United States
                       Securities and Exchange Commission
                              Washington, DC 20549
                                   FORM 10-QSB

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



                  For the quarterly period ended March 31, 2006
                                                 ---------------

                        Commission File Number 000-28789
                                               ---------


                          Falcon Ridge Development Inc.
                (formerly known as PocketSpec Technologies Inc.)
             -------------------------------------------------------
             (Exact name of registrant as specified in its charter)



               Nevada                                      84-1461919
      ------------------------------                    -------------------
      (State or  other  jurisdiction                       (IRS Employer
      of incorporation)                                Identification No.)




      5111 Juan Tabo Boulevard N.E. Albuquerque, New Mexico        87111
      -----------------------------------------------------      ---------
            (Address of principal executive offices)             (Zip Code)


       Registrant's telephone number: (866) 302-2248
                                      -------------

Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports); and (2) has been
subject to such filing requirements for the past 90 days. Yes [X]   No []

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

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 752,262,441 shares of common stock.

Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]


<PAGE>

                                TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION

    Item 1.  Financial Statements.                                          F-1

    Item 2.  Management's Discussion and Analysis or Plan of Operation.      13

    Item 3.  Controls and Procedures.                                        16

    PART II - OTHER INFORMATION

    Item 1.  Legal Proceedings.                                              17

    Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds     17

    Item 3.  Defaults Upon Senior Securities.                                17

    Item 4.  Submission of Matters to a Vote of Security Holders.            17

    Item 5.  Other Information.                                              17

    Item 6.  Exhibits and Reports on Form 8-K.                               17

    Signatures                                                               19

<PAGE>


                         FALCON RIDGE DEVELOPMENT, INC,
                    (FORMERLY POCKETSPEC TECHNOLOGIES, INC.)
                   Index to Consolidated Financial Statements
                                   (Unaudited)
                                                                       Page
                                                                       ----


    Consolidated Balance Sheet (unaudited) at March 31, 2006           F-1

    Consolidated Statements of Operations (unaudited), for the
         three months ended March 31, 2006 and 2005                    F-2

    Consolidated Statements of Shareholders' Deficit (unaudited) .
         for the for the three months ended March 31,2006 and 2005     F-3

    Consolidated Statements of Cash Flows (unaudited), for the
         three months ended March 31, 2006 and 2005                    F-4

    Notes to Consolidated Financial Statements                         F-5


<PAGE>



                         FALCON RIDGE DEVELOPMENT, INC.
                    (FORMERLY POCKETSPEC TECHNOLOGIES, INC.)
                           Consolidated Balance Sheet
                                   (unaudited)
                                 March 31, 2005

                                     Assets


        Real estate held for resale                              $ 1,324,449
        Fixed assets, net of accumulated depreciation                 38,482
        Cash                                                          10,276
        Prepaid expenses                                               2,500
        Other assets                                                     220
                                                                 -----------
                      Total assets                               $ 1,375,927
                                                                 ===========

                      Liabilities and Shareholders' Deficit

Liabilities
        Indebtedness to related parties                          $ 1,095,852
        Note payable                                                 379,830
        Accounts payable                                             148,214
        Retainage payable                                            100,000
        Accrued expenses                                              61,450
                                                                 -----------
                      Total liabilities                            1,785,346
                                                                 -----------

 Shareholders' deficit
        Preferred stock, Class A  no 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, 752,262,441 shares issued and
          outstanding                                                752,262
        Additional paid-in capital                                     2,185

                                                                 -----------
        Accumulated deficit                                       (1,563,866)
                Total Shareholders deficit                          (409,419)
                                                                 -----------

                  Total liabilities and shareholders' deficit    $ 1,375,927
                                                                 ===========



           See accompanying notes to consolidated financial statements

                                       F-1
<PAGE>

<TABLE>
                         FALCON RIDGE DEVELOPMENT, INC.
                    (FORMERLY POCKETSPEC TECHNOLOGIES, INC.)
                      Consolidated Statements of Operations
                                   (Unaudited)
<CAPTION>

                                                              Three Months Ended
                                                                   March 31
                                                        ------------------------------
                                                             2006           2005
                                                        -------------    -------------
<S>                                                     <C>              <C>
Lot sales:
    Net sales                                           $        --      $   3,016,786
    Costs of sales                                               --         (2,870,987)
                                                        -------------    -------------

               Gross profit (loss)                               --            145,799

Selling, general and administrative expenses                   92,778           16,844
                                                        -------------    -------------

      Loss (income) before provision for income taxes         (92,778)         128,955
Income taxes                                                     --               --

                                                        -------------    -------------
          Loss                                                (92,778)         128,955

Proforma adjustments:
    Members' distributions (note 2)                              --            (30,000)
    Income taxes                                                 --               --
                                                        -------------    -------------
               Proforma Loss                            $     (92,778)   $      98,955
                                                        =============    =============


Loss per share                                          $        --      $        --
                                                        =============    =============



Weighted average number of shares outstanding .           752,262,441      100,000,000
                                                        =============    =============
</TABLE>

           See accompanying notes to consolidated financial statements

                                       F-2
<PAGE>

<TABLE>
                         FALCON RIDGE DEVELOPMENT, INC.
                    (FORMERLY POCKETSPEC TECHNOLOGIES, INC.)
            Consolidated Statement of Changes in Shareholders' Equity
                                   (Unaudited)
<CAPTION>


                                    Preferred Stock              Common Stock            Additional
                                 -----------------------   --------------------------     paid-in       Accumulated
                                  Shares      Par value       Shares       Par value      capital         deficit         Total
                                 --------   ------------   -----------   ------------   ------------    ------------    ----------
<S>                              <C>        <C>           <C>            <C>            <C>             <C>             <C>
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)            0
Stock issuance for
    Spanish Trails, LLC (Note 2)     --             --     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
Loss                                 --             --            --             --              --         (119,297)     (119,297)
                                 --------   ------------   -----------   ------------   ------------    ------------    ----------

Balance at
    December 31, 2005             160,000   $    400,000   752,262,441   $    752,262   $      2,185    $ (1,471,088)   $ (316,641)
                                 ========   ============   ===========   ============   ============    ============    ==========


Balance at
    January 1, 2006               160,000   $    400,000   752,262,441   $    752,262   $      2,185    $ (1,471,088)   $ (316,641)

Loss                                 --             --            --             --             --           (92,778)      (92,778)
                                 --------   ------------   -----------   ------------   ------------    ------------    ----------

Balance at
    March 31, 2006                160,000   $    400,000   752,262,441   $    752,262   $      2,185    $ (1,563,866)   $ (409,419)
                                 ========   ============   ===========   ============   ============    ============    ==========
</TABLE>

           See accompanying notes to consolidated financial statements

                                       F-3
<PAGE>

                         FALCON RIDGE DEVELOPMENT, INC.
                    (FORMERLY POCKETSPEC TECHNOLOGIES, INC.)
                      Consolidated Statements of Cash Flows
                                   (Unaudited)


                                                             Period Ended
                                                              March 31,
                                                     --------------------------
                                                         2006          2005
                                                     -----------    -----------
Cash flows from operating activities:
    Net income/loss                                  $   (92,778)   $   128,955
    Adjustments to reconcile net loss to net cash
       used by operating activities:
          Depreciation                                     1,050           --
    Changes in operating assets and liabilities,
       excluding effects of business combinations:
          Land development costs                        (149,620)     1,321,175
          Prepaid expenses                                11,040           --
          Other current assets                              --          (57,588)
          Acquisition and development notes                 --       (1,589,511)
          Accounts payable, accrued expenses and
              retainage                                 (216,462)       310,789
          Deferred revenue                                  --          (78,500)
                                                     -----------    -----------
                      Net cash (used in) provided by
                         operating activities           (446,770)        35,320
                                                     -----------    -----------

Cash flows from investing activities:

    Acquisition of fixed assets                           (6,319)        (7,577)
                                                     -----------    -----------

                      Net cash used in
                         investing activities             (6,319)        (7,577)
                                                     -----------    -----------

Cash flows from financing activities:
    Proceeds from related party indebtedness               4,514           --
    Repayments of related party indebtedness                --          (50,000)
    Repayments of real estate contract                    (9,218)
    Dividend paid                                           --          (30,000)
                                                     -----------    -----------
                      Net cash used in
                         financing activities             (4,704)       (80,000)
                                                     -----------    -----------


                      Net change in cash                (457,793)       (52,257)

Cash:
    Beginning of period                                  468,069        158,835
                                                     -----------    -----------

    End period                                       $    10,276    $   106,578
                                                     ===========    ===========


Supplemental disclosure of cash flow information:
   Cash paid during the year for:
       Income taxes                                  $      --      $      --
                                                     ===========    ===========
       Interest                                      $     7,019    $      --
                                                     ===========    ===========

           See accompanying notes to consolidated financial statements

                                       F-4
<PAGE>


                         FALCON RIDGE DEVELOPMENT, INC.
                    (FORMERLY POCKETSPEC TECHNOLOGIES, INC.)

                   Notes to Consolidated Financial Statements
                                   (Unaudited)


(1)  Summary of Significant Accounting Policies

Organization, Shell Merger and Principles of Consolidation

Organization
------------
Falcon Ridge Development, Inc. ("FRDI" or the "Company") is engaged in the real
estate industry and acquires tracts of raw land and develops them into
residential lots for sale to homebuilders. In addition, FRDI plans to expand its
operations into the homebuilding business. These operations are predominantly
located in the City of Rio Rancho, New Mexico and Belen, New Mexico. Since
inception, the Company has developed one property known as Sierra Norte.

Shell Merger
------------
On May 20, 2005, Sierra Norte LLC ("SNLLC") exchanged certificates representing
100 percent of its equity securities for 100,000,000 shares of the common stock
of Pocketspec Technologies, Inc. (PTI), a public shell company. The acquisition
has been treated as a recapitalization of SNLLC, a New Mexico limited liability
company, with PTI the surviving legal entity. Since PTI had, prior to the
merger, minimal assets, (consisting of cash) and no operations, the
recapitalization has been accounted for as the sale of 37,265,372 shares of
common stock for the net assets of PTI. After the closing of the acquisition,
there were 137,265,372 shares of common stock of the Company issued and
outstanding. PTI was incorporated under the laws of Colorado in 1998. In June
2005, PTI changed its domicile to Nevada and its name to Falcon Ridge
Development Inc.

SNLLC was deemed to be the acquirer (for accounting purposes) in the reverse
acquisition and, consequently, the assets and liabilities and historical
operations that are reflected in the accompanying financial statements are those
of SNLLC and are recorded at the historical cost basis of SNLLC.

In connection with the merger, PTI sold to a group of its shareholders, PTI's
color comparison devices business in exchange for an indemnification from
liabilities by these investors. These shareholders assumed the color comparison
devices business including its liabilities. The sale was consummated between
related parties. Accordingly, the sale was booked as a capital transaction and
no gain or loss on the transaction was recorded.

Since incorporation in 1998, PTI has conducted three businesses. Originally PTI
was in the retail arts and crafts industry. PTI then transitioned into the real
estate development business, where it acquired and developed real estate
properties for its own account, primarily in Colorado. Finally, PTI became a
technology company. In 1999, PTI filed a registration statement on Form 10-SB
with the U.S. Securities and Exchange Commission to become a reporting company
under Section 12G of the Securities and Exchange Act of 1934.

Principles of Consolidation
---------------------------
The consolidated financial statements include the accounts of Falcon Ridge
Development, Inc. and its wholly owned subsidiaries SNLLC and Spanish Trails LLC
(STLLC) (together, the "Company"). Intercompany transactions and balances have
been eliminated in the consolidation.

                                      F-5
<PAGE>


                         FALCON RIDGE DEVELOPMENT, INC.
                    (FORMERLY POCKETSPEC TECHNOLOGIES, INC.)

                   Notes to Consolidated Financial Statements
                                   (Unaudited)


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

Reclassifications
-----------------
Certain prior-period amounts have been reclassified for comparative purposes to
conform to the current period presentation.


Revenue Recognition on Sales of Real Estate
-------------------------------------------
The profit on sales of real estate is accounted for in accordance with the
provisions of SFAS No. 66, "Accounting for Sales of Real Estate." The Company
recognizes revenue from the sale of real estate at the time the sale is closed
and the title is transferred from the Company to the buyer.

Cash and Cash Equivalents
-------------------------
The Company considers all highly liquid securities with original maturities of
three months or less when acquired to be cash equivalents. The Company had no
cash equivalents at March 31, 2006.

Real Estate Held for Resale
---------------------------
The carrying value of land and development includes the initial acquisition
costs of land, improvements thereto, and other costs incidental to the
acquisition or development of land. These costs are allocated to properties on a
relative sales value basis and are charged to costs of sales as specific
properties are sold. Due to the nature of the business, land and development
costs have been classified as an operating activity on the consolidated
statement of cash flows.

Impact credits received from the negotiated settlement with the City of Rio
Rancho are offset against land development costs.

Interest
--------
The Company capitalizes interest costs to real estate held for resale during
development and construction. Capitalized interest is charged to cost of sales
as the related lots are delivered to the buyer. Interest costs totaling $8,529
and $146,230 were capitalized to real estate held for resale during the periods
ended March 31, 2006 and 2005, respectively.

Fixed Assets and Depreciation
-----------------------------
Fixed assets are recorded at cost. Expenditures that extend the useful lives of
assets are capitalized. Repairs, maintenance and renewals that do not extend the
useful lives of the assets are expensed as incurred. Depreciation is provided on
the straight-line method over the following estimated useful lives: software, 5
years; equipment, 5 years.

                                      F-6
<PAGE>

                         FALCON RIDGE DEVELOPMENT, INC.
                    (FORMERLY POCKETSPEC TECHNOLOGIES, INC.)

                   Notes to Consolidated Financial Statements
                                   (Unaudited)

Earnings (loss) per Common Share
--------------------------------
Basic net income per share is computed by dividing the net income available to
common shareholders (the numerator) for the period by the weighted average
number of common shares outstanding (the denominator) during the period. The
computation of diluted earnings is similar to basic earnings per share, except
that the denominator is increased to include the number of additional common
shares that would have been outstanding if potentially dilutive common shares
had been issued.

At March 31, 2005, there was no variance between basic and diluted loss per
share as the convertible preferred stock outstanding, if converted, would be
anti-dilutive.

Impairment or Disposal of Long-Lived Assets
-------------------------------------------
The Company evaluates long-lived assets for impairment whenever events or
changes in circumstances indicate that the carrying amount of an asset may not
be recoverable in accordance with SFAS No. 144, "Accounting for the Impairment
or Disposal of Long-Lived Assets." An asset is considered impaired if its
carrying amount exceeds the future net cash flow the asset is expected to
generate. If an asset is considered to be impaired, the impairment to be
recognized is measured by the amount by which the carrying amount of the asset
exceeds its fair market value. We assess the recoverability of our long-lived
and intangible assets by determining whether the unamortized balances can be
recovered through undiscounted future net cash flows of the related assets. The
amount of impairment, if any, is measured based on projected discounted future
net cash flows.

Advertising Expenses
--------------------
The Company expenses advertising expenses as incurred. Advertising expense was
$590 and $0, respectively, for the periods ended March 31, 2006 and 2005.

Stock-based Compensation
------------------------
The Company adopted Statement of Financial Accounting Standards No. 123 (revised
2004), Share-Based Payment (SFAS 123R), effective January 1, 2006. SFAS 123R
requires the recognition of the fair value of stock-based compensation in net
income. The Company has elected the modified prospective transition method for
adopting SFAS 123R. Under this method, the provisions of SFAS 123R apply to all
awards granted or modified after the date of adoption. In addition, the
unrecognized expense of awards not yet vested at the date of adoption,
determined under the original provisions of SFAS 123, shall be recognized in net
income in the periods after the date of adoption. The Company had no unvested
awards at December 31, 2005 and no awards were granted in the three months ended
March 31, 2006.


                                      F-7
<PAGE>


                         FALCON RIDGE DEVELOPMENT, INC.
                    (FORMERLY POCKETSPEC TECHNOLOGIES, INC.)

                   Notes to Consolidated Financial Statements
                                   (Unaudited)



Income Taxes
------------
In tax years December 31, 2004, the Company operated as a partnership, and
therefore was exempt from taxation; instead, its earnings and losses are
included in the personal returns of the members and taxed depending on the
individual's personal tax situation. For the tax year December 31, 2005 the
Company operated as a partnership through May 20, 2005 and as a "c" corporation
for the period May 21, 2005 through December 31, 2005. The Company intends to
file a consolidated tax return and will recognize the tax attributes on a
consolidated basis.
The Company has a consolidated tax loss of approximately $272,360, which is
available to reduce taxable income in future years. Use of the loss will expire
in 2021.

Financial Instruments and Concentration of Credit Risk
------------------------------------------------------
The carrying amounts of the Company's financial assets and liabilities,
including cash, and accounts payable at March 31, 2006, approximate fair value
because of the short maturity of these instruments. The carrying amount of the
Company's notes payable approximates fair value at March 31, 2006, since the
notes are at floating rates or fixed rates that approximate current market rates
for notes with similar risks and maturities.


For the period ended March 31, 2005 100 percent of the Company's sales were to
three homebuilders.

Pro Forma Provision for Salary Distributions and Income Taxes
The accompanying statements of operations include pro forma adjustments to
reflect as salaries, distributions to officers/shareholders that were made while
the Company operated as an LLC, and to reflect an estimated provision for income
taxes. Prior to the reverse acquisition, the Company was taxed as a partnership
and, consequently, was not subject to income tax. The effective income tax rate
used on the pro forma adjustments is that estimated had the Company been a C
corporation.

                                      F-8
<PAGE>


                         FALCON RIDGE DEVELOPMENT, INC.
                    (FORMERLY POCKETSPEC TECHNOLOGIES, INC.)

                   Notes to Consolidated Financial Statements
                                   (Unaudited)

New Accounting Standards
------------------------

SFAS No. 151, "Inventory Costs," is effective for fiscal years beginning after
June 15, 2005. This statement amends the guidance in Accounting Research
Bulletin ("ARB") No. 43, Chapter 4, Inventory Pricing, to clarify the accounting
for abnormal amounts of idle facility expense, freight, handling costs, and
wasted material (spoilage). The adoption of SFAS 151 did not have a material
impact on the Company's financial statements.

SFAS No. 152, "Accounting for Real Estate Time-Sharing Transactions," is
effective for fiscal years beginning after June 15, 2005. This statement amends
SFAS No. 66, Accounting for Sales of Real Estate, to reference the financial
accounting and reporting guidance for real estate time-sharing transactions that
is provided in American Institute of Certified Public Accountants Statement of
Position 04-2, Accounting for Real Estate Time-Sharing Transactions. The
adoption of SFAS No. 152 did not have a material impact on the Company's
financial statements.

SFAS No. 123(R), "Share-Based Payment," replaces SFAS No. 123, "Accounting for
Stock-Based Compensation," and supersedes APB Opinion No. 25, "Accounting for
Stock Issued to Employees." This statement requires that the compensation cost
relating to share-based payment transactions be recognized in the financial
statements. The Company is required to apply this statement in the first interim
period that begins after December 15, 2005. The adoption of SFAS No. 123(R) did
not have a material impact on the Company's financial.

SFAS No. 153, "Exchanges of Non-monetary Assets" - an amendment of APB Opinion
No. 29, is effective for fiscal years beginning after June 15, 2005. This
statement addresses the measurement of exchange of non-monetary assets and
eliminates the exception from fair-value measurement for non-monetary exchanges
of similar productive assets in paragraph 21(b) of APB Opinion No. 29,
"Accounting for Non-monetary Transactions," and replaces it with an exception
for exchanges that do not have commercial substance. The adoption of SFAS No.
153 did not have a material impact on the Company's financial statements.

FIN No. 46(R) revised FIN No. 46, "Consolidation of Variable Interest Entities,"
requiring the consolidation by a business of variable interest entities in which
it is the primary beneficiary. The adoption of FIN No. 46 did not have an impact
on the Company's financial statements.

                                      F-9
<PAGE>


                         FALCON RIDGE DEVELOPMENT, INC.
                    (FORMERLY POCKETSPEC TECHNOLOGIES, INC.)

                   Notes to Consolidated Financial Statements
                                   (Unaudited)

The EITF reached a consensus on Issue No. 04-8, "The Effect of Contingently
Convertible Debt on Diluted Earnings Per Share" ("EITF 04-8"), which addresses
when the dilutive effect of contingently convertible debt instruments should be
included in diluted earnings (loss) per share. EITF 04-8 is effective for
reporting periods ending after December 15, 2004. The adoption of EITF 04-8 did
not have an impact on diluted earnings (loss) per share.


(2)  Related Party Transactions

The Company conducts its operations in a building owned by an affiliate. During
the three months ended March 31, 2006 and 2005, the Company recorded rent
expense of $15,000 and $3,953, respectively. At March 31,2006 the Company owed
rent in the amount of $10,000, which is included in accounts payable.

The Company accrued additional interest of $7,166 and repaid $7,382, a prior
accrued interest to a related party.

The Company's affiliate pays certain expenses on its behalf. The Company
reimburses these expenses paid on its behalf by the affiliate at actual cost.
Overhead expenses and indirect labor incurred by the affiliate are allocated to
the Company based on management-approved estimates of time and effort. The
Company reviews the estimated rate from time-to-time.

Indebtedness to related parties consisted of the following at March 31, 2006:

    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 25,2006
          Total financing under the agreement is $150,000     150,000

    Advances payable to Falcon Ridge Development LLC,
        an affiliate, payable on demand                       735,800

    Accrued interest payable                                   19,092
                                                            ----------
                                                           $1,095,852
                                                            ==========
(3)  Fixed Assets

Fixed assets consist of the following at March 31, 2006:

                                       Accumulated
                             Cost      Depreciation
                            -------       -------
                Software    $32,349      $  651
                Equipment     7,981       1,197
                            -------       -------
                            $40,330      $1,848
                            =======       =======

                                      F-10
<PAGE>


                         FALCON RIDGE DEVELOPMENT, INC.
                    (FORMERLY POCKETSPEC TECHNOLOGIES, INC.)

                   Notes to Consolidated Financial Statements
                                   (Unaudited)

Depreciation expense, included in selling, general and administrative expenses
in the accompanying financial statements, was $1,050 and $-0- in 2006 and 2005,
respectively.


(4)  Real Estate Operations

The Company completed development of Sierra Norte I and II subdivisions in Rio
Rancho, New Mexico in 2005. The Company is currently in the process of
developing approximately 200 acres of raw land in Belen, New Mexico referred to
as "Spanish Trails." Spanish Trails is divided into two phases. Phase one
consists of 200 acres of land subdivided into 439 home sites and phase two
consists of 900 acres of land, to be acquired and subdivided into 1,239 home
sites. Home sites will be sold to different builders or developed by the
Company.

Real estate held for resale, consists of the following at March 31, 2006:

                 Land acquisition costs   $  806,529
                 Land development costs      424,556
                 Capitalized interest         93,364
                                          ----------
                                          $1,324,449
                                          ==========


(5)  Note Payable

Note payable consists of the following at March 31, 2006:

        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
        Total financing under the agreement is $435,000      $ 379,380
                                                             =========


(6)  Income Taxes

A reconciliation of U.S. statutory federal income tax rate to the effective rate
follows for the period ended March 31, 2006:

           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%
                                                         ========

                                      F-11
<PAGE>


                         FALCON RIDGE DEVELOPMENT, INC.
                    (FORMERLY POCKETSPEC TECHNOLOGIES, INC.)

                   Notes to Consolidated Financial Statements
                                   (Unaudited)

At March 31, 20065, the Company has a net operating loss carry forward for
federal income tax purposes of approximately $272,360, which was fully allowed
for in the valuation allowance of $73,795. The valuation allowance offsets the
net deferred tax asset for which there is no assurance of recovery. The change
in the valuation allowance for the period ended March 31, 2006 was $18,612.

Because of various stock transactions during 2005, management believes the
Company has undergone an "ownership change" as defined by Section 382 of the
Internal Revenue Code. Accordingly, the utilization of a portion of the net
operating loss carry forward may be limited. Due to this limitation, and the
uncertainty regarding the ultimate utilization of the net operating loss carry
forward, no tax benefit for losses has been provided by the Company in the
accompanying financial statements. The net operating loss carry forward will
expire in 2021.


(7)  Shareholders' Deficit

Preferred Stock
---------------

On July 20, 2005, the Company established Series A Convertible Preferred Shares
and authorized 400,000 shares. The preferences are as follows:

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

     o    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.

     o    Shares have a priority over common shares upon liquidation.

     o    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.

8)  Subsequent Event

The Company established Series B Convertible Preferred Shares and authorized
400,000 shares. The preferences are as follows:

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

     o    Investor will receive interest of 12% per annum payable monthly for a
          period of eighteen months from the date of purchase.

     o    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.

     o    Shares have a priority over common shares upon liquidation.

     o    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.

As of May 9,2006 the Company has received $ 200,000 in subscriptions.

                                      F-12
<PAGE>


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

     The following discussion of our financial condition and results of
operations should be read in conjunction with, and is qualified in its entirety
by, the consolidated financial statements and notes thereto included in Item 1
in this Quarterly Report on Form 10-QSB. This item contains forward-looking
statements that involve risks and uncertainties. Actual results may differ
materially from those indicated in such forward-looking statements.

Forward-Looking Statements
--------------------------

     This Quarterly Report on Form 10-QSB and the documents incorporated herein
by reference contain forward-looking statements that have been made pursuant to
the provisions of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are based on current expectations, estimates, and
projections about our industry, management beliefs, and certain assumptions made
by our management. Words such as "anticipates," expects," "intends," "plans,"
"believes," "seeks," "estimates," variations of such words, and similar
expressions are intended to identify such forward-looking statements. These
statements are not guarantees of future performance and are subject to certain
risks, uncertainties, and assumptions that are difficult to predict; therefore,
actual results may differ materially from those expressed or forecasted in any
such forward-looking statements. Unless required by law, we undertake no
obligation to update publicly any forward-looking statements, whether as a
result of new information, future events, or otherwise. However, readers should
carefully review the risk factors set forth in other reports and documents that
we file from time to time with the Securities and Exchange Commission,
particularly our Annual Reports on Form 10-KSB and any Current Reports on Form
8-K.

Overview and History
--------------------

     We are a Nevada corporation with two subsidiaries, Sierra Norte, LLC
("Sierra Norte") and Spanish Trails, LLC ("Spanish Trails"). We are in the real
estate industry and acquire tracts of raw land and develop them into residential
lots for sale to homebuilders. We plan to expand our operations in 2006 into
homebuilding on our Spanish Trails lots. Our executive offices are located in
the Albuquerque, New Mexico area.

     On May 20, 2005, we completed a reverse acquisition transaction. We
acquired Sierra Norte, a New Mexico limited liability company, which thereby
became our wholly-owned subsidiary. Sierra Norte is a land development company
in the Albuquerque, New Mexico area. Formerly we were a technology company which
was in the business of developing and marketing color comparison devices. We
acquired Spanish Trails on July 6, 2005 as discussed below.

     As a result of the Sierra Norte acquisition, the former security holders of
Sierra Norte acquired a majority of our outstanding shares of common stock. For
accounting purposes, Sierra Norte has been deemed to be the acquirer in the
acquisition and, consequently, the assets, liabilities and historical operations
that are reflected in our financial statements are those of Sierra Norte, which
are recorded at the historical cost basis of Sierra Norte. The reverse
acquisition was consummated under Colorado law pursuant to an Agreement and Plan
of Reorganization dated May 20, 2005.

     On July 6, 2005, we entered into an exchange of securities whereby we
acquired 100% of the ownership of Spanish Trails, in exchange for the issuance


                                       13
<PAGE>


of a total of 614,882,069 of our common shares. As a result, of the Spanish
Trails acquisition, the former security holders of Spanish Trails acquired a
majority of our outstanding shares of common stock, but there was not a change
of control of us, as the owners of a majority of Spanish Trails were the
executive officers of the Company. After the exchange, 752,147,441 shares of
common stock was issued and outstanding.

     Also, on July 6, 2005 we reincorporated our company to Nevada from Colorado
and changed our name to Falcon Ridge Development Inc., after shareholder
approval. In connection with the name change, we changed to a new trading
symbol, FLRD.BB.

     Our Spanish Trails project is progressing through local real estate
governmental clearance toward final approval of our platting plan. We anticipate
the process should be completed by mid-2006. When our platting plan receives
final approval, we will be able to begin construction of the first phase of
development of approximately 500 lots for single family homes. Considerable up
front costs in any real estate platting project must first be incurred and paid
for, thus in the early stages of our real estate projects significant amounts of
capital can be required until platting occurs, and lots are improved and sold.
Predictably, greater revenues will be achieved as soon as a portion of the lots
are improved and sold. As disclosed in our Form 8-K filed on October 25, 2005,
we have an executed contract with DR Horton under which it will purchase
approximately 150 designated completed lots in Phase II of our Spanish Trails
project. When the lot development has been completed and accepted by the
Valencia County, New Mexico, engineers and construction of the lots completed,
the sale of those lots will be funded and closed. It is also our intention to
initiate a home building division with remaining developed Spanish Trails
project lots. We expect to have initial models open in the Spring of 2006. The
sale of homes and, consequently, the pace of construction, will be determined by
the rate of market absorption. Simultaneously, we will be processing other
parcels that are currently under purchase contracts in preparation for seeking
entitlements and final plat approval from Valencia County authorities.

     Since our master plan for the Spanish Trails project has many facets and
the development includes not only residential lots but and recreational areas,
our time frames and the order in which we begin various projects is highly
dependent upon the market for the area and the need for specific areas to be
completed and other uncontrollable items such as financing.

Results of Operations
---------------------

Three Month Period Ended March 31, 2006 Compared to Three Month Period Ended
March 31, 2005

     We had no sales in the three month period ended March 31, 2006. We are in a
development phase and anticipate sales in the late summer or early fall. All
projects from prior periods have closed out. In 2005 we achieved revenues for
the three months ended March 31, 2006 of $ 0, compared to revenues of $3,016,786
for the three months ended March 31, 2005. In 2005, we had sold out phase one
and began receiving revenue from phase two lot sales. Lot closings are tied to
construction and completion or partial completion of the lots for the community
and closings take place only after completion.

     Our selling, general and administrative expenses for the three months ended
March 31, 2006 increased significantly to $92,778, compared to selling, general
and administrative expenses of $16,844 for the three months ended March 31,
2005. The major components of these expenses are salaries, payroll taxes and
professional fees. We have significantly expanded our operations as a public
company in 2006. This is reflected in the increased overhead. We expect that our
costs of being a public company will lead to increased general and
administrative expenses. in the future.

                                       14
<PAGE>


     Due primarily to no lot sales and increased general and administrative
expenses as a result of being a public company, we incurred a loss of $92,778,
or $0.00 per share, for the three months ended March 31, 2006 compared to a net
income of $128,955, or $0.00 per share, for the three months ended March 31,
2005.

     Our principal source of revenue will be the sales of lots and homes in our
Spanish Trails project. In the future we will acquire other real estate
development projects in other state as well as New Mexico.

Liquidity and Capital Resources

     At March 31, 2006 our cash position was $10,276.

     Our net cash used in operating activities was $446,770 for the three months
ended March 31, 2006, compared to net cash provided by operating activities of
$35,320 for the three months ended March 31, 2005.

     Our net cash used by investing activities was $6,319 for the three months
ended March 31, 2006, compared to $7,577 of net cash used by investing
activities for the three months ended March 31, 2006.

     Our net cash used by financing activities was $4,704 for the three months
ended March 31, 2006, compared to $80,000 of net cash used by financing
activities for the three months ended March 31, 2005.

     From time to time we need working capital when we do not have funds to pay
for lot development or general and administrative expenses. Our chief financial
officer and Falcon Ridge Development LLC (a related party) have loaned us funds
for us to meet our obligations and to continue working on platting and preparing
lots for home building. We cannot assure that such funding will be available in
the future. In August 2005 we raised $400,000 from the sale of convertible
preferred stock, which has helped us with our working capital needs and allowed
us to continue to use capital in seeking to develop our Spanish Trails project.

     The timing of the completion of the platting of our Spanish Trails project
is not certain, so we cannot assure that our cash flow from lot sales,
particularly relating to the DR Horton proposed purchase and other lot closings
will occur in the near future. Thus, we may be faced with a working capital
shortage. In such event we may be required to seek financing which may not be
available or, if available, it could be on terms which are cost prohibitive to
us.

     In addition, we expect to begin building homes on our Spanish Trails
project in late summer or early fall of 2006. This initiative will require
working capital which we cannot assure will be available. We are negotiating
with banks and other lenders to seek debt financing for this endeavor.

     Most of our costs are incurred in the initial phases of our real estate
projects. We are in the initial stages of the Spanish Trails project and expect
it to be profitable. Our profitability depends upon our ability to develop,
manage and sell real estate projects on a timely basis and to control our costs.
We expect that we will develop a more consistent pipeline of activity as we
mature and, thereby, a more consistent source of revenues and profit. If we
succeed in this effort and generate sufficient revenues, we will expect to be
profitable. However, we cannot assure that we will be profitable.

     We do not intend to pay dividends for the foreseeable future. We do not
expect our revenues to be impacted by seasonal demands.

                                       15
<PAGE>


Recently Issued Accounting Pronouncements
-----------------------------------------

     We do not expect the adoption of any recently issued accounting
pronouncements to have a significant impact on our net results of operations,
financial position, or cash flows.

Critical Accounting Policies
----------------------------

     The preparation of consolidated financial statements in conformity with
accounting principles generally accepted in the United States of America
requires us to make a number of estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements. Such estimates and
assumptions affect the reported amounts of revenues and expenses during the
reporting period. On an ongoing basis, we evaluate estimates and assumptions
based upon historical experience and various other factors and circumstances. We
believe our estimates and assumptions are reasonable in the circumstances;
however, actual results may differ from these estimates under different future
conditions.

     We believe that the estimates and assumptions that are most important to
the portrayal of our financial condition and results of operations, in that they
require our most difficult, subjective or complex judgments, form the basis for
the accounting policies deemed to be most critical to us. These critical
accounting policies relate to bad debts, impairment of intangible assets and
long lived assets, contractual adjustments to revenue, and contingencies and
litigation. We believe estimates and assumptions related to these critical
accounting policies are appropriate under the circumstances; however, should
future events or occurrences result in unanticipated consequences, there could
impact on our future financial conditions or results of operations.


ITEM 3. CONTROLS AND PROCEDURES

     Within the 90 days prior to the date of this report, our chief executive
officer and our chief financial officer evaluated the effectiveness of the
design and operation of our disclosure controls and procedures pursuant to Rule
13a-15b under the Securities Exchange Act of 1934. Based on their review of our
disclosure controls and procedures, they have concluded that our disclosure
controls and procedures are not effective in timely alerting each of them to
material information relating to us that is required to be included in our
periodic SEC filings. Since our Company has been acquired as a result of the
Sierra Norte acquisition discussed above, and a new board and management has
been installed, we have not been able to timely file our Form 10-QSBs and we
missed deadlines for filing some Form 8-Ks due to non recognition of the events
requiring the Form 8-Ks. Specifically, an advance made to Sierra Norte by our
chief financial officer was not recorded on the books of the Company and three
other lending arrangements to us by related parties were not reported in a
timely manner on Form 8-K. Also, we recently determined, in consultation with
our independent accountant, that historical financial statements and pro forma
financial statements will be required for our Spanish Trails acquisition which
we completed in July 2005. We have begun the preparation of such financial
statements and pro forma financial information and expect to file the required
information as soon as practicable. As discussed in Item 5 herein, "Other
Information," as a result of the failure to record the advance of $150,000 to
one of our subsidiaries prior to the time such subsidiary was acquired by us,
the Form 10-QSB for the quarter ended June 30, 2005 contained an error by
understating liabilities of $150,000 and did not include expenses of $150,000.

                                       16
<PAGE>


The Form 10-QSB for the quarter ended June 30, 2005 is being amended to reflect
these adjustments on or about the time of the filing of this Form 10-QSB, and
the information in the Form 8-Ks that were delinquent on or about the time of
this filing has been or is being filed as well. Management is in the process of
analyzing and adopting new policies and procedures to remedy the design and
operations of our disclosure controls, including review and education concerning
Form 8-K requirements, and we recently hired an internal accountant that has
prior public accounting experience in our industry, regulatory filings and
preparing financial statements. We acknowledge that a change with respect to
financial controls has been made to alert us with respect to funding provided by
related parties and that the changes in disclosure controls, particularly
recognizing Form 8-K events, are ongoing. We expect these changes in internal
controls will have a significant effect on our disclosure controls after the
evaluation date and the date of this report.

     Changes to Internal Controls include a reorganization of available staff to
better segregate duties, acquisition and implementation of more sophisticated
accounting software and a personnel plan to hire additional accounting and
administrative staff. We have scheduled training for employees and management in
critical areas to enhance their ability to perform the duties assigned to them.]


PART II.  OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

     There are no legal proceedings, to which we are a party, which could have a
material adverse effect on our business, financial condition or operating
results.

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

     None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

     None.


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

     None

ITEM 5. OTHER INFORMATION

     None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K


                                  EXHIBIT INDEX


2.1       Agreement and Plan of Reorganization - Pocketspec Technologies,
          Inc. and Sierra Norte LLC (a)

2.2       Acquisition Agreement - Pocketspec Technologies, Inc. and Spanish
          Trails, LLC (b)

3.1       Articles of Incorporation of Falcon Ridge Development, Inc.
          previously filed.

                                       17
<PAGE>


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 previously filed.

10.3      Promissory Note - Karen Y. Duran - Sierra Norte, LLC - June 1,
          2005 - $200,000 previously filed.

10.4      Promissory Note - Karen Y. Duran - Sierra Norte, LLC - June 19,
          2005 - $66,000 previously filed.

14.1      Code of Ethics previously filed.

21.1      List of Subsidiaries previously filed.

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


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

*    Filed herewith.

(a)  Filed on May 25, 2005 as Exhibit 2.1 with the Registrant's Current Report
     on Form 8-K and incorporated herein by reference.

(b)  Filed on July 8, 2005 as Exhibit 10.19 with the Registrant's Current Report
     on Form 8-K and incorporated herein by reference.

                                       18
<PAGE>

                                   SIGNATURES

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


                                             Falcon Ridge Development, Inc.


Dated: May 15, 2006                          By: /s/  Fred M. Montano
                                                 -------------------------------
                                                 Fred M. Montano
                                                 President, Chief Executive
                                                 Officer, and Director


Dated: May 15, 2006                          By: /s/  Karen Y. Duran
                                                 -------------------------------
                                                 Karen Y. Duran
                                                 Vice President, Treasurer and
                                                 Chief Financial Officer


                                       19
<PAGE>


                                  EXHIBIT INDEX


2.1       Agreement and Plan of Reorganization - Pocketspec Technologies,
          Inc. and Sierra Norte LLC (a)

2.2       Acquisition Agreement - Pocketspec Technologies, Inc. and Spanish
          Trails, LLC (b)

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 previously filed.

10.3      Promissory Note - Karen Y. Duran - Sierra Norte, LLC - June 1,
          2005 - $200,000 previously filed.

10.4      Promissory Note - Karen Y. Duran - Sierra Norte, LLC - June 19,
          2005 - $66,000 previously filed.

14.1      Code of Ethics previously filed.

21.1      List of Subsidiaries previously filed.

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*

                                       20
<PAGE>


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


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

*    Filed herewith.

(a)  Filed on May 25, 2005 as Exhibit 2.1 with the Registrant's Current Report
     on Form 8-K and incorporated herein by reference.

(b)  Filed on July 8, 2005 as Exhibit 10.19 with the Registrant's Current Report
     on Form 8-K and incorporated herein by reference.

                                       21