  portion  of  the  maximum $6,000,000 PATA. Based on this analysis, the
Company  will  account  for  all  of  the  PATA, when earned, by recording it as
additional  consideration  for the acquisition of Deer Valley Homebuilders, Inc.
and  will not record it as a period expense related to compensation. The Company
will  account  for  this  on  an ongoing basis and book any accrued liability in
connection  with  the  PATA  as  incurred.

The value of the Series A Convertible Preferred Stock, Series A Common Stock
Purchase Warrants, and Series B Common Stock Purchase Warrants were determined
in a private offering also completed on January 18, 2006.

SERIES  A  CONVERTIBLE  PREFERRED  STOCK

In connection with the Series A Convertible Preferred Stock offering the Company
Calculated  the  effect of EITF 00-27 and EITF 98-5 and determined on a relative
fair  value basis that, of the $7,456,215 raised, $5,669,186 was attributable to
the  beneficial  conversion  feature  of  the  warrants  and  $1,787,029  was
attributable  to  the  beneficial conversion feature of the Series A Convertible
Preferred  Stock.  As such, the Company adjusted its balance sheet to reflect an
increase of $5,699,186 to additional paid-in capital and $1,787,029 to preferred
stock.  The Company also noted that, of the $1,787,029 booked to preferred, 100%
was  allocated  to  the  beneficial  conversion  feature  and  was recorded as a
reduction  to  preferred  stock  and  an increase to additional paid-in capital.
Conversion  of  the  preferred stock can also occur at anytime. During the three
month  period  ending  September  30,  2006,  the registration statement for the
Company  was  declared  effective  and  the remaining $4,126,453 of un-amortized
beneficial conversion feature related to the Series A Preferred was considered a
deemed  dividend.

                                      F-16
<PAGE>

                             DEER VALLEY CORPORATION
         [FORMERLY KNOWN AS CYTATION CORPORATION THROUGH JULY 24, 2006]
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

In  addition,  during  the  three month period ending September 30, 2006 certain
shareholders  converted  29,217  shares  of  Series A Preferred stock, par value
$291,970,  into  389,196  shares  of  the  Company's  common  stock.

  TOTAL PREFERRED SERIES A PROCEEDS                                  $7,456,215
    Amount of proceeds allocated to Warrants                         (5,669,186)
    Amount of proceeds allocated to Preferred Series A               (1,787,029)
    Amortization of Beneficial Conversion Feature                     1,491,243
                                                                     ----------
  PREFERRED SERIES A BALANCE AT APRIL 1, 2006                        $1,491,243
    Amortization of Beneficial Conversion Feature                     1,838,519
                                                                     ----------
  PREFERRED SERIES A BALANCE AT JULY 1, 2006                         $3,329,762
    Amortization of Beneficial Conversion Feature                     4,126,453
    Conversion of Series A Preferred                                  (405,970)
                                                                     ----------
  PREFERRED SERIES A BALANCE AT SEPTEMBER 30, 2006                   $7,050,245
                                                                     ==========

PREFERRED  SERIES  D

On  April  17,  2006, the Company completed a private placement of $1,320,810 of
its  Series  D  Convertible  Preferred  Stock  (the  "Series  D  Offering").  In
connection  with the Series D Offering, the Company issued (a) 132,081 shares of
its  Series D Convertible Preferred Stock and (b) Series E Common Stock Purchase
Warrants  entitling  the holder to purchase up to an aggregate of 880,540 shares
of  its  Common  Stock  at an exercise price of three dollars ($3.00) per share.

The  issuance  of  the  Series  D  Convertible  Preferred  Stock  and  Series  E
Warrants were exempt from the registration requirements of the Securities Act of
1933,  as  amended,  pursuant  to  Section  4(2) of the Act for transactions not
involving  a  public  offering  and  Rule  506  promulgated by the United States
Securities and Exchange Commission under the Securities Act of 1933, as amended.
Such  securities  were issued only to institutional, accredited investors, and a
limited  number  of  non-accredited  investors.

In  connection  with  the  Series  D  Convertible  Preferred Stock offering, the
Company  Calculated  the  effect of EITF 00-27 and EITF 98-5 and determined on a
relative  fair  value  basis  that,  of  the  $1,320,810  raised,  $434,945  was
attributable  to the beneficial conversion feature of the warrants, and $753,618
was  attributable  to  the beneficial conversion feature of the preferred stock.
As  such,  the  Company  adjusted  its  balance  sheet to reflect an increase of
$434,945  to  additional  paid-in  capital  and $753,618 to preferred stock. The
Company  also  noted  that,  of  the  $753,618  booked

                                      F-17
<PAGE>

                             DEER VALLEY CORPORATION
         [FORMERLY KNOWN AS CYTATION CORPORATION THROUGH JULY 24, 2006]
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


to  preferred,  100%  was allocated to the beneficial conversion feature and was
recorded as a reduction to preferred stock and an increase to additional paid-in
capital.  Conversion  of  the preferred stock can also occur anytime at anytime.
During  the  three  month  period  ending  September  30, 2006, the registration
statement for the Company was declared effective and the remaining $1,079,841 of
un-amortized beneficial conversion feature related to the Series D Preferred was
considered  a  deemed  dividend.

  TOTAL PREFERRED SERIES D PROCEEDS                                  $1,320,810
    Issuance Costs                                                    ($132,247)
    Amount of proceeds allocated to Warrants                           (434,945)
    Amount of proceeds allocated to Preferred Series D                 (753,618)
    Amortization of Beneficial Conversion Feature                       240,969
                                                                     ----------
  PREFERRED SERIES D BALANCE AT JULY 1, 2006                           $240,969
    Amortization of Beneficial Conversion Feature                     1,079,841
    Conversion of Series D Preferred                                 (1,320,810)
                                                                     ----------
  PREFERRED SERIES D BALANCE AT SEPTEMBER 30, 2006                           $0
                                                                     ==========

DEERVALLEY  ACQUISITIONS  CORP

DeerValley  Acquisitions,  Corp.,  a  wholly  owned  subsidiary  of  DeerValley
Corporation, was dissolved by filing an Articles of Dissolution with the Florida
Department  of  State.  The  dissolution  of  DeerValley Acquisitions, Corp. was
effective  as of June 30, 2006. On the effective date of dissolution, DeerValley
Acquisitions,  Corp.  had  no  assets  and  no  revenues.

11. RELATED PARTY
-----------------

On  July  1,  2006, the Company entered into an oral agreement with a company to
provide  accounting  services  related  to the filing of the Company's financial
statements.  The service provider is owned and operated by family members of one
of the Company's Board of Directors.  Pursuant to the agreement the Company will
pay  the  service  provider  $5,000 per month as compensation for services.  The
agreement  is  on  a  month-to-month  basis.

                                      F-18
<PAGE>

12.SUBSEQUENT EVENTS
--------------------

In early November of 2006, a shareholder approached the Company about exchanging
registered  shares  of  the  Company's  common stock for shares of the Company's
preferred  stock  and  "out  of  the  money" warrants. On November 16, 2006, the
Company  entered  into  a  Share  Exchange  Agreement  with  that  holder of the
Company's  common  stock,  par  value  $0.01  (the  "Common  Stock") whereby the
shareholder agreed to exchange 750,000 shares of Common Stock for 750,000 shares
of  the  Company's Series E Convertible Preferred Stock (the "Series E Preferred
Stock")  and Series F Warrants (the "Series F Warrants"). The Series E Preferred
Stock is convertible into the Company's Common Stock at the option of the holder
any  time  after  the  date  of  issuance on a one-for-one basis. The conversion
rights  of  the holder of Series E Preferred Stock is limited so that the holder
cannot  convert  any  Series  E  Preferred  Stock if, after such conversion, the
number  of  shares  of  Common  Stock  beneficially  owned by the holder and its
affiliates,  will  exceed  4.99%  of  the  outstanding  shares  of Common Stock.
Pursuant  to  the Share Exchange Agreement, the Company also issued the Series F
Warrants. The Series F Warrants entitle the holder to purchase 750,000 shares of
the  Company's  Common Stock at an exercise price of two dollars and twenty five
cents  ($2.25)  per share. The Series F Warrants are exercisable, in whole or in
part,  at  any time from the date of grant, November 16, 2006, and expire on the
fifth  anniversary  of  the grant date. Similar to the Series E Preferred Stock,
the  exercise  rights of the Series F Warrants are limited so that the holder is
not  entitled  to  exercise  the warrants if, after such exercise, the number of
shares of common stock beneficially owned by the holder and its affiliates, will
exceed  4.99%  of the outstanding shares of common stock. The Series E Preferred
Stock  and  the  Series  F  Warrants  were issued pursuant to the exemption from
registration  found  in  Section  3(a)(9)  of  the  Securities  Act  of  1933.

                                      F-19

<PAGE>

ITEM  2.     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATION

     CAUTIONARY  NOTICE  REGARDING  FORWARD  LOOKING  STATEMENTS

     We  desire to take advantage of the "safe harbor" provisions of the Private
Securities  Litigation  Reform  Act  of  1995.  This filing contains a number of
forward-looking  statements  which  reflect  management's  current  views  and
expectations  with respect to our business, strategies, products, future results
and events, and financial performance.  All statements made in this filing other
than  statements  of  historical fact, including statements addressing operating
performance,  events,  or  developments  which management expects or anticipates
will  or  may  occur  in the future, including statements related to distributor
channels,  volume  growth,  revenues,  profitability,  new products, adequacy of
funds  from  operations,  statements  expressing  general  optimism about future
operating  results,  and  non-historical  information,  are  forward  looking
statements.  In  particular,  the  words  "believe,"  "expect,"  "intend,"
"anticipate,"  "estimate,"  "may,"  variations  of  such  words,  and  similar
expressions identify forward-looking statements, but are not the exclusive means
of  identifying  such  statements,  and  their  absence  does  not mean that the
statement  is not forward-looking.  These forward-looking statements are subject
to certain risks and uncertainties, including those discussed below.  Our actual
results,  performance  or  achievements  could differ materially from historical
results  as  well  as  those  expressed  in,  anticipated,  or  implied by these
forward-looking  statements.  We do not undertake any obligation to revise these
forward-looking  statements  to  reflect  any  future  events  or circumstances.

     Readers  should  not  place  undue  reliance  on  these  forward-looking
statements, which are based on management's current expectations and projections
about  future  events,  are not guarantees of future performance, are subject to
risks,  uncertainties  and  assumptions  (including  those described below), and
apply  only  as  of the date of this filing.  Our actual results, performance or
achievements  could  differ materially from the results expressed in, or implied
by,  these  forward-looking statements.  Factors which could cause or contribute
to  such  differences include, but are not limited to, the risks to be discussed
in  our  Annual  Report  on  form  10-KSB  and  in  the press releases and other
communications  to  shareholders issued by us from time to time which attempt to
advise  interested  parties  of  the  risks  and  factors  which  may affect our
business.  We  undertake  no  obligation  to  publicly  update  or  revise  any
forward-looking  statements,  whether  as  a  result  of new information, future
events,  or  otherwise.

OVERVIEW

     During  the period commencing with the fourth quarter of 2002 and ending in
December  2004, the Company, under the name Cytation Corporation, engaged in the
business of providing consulting and related services to private companies which
wished  to become reporting companies under the Securities Exchange Act of 1934,
but  which lacked the financial resources for an initial public offering ("IPO")
and  which did not wish to become a reporting company via a reverse merger.  The
Company  discontinued  these  operations  in the first quarter of 2005 and was a
shell  company  (as  defined  in  Rule 12b-2 of the Exchange Act) from the first
quarter  of  2005  through  January  18,  2006.

     At  the  end  of 2005, the Company had nominal operations.  The Company had
revenues  of  $59,114  in  fiscal  year  2005, as compared to $240,368 in fiscal
year  2004.  The  Company  had  a  net  loss of $173,605 in fiscal year 2005, as
compared  to a net loss of $696,689 in fiscal year 2004.  The differences in the
foregoing  figures are the result of the Company's discontinuation of operations
and costs related to identification of an acquisition candidate in contemplation
of  a  reverse  merger,  which  did  not  occur.

     On  January  18,  2006,  the Company acquired an operating subsidiary, Deer
Valley  Homebuilders,  Inc.  Deer  Valley  Homebuilders,  Inc. is a wholly-owned
subsidiary  of  the  Company  which  was  formed  in January, 2004.  Deer Valley
Homebuilders, Inc. manufactures and designs manufactured homes which are sold to
a network of independent dealers located primarily in the southeastern and south
central  regions of the United States.  Deer Valley Homebuilders, Inc. maintains

                                     -3-
<PAGE>

its  business  offices in Guin, Alabama and operates manufacturing facilities in
Guin,  Alabama  and  in  Sulligent,  Alabama.  Deer  Valley Corporation is not a
holding  company  for  multiple  operating  companies  in  several  different
businesses.  Deer  Valley  Homebuilders,  Inc.  is  the Company's only operating
company,  and  the  Company  is  engaged exclusively in the manufactured housing
business.

     As a result of the acquisition of Deer Valley Homebuilders, Inc. on January
18,  2006,  the  Company  had  gross revenues of $48,767,224 for the nine months
ending on September 30, 2006, had assets of $18,399,911 as of the same date, and
had 406 employees.  Because the Company discontinued its prior operations in the
first  quarter  of 2005 and was a shell company (as defined in Rule 12b-2 of the
Exchange  Act)  from  the  first  quarter  of  2005 through January 18, 2006 and
because  the Company now has significant revenues from a subsidiary operating in
an  entirely  different  industry,  management  does  not  believe  that  it  is
informative  or  useful  to  compare the Company's results of operations for the
three  month  and nine month periods ended September 30, 2006 to the three month
and  nine month periods ended September 30, 2005.  As a result, the remainder of
this  discussion  examines  only the results of the Company's operations for the
three  month  and  nine  month periods ended September 30, 2006.  In conjunction
with  this  discussion it is imperative that investors read the footnotes to the
financial  statements  attached  to  this  filing.

     In  order  to insure that we maintain the current balance between sales and
production  levels,  the  Company  is developing new product offerings which are
compatible with the high product quality standards and production techniques and
systems  now  in  use  at its operating facilities.  As a result of this ongoing
effort,  in  July  2006, the Company introduced a new single-wide product series
which  is  built  to the same exacting specifications as its multisection homes.
This single-wide series allows the Company to compete for the lower price retail
buyer  by  reducing  the  size  but  not  the  quality  of  the  home  product.

     To  sustain  the  Company's  growth  rate  in  an  industry  which  is  not
experiencing  broad  growth,  management  is seeking to continue to increase its
market  share.  In  addition, we are positioning the Company and seeking to take
advantage  of  our  Alabama  location  and reputation in Mississippi to become a
major  participant  in  the  permanent  rebuilding  of  the Gulf Coast area (see
Hurricane Katrina paragraphs below).  Toward that end, we are evaluating several
new  plant  sites, potential corporate acquisitions, and adding modular products
to  our  product  line.  As of September 30, 2006, no definitive action had been
taken  to  initiate  a  transaction  which  would  result  in such an expansion.

     Management feels that the following areas present significant opportunities
or  risks  for  the  Company:

     1)  Securities  Compliance

     Deer Valley Homebuilders, Inc. has been operated as a private company which
is  not subject to federal securities laws and, therefore, may lack the internal
or  financial  control  infrastructure  and  procedures  necessary  for  public
companies  to  comply  with  the  provisions  of the Securities Exchange Act and
Sarbanes-Oxley  regulations.  Deer  Valley  Homebuilders,  Inc.  and Deer Valley
Corporation  are  coordinating  with  legal counsel and auditors to put in place
proper  financial  controls  and  procedures necessary to insure full compliance
with  and disclosure under all relevant securities laws. Of course, there can be
no  guarantee  that  there  will  be  no  significant  deficiencies  or material
weaknesses  in  the  quality  of the Company's financial controls, as defined by
Sarbanes-Oxley.  The  greatest  challenge  management  foresees  in implementing
necessary  controls and procedures is the cost to the Company of such compliance
could  be substantial, which could have a material adverse effect on our results
of  operations.

     2)  Downturn  in  the  Manufactured  Housing  Industry

     In  recent years, the manufactured housing industry experienced a prolonged
and  significant  downturn  as  consumer  lenders  began to tighten underwriting
standards and curtail credit availability in response to higher than anticipated
rates  of  loan defaults and significant losses upon the repossession and resale
of  homes  securing  defaulted  loans.  According  to  the  Manufactured Housing
Institute, domestic shipments of manufactured homes peaked in calendar year 1998
with  the  shipment  of  372,843  homes,  before declining to a total of 130,802
manufactured  homes  in  calendar  year 2004. Management's best estimate is that
2006  will  see  aggregate  sales  in  the industry of 115,000 to 120,000 homes.

     Despite  the  industry  decline,  which commenced in calendar year 1999, we
have  been  able  to successfully launch and grow our business through efficient
manufacturing  and  production  facilities,  flexible  product  designs,  an
experienced  and  capable  sales team, stringent cost controls, and attention to
dealer  relations, customer satisfaction, and service efforts. Additionally, our
affiliated  dealers  often  endeavor  to distinguish our products by selling our
manufactured  homes  as  part  of a land-home package which may be financed by a
conventional  mortgage. Finally, we focus on the "heavy built", finished drywall
sector  of  the  manufactured  housing market, which management feels offers the
greatest  potential  for  growth  Homes of this type often have the features and
"feel" of traditional site-built homes, but are often more readily available and

                                     -4-
<PAGE>

more  competitively  priced  than site-built homes. Note: the term "heavy built"
refers  to  the  use  of more closely spaced floor joists, thicker exterior wall
construction, and more closely spaced roof trusses (1) than is strictly required
by  the  HUD  building  code  and  (2)  than is standard practice in much of the
manufactured  housing  industry.

     3)  Changing  Dynamics  in  the  Gulf Coast Market in the wake of Hurricane
Katrina.

     Hurricane Katrina created a great need for the rapid provision of temporary
housing  in  the  Gulf  Coast Region, prompting the Federal Emergency Management
Agency  ("FEMA")  to  order  large  numbers of FEMA houses, which are similar to
small, single-wide HUD-Code homes.  With the FEMA demand "bubble" having passed,
management  concurs  with  others  in  the industry who believe that the overall
market  is  slightly  weaker  than  at  this  point  in 2005 and continues to be
pressured  by  a  lack  of  new finance capacity for wholesale and retail sales.
Many  manufacturers  believed  that  2006 would see an increase in HUD-Code home
orders,  largely  because of the need for more permanent replacement homes along
the  Gulf Coast, which would offset the lack of continuing FEMA orders.  Through
September 30, 2006, reconstruction and replacement efforts had not yet developed
at  the pace expected, reflecting a complex and unpredictable interplay of FEMA,
insurance  claims,  and  other  rebuilding  issues.

     In the weeks subsequent to September 30, 2006, FEMA has begun releasing new
guidelines  related  to  reconstruction  in  storm  damaged areas along the Gulf
Coast. As a result of having the new guidelines, local authorities can now begin
issuing  new  building  permits, and insurance companies can quote and issue new
homeowner policies in the affected areas. Furthermore, federal, state, and local
funding  programs  for  rebuilding  appear to be closer to disbursing funds, and
insurance  claims  are  reportedly  being  resolved  at a slightly quicker pace.
Finally,  both  modular and HUD Code housing is being permitted in certain areas
where  only  site-built  houses  were  previously allowed. As a result of all of
these factors, Management believes that, beginning in the first half of calendar
year  2007,  there  will  be  an  upswing  in  production for the portion of the
industry  serving  the Gulf Coast to meet a long-delayed demand for manufactured
housing,  particularly for modular homes, along the Gulf coast. Accordingly, the
Company  is  implementing plans to add a limited number of modular houses to its
product  line. The Company believes that it is well-positioned geographically to
serve  the  target  area. Because the Company exclusively builds a "heavy built"
version  of the HUD Code house with finished drywall interiors, the inclusion of
modular  homes  in  the  product  line  presents  few challenges to the existing
manufacturing  operations.  Nevertheless,  modular  homes  require  more on-site
erection  and  finishing.  Consequently,  the  Company  expects  to  augment its
distribution  and  dealer  support  system  to  facilitate  delivery of this new
product  series.

     4)  Rising Interest Rates and "Floor Plan" Credit Available to Manufactured
Home  Dealers.

     Interest  rates  have a marked effect upon the manufactured housing market.
Management  feels  that  rising  interest  rates  will  drive  buyers  from new,
traditional, "site built" homes toward the upper end of the manufactured housing
market,  where  our products are positioned.  As a counter effect, the increased
interest  rates  have  resulted in an increased inventory of site-built homes on
the  market,  which, in turn, has increased pressure on the manufactured housing
industry,  leading  to  plant  slowdowns, closings, and bankruptcies.  This will
likely  increase competition in the industry.  Moreover, additional increases in
interest  rates  could  eventually  adversely  affect buyers of our products and
could  cause  dealers  to  reduce  inventories because of "Floor-Plan" expenses.

     Reduced  availability of floor plan financing for manufactured home dealers
could  negatively  impact  our  business.  Sources  of this financing are highly
concentrated,  with  a  few companies dominating the market.  If one of the four
largest  providers  were  to  discontinue  floor  plan  financing  programs  for
manufactured  home dealers, approximately one-fourth of the floor plan financing
available  to  manufactured home dealers would disappear.  An occurrence of this
type  could  have  a  material,  adverse impact upon our business, since dealers
would  have additional difficulty in procuring funds to inventory homes based on
floor  plan  financing.  As  of  the date of this filing, the dealers to whom we
sell  have  not  experienced  any  disruption  in  their  floor  plan financing.

     RESULTS  OF  OPERATIONS

     The  following  discussion examines the results of the Company's operations
for  the  three  month  and  nine  month periods ended September 30, 2006.  This
discussion  of  our financial condition and results of operations should be read
in  conjunction  with  our  financial  statements,  included  herewith.  This
discussion  should  not  be construed to imply that the results discussed herein
will necessarily continue into the future, or that any conclusion reached herein
will  necessarily be indicative of actual operating results in the future.  Such
discussion  represents  only  the  best  present  assessment  by our management.
Historical  financial  information  presented  for  the  nine month period ended
September  30,  2006  is  that  of the Company on a consolidated basis with Deer
Valley Homebuilders, Inc. and Deer Valley Acquisitions Corp., which reflects the

                                     -5-
<PAGE>

Company's  acquisition  of  Deer  Valley Homebuilders, Inc. on January 18, 2006,
retroactive to January 1, 2006.  Deer Valley Acquisitions Corp. was dissolved on
July  1,  2006.  Historical  financial information presented for the three month
period  ended  September 30, 2006 is that of the Company on a consolidated basis
with  Deer  Valley  Homebuilders,  Inc.

HISTORICAL  RESULTS  -  PERIODS  ENDED  SEPTEMBER  30,  2006

INTRODUCTORY  EXPLANATORY  NOTE.  Because  the  Company  discontinued  its prior
operations  in  the first quarter of 2005 and was a shell company (as defined in
Rule  12b-2  of the Exchange Act) from the first quarter of 2005 through January
18,  2006 and because the Company now has significant revenues from a subsidiary
operating in an entirely different industry, management does not believe that it
is  informative or useful to compare the Company's results of operations for the
three  month  and nine month periods ended September 30, 2006 to the three month
and  nine month periods ended September 30, 2005.  As a result, the remainder of
this  discussion  examines  only the results of the Company's operations for the
three month and nine month periods ended September 30, 2006.  To the extent that
this  analysis  references  data  from  2005,  those  data  refer to Deer Valley
Homebuilders,  Inc.

REVENUES.  Overall  gross  revenue  for  the  three month and nine month periods
ended September 30, 2006 was $16,901,751 and $48,767,224, respectively.  Revenue
for  the  three month period ended September 30, 2006 declined slightly from the
previous  three  month  period, primarily due to there being approximately eight
(8)  fewer  production  days in the three month period ended September 30, 2006.
Our  production  ceases  on  normal  holidays,  such  as  Labor  Day,  and  for
approximately  one  week  at  July  4 and at Christmas of each year, in order to
allow  management  to survey inventory, perform maintenance on equipment, and to
prepare  forecasts  and  plans  for  the  upcoming  six  month  periods.

SELLING,  GENERAL,  AND  ADMINISTRATIVE  EXPENSES.  General  and  administrative
expenses  consisted  of  payroll and related expenses for executive, accounting,
and  administrative  personnel,  professional  fees, and other general corporate
expenses.  Selling, general, and administrative expenses for the three month and
nine  month  periods  ended  September  30, 2006 were $1,565,801 and $4,544,792,
respectively.  These  general  and  administrative  costs  have increased at our
operating subsidiary, Deer Valley Homebuilders, Inc., primarily due to increased
production,  sales, and operating expenses.  The production direct cost of goods
has  remained  generally  in  the  same  ratio to sales, with increased quantity
discounts  being  offset  by  a  rise  in  material  cost.

NET  INCOME  (LOSS).  The  net income for the three month and nine month periods
ended  September  30,  2006  was  $404,536  and $1,860,839, respectively.  After
accounting  for  the  dividend  payable to preferred shareholders and the deemed
dividend  to  preferred shareholders on beneficial conversion features, the loss
to  common  stockholders  for  the  three  month  and  nine  month periods ended
September  30,  2006  was  $4,916,715  and  $7,272,925, respectively.  Increased
production  and  sales of our products have bolstered net income.  The effect of
the  beneficial  conversion  features  were  fully realized as of the end of the
quarter  ended  September  30,  2006  and,  consequently, will not affect future
quarterly  financial  statements.

LIQUIDITY  AND  CAPITAL  RESOURCES

     Management  believes  that  the  Company currently has sufficient cash flow
from  operations,  available bank borrowings, cash, and cash equivalents to meet
its  short-term  working  capital  requirements.  As  of September 30, 2006, the
Company  had  $4,304,911  in  cash and cash equivalents.  Because of the current
profits generated by operations and lack of significant capital demand under our
current  business  plan, our cash reserves are expected to continue to grow each
month.  Should  our  costs  and  expenses  prove to be greater than we currently
anticipate, or should we change our current business plan in a manner which will
increase  or accelerate our anticipated costs or capital demand, such as through
the  acquisition  of  new  products, our working capital could be depleted at an
accelerated  rate.

     The Company spends its cash to fund increases in production capacity at its
operating  subsidiary,  Deer  Valley  Homebuilders,  Inc.,  for  special  legal,
accounting, and audit services necessary to meet SEC reporting requirements, and
to  pay  expenses.  To  the  extent  that  it  becomes  necessary  to  raise
additional  cash in the future as our current cash and working capital resources
are  depleted,  we  will  seek to raise it through the public or private sale of
debt or equity securities, the procurement of advances on contracts or licenses,
funding  from  joint-venture or strategic partners, debt financing or short-term
loans,  or  a  combination  of  the  foregoing.  We  also  may  seek  to satisfy
indebtedness  without  any  cash  outlay through the private issuance of debt or
equity  securities.

     The  net  cash  provided  by operating activities for the nine month period
ending  September  30,  2006  was  $633,146.  The  net  cash  used  in investing
activities  for  the nine month period ending September 30, 2006 was $7,366,029,

                                     -6-
<PAGE>

which  primarily  reflects  the  amount  related  to the purchase of Deer Valley
Homebuilders,  Inc., which was $6,475,000, net of cash acquired in the purchase,
as  well  as  purchases  of  equipment.  The  net  cash  provided  by  financing
activities  for  the nine month period ending September 30, 2006 was $8,106,311,
the  majority  of  which  resulted from the issuance of Series A and D preferred
stock.

     We  are  contingently  liable under the terms of repurchase agreements with
financial  institutions  providing  inventory  financing  for  retailers  of our
products.  For  more  information  on  the  repurchase agreements, including the
Company's  contingent  liability  thereunder, please see "Reserve for Repurchase
Commitments"  below.

FINANCING

     On  April  12, 2006, Deer Valley Homebuilders, Inc. entered into a Loan and
Security  Agreement providing for a revolving line of credit in an amount not to
exceed Two Million Five Hundred Thousand and No/100 Dollars ($2,500,000.00) (the
"Loan")  evidenced  by  a  revolving  credit  note  (the  "Note") and secured by
accounts  receivable, inventory, equipment and all other tangible and intangible
personal  property  of  Deer Valley Homebuilders, Inc., Deer Valley Acquisitions
Corp. (a subsidiary of the Company, now dissolved), and the Company. The purpose
of the Loan was to provide working capital, to provide Letter of Credit support,
to  replace  Deer  Valley Homebuilders, Inc.'s previous revolving line of credit
with  State Bank and Trust, and to provide interim financing for the acquisition
of  the  real  property on which we operate a plant in  Sulligent, Alabama.  The
Loan  has a one year term and has a variable interest rate at 2.60% above LIBOR.
Upon issuance of a letter of credit, Deer Valley Homebuilders, Inc. is charged a
letter  of  credit  fee  equal 1.00% of the face amount of the letter of credit.
The  Loan  provides  for  conditions  to  meet  prior to each advance, including
financial  ratios.

     In  addition  to  the  revolving  line of credit described in the preceding
paragraph, Deer Valley Homebuilders, Inc., during its normal course of business,
is  required  to  issue  irrevocable  standby  letters of credit in the favor of
independent  third  party  beneficiaries  to  cover obligations under repurchase
agreements.

     As  of  September  30,  2006,  the  following letters of credit were issued
     and  in  force:

     A  letter  of  credit  issued  through  State Bank & Trust in the amount of
     $400,000  to  the  favor of beneficiary GE Commercial issued on January 27,
     2006  and  expiring  January 27, 2007. Personally guaranteed by Joel Logan,
     President  and  General  Manager  of  Deer  Valley.

     A  letter  of  credit  issued  through  Fifth  Third  Bank in the amount of
     $150,000  to  the  favor  of  beneficiary  Textron.

     A  letter  of  credit  issued  through  Fifth  Third  Bank in the amount of
     $380,000  to  the  favor  of  beneficiary  Universal  Insurance, on a bond.

     A  letter  of  credit  issued  through  Fifth  Third  Bank in the amount of
     $50,000  to  the  favor  of beneficiary Lincoln General, on a Florida bond.

     A  letter  of  credit  issued  through  Fifth  Third  Bank in the amount of
     $350,000  to  the  favor  of  beneficiary  21st  Mortgage.

     All  of  the  Letters  of  Credit above are required under the terms of the
Repurchase  Agreements  described  below  in  the  section entitled "Reserve for
Repurchase Commitments."  As of September 30, 2006, no amounts had been drawn on
the  above  irrevocable  letters  of  credit  by  the  beneficiaries.

     On  May  26,  2006,  Deer  Valley  Homebuilders,  Inc.  entered into a Loan
Agreement  with  Fifth  Third  Bank  (the  "Lender") providing for a loan of Two
Million  and  No/100  Dollars  ($2,000,000.00)  (the  "Loan")  evidenced  by  a
promissory  note  and  secured  by a first mortgage on Deer Valley Homebuilders,
Inc.'s  properties  in  Guin,  Alabama  and  Sulligent,  Alabama,  including the
structures  and  fixtures  located thereon, as well as its interest in any lease
thereof.  The  purpose  of  the loan is to pay off an existing loan from another
bank  secured by the Guin property and to reduce the outstanding balance on Deer
Valley  Homebuilders, Inc.'s revolving credit facility with the Lender.  The net
effect  of  the  reduction  in  the  revolving credit balance is to increase the
credit available to Deer Valley Homebuilders, Inc. for working capital under its
revolving  facility.  The Loan has a term from May 26, 2006 through June 1, 2011
and  has  a variable interest rate at 2.25% above LIBOR.  There is no prepayment
penalty.  Future  advances  are  available  under the Loan Agreement, subject to
approval  by the Lender.  Also on May 26, 2006, the Company guaranteed the Loan.
Should  Deer  Valley Homebuilders, Inc. default, thereby triggering acceleration
of  the  Loan,  the  Company  would  become  liable  for  payment  of  the Loan.

                                     -7-
<PAGE>

CRITICAL  ACCOUNTING  POLICIES

     Our  discussion  and  analysis  of  our  financial condition and results of
operations  are based upon our financial statements, which have been prepared in
accordance with accounting principles generally accepted in the United States of
America.  The preparation of these consolidated financial statements requires us
to  make  estimates  and  judgments which affect the reported amounts of assets,
liabilities, revenues and expenses, and related disclosures of contingent assets
and  liabilities.  For  a  description  of those estimates, see Note 7, Critical
Accounting  Policies  and  Estimates,  contained in the explanatory notes to the
Company's  financial  statements  for  the  quarter  ended  September  30, 2006,
contained  in  this  filing.  On  an  ongoing  basis, we evaluate our estimates,
including  those related to reserves, deferred tax assets, valuation allowances,
impairment  of  long-lived  assets,  fair  value of equity instruments issued to
consultants  for services, and estimates of costs to complete contracts. We base
our estimates on historical experience and on various other assumptions which we
believe  to be reasonable under the circumstances, the results of which form the
basis  for  making  judgments about the carrying value of assets and liabilities
which  are  not  readily  apparent from other sources. Actual results may differ
from  these  estimates  under  different  assumptions or conditions. However, we
believe  that  our estimates, including those for the above-described items, are
reasonable.

CRITICAL  ACCOUNTING  ESTIMATES

     Management  is  aware that certain changes in accounting estimates employed
in  generating  financial  statements  can have the effect of making the Company
look  more  or less profitable than it actually is.  Management does not believe
that either the Company or its auditors have made any such changes in accounting
estimates.  A  summary of the most critical accounting estimates employed by the
Company  in  generating  financial  statements  follows  below.

     WARRANTIES

     We  provide  our  retail  buyers  with a one-year limited warranty covering
defects  in  material or workmanship, including plumbing and electrical systems.
We  record  a  liability  for  estimated future warranty costs relating to homes
sold,  based  upon  our assessment of historical experience and industry trends.
In  making  this  estimate, we evaluate historical sales amounts, warranty costs
related to homes sold and timing in which any work orders are completed.  We had
a  reserve  for estimated warranties of $1,550,000 as of September 30, 2006.  We
plan to increase our reserve for warranties because (1) we have more homes under
warranty  due  to  increased  sales  in the past year and (2) we made a one-time
provision  related  to  a  possible change out of ventilation ducts installed in
certain  models  delivered  prior  to  September  30, 2006.  The increase in our
reserve  for  warranties will occur during the fourth fiscal quarter of 2006 and
will  adversely  impact  our  profits  during that period.  Although we maintain
reserves for such claims, there can be no assurance that warranty expense levels
will  remain  at current levels or that the reserves that we have set aside will
continue  to  be  adequate.  A  large number of warranty claims which exceed our
current  warranty  expense  levels could have a material adverse affect upon our
results  of  operations.

     VOLUME  INCENTIVES  PAYABLE

     We  have  relied  upon volume incentive payments to our independent dealers
who retail our products.  These volume incentive payments are accounted for as a
reduction  to  gross  sales,  and  are  estimated  and accrued when sales of our
manufactured  homes  are  made  to  our  independent  dealers.  Volume incentive
reserves  are  recorded  based  upon the annualized purchases of our independent
dealers  who purchase a qualifying amount of home products from us.  We accrue a
liability  to  our  dealers, based upon estimates derived from historical payout
rates.  We  had  a  reserve  for  volume  incentives  payable  of $685,559 as of
September  30,  2006.

     RESERVE  FOR  REPURCHASE  COMMITMENTS

     Most  of  our independent dealers finance their purchases under a wholesale
floor  plan  financing  arrangement under which a financial institution provides
the  dealer  with  a  loan  for  the  purchase price of the home and maintains a
security  interest  in  the home as collateral.  When entering into a floor plan
arrangement,  the  financial institution routinely requires that we enter into a
separate  repurchase  agreement  with  the lender, under which we are obligated,
upon  default  by the independent dealer, to repurchase the manufactured home at
our  original  invoice  price  less  the  cost  of  administrative  and shipping
expenses.  Our  potential  loss  under  a repurchase obligation depends upon the
estimated net resale value of the home, as compared to the repurchase price that
we  are  obligated  to  pay.  This  amount generally declines on a predetermined
schedule  over  a  period  that  usually  does  not  exceed  24  months.

                                     -8-
<PAGE>

     The risk of loss that we face under these repurchase agreements is lessened
by  several  factors,  including  the  following:

     (i)  the  sales  of  our  products  are spread over a number of independent
          dealers,
     (ii) we have  had  only  isolated  instances  where  we  have  incurred  a
          repurchase  obligation,
     (iii) the price  we  are  obligated  to  pay  under  such  repurchase
          agreements  declines  based  upon a predetermined amount over a period
          which  usually  does  not  exceed  24  months,  and
     (iv) we have  been  able  to  resell  homes  repurchased  from  lenders  at
          current  market  prices,  although  there is no guarantee that we will
          continue  to  be  able  to  do  so.

     The  maximum  amount  for  which  the  Company is contingently liable under
repurchase agreements is approximately $15,375,000 at September 30, 2006.  As of
September  30,  2006  the  Company  had  reserved  $67,325 for future repurchase
commitments,  based  upon our prior experience and evaluation of our independent
dealers'  financial  conditions.  Because Deer Valley Homebuilders, Inc. to date
has  not  experienced  any significant losses under these agreements, management
does  not expect any future losses to have a material effect on our accompanying
financial  statements.

     REVENUE  RECOGNITION

     Revenue  for our products sold to independent dealers is generally recorded
when  all  of the following conditions have been met:  (i) an order for the home
has  been  received  from  the dealer, (ii) an agreement with respect to payment
terms  has  been  received, and (iii) the home has been shipped and risk of loss
has  passed  to  the  dealer.

     RECENT  ACCOUNTING  PRONOUNCEMENTS

     The  Financial  Accounting  Standards  Board (FASB) has recently issued the
following  accounting  standards,  which  are  effective  as of January 1, 2007.

     FASB  Interpretation  No.  48, "Accounting for Uncertainty in Income Taxes"
(FIN  48)  is  an  interpretation  which  clarifies  FASB  Statement  No.  109,
"Accounting  for  Income  Taxes." This Statement addresses uncertainty in income
taxes  recognized  in  an  enterprise's  financial  statements  and prescribes a
recognition  threshold and measurement of a tax position taken or expected to be
taken  in a tax return. Any cumulative impact resulting from the adoption of FIN
48  would  be  recorded  as  an  adjustment  to beginning retained earnings. The
Company  is  currently  evaluating  the  impact  of  FIN  48  on  the  Company's
Consolidated  Financial  Statements.

     Statement of Financial Accounting Standards (SFAS) No. 156, "Accounting for
Servicing  of  Financial  Assets - an amendment of FASB Statement No. 140" (SFAS
No.  156)  simplifies  the  accounting for servicing assets and liabilities. The
adoption  of  SFAS No. 156 is not anticipated to have an impact on the Company's
Consolidated  Financial  Statements.

     SFAS  No.  155,  "Accounting  for Certain Hybrid Financial Instruments - an
amendment  of  FASB  Statements  No.  133  and 140" (SFAS No. 155) addresses the
application  of  beneficial  interests  in  securitized  financial  assets.  The
adoption  of  SFAS No. 155 is not anticipated to have an impact on the Company's
Consolidated  Financial  Statements.

PROPERTY

     The  Company's  executive  and  operating  offices  are  located  at  4902
Eisenhower  Blvd.,  Suite  185,  Tampa, FL 33634.  The Company is provided these
offices  by a related party at no charge.  The telephone number at the Company's
executive offices is (813) 885-5998.  Deer Valley Homebuilders, Inc.'s principal
manufacturing  plant  and  offices  are  located  at  205 Carriage Street, Guin,
Alabama  35563,  and  its  telephone  number  is  (205)  468-8400.  Deer  Valley
Homebuilders,  Inc.'s principal manufacturing plant and company offices consists
of  a  manufacturing  plant  with  107,511 square feet, a frame shop with 10,800

                                     -9-
<PAGE>

square  feet, material shed of 23,172 square feet and offices with 11,250 square
feet of space.  Deer Valley Homebuilders, Inc. owns the buildings and 25.5 acres
underlying  these  facilities.  Deer  Valley  Homebuilders,  Inc.'s  second
manufacturing  plant  is  located at 7668 Highway 278 in Sulligent, Alabama (the
"Sulligent  Plant").  The  Sulligent  Plant  consists  of  a  65,992 square foot
manufacturing  plant  located  on  approximately  13 acres of land.  Deer Valley
Homebuilders,  Inc.  owns the buildings and land underlying the Sulligent Plant.

     Deer  Valley  Homebuilders,  Inc.  does  not  invest in real estate or real
estate  mortgages  except  for  those necessary to support the company's  normal
business  purposes.

WEBSITE

     Deer Valley Homebuilders, Inc. maintains a website at www.deervalleyhb.com.
The  information  contained on this website is not a part of this filing, nor is
it  incorporated  by  reference  into  this  filing.

OFF-BALANCE  SHEET  ARRANGEMENTS

     In  connection  with  the  purchase  of  Deer  Valley Homebuilders, Inc. on
January  18,  2006,  the Company entered into the Earnout Agreement, pursuant to
which  additional  payments,  up  to a maximum of $6,000,000, may be paid to the
former  owners  of  Deer Valley Homebuilders, Inc. as an earnout, based upon the
Net  Income  Before Taxes of Deer Valley Homebuilders, Inc. during the next five
(5)  years.  The  business purpose of executing the Earnout Agreement was to set
the  purchase  price of Deer Valley Homebuilders, Inc. by an objective standard,
given  that  the  owners of Deer Valley Homebuilders, Inc. and the Company could
not  agree  on  an  outright  purchase  price

     During  the  term  of  the  Earnout  Agreement,  50%  of the pre-tax profit
exceeding  $1,000,000  per  year will be accrued and become distributable to the
former  owners of Deer Valley Homebuilders, Inc.  Deer Valley Homebuilders, Inc.
had  pre-tax profit in the nine months ended September 30, 2006 in the amount of
$3,630,987,  of  which $2,630,987 was above the earnout threshold of $1,000,000.
Accordingly,  the  Company  accrued  50%  of  the  amount  in  excess of earnout
threshold  in the amount of $1,315,494.  The maximum remaining potential accrual
under  the  Earnout  Agreement  is  $4,188,099.

ITEM  3.     CONTROLS  AND  PROCEDURES

INTERNAL CONTROL OVER FINANCIAL REPORTING; EVALUATION OF DISCLOSURE CONTROLS AND
PROCEDURES

     The Company's Chief Executive and Chief Financial Officer has evaluated the
effectiveness of the Company's disclosure controls and procedures (as defined in
Rules  13a-15(e)  and  15d-15(e) under the Exchange Act) as of the fiscal period
ending  September  30,  2006  covered by this Report on Form 10-QSB.  Based upon
such  evaluation,  the Chief Executive and Chief Financial Officer has concluded
that,  as  of  the  end  of  such  period, the Company's disclosure controls and
procedures  were not in full compliance with the requirements of Rules 13a-15(e)
and  15d-15(e)  under  the  Exchange  Act.

     As  reported  in  the  Form 8-K filed with the United States Securities and
Exchange  Commission  on  September  27, 2007, several individuals were recently
elected  to  the  Board of Directors of the Company.  It is anticipated that the
new  Board  of  Directors  will establish audit and compensation committees.  In
addition,  the Company's Chief Executive and Chief Financial Officer is devoting
considerable  effort to continue to develop and implement a system of disclosure
controls  and  procedures to ensure that information required to be disclosed in
our  reports  filed under the Securities Exchange Act of 1934 is accumulated and
communicated  to  management  and  its officers, as appropriate, to allow timely
decisions  regarding  required  disclosure.

     Beginning  after  the  year  ending  December  15, 2007, Section 404 of the
Sarbanes-Oxley Act of 2002 will require us to include management's report on our
internal  control  over  financial  reporting in our Annual Report on Form 10-K.
The  internal  control  report  must  contain  (1)  a  statement of management's
responsibility  for  establishing and maintaining adequate internal control over
our  financial  reporting,  (2)  a  statement  identifying the framework used by
management  to  conduct  the  required  evaluation  of  the effectiveness of our
internal  control  over  financial reporting, (3) management's assessment of the
effectiveness  of our internal control over financial reporting as of the end of
our  most  recent  fiscal  year,  including a statement as to whether or not our
internal control over financial reporting is effective, and (4) a statement that
our  registered  independent  public  accounting  firm has issued an attestation
report  on  management's  assessment  of  our  internal  control  over financial
reporting.  Pursuant  to  Section  404(b)  of  the  Sarbanes-Oxley  Act of 2002,
beginning  at  the  first  annual  report  for  a fiscal year ending on or after
December  15,  2008  we must provide an auditor's attestation report on internal
control  over  financial  reporting  in  their  annual  reports.

                                      -10-
<PAGE>

     In  order  to  achieve  compliance  with  Section 404 within the prescribed
period,  at  the  appropriate  time  management  will  commence  a  Section  404
compliance project to assess the adequacy of our internal control over financial
reporting,  remediate  any control deficiencies that may be identified, validate
through  testing  that  controls  are functioning as documented, and implement a
continuous reporting and improvement process for internal control over financial
reporting.

INHERENT  LIMITATIONS  OF  THE  EFFECTIVENESS  OF  INTERNAL  CONTROL

     A  control  system,  no matter how well conceived and operated, can provide
only  reasonable,  not  absolute,  assurance that the objectives of the internal
control  system  are  met.  Because  of the inherent limitations of any internal
control  system,  no  evaluation of controls can provide absolute assurance that
all  control  issues  within  a  company,  if  any,  have  been  detected.

CHANGES  IN  INTERNAL  CONTROLS  OVER  FINANCIAL  REPORTING

     During  the third quarter of fiscal year 2006, there were no changes in our
internal  control  over  financial  reporting  which materially affected, or are
reasonably  likely  to  materially  affect  our  internal control over financial
reporting.

PART  II     OTHER  INFORMATION

ITEM  1.     LEGAL  PROCEEDINGS

     Although  the Company in the normal course of business is subject to claims
and  litigation, the Company is not a party to any material legal proceeding nor
is the Company aware of any circumstance which may reasonably lead a third party
to  initiate  legal  proceeding  against  the  Company.

     As  of  the  date  of  this  filing, there are no material pending legal or
governmental proceedings relating to our Company or properties to which we are a
party,  and  to  our knowledge there are no material proceedings to which any of
our  directors,  executive  officers, or affiliates are a party adverse to us or
which  have  a  material  interest  adverse  to  us.

ITEM  2.     UNREGISTERED  SALES  OF  EQUITY  SECURITIES  AND  USE  OF  PROCEEDS

Unregistered  Sales  of  Equity  Securities

     Other  than  sales previously reported, there were no unregistered sales of
equity  securities.

Issuer  Purchases  of  Equity  Securities

     The  Company  did  not  repurchase  any equity securities during the fiscal
quarter  ended  September  30,  2006.


ITEM  3.     DEFAULTS  UPON  SENIOR  SECURITIES

     None.

ITEM  4.     SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS

          None.

ITEM  5.     OTHER  INFORMATION

     SUBSEQUENT  EVENT  -  SHARE  EXCHANGE

     In  early  November  of 2006, a shareholder, Vicis Capital Master Fund, LP,
approached  the  Company  about  exchanging  registered  shares of the Company's
common  stock for shares of the Company's preferred stock and "out of the money"
warrants.  On  November  16,  2006,  the  Company  entered into a Share Exchange
Agreement  with  that holder of the Company's common stock, par value $0.01 (the
"Common  Stock")  whereby  the  shareholder agreed to exchange 750,000 shares of
Common  Stock for 750,000 shares of the Company's Series E Convertible Preferred
Stock  (the  "Series  E  Preferred  Stock") and Series F Warrants (the "Series F
Warrants").  The  Series  E  Preferred  Stock  is convertible into the Company's
Common  Stock at the option of the holder any time after the date of issuance on
a  one-for-one  basis. The conversion rights of the holder of Series E Preferred
Stock  is limited so that the holder cannot convert any Series E Preferred Stock
if,  after  such  conversion,  the number of shares of Common Stock beneficially
owned  by  the  holder  and its affiliates, will exceed 4.99% of the outstanding
shares  of  Common  Stock. Pursuant to the Share Exchange Agreement, the Company
also  issued  the Series F Warrants. The Series F Warrants entitle the holder to
purchase  750,000  shares  of the Company's Common Stock at an exercise price of
two  dollars  and twenty five cents ($2.25) per share. The Series F Warrants are
exercisable,  in  whole or in part, at any time from the date of grant, November
16,  2006, and expire on the fifth anniversary of the grant date. Similar to the
Series  E  Preferred  Stock,  the  exercise  rights of the Series F Warrants are
limited  so  that  the holder is not entitled to exercise the warrants if, after
such  exercise,  the  number of shares of common stock beneficially owned by the
holder and its affiliates, will exceed 4.99% of the outstanding shares of common
stock.  The  Series  E  Preferred  Stock  and  the Series F Warrants were issued
pursuant  to  the  exemption  from  registration found in Section 3(a)(9) of the
Securities Act of 1933. As a result of the Share Exchange Agreement, the 750,000
shares  of  registered  Common  Stock tendered by the shareholder to the Company
will  be returned to the pool of authorized but unissued shares of Common Stock,
which  will reduce the number of shares of outstanding Common Stock to 7,928,263
shares  as  of  November  16,  2006.

     The  Certificate  of  Designation,  Rights  and  Preferences  of  Series  E
Convertible  Preferred  Stock  constitutes  an  amendment  to  the  Articles  of
Incorporation  of  the  Company.  Such  amendment  was  approved by the Board of
Directors,  pursuant  to  its  powers under the Articles of Incorporation of the
Company, the Bylaws of the Company, and the Florida Business Corporation Act, on
November  8,  2006  and  became  effective  onNovember  17,  2006.

                                      -11-
<PAGE>

ITEM  6.     EXHIBITS

EXHIBIT NO.  DESCRIPTION

3.01 Articles  of  Incorporation  of  Deer  Valley  Corporation.  (1)
3.02 Bylaws  of  Deer  Valley  Corporation.  (1)
4.01 Certificate of Designation, Rights, and Preferences of Series A Convertible
     Preferred  Stock.  (1)
4.02 Certificate of Designation, Rights, and Preferences of Series B Convertible
     Preferred  Stock.  (1)
4.03 Certificate of Designation, Rights, and Preferences of Series C Convertible
     Preferred  Stock.  (1)
4.04 Certificate of Designation, Rights, and Preferences of Series D Convertible
     Preferred  Stock.  (1)
4.05 Certificate of Designation, Rights, and Preferences of Series E Convertible
     Preferred  Stock.  (7)
10.01 Securities  Purchase  and Share Echange Agreement dated January 18, 2006,
      by and  among  the  Company,  Richard  A.  Fisher,  Kevin J. High, certain
      purchasers  of  the  Company's  Series  A  Convertible  Preferred  Stock,
      DeerValley Acquisitions  Corp., and certain other persons a party thereto.
      (2)
10.02 Investor  Rights  Agreement,  by  and  among  the  Company,  each  of  the
      purchasers  of  the  Company's  Series  A  Convertible
10.03 Earnout  Agreement.  (2)
10.04 Form of  Series  A  Common  Stock  Purchase  Warrant.  (2)
10.05 Form of  Series  B  Common  Stock  Purchase  Warrant.  (2)
10.06 Form of  Series  C  Common  Stock  Purchase  Warrant.  (3)
10.07 Form of  Series  D  Common  Stock  Purchase  Warrant.  (3)
10.08 Form of  Series  E  Common  Stock  Purchase  Warrant.  (3)
10.09 Form of  Series  BD-1  Common  Stock  Purchase  Warrant.  (3)
10.10 Form of  Series  BD-2  Common  Stock  Purchase  Warrant.  (3)
10.11 Form of  Series  BD-3  Common  Stock  Purchase  Warrant.  (3)
10.12 Form of  Series  BD-4  Common  Stock  Purchase  Warrant.  (3)
10.13 Form of  Series  BD-5  Common  Stock  Purchase  Warrant.  (3)
10.14 Interest  Bearing  Non-Convertible  Installment  Promissory  Note.  (2)
10.15 Placement  Agent  Agreement  between  Cytation  Corporation  and  Midtown
      Partners,  LLC.  (2)
10.16 Debt Exchange  Agreement  between  Vicis  Capital Master Fund and Cytation
      Corporation.  (3)
10.17 Revolving  Credit  and  Security  Agreement.  (4)
10.18 Revolving  Credit  Note.  (4)
10.19 Continuing  Guaranty  of  Cytation  Corporation.  (4)
10.20 Continuing  Guaranty  of  Deer  Valley  Acquisitions  Corp.  (4)
10.21 Agreement  and  Plan  of  Merger  between  Cytation  Corp.,  a  Delaware
      corporation,  and  Deer  Valley Corporation,  a  Florida  corporation. (1)
10.22 Sales  Contract  for  Sulligent  Property.  (5)
10.23 Form of  Loan  Agreement  (6)
10.24 Form of  Commercial  Promissory  Note  (6)
10.25 Form of  Mortgage,  Assignment of Leases and Rents, Security Agreement and
      Fixture  Filing  (6)
10.26 Form of  Guaranty  of  Loan,  Cytation  Corp.  (6)
10.27 Form of  Guaranty  of  Loan,  DeerValley  Acquisitions  Corp.  (6)
10.28 Form  of  Share  Exchange  Agreement.  (7)
10.29 Form  of  Series  F  Common  Stock  Purchase  Warrant.  (7)
21.01 List of  Subsidiaries  of  the  Company.  (7)
31.01 Certification  of  Chief  Executive Officer pursuant to Rule 13a-14(a) and
      15d-14(a)  as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
      2002,  dated  March  3,  2006.  (7)
31.02 Certification of Acting Chief Financial Officer pursuant to Rule 13a-14(a)
      and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act
      of  2002,  dated  March  3,  2006.  (7)

                                      -12-
<PAGE>

32.01 Certification  of  Chief  Executive  Officer pursuant to 18 U.S.C. Section
      1350,  as  adopted  pursuant  to  Section  906  of  the Sarbanes-Oxley Act
      of  2002,  dated  March  3,  2006.  (7)
32.02 Certification  of  Acting  Chief  Financial  Officer pursuant to 18 U.S.C.
      Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
      of  2002,  dated  March  3,  2006.  (7)

(1)  Previously  filed as an exhibit to the Form 8-K, filed with the SEC on July
     28,  2006  and  incorporated  herein  by  reference.

(2)  Previously  filed  as  an  exhibit  to  the  Form 8-K filed with the SEC on
     January  25,  2006  and  incorporated  herein  by  reference.

(3)  Previously  filed  as an exhibit to the Registration Statement on Form SB-2
     filed  with the SEC on April 19, 2006 and incorporated herein by reference.

(4)  Previously  filed as an exhibit to the Form 8-K filed with the SEC on April
     18,  2006  and  incorporated  herein  by  reference.

(5)  Previously  filed as an exhibit to the Form 8-K filed with the SEC on April
     24,  2006  and  incorporated  herein  by  reference.

(6)  Previously  filed  as an exhibit to the Form 8-K filed with the SEC on June
     1,  2006  and  incorporated  herein  by  reference.

(7)  Filed herewith.

                                      -13-
<PAGE>

                                    SIGNATURE
                                    ---------

     Pursuant  to  the  requirements of the Securities Exchange Act of 1934, the
Registrant  has  duly  caused  this  report  to  be  signed on its behalf by the
undersigned  thereunto  duly  authorized.


                                     Deer  Valley  Corporation
                                     -------------------------
                                           (Registrant)


Dated:  November  20,  2006     By:   /s/Charles  G.  Masters
                                      -------------------------------
                                      Charles  G.  Masters
                                      President  &  Chief  Executive  Officer

                                      -14-
<PAGE>