----

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

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

----

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|                                                           |   |                                 |
|----------------------------------------------------------------|--------|--------------------------------------|
| NEVADA                                                         |   | 87-0554463                           |
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

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| Large accelerated filer   |    ̈                                                          |   Accelerated filer                          |    ̈ |
|-----------------------------------------------|------------------------------------------------------------------------|-------------------------------------------------------------|---------------|
|                                          |                                                                   |                                                        |          |
| Non-accelerated filer                         |    ̈  (Do not check if a smaller reporting company) |   Smaller reporting company   |   x      |

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|                                                                                                             | Page         |
|------------------------------------------------------------------------------------------------------------------|--------------|
| PART I - FINANCIAL INFORMATION                                                                                   |    | 3 |
|                                                                                                             |         |
| ITEM 1. FINANCIAL STATEMENTS                                                                                |    | 3 |
|                                                                                                             |         |
| ITEM 2. MANAGEMENT’S DISCUSSION  & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |    | 16 |
|                                                                                                             |         |
| ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                          |    | 20 |
|                                                                                                             |         |
| ITEM 4. CONTROLS AND PROCEDURES                                                                             |    | 23 |
|                                                                                                             |         |
| PART II - OTHER INFORMATION                                                                                      |    | 24 |
|                                                                                                             |         |
| ITEM 2. SALES OF UNREGISTERED EQUITY SECURITIES AND USE OF PROCEEDS                                         |    | 25 |
|                                                                                                             |         |
| ITEM 6. EXHIBITS                                                                                            |    | 25 |

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Table of Contents

PART

| ITEM 1. | FINANCIAL STATEMENTS |
|--------------|----------------------|

|                                                                                                                                    |         |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------------|--------|
|                                                                                                                                    |    | Page   |
| FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2010 AND DECEMBER 31, 2009 AND FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009 |    |   |
|                                                                                                                                    |         |
| Condensed Consolidated Balance Sheets (Unaudited)                                                                                       |         | 4      |
|                                                                                                                                    |         |
| Condensed Consolidated Statements of Operations (Unaudited)                                                                             |         | 5      |
|                                                                                                                                    |         |
| Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit) (Unaudited)                                        |         | 6      |
|                                                                                                                                    |         |
| Condensed Consolidated Statements of Cash Flows (Unaudited)                                                                             |         | 7      |
|                                                                                                                                    |         |
| Notes to Unaudited Condensed Consolidated Financial Statements                                                                          |         | 8      |

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Table of Contents

Geospatial

|                                                                                                                                                                                                                                                           |   | September 30, |        |   | December 31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|--------------|--------|
|                                                                                                                                                                                                                                                           |   | 2010          |        |   |         | 2009*  |   |
|                                                                                                                                                                                                                                                           |   | (Unaudited)   |        |   |         |   |   |
| ASSETS                                                                                                                                                                                                                                                         |   |
|                                                                                                                                                                                                                                                           |   |          |        |   |         |   |   |
| Current assets:                                                                                                                                                                                                                                                |   |          |        |   |         |   |   |
| Cash and cash equivalents                                                                                                                                                                                                                                      |   | $             | 756,125     |   |         | $      | 481,536 |   |
| Accounts receivable, net of allowance for doubtful accounts of $10,000 at September 30, 2010 and December 31, 2009                                                                                                                                             |   |          | 515,498     |   |         |   | 263,653 |   |
| Costs and estimated earnings in excess of billings on uncompleted contracts                                                                                                                                                                                    |   |          | 52,234      |   |         |   | 61,624 |   |
| Notes receivable                                                                                                                                                                                                                                               |   |          | -           |   |         |   | 397,373 |   |
| Prepaid expenses                                                                                                                                                                                                                                               |   |          | 323,495     |   |         |   | 371,772 |   |
|                                                                                                                                                                                                                                                           |   |          |        |   |         |   |   |   |
| Total current assets                                                                                                                                                                                                                                           |   |          | 1,647,352   |   |         |   | 1,575,958 |   |
|                                                                                                                                                                                                                                                           |   |          |        |   |         |   |   |   |
| Non-current assets:                                                                                                                                                                                                                                            |   |          |        |   |         |   |   |   |
| Property and equipment, net of accumulated depreciation                                                                                                                                                                                                        |   |          | 1,900,506   |   |         |   | 1,603,785 |   |
| License fees, net of accumulated amortization                                                                                                                                                                                                                  |   |          | 1,281,562   |   |         |   | 1,367,000 |   |
| Notes receivable                                                                                                                                                                                                                                               |   |          | 459,301     |   |         |   | - |   |
| Deposits on equipment                                                                                                                                                                                                                                          |   |          | 5,450,000   |   |         |   | 500,000 |   |
|                                                                                                                                                                                                                                                           |   |          |        |   |         |   |   |   |
| Total non-current assets                                                                                                                                                                                                                                       |   |          | 9,091,369   |   |         |   | 3,470,785 |   |
|                                                                                                                                                                                                                                                           |   |          |        |   |         |   |   |   |
| Total assets                                                                                                                                                                                                                                                   |   | $             | 10,738,721  |   |         | $      | 5,046,743 |   |
|                                                                                                                                                                                                                                                           |   |          |        |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                                                                                                                                 |   |
|                                                                                                                                                                                                                                                           |   |          |        |   |         |   |   |   |
| Current liabilities:                                                                                                                                                                                                                                           |   |          |        |   |         |   |   |   |
| Accounts payable                                                                                                                                                                                                                                               |   | $             | 1,466,846   |   |         | $      | 1,391,488 |   |
| Accrued expenses                                                                                                                                                                                                                                               |   |          | 4,007,758   |   |         |   | 3,670,337 |   |
| Billings in excess of costs and estimated earnings on uncompleted contracts                                                                                                                                                                                    |   |          | 5,702       |   |         |   | - |   |
| Current portion of capital lease liabilities                                                                                                                                                                                                                   |   |          | 325,983     |   |         |   | 210,645 |   |
| Due to stockholder                                                                                                                                                                                                                                             |   |          | 130,221     |   |         |   | 26,000 |   |
| Notes payable to stockholder                                                                                                                                                                                                                                   |   |          | 284,930     |   |         |   | 140,071 |   |
|                                                                                                                                                                                                                                                           |   |          |        |   |         |   |   |   |
| Total current liabilities                                                                                                                                                                                                                                      |   |          | 6,221,440   |   |         |   | 5,438,541 |   |
|                                                                                                                                                                                                                                                           |   |          |        |   |         |   |   |   |
| Non-current liabilities:                                                                                                                                                                                                                                       |   |          |        |   |         |   |   |   |
| Capital lease liabilities                                                                                                                                                                                                                                      |   |          | 423,165     |   |         |   | 458,167 |   |
| Senior convertible redeemable notes                                                                                                                                                                                                                            |   |          | 949,878     |   |         |   | - |   |
| Convertible note payable to stockholder                                                                                                                                                                                                                        |   |          | 32,415      |   |         |   | 1,013,637 |   |
|                                                                                                                                                                                                                                                           |   |          |        |   |         |   |   |   |
| Total non-current liabilities                                                                                                                                                                                                                                  |   |          | 1,405,458   |   |         |   | 1,471,804 |   |
|                                                                                                                                                                                                                                                           |   |          |        |   |         |   |   |   |
| Total liabilities                                                                                                                                                                                                                                              |   |          | 7,626,898   |   |         |   | 6,910,345 |   |
|                                                                                                                                                                                                                                                           |   |          |        |   |         |   |   |   |
| Stockholders' equity (deficit):                                                                                                                                                                                                                                |   |          |        |   |         |   |   |   |
| Preferred stock:                                                                                                                                                                                                                                               |   |          |        |   |         |   |   |   |
| Undesignated, $0.001 par value; 3,425,000 shares authorized at September 30, 2010 and December 31, 2009, respectively;  no shares issued and outstanding at September 30, 2010 and December 31, 2009                                                 |   |          | -           |   |         |   | - |   |
| Series A Convertible Preferred Stock, $0.001 par value;  1,575,000 shares authorized at September 30, 2010 and December 31, 2009;  0 and 1,575,000 shares issued and outstanding at September 30, 2010 and December 31, 2009, respectively |   |          | -           |   |         |   | 1,575 |   |
| Common stock, $.001 par value; 100,000,000 shares authorized at September 30, 2010  and December 31, 2009; 44,220,423 and 31,124,369 shares issued and outstanding at September 30, 2010 and December 31, 2009, respectively                         |   |          | 44,220      |   |         |   | 31,124 |   |
| Additional paid-in capital                                                                                                                                                                                                                                     |   |          | 22,688,016  |   |         |   | 13,473,089 |   |
| Accumulated deficit                                                                                                                                                                                                                                            |   |          | (19,620,413 | )      |         |   | (15,369,390 | ) |
|                                                                                                                                                                                                                                                           |   |          |        |   |         |   |   |   |
| Total stockholders' equity (deficit)                                                                                                                                                                                                                           |   |          | 3,111,823   |   |         |   | (1,863,602 | ) |
|                                                                                                                                                                                                                                                           |   |          |        |   |         |   |   |   |
| Total liabilities and stockholders' equity (deficit)                                                                                                                                                                                                           |   | $             | 10,738,721  |   |         | $      | 5,046,743 |   |

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|                                                       |   | For the Three Months |       |   | For the Nine Months |   |
|------------------------------------------------------------|--------|----------------------|------------|--------|---------------------|--------|
|                                                       |   | Ended September 30,  |       |   | Ended September 30, |   |
|                                                       |   | 2010                 |       |   | 2009                |   |   | 2010 |   |   | 2009 |   |
|                                                       |   |                 |       |   |                |   |   |   |   |   |   |   |
| Sales                                                      |   | $                    | 981,047    |   |                | $      | 230,648 |   |   | $ | 3,112,557 |   |   | $ | 487,127 |   |
| Cost of sales                                              |   |                 | 908,649    |   |                |   | 225,189 |   |   |   | 2,571,772 |   |   |   | 506,573 |   |
|                                                       |   |                 |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                               |   |                 | 72,398     |   |                |   | 5,459 |   |   |   | 540,785 |   |   |   | (19,446 | ) |
|                                                       |   |                 |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses               |   |                 | 1,433,717  |   |                |   | 1,214,087 |   |   |   | 4,704,398 |   |   |   | 3,175,895 |   |
|                                                       |   |                 |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                       |   |                 | (1,361,319 | )      |                |   | (1,208,628 | ) |   |   | (4,163,613 | ) |   |   | (3,195,341 | ) |
|                                                       |   |                 |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                    |   |                 |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                            |   |                 | 9,138      |   |                |   | 7,430 |   |   |   | 25,929 |   |   |   | 22,465 |   |
| Interest expense                                           |   |                 | (32,784    | )      |                |   | (62,216 | ) |   |   | (114,839 | ) |   |   | (163,004 | ) |
| Other income                                               |   |                 | 64         |   |                |   | - |   |   |   | 1,500 |   |   |   | 1,333 |   |
|                                                       |   |                 |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Total other income and expenses                            |   |                 | (23,582    | )      |                |   | (54,786 | ) |   |   | (87,410 | ) |   |   | (139,206 | ) |
|                                                       |   |                 |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Net loss before income taxes                               |   |                 | (1,384,901 | )      |                |   | (1,263,414 | ) |   |   | (4,251,023 | ) |   |   | (3,334,547 | ) |
|                                                       |   |                 |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Provision for (benefit from) income taxes                  |   |                 | -          |   |                |   | - |   |   |   | - |   |   |   | - |   |
|                                                       |   |                 |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                   |   | $                    | (1,384,901 | )      |                | $      | (1,263,414 | ) |   | $ | (4,251,023 | ) |   | $ | (3,334,547 | ) |
|                                                       |   |                 |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Basic and fully-diluted net loss per share of common stock |   | $                    | (0.03      | )      |                | $      | (0.05 | ) |   | $ | (0.11 | ) |   | $ | (0.13 | ) |

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|                                                                                 |   |            |       |   | Additional   |   |   |    |   |   |        |   |
|--------------------------------------------------------------------------------------|--------|-----------------|------------|--------|--------------|--------|--------|---------|--------|--------|-------------|--------|
|                                                                                 |   | Preferred Stock |       |   | Common Stock |   |   | Paid-In |   |   | Accumulated |   |   |   |   |
|                                                                                 |   | Shares          |       |   | Amount       |   |   | Shares  |   |   | Amount      |   |   | Capital |   |   | Deficit |   |   | Total |   |
|                                                                                 |   |            |       |   |         |   |   |    |   |   |        |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                                                           |   |            | 1,575,000  |   |         | $      | 1,575  |    |   |   | 31,124,369  |   |   | $ | 31,124 |   |   | $ | 13,473,089 |   |   | $ | (15,369,390 | ) |   | $ | (1,863,602 | ) |
|                                                                                 |   |            |       |   |         |   |   |    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of common stock for cash  at $1.00 per share, less offering costs |   |            | -          |   |         |   | -      |    |   |   | 9,063,233   |   |   |   | 9,064 |   |   |   | 8,015,613 |   |   |   | - |   |   |   | 8,024,677 |   |
|                                                                                 |   |            |       |   |         |   |   |    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of common stock in settlement  of liabilities at $1.00 per share  |   |            | -          |   |         |   | -      |    |   |   | 1,051,771   |   |   |   | 1,052 |   |   |   | 1,050,719 |   |   |   | - |   |   |   | 1,051,771 |   |
|                                                                                 |   |            |       |   |         |   |   |    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of common stock for services  at $1.00 per share                  |   |            | -          |   |         |   | -      |    |   |   | 150,000     |   |   |   | 150 |   |   |   | 149,850 |   |   |   | - |   |   |   | 150,000 |   |
|                                                                                 |   |            |       |   |         |   |   |    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion of Series A Convertible  Preferred Stock to common stock        |   |            | (1,575,000 | )      |         |   | (1,575 | )       |   |   | 2,126,250   |   |   |   | 2,126 |   |   |   | (551 | ) |   |   | - |   |   |   | - |   |
|                                                                                 |   |            |       |   |         |   |   |    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of common stock in settlement of contractual obligations                    |   |            | -          |   |         |   | -      |    |   |   | 704,800     |   |   |   | 704 |   |   |   | (704 | ) |   |   | - |   |   |   | - |   |
|                                                                                 |   |            |       |   |         |   |   |    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss for the nine months ended September 30, 2010                                |   |            | -          |   |         |   | -      |    |   |   | -           |   |   |   | - |   |   |   | - |   |   |   | (4,251,023 | ) |   |   | (4,251,023 | ) |
|                                                                                 |   |            |       |   |         |   |   |    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, September 30, 2010                                                          |   |            | -          |   |         | $      | -      |    |   |   | 44,220,423  |   |   | $ | 44,220 |   |   | $ | 22,688,016 |   |   | $ | (19,620,413 | ) |   | $ | 3,111,823 |   |

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|                                                                        |   | For the Nine Months |       |
|-----------------------------------------------------------------------------|--------|---------------------|------------|
|                                                                        |   | Ended September 30, |       |
|                                                                        |   | 2010                |       |   | 2009 |   |
|                                                                        |   |                |       |   |   |   |
| Cash flows from operating activities:                                       |   |                |       |   |   |   |
| Net loss                                                                    |   | $                   | (4,251,023 | ) |   | $ | (3,334,547 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |                |       |   |   |   |   |   |
| Depreciation and amortization                                               |   |                | 433,115    |   |   |   | 115,211 |   |
| Accrued interest receivable                                                 |   |                | (25,928    | ) |   |   | (22,408 | ) |
| Accrued interest payable                                                    |   |                | 33,637     |   |   |   | 160,335 |   |
| Issuance of common stock for services                                       |   |                | 150,000    |   |   |   | 115,025 |   |
| Rent expensed through increase in due to stockholder                        |   |                | -          |   |   |   | 45,500 |   |
| Changes in operating assets and liablities:                                 |   |                |       |   |   |   |   |   |
| Accounts receivable                                                         |   |                | (251,845   | ) |   |   | (155,376 | ) |
| Costs and estimated earnings in excess of billings on uncompleted contracts |   |                | 9,390      |   |   |   | (47,364 | ) |
| Prepaid expenses                                                            |   |                | 48,277     |   |   |   | 20,734 |   |
| Accounts payable                                                            |   |                | 75,357     |   |   |   | 548,084 |   |
| Accrued expenses                                                            |   |                | 389,192    |   |   |   | 367,943 |   |
| Billings in excess of costs and estimated earnings on uncompleted contracts |   |                | 5,702      |   |   |   | (6,042 | ) |
| Due to stockholder                                                          |   |                | 104,221    |   |   |   | - |   |
|                                                                        |   |                |       |   |   |   |   |   |
| Net cash used in operating activities                                       |   |                | (3,279,905 | ) |   |   | (2,192,905 | ) |
|                                                                        |   |                |       |   |   |   |   |   |
| Cash flows from investing activities:                                       |   |                |       |   |   |   |   |   |
| Purchase of property, plant and equipment                                   |   |                | (367,326   | ) |   |   | (22,637 | ) |
| Deposits on equipment                                                       |   |                | (4,950,000 | ) |   |   | (300,000 | ) |
| Notes receivable issued                                                     |   |                | (36,000    | ) |   |   | (5,446 | ) |
|                                                                        |   |                |       |   |   |   |   |   |
| Net cash used in investing activities                                       |   |                | (5,353,326 | ) |   |   | (328,083 | ) |
|                                                                        |   |                |       |   |   |   |   |   |
| Cash flows from financing activities:                                       |   |                |       |   |   |   |   |   |
| Proceeds from sale of common stock, net of offering costs                   |   |                | 8,024,678  |   |   |   | 1,647,450 |   |
| Proceeds from issuance of senior convertible redeemable notes               |   |                | 1,000,000  |   |   |   | - |   |
| Debt issuance costs                                                         |   |                | (50,122    | ) |   |   | - |   |
| Net borrowings from stockholders                                            |   |                | 130,000    |   |   |   | 882,000 |   |
| Principal payments on capital lease liabilities                             |   |                | (196,736   | ) |   |   | - |   |
|                                                                        |   |                |       |   |   |   |   |   |
| Net cash provided by financing activities                                   |   |                | 8,907,820  |   |   |   | 2,529,450 |   |
|                                                                        |   |                |       |   |   |   |   |   |
| Net change in cash and cash equivalents                                     |   |                | 274,589    |   |   |   | 8,462 |   |
|                                                                        |   |                |       |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                            |   |                | 481,536    |   |   |   | 42,793 |   |
|                                                                        |   |                |       |   |   |   |   |   |
| Cash and cash equivalents at end of period                                  |   | $                   | 756,125    |   |   | $ | 51,255 |   |
|                                                                        |   |                |       |   |   |   |   |   |
| Supplemental disclosures:                                                   |   |                |       |   |   |   |   |   |
| Cash paid during period for interest                                        |   | $                   | 81,202     |   |   | $ | 2,669 |   |
| Cash paid during period for income taxes                                    |   |                | -          |   |   |   | - |   |
| Non-cash transactions:                                                      |   |                |       |   |   |   |   |   |
| Issuance of common stock in settlement of liabilities                       |   |                | 1,051,771  |   |   |   | 104,639 |   |
| Issuance of common stock for services                                       |   |                | 150,000    |   |   |   | 115,025 |   |
| Capital lease liabilities incurred                                          |   |                | 277,072    |   |   |   | - |   |
| Deferred debt issuance costs                                                |   |                | 50,000     |   |   |   | - |   |
| Reclassification of due to stockholder to note payable to stockholder       |   |                | -          |   |   |   | 52,000 |   |

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Geospatial

| Billed:                                          |   |   |    |
|--------------------------------------------------|--------|--------|---------|
| Fixed-price contracts:                           |   |   |    |
| Completed contracts                              |   | $      | 130,532 |   |
| Contracts in progress                            |   |   | 14,854  |   |
| Time-and-materials contracts                     |   |   | 20,465  |   |
| Units of delivery contracts                      |   |   | 291,893 |   |
|                                             |   |   |    |   |
| Retainage                                        |   |   | 2,981   |   |
|                                             |   |   |    |   |
| Unbilled                                         |   |   | 64,773  |   |
|                                             |   |   |    |   |
| Less:  allowance for doubtful accounts |   |   | (10,000 | ) |
|                                             |   |   |    |   |
|                                             |   | $      | 515,498 |   |

| Costs incurred on uncompleted contracts |   | $      | 201,496  |   |
|-----------------------------------------|--------|--------|----------|--------|
| Estimated earnings                      |   |   | 137,623  |   |
|                                    |   |   | 339,119  |   |
|                                    |   |   |     |   |
| Billings to date                        |   |   | (292,586 | )      |
|                                    |   |   |     |   |
|                                    |   | $      | 46,532   |   |

| Costs and estimated earnings in excess of billings on uncompleted contracts |   | $      | 52,234 |   |
|-----------------------------------------------------------------------------|--------|--------|--------|--------|
|                                                                        |   |   |   |   |
| Billings in excess of costs and estimated earnings on uncompleted contracts |   |   | (5,702 | )      |
|                                                                        |   |   |   |   |
|                                                                        |   | $      | 46,532 |   |

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|                                                       |   | Three Months       |     |   | Nine Months        |   |
|------------------------------------------------------------|--------|--------------------|----------|--------|--------------------|--------|
|                                                       |   | Ended              |     |   | Ended              |   |
|                                                       |   | September 30, 2010 |     |   | September 30, 2010 |   |
|                                                       |   |               |     |   |               |   |
| Backlog balance at beginning of the period                 |   | $                  | 297,448  |   |               | $      | 280,650 |   |
| New contracts awarded during period                        |   |               | 445,796  |   |               |   | 929,582 |   |
| Contract adjustments                                       |   |               | 3,619    |   |               |   | 38,165 |   |
|                                                       |   |               | 746,863  |   |               |   | 1,248,397 |   |
|                                                       |   |               |     |   |               |   |   |   |
| Less:  contract revenue earned during the period |   |               | (204,162 | )      |               |   | (705,696 | ) |
|                                                       |   |               |     |   |               |   |   |   |
| Backlog balance at September 30, 2010                      |   | $                  | 542,701  |   |               | $      | 542,701 |   |

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|                                 |   | For the Three Months |     |   | For the Nine Months |   |
|--------------------------------------|--------|----------------------|----------|--------|---------------------|--------|
|                                 |   | Ended September 30,  |     |   | Ended September 30, |   |
|                                 |   | 2010                 |     |   | 2009                |   |   | 2010 |   |   | 2009 |   |
| Current:                             |   |                 |     |   |                |   |   |   |   |   |   |   |
|     Federal      |   | $                    | -        |   |                | $      | - |   |   | $ | - |   |   | $ | - |   |
|     State        |   |                 | -        |   |                |   | - |   |   |   | - |   |   |   | - |   |
|                                 |   |                 | -        |   |                |   | - |   |   |   | - |   |   |   | - |   |
| Deferred:                            |   |                 |     |   |                |   |   |   |   |   |   |   |   |   |   |   |
|     Federal      |   |                 | 432,026  |   |                |   | 396,329 |   |   |   | 1,325,005 |   |   |   | 1,046,207 |   |
|     State        |   |                 | 137,151  |   |                |   | 125,819 |   |   |   | 420,636 |   |   |   | 332,129 |   |
|                                 |   |                 | 569,177  |   |                |   | 522,148 |   |   |   | 1,745,641 |   |   |   | 1,378,336 |   |
| Total income taxes                   |   |                 | 569,177  |   |                |   | 522,148 |   |   |   | 1,745,641 |   |   |   | 1,378,336 |   |
| Less:  valuation allowance |   |                 | (569,177 | )      |                |   | (522,148 | ) |   |   | (1,745,641 | ) |   |   | (1,378,336 | ) |
|                                 |   |                 |     |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Net income taxes                     |   | $                    | -        |   |                | $      | - |   |   | $ | - |   |   | $ | - |   |

|                                        |   | For the Three Months |   |   | For the Nine Months |   |
|---------------------------------------------|--------|----------------------|--------|--------|---------------------|--------|
|                                        |   | Ended September 30,  |   |   | Ended September 30, |   |
|                                        |   | 2010                 |   |   | 2009                |   |   | 2010 |   |   | 2009 |   |
| Federal statutory rate                      |   |                 | 35.0   | %      |                |   | 35.0 | % |   |   | 35.0 | % |   |   | 35.0 | % |
| State income taxes (net of federal benefit) |   |                 | 6.5    |   |                |   | 6.5 |   |   |   | 6.5 |   |   |   | 6.5 |   |
| Valuation allowance                         |   |                 | (41.5  | )      |                |   | (41.5 | ) |   |   | (41.5 | ) |   |   | (41.5 | ) |
|                                        |   |                 |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Effective rate                              |   |                 | 0.0    | %      |                |   | 0.0 | % |   |   | 0.0 | % |   |   | 0.0 | % |

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|                                                         |   | As of September 30, |       |
|--------------------------------------------------------------|--------|---------------------|------------|
|                                                         |   | 2010                |       |   | 2009 |   |
|                                                         |   |                |       |   |   |   |
| Start-up costs                                               |   | $                   | 89,117     |   |   | $ | 98,950 |   |
| License fees                                                 |   |                | (81,156    | ) |   |   | (78,792 | ) |
| Depreciation                                                 |   |                | (121,197   | ) |   |   | (94,832 | ) |
| Allowance for doubtful accounts                              |   |                | 4,150      |   |   |   | 4,150 |   |
| Accrued expenses                                             |   |                | 1,425,597  |   |   |   | - |   |
| Uncompleted contracts                                        |   |                | (57,114    | ) |   |   | (29,954 | ) |
| Net operating loss carryforward                              |   |                | 6,714,660  |   |   |   | 4,479,622 |   |
|                                                         |   |                |       |   |   |   |   |   |
|     Deferred income taxes                |   |                | 7,974,057  |   |   |   | 4,379,144 |   |
|                                                         |   |                |       |   |   |   |   |   |
|     Less:  valuation allowance |   |                | (7,974,057 | ) |   |   | (4,379,144 | ) |
|                                                         |   |                |       |   |   |   |   |   |
| Net deferred income taxes                                    |   | $                   | -          |   |   | $ | - |   |

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|                                                        |   | Three Months Ended September 30, |       |   | Nine Months Ended September 30, |   |
|-------------------------------------------------------------|--------|----------------------------------|------------|--------|---------------------------------|--------|
|                                                        |   | 2010                             |       |   | 2009                            |   |   | 2010 |   |   | 2009 |   |
|                                                        |   |                             |       |   |                            |   |   |   |   |   |   |   |
| Net loss                                                    |   | $                                | (1,384,901 | )      |                            | $      | (1,263,414 | ) |   | $ | (4,251,023 | ) |   | $ | (3,334,547 | ) |
|                                                        |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Divided by:                                                 |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|     Weighted average shares outstanding |   |                             | 43,890,377 |   |                            |   | 25,890,406 |   |   |   | 39,486,022 |   |   |   | 24,756,581 |   |
|                                                        |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic and fully-diluted net loss per share                  |   | $                                | (0.03      | )      |                            | $      | (0.05 | ) |   | $ | (0.11 | ) |   | $ | (0.13 | ) |

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| ITEM 2. | MANAGEMENT’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|--------------|----------------------------------------------------------------------------------------------------|

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| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|--------------|------------------------------------------------------------|

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| ITEM 4. | CONTROLS AND PROCEDURES. |
|--------------|--------------------------|

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PART

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

| ITEM 6. | EXHIBITS |
|--------------|----------|

|                      |   |                                                                                                                                                                                                              |
|---------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit    |   | Description                                                                                                                                                                                                       |
|                      |   |                                                                                                                                                                                                              |
| 10.1                      |   | Letter Agreement Modifying the Amended and Restated Exclusive License and Distribution Agreement Between Geospatial Holdings, Inc., Geospatial Mapping Systems, Inc., and Reduct NV dated September 15, 2010 |
|                      |   |                                                                                                                                                                                                              |
| 31.1                      |   | Rule 13a-14(a) Certification of Mark A. Smith                                                                                                                                                                     |
|                      |   |                                                                                                                                                                                                              |
| 31.2                      |   | Rule 13a-14(a) Certification of Thomas R. Oxenreiter                                                                                                                                                              |
|                      |   |                                                                                                                                                                                                              |
| 32.1                      |   | Section 1350 Certification of Chief Executive Officer                                                                                                                                                             |
|                      |   |                                                                                                                                                                                                              |
| 32.2                      |   | Section 1350 Certification of Chief Financial Officer                                                                                                                                                             |

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|                    |   |                      |   |                                                                                                 |
|-------------------------|--------|---------------------------|--------|------------------------------------------------------------------------------------------------------|
|                    |   | Geospatial Holdings, Inc. |
|                    |   | (Registrant)              |
|                    |   |                      |
| Date: November 15, 2010 |   | By:                       |   | /S/    MARK A. SMITH                |
|                    |   | Name:                     |   | Mark A. Smith                                                                                        |
|                    |   | Title:                    |   | Chief Executive Officer(as Principal Executive Officer)                                              |
|                    |   |                      |
|                    |   |                      |
|                    |   | By:                       |   | /S/    THOMAS R. OXENREITER         |
|                    |   | Name:                     |   | Thomas R. Oxenreiter                                                                                 |
|                    |   | Title:                    |   | Chief Financial Officer(as Principal Financial Officer)                                              |