**Form      10-KSB**

**X**

** **
**September      30, 2006**

**FALCON      RIDGE DEVELOPMENT, INC.**

| NEVADA                                                  |   | 84-1461919                         |
|---------------------------------------------------------|--------|------------------------------------|
| (State                or other jurisdiction of          |   | (I.R.S.                Employer    |
| incorporation                or organization)           |   | Identification                No.) |
|                                                    |   |                               |
| 5111                Juan Tabo Boulevard N.E.            |   |                               |
| Albuquerque,                New Mexico                  |   | 87111                              |
| (Address                of principal executive offices) |   | (Zip                code)          |

| Title                of each class                  | Name                of each exchange on which registered |
|-----------------------------------------------------|----------------------------------------------------------|
|  .Common                Stock, 0.001 par value |  OTCBB                                              |

----

**FALCON      RIDGE DEVELOPMENT, INC.**

**2006      ANNUAL REPORT ON FORM 10-KSB**

**Table      of Contents**

| Item                    |  Description                                                                                       | Page   |
|-------------------------|---------------------------------------------------------------------------------------------------------|--------|
|                    |                                                                                                    |   |
| Item                1.  | Business                                                                                                | 8      |
|                    |                                                                                                    |   |
| Item                2.  | Description                of Property                                                                  | 9      |
|                    |                                                                                                    |   |
| Item                3.  | Legal                Proceedings                                                                        | 10     |
|                    |                                                                                                    |   |
| Item                4.  | Submission                of Matters to a Vote of Security Holders.                                     | 10     |
|                    |                                                                                                    |   |
| Item                5.  | Market                for Common Equity and Related Stockholder Matters                                 | 10     |
|                    |                                                                                                    |   |
| Item                6.  | Management's                Discussion and Analysis                                                     | 11     |
|                    |                                                                                                    |   |
| Item                7.  | Financial                Statements                                                                     | 14     |
|                    |                                                                                                    |   |
| Item                8.  | Changes                In and Disagreements With Accountants on Accounting                              |   |
|                    | and                Financial Disclosure.                                                                | 16     |
|                    |                                                                                                    |   |
| Item                8A. | Controls                and Procedures.                                                                 | 16     |
|                    |                                                                                                    |   |
| Item                8B. | Other                Information                                                                        | 16     |
|                    |                                                                                                    |   |
| Item                9.  | Directors,                Executive Officers, Promoters and Control                                     |   |
|                    | Persons;                Compliance with Section 16(a) of the                                            |   |
|                    | Exchange                Act                                                                             | 16     |
|                    |                                                                                                    |   |
| Item                10. | Executive                Compensation                                                                   | 18     |
|                    |                                                                                                    |   |
| Item                11. | Security                Ownership of Certain Beneficial Owners and                                      |   |
|                    | Management                and Related Stockholder Matters                                               | 18     |
|                    |                                                                                                    |   |
| Item                12. | Certain                Relationships and Related Transactions, and Director                Independence | 19     |
|                    |                                                                                                    |   |
| Item                13. | Exhibits                                                                                                | 22     |
|                    |                                                                                                    |   |
| Item                14. | Principal                Accountant Fees and Services                                                   | 23     |

----

**SPECIAL      NOTE REGARDING FORWARD-LOOKING STATEMENTS**

|   | · | projections                of future results of operations or financial                condition; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | expectations                for our properties; and |
|--------|--------|-----------------------------------------------------|

|   | · | expectation                of the continued availability of capital                resources. |
|--------|--------|-----------------------------------------------------------------------------------------------|

----

**PART      I**

**Risk      Factors**

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|   | · | actual                or anticipated fluctuations in our operating                results; |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | changes                in financial estimates by securities analysts or our failure to perform                in                line with such estimates; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes                in market valuations of other real estate companies, particularly                those                that sell products similar to ours; announcements by us or our competitors                of significant innovations, acquisitions, strategic partnerships,                joint                ventures or capital commitments; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | introduction                of new design and planning enhancements that reduce the need for                our                products; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | departure                of key personnel. |
|--------|--------|--------------------------------------------|

----

|   | · | increases                in interest rates; |
|--------|--------|---------------------------------------------|

|   | · | a                general tightening of the availability of                credit; |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | a                decline in the economic conditions in one or more of our primary                markets; |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | an                increase in competition for customers or a decrease in demand by                customers; |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | an                increase in supply of our property types in our primary                markets; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | declines                in consumer spending during an economic recession that adversely                affect                our revenue; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                adoption on the national, state or local level of more restrictive                laws                and governmental regulations, including more restrictive zoning,                land use                or environmental regulations and increased real estate                taxes. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | adverse                changes in the perceptions of prospective purchasers of the attractiveness                of the property; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | · | opposition                from local community or political groups with respect to development                or                construction at a particular site; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                change in existing comprehensive zoning plans or zoning regulations                that                impose additional restrictions on use or requirements with respect                to our                property; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                inability to provide adequate management and maintenance or to obtain                adequate insurance; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | an                increase in operating costs; |
|--------|--------|------------------------------------------------|

|   | · | new                development of a competitor's property in or in close proximity to                one of                our current markets; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | earthquakes,                floods or underinsured or uninsured natural                disasters. |
|--------|--------|---------------------------------------------------------------------------------------------------|

----

|   | · | an                inability to secure sufficient financing on favorable terms, including                an                inability to refinance construction                loans; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | construction                delays or cost overruns, either of which may increase project development                costs; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | an                increase in commodity costs; |
|--------|--------|------------------------------------------------|

|   | · | an                inability to obtain zoning, occupancy and other required governmental                permits and authorizations; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

----

**Item      1. Description of Business**

**Introduction**

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**Item      2. Description of Property**

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|                                                                                                                                                                                                                                        |   |                                           |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|
| Note                  payable to Toby and Mary Ann Cordova, with interest at 6.5 percent,                  principal and interest payable in semi-annual installments of $21,862,                  collateralized by a real estate contract |   | Balance                  at September 30, 2006 |
| Total                  financing under the agreement is $435,000                                                                                                                                                                            |   | $                  370,311                     |

**Item      3. Legal Proceedings**

**Item      4. Submission of Matters to a Vote of Security Holders**

**Part      II**

**Item      5. Market for Common Equity and Related Stockholder      Matters**

|                          |   |  High |   | Low    |    |
|-------------------------------|--------|------------|--------|--------|---------|
|  2006                    |   |       |   |   |    |
| First                Quarter  |   | $          | 2.80   |   | $  | 1.00 |   |
| Second                Quarter |   |       | 2.80   |   |    | 1.10 |   |
| Third                Quarter  |   |       | 6.60   |   |    | 1.01 |   |
|                          |   |       |   |   |    |   |   |
| 2005                          |   |       |   |   |    |   |   |
| First                Quarter  |   | $          | 8.60   |   | $  | 2.20 |   |
| Second                Quarter |   |       | 12.00  |   |    | 3.20 |   |
| Third                Quarter  |   |       | 6.40   |   |    | 1.60 |   |
| Fourth                Quarter |   |       | 5.00   |   |    | 1.60 |   |

----

**Item      6. Management's Discussion and Analysis or Plan of      Operation**

----

----

----

**Item      7. Financial Statements**

----

**FALCON      RIDGE DEVELOPMENT INC.**

**Consolidated      Financial Statements**

**September      30, 2006**

----

|                                                                                                              |                                                                        | **Page** |
|-------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|----------|
|                                                                                                              |                                                                        |     |
| Report              of Independent Registered Public Accounting Firm                                              |  F-1                                                                   |
|                                                                                                              |                                                                        |     |
| Reissued Report              of              Independent Registered Public Accounting Firm (previous accountant)  |  F-2                                                                   |
|                                                                                                              |                                                                        |     |
| Consolidated                Balance Sheet at September 30, 2006                                                   | F-3                                                                         |
|                                                                                                              |                                                                        |     |
| Consolidated                Statements of Operations for the for the nine months and                              |                                                                        |
|                                                                                                              | twelve                months ended September 30, 2006 and December 31, 2005 | F-4      |
|                                                                                                              |                                                                        |     |
| Consolidated                Statements of Shareholders' Equity for the for the nine months and                    |                                                                        |
|                                                                                                              | twelve                months ended September 30, 2006 and December 31, 2005 | F-5      |
|                                                                                                              |                                                                        |     |
| Consolidated                Statements of Cash Flows for the for the nine months and twelve                months |                                                                        |
|                                                                                                              | ended                September 30, 2006 and December 31, 2005               | F-6      |
|                                                                                                              |                                                                        |     |
| Notes                to Financial Statements                                                                      | F-7                                                                         |

----

**Report        of Independent Registered Public Accounting Firm**

----

**Report        of Independent Registered Public Accounting Firm**

----

| **Assets**                                                                      |   |   |       |
|---------------------------------------------------------------------------------|--------|--------|------------|
|                                                                            |   |   |       |
| Real                estate held for sale                                        |   | $      | 2,842,440  |   |
| Fixed                assets, net of accumulated depreciation                    |   |   | 36,382     |   |
| Cash                                                                            |   |   | 3,754      |   |
|                                                                            |   |   |       |   |
|                                                                            |   |   |       |   |
| Other                assets                                                     |   |   | 220        |   |
| Total                assets                                                     |   |   | 2,883,796  |   |
|                                                                            |   |   |            |   |
| **Liabilities                and Shareholders' Equity**                         |   |   |            |   |
|                                                                            |   |   |            |   |
| **Liabilities**                                                                 |   |   |            |   |
| Indebtedness                to related parties                                  |   | $      | 981,642    |   |
| Note                payable, long-term                                          |   |   | 370,311    |   |
| Accounts                payable                                                 |   |   | 336,190    |   |
|                                                                            |   |   |       |   |
| Retainage                payable                                                |   |   | 100,000    |   |
| Accrued                expenses                                                 |   |   | 45,795     |   |
| Preferred                Shares subject to mandatory redemption                 |   |   | 485,000    |   |
| Total                liabilities                                                |   |   | 2,318,938  |   |
|                                                                            |   |   |            |   |
| **Shareholders'                Equity**                                         |   |   |            |   |
| Preferred                stock, Class A .0001 par value,                        |   |   |            |   |
| 400,000                shares authorized, 160,000 shares issued and             |   |   |            |   |
| outstanding                                                                     |   |   | 400,000    |   |
|                                                                            |   |   |            |   |
|                                                                            |   |   |            |   |
| Common                stock, $0.001 par value, 900,000,000 shares               |   |   |            |   |
| authorized,                3,761,312 shares issued and                          |   |   |            |   |
| outstanding                                                                     |   |   | 752,262    |   |
| Additional                paid-in capital                                       |   |   | 899,420    |   |
|                                                                            |   |   |            |   |
| Accumulated                deficit                                              |   |   | (1,486,824 | ) |
|                                                                            |   |   |            |   |
|  Total                Shareholders' Equity                                 |   |   | 568,858    |   |
|                                                                            |   |   |            |   |
|                  Total                Liabilities and Shareholders' Equity |   | $      | 2,883,796  |   |

----

|                                                                        |   | **Nine                  Month**   |      |                             |   |
|-----------------------------------------------------------------------------|--------|-----------------------------------|-----------|----------------------------------|--------|
|                                                                        |   | **Period                  Ended** |      | **Year                  Ended**  |   |
|                                                                        |   | **September                  30** |      | **December                  31** |   |
|                                                                        |   | **2006**                          |      | **2005**                         |   |
| Lot                  sales:                                                 |   |                              |      |                             |   |
| Net                  sales                                                  |   | $                                 | —   |                             | $      | 7,457,113 |   |
| Costs                  of sales                                             |   |                              | —   |                             |   | (6,979,677 | ) |
|                                                                        |   |                              |      |                             |   |   |   |
| Gross                  profit (loss)                                        |   |                              | —   |                             |   | 477,436 |   |
|                                                                        |   |                              |      |                             |   |   |   |
| Merger                  costs                                               |   |                              | —   |                             |   | 180,000 |   |
| Stock-based                  compensation                                   |   |                              | —   |                             |   | 2,300 |   |
| Selling,                  general and administrative expenses               |   |                              | 510,091   |                             |   | 414,433 |   |
|                                                                        |   |                              |      |                             |   |   |   |
| Other                  Income:                                              |   |                              |      |                             |   |   |   |
| Utility                  credits                                            |   |                              | (67,117   | )                                |   | — |   |
| Reduction                  in construction costs                            |   |                              | (25,000   | )                                |   | — |   |
|                                                                        |   |                              | (92,117   | )                                |   | — |   |
|                                                                        |   |                              |      |                             |   |   |   |
| Loss                  (income) before provision for income taxes            |   |                              | (417,974  | )                                |   | (119,297 | ) |
| Income                  taxes                                               |   |                              | —   |                             |   | — |   |
|                                                                        |   |                              |      |                             |   |   |   |
| Loss                                                                        |   |                              | (417,974  | )                                |   | (119,297 | ) |
|                                                                        |   |                              |      |                             |   |   |   |
| Proforma                  adjustments:                                      |   |                              |      |                             |   |   |   |
| Members'                  distributions (Note 2)                            |   |                              | —   |                             |   | (30,000 | ) |
| Income                  taxes                                               |   |                              | —   |                             |   | — |   |
| Proforma                  Loss                                              |   | $                                 | (417,974  | )                                | $      | (149,297 | ) |
|                                                                        |   |                              |      |                             |   |   |   |
| Loss                  per share                                             |   | $                                 | —   |                             | $      | — |   |
|                                                                        |   |                              |      |                             |   |   |   |
|                                                                        |   |                              |      |                             |   |   |   |
|                                                                        |   |                              |      |                             |   |   |   |
| Weighted                  average number of shares outstanding (post split) |   |                              | 3,761,312 |                             |   | 2,123,310 |   |

----

|                                                                               |   |  **Preferred                    Stock** |    |  **Common                    Stock** |   |       |   |                             |         |                                       |   |
|------------------------------------------------------------------------------------|--------|----------------------------------------------|---------|-------------------------------------------|--------|------------|--------|----------------------------------|--------------|--------------------------------------------|--------|
|                                                                               |   | **Shares**                                   |    | **Par                    value**          |   | **Shares** |   | **Par                    value** |         | **Additional** **paid-in****capital** |   | **Accumulated****deficit** |   | **Total** |   |
|                                                                               |   |                                         |    |                                      |   |       |   |                             |         |                                       |   |   |   |   |   |
| Balance                    at                                                      |   |                                         |    |                                      |   |       |   |                             |         |                                       |   |   |   |   |   |   |
| January                    1, 2005                                                 |   |                                         | — |                                      | $      | —    |   |                             | 100,000,000  |                                       | $      | 100,000 |   | $ | 210,644 |   | $ | (882,288 | ) | $ | (571,644 | ) |   |
|                                                                               |   |                                         |    |                                      |   |       |   |                             |         |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividend                    distribution                                           |   |                                         | — |                                      |   | —    |   |                             | —      |                                       |   | — |   |   | — |   |   | (30,000 | ) |   | (30,000 | ) |   |
| Merger                    with PocketSpec                                          |   |                                         |    |                                      |   |       |   |                             |         |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Technologies,                    Inc (Note 1)                                      |   |                                         | — |                                      |   | —    |   |                             | 37,265,372   |                                       |   | 37,265 |   |   | — |   |   | (37,265 | ) |   | — |   |   |
| Stock                    issuance for                                              |   |                                         |    |                                      |   |       |   |                             |         |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Spanish                    Trails, LLC (Note 2) and (Note 9)                       |   |                                         | — |                                      |   | —    |   |                             | 614,882,069  |                                       |   | 614,882 |   |   | (210,644 | ) |   | (402,238 | ) |   | 2,000 |   |   |
| Compensation                                                                       |   |                                         | — |                                      |   |       |   |                             | 115,000      |                                       |   | 115 |   |   | 2,185 |   |   |   |   |   | 2,300 |   |   |
| Stock                    issuance for Cash                                         |   |                                         | 160,000 |                                      |   | 400,000    |   |                             | —      |                                       |   | — |   |   | — |   |   | — |   |   | 400,000 |   |   |
| Adjustment                    for prior period ( Note 9)                           |   |                                         | — |                                      |   | —    |   |                             | —      |                                       |   | — |   |   | 897,235 |   |   | 402,238 |   |   | 1,299,473 |   |   |
| Loss                                                                               |   |                                         | — |                                      |   | —    |   |                             | —      |                                       |   | — |   |   | — |   |   | (119,297 | ) |   | (119,297 | ) |   |
|                                                                               |   |                                         |    |                                      |   |       |   |                             |         |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at                                                      |   |                                         |    |                                      |   |       |   |                             |         |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December                    31, 2005                                               |   |                                         | 160,000 |                                      | $      | 400,000    |   |                             | 752,262,441  |                                       | $      | 752,262 |   | $ | 899,420 |   | $ | (1,068,850 | ) | $ | 982,832 |   |   |
|                                                                               |   |                                         |    |                                      |   |       |   |                             |         |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   |                                         |    |                                      |   |       |   |                             |         |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at                                                      |   |                                         |    |                                      |   |       |   |                             |         |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| January                    1, 2006                                                 |   |                                         | 160,000 |                                      | $      | 400,000    |   |                             | 752,262,441  |                                       | $      | 752,262 |   | $ | 899,420 |   | $ | (1,068,850 | ) | $ | 982,832 |   |   |
| Stock                    issuance for cash                                         |   |                                         | 194,000 |                                      |   | 485,000    |   |                             | —      |                                       |   | — |   |   | — |   |   | — |   |   | 485,000 |   |   |
| Reclassified                    to preferred stock subject to mandatory redemption |   |                                         | — |                                      |   | (485,000   | )      |                             | —      |                                       |   | — |   |   | — |   |   | — |   |   | (485,000 | ) |   |
| Reverse split                                                                      |   |                                         | — |                                      |   | —    |   |                             | (748,501,129 | )                                     |   | — |   |   |  — |   |   |  — |   |   |  — |   |   |
| Loss                                                                               |   |                                         | — |                                      |   | —    |   |                             | —      |                                       |   | — |   |   | — |   |   | (417,974 | ) |   | (417,974 | ) |   |
|                                                                               |   |                                         |    |                                      |   |       |   |                             |         |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at                                                      |   |                                         |    |                                      |   |       |   |                             |         |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| September 30,                    2006                                         |   |                                         | 354,000 |                                      | $      | 400,000    |   |                             | 3,761,312    |                                       | $      | 752,262 |   | $ | 899,420 |   | $ | (1,486,824 | ) | $ | 564,858 |   |   |

----

|                                                                                                                                                                        |   |  **Nine                Months Ended September 30,****2006**  |     | **Year                  Ended December 31,****2005**  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|----------|------------------------------------------------------------|--------|
|                Cash                flows from operating activities:                                                                                                    |   |                                                              |     |                                                  |   |
| Net                income/loss                                                                                                                                              |   | $                                                                      | (417,974 | )                                                          | $      | (119,297 | ) |
| Adjustments                to reconcile net loss to net cash                                                                                                                |   |                                                                   |     |                                                       |   |   |   |
| used                by operating activities:                                                                                                                                |   |                                                                   |     |                                                       |   |   |   |
| Depreciation                                                                                                                                                                |   |                                                                   | 3,150    |                                                       |   | 798 |   |
| Changes                in operating assets and liabilities,                                                                                                                 |   |                                                                   |     |                                                       |   |   |   |
| excluding                effects of business combinations:                                                                                                                  |   |                                                                   |     |                                                       |   |   |   |
| Land                development costs                                                                                                                                       |   |                                                                   | (369,138 | )                                                          |   | 3,509,704 |   |
| Prepaid                expenses                                                                                                                                             |   |                                                                   | 13,540   |                                                       |   | (13,540 | ) |
| Other                current assets                                                                                                                                         |   |                                                                   | —  |                                                       |   | 45,241 |   |
| Acquisition                and development notes                                                                                                                            |   |                                                                   | —  |                                                       |   | (4,051,172 | ) |
| Accounts                payable                                                                                                                                             |   |                                                                   | 42,990   |                                                       |   | (98,413 | ) |
| Accrued                liabilities                                                                                                                                          |   |                                                                   | (35,504  | )                                                          |   | — |   |
| Retainage                payable                                                                                                                                            |   |                                                                   | (51,627  | )                                                          |   | — |   |
| Stock                based compensation                                                                                                                                     |   |                                                                   | —  |                                                       |   | 2,300 |   |
| Deferred                revenue                                                                                                                                             |   |                                                                   | —  |                                                       |   | (315,714 | ) |
| Net                cash (used in) provided by                                                                                                                               |   |                                                                   |     |                                                       |   |   |   |
|  operating                activities                                                                                                                                   |   |                                                                   | (814,563 | )                                                          |   | (1,040,093 | ) |
|                                                                                                                                                                        |   |                                                                   |     |                                                       |   |   |   |
| Acquisition                of fixed assets                                                                                                                                  |   |                                                                   | (6,319   | )                                                          |   | (34,011 | ) |
|                                                                                                                                                                        |   |                                                                   |     |                                                       |   |   |   |
| Net                cash used in                                                                                                                                             |   |                                                                   |     |                                                       |   |   |   |
|  investing                activities                                                                                                                                   |   |                                                                   | (6,319   | )                                                          |   | (34,011 | ) |
|                                                                                                                                                                        |   |                                                                   |     |                                                       |   |   |   |
|  Cash              flows from financing activities:                                                                                                                    |   |                                                                   |     |                                                       |   |   |   |
| Decrease                in related party indebtedness                                                                                                                       |   |                                                                   | (109,696 | )                                                          |   | 1,013,339 |   |
| Repayments                of real estate contract                                                                                                                           |   |                                                                   | (18,737  | )                                                          |   | — |   |
| Proceeds                from preferred shares                                                                                                                               |   |                                                                   | 485,000  |                                                       |   | 400,000 |   |
| Dividend                paid                                                                                                                                                |   |                                                                   | —  |                                                       |   | (30,000 | ) |
|                                                                                                                                                                        |   |                                                                   |     |                                                       |   |   |   |
|                   Net                cash used in                                 |   |                                                                   | 356,567  |                                                       |   | 1,383,339 |   |
|                        financing              activities |   |                                                                   |     |                                                       |   |   |   |
|                                                                                                                                                                        |   |                                                                   |     |                                                       |   |   |   |
| Net                change in cash                                                                                                                                           |   |                                                                   | (464,315 | )                                                          |   | 309,235 |   |
|                                                                                                                                                                        |   |                                                                   |     |                                                       |   |   |   |
| Cash:                                                                                                                                                                       |   |                                                                   |     |                                                       |   |   |   |
| Beginning                of period                                                                                                                                          |   |                                                                   | 468,069  |                                                       |   | 158,834 |   |
|                                                                                                                                                                        |   |                                                                   |     |                                                       |   |   |   |
| End                period                                                                                                                                                   |   | $                                                                      | 3,754    |                                                       | $      | 468,069 |   |
|                                                                                                                                                                        |   |                                                                   |     |                                                       |   |   |   |
|                                                                                                                                                                        |   |                                                                   |     |                                                       |   |   |   |
| Supplemental              disclosure of cash flow information:                                                                                                              |   |                                                                   |     |                                                       |   |   |   |
| Cash                paid during the year for:                                                                                                                               |   |                                                                   |     |                                                       |   |   |   |
|                  Income taxes                                                                                                                                          |   | $                                                                      | —  |                                                       | $      | — |   |
|                  Interest                                                                                                                                              |   | $                                                                      | 48,395   |                                                       | $      | 19,452 |   |

----

**FALCON      RIDGE DEVELOPMENT, INC.**

**Notes      to Consolidated Financial Statements**

----

**FALCON      RIDGE DEVELOPMENT, INC.**

**Notes      to Consolidated Financial Statements**

----

**FALCON      RIDGE DEVELOPMENT, INC.**

**Notes      to Consolidated Financial Statements**

----

**FALCON      RIDGE DEVELOPMENT, INC.**

**Notes      to Consolidated Financial Statements**

----

**FALCON      RIDGE DEVELOPMENT, INC.**

**Notes      to Consolidated Financial Statements**

----

**FALCON      RIDGE DEVELOPMENT, INC.**

**Notes      to Consolidated Financial Statements**

| Note                payable to Karen Duran, interest at 8.5%, principal and interest                payable                in annual installments of $17,000 |   |   |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|
| Total                financing under the agreement is $200,000                                                                                               |   | $      | 191,000 |   |
|                                                                                                                                                         |   |   |    |   |
| Note                payable to Karen Duran, interest at 8.5%,principal                and interest payable May 25,2007                                       |   |   |    |   |
| Total                financing under the agreement is $150,000                                                                                               |   |   | 150,000 |   |
|                                                                                                                                                         |   |   |    |   |
| Advances                payable to Falcon Ridge Development LLC, an affiliate, payable on                demand                                              |   |   | 620,806 |   |
|                                                                                                                                                         |   |   |    |   |
| Accrued                interest payable                                                                                                                      |   |   | 19,.836 |   |
|                                                                                                                                                         |   |   |    |   |
|                                                                                                                                                         |   | $      | 981,642 |   |
|                                                                                                                                                         |   |   |    |   |

----

**FALCON      RIDGE DEVELOPMENT, INC.**

**Notes      to Consolidated Financial Statements**

|      |   | Cost   |   | Accumulated                Depreciation |   |
|-----------|--------|--------|--------|-----------------------------------------|--------|
|      |   |   |   |                                    |   |
| Software  |   | $      | 32,349 |                                    | $      | 1,953 |   |
| Equipment |   |   | 7,981  |                                    |   | 1,995 |   |
|      |   |   |   |                                    |   |   |   |
|      |   | $      | 40,330 |                                    | $      | 3,948 |   |
|      |   |   |   |                                    |   |   |   |

| Land                  acquisition costs |   | $      | 2,186,033 |   |
|-----------------------------------------|--------|--------|-----------|--------|
| Land                  development costs |   |   | 565,225   |   |
| Capitalized                  interest   |   |   | 92,182    |   |
|                                    |   |   |      |   |
|                                    |   | $      | 2,843,440 |   |

| Note                  payable to Toby and Mary Ann Cordova, with interest at 6.5 percent,                  principal and interest payable in semi-annual installments of $21,862,                  collateralized by a real estate contract due                  2-18-2019 |   |                                                                                                                                                           |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Total                financing under the agreement is $435,000                                                                                                                                                                                                             |   | $                         370,311 |

| Year                ending September 30, |   |   |    |
|------------------------------------------|--------|--------|---------|
| 2007                                     |   | $      | 19,975  |   |
| 2008                                     |   |   | 21,294  |   |
| 2009                                     |   |   | 22,702  |   |
| 2010                                     |   |   | 24,201  |   |
| 2011                and thereafter       |   |   | 282,139 |   |
|                                     |   | $      | 370,311 |   |

----

| U.S.                  statutory federal rate                                                         |   |   | 20.000  | %      |
|------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
| State                  income tax rate                                                               |   |   | 4.80    | %      |
| Net                  operating loss for which no tax benefit is currently                  available |   |   | -24.800 | %      |
|                                                                                                 |   |   |    |   |
|                                                                                                 |   |   | 0.00    | %      |

|   | · | Shares                are non-cumulative with a preference over common shares if and when                a                dividend is declared. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Shares                are convertible into common stock at any time on the basis of 100                common                shares for 1 share of preferred stock. This conversion rate is subject                to                adjustments for forward or reverse splits or other capitalizations.                The                option was of no intrinsic benefit, at the commitment date, to the                preferred shareholder. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**FALCON      RIDGE DEVELOPMENT, INC.**

**Notes      to Consolidated Financial Statements**

|   | · | Shares                have a priority over common shares upon                liquidation. |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | Shares                are callable at any time by the Company at the original purchase                price.                The Preferred Shareholders will have thirty days thereafter to convert                to                common stock. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Shares                are non-cumulative with a preference over common shares if and when                a                dividend is declared. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Investor                will receive a dividend of 12% per annum payable monthly for a period                of eighteen months from the date of                purchase. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Shares                are convertible into common stock at any time on the basis of 75%                of the                average current bid price for the preceding 20 days of the Company's                receipt of notice to convert. This conversion rate is subject to                adjustments for forward or reverse splits or other capitalizations.                The                option was of no intrinsic benefit, at the commitment date, to the                preferred shareholder. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Shares                have a priority over common shares upon                liquidation. |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | Shares                are callable by the Company at any time after 12 months of issuance                of                Preferred B shares at the original purchase price. The Preferred                Shareholders will have sixty days thereafter to convert to common                stock.                The shares will be repurchased after eighteen months for the original                issue price. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                       |   |  As       |       | As       |   |
|------------------------------------------------------------------------------------------------------------|--------|----------------|------------|----------|--------|
|                                                                                                       |   |  Reported |       | Restated |   |
| **Assets**                                                                                                 |   |      |       |     |   |
| Cash                                                                                                       |   | $              | 468,069    |     |   | 468,069 |   |
| Real                estate held for resale                                                                 |   |           | 1,174,829  |     |   | 2,474,302 |   |
| Property                and equipment, net of accumulated depreciation                                     |   |           | 33,213     |     |   | 33,213 |   |
| Prepaid                expenses                                                                            |   |           | 13,540     |     |   | 13,540 |   |
| Other                assets                                                                                |   |           | 220        |     |   | 220 |   |
| Total                assets                                                                                |   | $              | 1,689,871  |     |   | 2,989,344 |   |
|                                                                                                       |   |           |       |     |   |   |   |
| **Liabilities                and Shareholders' Deficit**                                                   |   |           |       |     |   |   |   |
|                                                                                                       |   |           |       |     |   |   |   |
| **Liabilities**                                                                                            |   |           |       |     |   |   |   |
| Indebtedness                to related parties                                                             |   | $              | 1,091,338  |     |   | 1,091,338 |   |
| Note                payable, current portion                                                               |   |           | 18,737     |     |   | 18,737 |   |
| Note                payable, long-term portion                                                             |   |           | 370,311    |     |   | 370,311 |   |
| Accounts                payable                                                                            |   |           | 293,200    |     |   | 293,200 |   |
| Retainage                payable                                                                           |   |           | 151,627    |     |   | 151,627 |   |
| Accrued                expenses                                                                            |   |           | 81,299     |     |   | 81,299 |   |
|                                                                                                       |   |           |       |     |   |   |   |
|                                                                                                       |   |           | 2,006,512  |     |   | 2,006,512 |   |
|                                                                                                       |   |           |       |     |   |   |   |
| **Shareholders'                deficit**                                                                   |   |           |       |     |   |   |   |
| Preferred                stock,Class A no par value,                                                       |   |           |       |     |   |   |   |
| 400,000                shares authorized, 160,000 shares issued and                                        |   |           |       |     |   |   |   |
| outstanding                                                                                                |   |           | 400,000    |     |   | 400,000 |   |
|                                                                                                       |   |           |       |     |   |   |   |
| Common                stock, $0.001 par value, 900,000,000 shares                                          |   |           |       |     |   |   |   |
| authorized,                752,262,441 shares issued and                                                   |   |           |       |     |   |   |   |
| outstanding                                                                                                |   |           | 752,262    |     |   | 752,262 |   |
| Additional                paid-in capital                                                                  |   |           | —    |     |   | 899,420 |   |
|                                                                                                       |   |           |       |     |   |   |   |
| Accumulated                deficit                                                                         |   |           | (1,468,903 | )        |   | (1,068,850 | ) |
|                                                                                                       |   |           |       |     |   |   |   |
|         Total                shareholders' deficit                 |   |           | (316,641   | )        |   | 982,832 |   |
|                                                                                                       |   |           |       |     |   |   |   |
|         Total                liabilities and shareholders' deficit |   | $              | 1,689,871  |     |   | 2,989,344 |   |

----

----

**Item      8. Changes In and Disagreements with Accountants on Accounting and Financial      Disclosure**

**Item      8A. Controls and Procedures**

**Item      8B. Other Information**

**Part      III**

**Item      9. Directors, Executive Officers, Promoters, and Control Persons; Compliance      with Section 16(a) of the Exchange Act**

----

|        Name | Age    |                               Position |
|------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|
| Fred                M. Montano                 | 54     | Chief                Executive Officer, President and Chairman                of the Board                   |
|                                           |   |                                                                                                         |
| Karen                Y. Duran                  | 64     | Chief                Financial Officer and Secretary/Treasurer                                               |
|                                           |   |                                                                                                         |
| Sebastian                Ramirez               | 52     | Director                                                                                                     |
|                                           |   |                                                                                                         |
| Troy                Duran                      | 41     | Director                                                                                                     |

*Fred      Montano*

*Karen      Duran*

*Troy      Duran*

*Sebastian      Ramirez*

----

**Item      10. Executive Compensation**

| **SUMMARY                COMPENSATION TABLE**              |
|------------------------------------------------------------|
|                                                       | Long                Term Compensation |   |
|                                                       | Annual                Compensation | Awards | Payouts |   |
| (a)                                                        | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) |
|   Name                and Principle Position (1) |     Year |    Salary($) |   Bonus                                                                                   ($) | OtherAnnual                Comp-ensation($) |  RestrictedStockAward(s)($) |  SecuritiesUnderlyingOption/SARs(#) |   LTIPPayouts($) | AllOtherComp-ensation($) |
| Fred                M. Montano CEO                         | 200620052004 | $23,000$                4,000$                8,000 | $0.00 | $0.00 | $0.00 | 0 | $0.00 | $0.00 |
| Karen                Y. Duran..CFO                         | 200620052004 | $23,000$24,000$  8,000 | $0.00 | $0.00 | $0.00 | 0 | $0.00 | $0.00 |

**Item      11. Security Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters**

----

|                           | Number                  of Shares |      |   | Percentage |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|-----------|--------|------------|
|  Stockholder                                                                                                                                      | Common                            | Preferred | Common | Preferred  |
|                                                                                                                                                   |                              |      |   |       |
| Fred                  M. Montano(1)(2)                                                                                                                 | 1,845,370                         | 0         | 49%    | 0%         |
|                                                                                                                                                   |                              |      |   |       |
| Karen                  Y. Duran(1)(2)                                                                                                             | 1,547,856                         | 0         | 41.1%  | 0%         |
|                                                                                                                                                   |                              |      |   |       |
| Sebastian                  Ramirez(1)                                                                                                                  | 0                                 | 0         | 0%     | 0%         |
|                                                                                                                                                   |                              |      |   |       |
| Troy                  Duran(1)                                                                                                                    | 0                                 | 0         | 0%     | 0%         |
|                                                                                                                                                   |                              |      |   |       |
| All                  executive officers and directors as a group                                                                                       | 3,393,226                         | 0         | 80%    | 0%         |
|                                                                                                                                                   |                              |      |   |       |

|   |  (1) | The                business address is 5111 Juan Tabo Boulevard N.E., Albuquerque, New                Mexico                87111. |
|--------|-----------|------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Ms.                Duran and Mr. Montano are co-owners of Real Estate Services, Inc.,                which                holds of record 227,873 (post reverse split) shares of common stock.                By                virtue of Ms. Duran's 50% ownership of Real Estate Services, Inc.                and her                position with it as an officer, Ms. Duran may be deemed to be the                beneficial owner of all f the shares of Common Stock held of record                by                Real Estate Services, Inc. However, she expressly disclaims ownership                of                50% of the shares of the common stock held of record by Real Estate                Services, Inc. By virtue of Mr. Montano's 50% ownership of Real Estate                Services, Inc. and his position with it as an officer, Mr. Montano                may be                deemed to be the beneficial owner of all of the shares of common                stock                held of record by Real Estate Services, Inc. However, he expressly                disclaims ownership of 50% of the shares of the common stock held                of                record by Real Estate Services, Inc. Real Estate Services Inc. is                the                owner of Falcon Ridge Development, LLC, which owns of record 307,441                shares of common stock. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Item      12. Certain Relationships and Related Transactions**

----

**Item          13.  Exhibits **

| **Exhibit****Number**        |                                                                                                                                                                                      **Description** |
|------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1                     | Agreement                  and Plan of Reorganization - Pocketspec Technologies, Inc. and                  Sierra                  Norte LLC, Filed on May 25, 2005 as Exhibit 2.1 with the Registrant's                  Current Report on Form 8-K and incorporated                  herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 2.2                     | Acquisition                  Agreement - Pocketspec Technologies, Inc. and Spanish Trails, LLC,                  Filed                  on July 8, 2005 as Exhibit 10.19 with the Registrant's Current                  Report on                  Form 8-K and incorporated                  herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3.1                     | Articles                  of Incorporation of Falcon Ridge Development, Inc. previously                  filed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3.2                     | Bylaws                  of Falcon Ridge Development, Inc. previously filed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3.3                     | Articles                  of Organization of Sierra Norte, LLC previously filed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3.4                     | Operating                  Agreement of Sierra Norte, LLC previously filed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3.5                     | Articles                  of Organization of Spanish Trails, LLC previously                  filed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3.6                     | Operating                  Agreement of Spanish Trails, LLC previously filed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.1                     | Articles                  of Amendment - Establishment of Series of Preferred Stock previously                  filed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.1                    | Purchase                  Agreement - Spanish Trails, LLC and D.R. Horton (Confidential portions                  of                  this agreement noted by *** have been omitted and filed separately                  with                  the Securities and Exchange Commission pursuant to a request for                  confidentiality under Rule 24b-2 of the Securities Exchange Act                  of 1934.)                  Previously filed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.2                    | Promissory                  Note - Karen Y. Duran - Sierra Norte, LLC - May 20, 2005 -                  $150,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.3                    | Promissory                  Note - Karen Y. Duran - Sierra Norte, LLC - June 1, 2005 -                  $200,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.4                    | Promissory                  Note - Karen Y. Duran - Sierra Norte, LLC - June 19, 2005 -                  $66,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 14.1                    | Code                  of Ethics                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 21.1                    | List                  of Subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

----

|                           |                                                                                                                                                                                                                           |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 23.1                      | Consents                    of experts                                                                                                                                                                                         |
|                           |                                                                                                                                                                                                                           |
| 31.1                           | Certification                    of Chief Executive Officer pursuant to Rule                    13a-14(a)/15(d)-14(a)*                                                                                                         |
|                           |                                                                                                                                                                                                                           |
| 31.2                           | Certification                    of Chief Financial Officer pursuant to Rule                    13a-14(a)/15(d)-14(a)*                                                                                                         |
|                           |                                                                                                                                                                                                                           |
| 32.1                      | 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* |
|                           |                                                                                                                                                                                                                           |
| 32.2                      | Certification                    of Chief Financial Officer pursuant to 18 U.S.C. Section 1350,                    as adopted                    pursuant to Section 906 of the Sarbanes-Oxley Act of                    2002* |
|                           |                                                                                                                                                                                                                           |
| 99                        | Additional                    Exhibits - None                                                                                                                                                                                  |

----

**Item          14. Principal Accountant Fees and Services**

----

**SIGNATURES**

----

**EXHIBIT      INDEX**

| **Exhibit                Number** |                                                                                                                            Description |
|-----------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1                          | Agreement                and Plan of Reorganization - Pocketspec Technologies, Inc. and Sierra                Norte LLC, filed on May 25, 2005 as Exhibit 2.1 with the Registrant's                Current Report on Form 8-K and incorporated                herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 2.2                          | Acquisition                Agreement - Pocketspec Technologies, Inc. and Spanish Trails, LLC,filed                on July 8, 2005 as Exhibit 10.19 with the Registrant's Current Report                on                Form 8-K and incorporated                herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 3.1                          | Articles                of Incorporation of Falcon Ridge Development, Inc. previously                filed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 3.2                          | Bylaws                of Falcon Ridge Development, Inc. previously filed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 3.3                          | Articles                of Organization of Sierra Norte, LLC previously filed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 3.4                          | Operating                Agreement of Sierra Norte, LLC previously filed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 3.5                          | Articles                of Organization of Spanish Trails, LLC previously                filed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 3.6                          | Operating                Agreement of Spanish Trails, LLC previously filed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.1                          | Articles                of Amendment - Establishment of Series of Preferred Stock previously                filed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.1                         | Purchase                Agreement - Spanish Trails, LLC and D.R. Horton (Confidential portions                of                this agreement noted by *** have been omitted and filed separately                with                the Securities and Exchange Commission pursuant to a request for                confidentiality under Rule 24b-2 of the Securities Exchange Act of                1934.)                Previously filed.                                                                                                                                                                                                                                                                                                                               |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.2                         | Promissory                Note - Karen Y. Duran - Sierra Norte, LLC - May 20, 2005 -                $150,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.3                         | Promissory                Note - Karen Y. Duran - Sierra Norte, LLC - June 1, 2005 -                $200,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.4                         | Promissory                Note - Karen Y. Duran - Sierra Norte, LLC - June 19, 2005 -                $66,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 14.1                         | Code                of Ethics                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 21.1                         | List                of Subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

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|                       |                                                                                                                                                                                                           |
|----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 23.1                  | Consents                of experts                                                                                                                                                                             |
|                       |                                                                                                                                                                                                           |
| 31.1                       | Certification                of Chief Executive Officer pursuant to Rule                13a-14(a)/15(d)-14(a)*                                                                                                 |
|                       |                                                                                                                                                                                                           |
| 31.2                       | Certification                of Chief Financial Officer pursuant to Rule                13a-14(a)/15(d)-14(a)*                                                                                                 |
|                       |                                                                                                                                                                                                           |
| 32.1                  | 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* |
|                       |                                                                                                                                                                                                           |
| 32.2                  | Certification                of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as                adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002* |
|                       |                                                                                                                                                                                                           |
| 99                    | Additional                Exhibits - None                                                                                                                                                                      |

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