| Nevada                                   |   | 88-0490034             |
|------------------------------------------|--------|------------------------|
| (State or other jurisdiction of          |   | (I.R.S. Employer       |
| incorporation or organization)           |   | Identification Number) |
|                                     |   |                   |
| 3887 Pacific Street                      |   |                   |
| Las Vegas, Nevada                        |   | 89121                  |
| (Address of principal executive offices) |   | (Zip Code)             |

|   | Yes |   |   | No |    X |   |
|--------|-----|--------|--------|----|---------------------|--------|

|   | Yes | X |   | No |   |   |
|--------|-----|---|--------|----|--------|--------|

|     Large accelerated filer  o           | Accelerated filer  o         |   |
|-------------------------------------------------------------------|-----------------------------------|--------|
|     Non-accelerated filer    x | Smaller reporting company  o |   |

|   | Yes |   |   | No | X |   |
|--------|-----|--------|--------|----|---|--------|

----

| PART I. | FINANCIAL INFORMATION                                                                                                                                                                          | Page   |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|    |                                                                                                                                                                                           |   |
| Item 1. | Consolidated Financial Statements:                                                                                                                                                             |   |
|    |                                                                                                                                                                                           |   |
|    | Consolidated Balance Sheets at March 31, 2006 (unaudited), June 30, 2006 (unaudited),                                                                                                          |   |
|    | September 30, 2006 (unaudited) and December 31, 2005 (audited)                                                                                                                                 | 4      |
|    |                                                                                                                                                                                           |   |
|    | Consolidated Schedule of Investments at March 31, 2006 (unaudited), June 30, 2006 (unaudited),                                                                                                 |   |
|    |       September 30, 2006 (unaudited) and December 31, 2005 (audited)                                                                                             | 5      |
|    |                                                                                                                                                                                           |   |
|    | Consolidated Statements of Operations for the  Six Months Ended June 30, 2006 (unaudited)                                                                                            |   |
|    | and 2005 (unaudited), and the Nine Months ended September 30, 2006 (unaudited) and 2005 (unaudited)                                                                                            | 6      |
|    |                                                                                                                                                                                           |   |
|    | Consolidated Statements of Operations for the Three Months Ended  March 31, 2006                                                                                                     |   |
|    | (unaudited) and 2005 (unaudited), for the Three Months Ended June 30, 2006 (unaudited) and 2005 (unaudited), for the Three Months Ended September 30, 2006 (unaudited) and 2005 (unaudited)    | 7      |
|    |                                                                                                                                                                                           |   |
|    | Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2006                                                                                                                |   |
|    |  (unaudited) and 2005 (unaudited), for the Six Months Ended June 30, 2006 (unaudited) and 2005 (unaudited), and the Nine Months Ended September 30, 2006 (unaudited) and 2005 (unaudited) | 8      |
|    |                                                                                                                                                                                           |   |
|    | Notes to Consolidated Financial Statements                                                                                                                                                     | 10     |
|    |                                                                                                                                                                                           |   |
| Item 2. | Management's Discussion and Analysis of Financial Condition                                                                                                                                    |   |
|    | and Results of Operations                                                                                                                                                                      | 24     |
|    |                                                                                                                                                                                           |   |
| Item 3. | Quantitative and Qualitative Disclosures about Market Risk                                                                                                                                     | 29     |
|    |                                                                                                                                                                                           |   |
| Item 4. | Controls and Procedures                                                                                                                                                                        | 29     |
|    |                                                                                                                                                                                           |   |
|    |                                                                                                                                                                                           |   |

----

| PART II.   | OTHER INFORMATION                                           |   |
|------------|-------------------------------------------------------------|--------|
|       |                                                        |   |
| Item 1.    | Legal Proceedings                                           | 30     |
|       |                                                        |   |
| Item 1A.   | Risk Factors                                                | 30     |
|       |                                                        |   |
| Item 2.    | Unregistered Sales of Equity Securities and Use of Proceeds | 32     |
|       |                                                        |   |
| Item 6.    | Exhibits                                                    | 33     |
|       |                                                        |   |
| SIGNATURES | 34                                                          |

----

|                                                                                                                                                                                                                           |   |      |        |   |      |   |        |      |   |   |        |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|-----------|--------|-------------|-----------|--------|--------|-------------|--------|
| BROADLEAF CAPITAL PARTNERS, INC. AND SUBSIDIARIES                                                                                                                                                                              |   |
| Consolidated Balance Sheets                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                           |   |      |        |   |      |   |        |      |   |   |        |   |
|                                     ASSETS |   |      |        |   |      |   |        |      |   |   |        |   |
|                                                                                                                                                                                                                           |   |      |        |   |      |   |        |      |   |
|                                                                                                                                                                                                                           |   | 9/30/2006 |        |   | 6/30/2006 |   |        | 3/31/2006 |   |   | 12/31/2005  |   |
|                                                                                                                                                                                                                           |   | Unaudited |        |   | Unaudited |   |        | Unaudited |   |   | Audited     |   |
| CURRENT ASSETS                                                                                                                                                                                                                 |   |      |        |   |      |   |        |      |   |   |        |   |
|                                                                                                                                                                                                                           |   |      |        |   |      |   |        |      |   |   |        |   |
|    Cash                                                                                                                                                                                                         |   | $         | 763         |   |      | $      | 2,850       |      |   | $      | 2,496       |   |   | $ | 1,600 |   |
|                                                                                                                                                                                                                           |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
|      Total Current Assets                                                                                                                                                                             |   |      | 763         |   |      |   | 2,850       |      |   |   | 2,496       |   |   |   | 1,600 |   |
|                                                                                                                                                                                                                           |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
| FIXED ASSETS, NET (Note2, 5)                                                                                                                                                                                                   |   |      | 0           |   |      |   | 0           |      |   |   | 0           |   |   |   | 0 |   |
|                                                                                                                                                                                                                           |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
| OTHER ASSETS - Investments in limited partnerships -                                                                                                                                                                           |   |      | 162,155     |   |      |   | 162,155     |      |   |   | 162,155     |   |   |   | 162,155 |   |
| (Note 2,4,8,9)                                                                                                                                                                                                                 |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
|      TOTAL ASSETS                                                                                                                                                                                     |   | $         | 162,918     |   |      | $      | 165,005     |      |   | $      | 164,651     |   |   | $ | 163,755 |   |
|                                                                                                                                                                                                                           |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                                                                                                 |   |      |        |   |      |   |        |      |   |   |        |   |   |
|                                                                                                                                                                                                                           |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
| CURRENT LIABILITIES                                                                                                                                                                                                            |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
|  Accounts payable                                                                                                                                                                                                         |   | $         | 324,420     |   |      | $      | 324,420     |      |   | $      | 324,420     |   |   | $ | 324,420 |   |
|  Accrued Expenses                                                                                                                                                                                                         |   |      | 169,608     |   |      |   | 169,608     |      |   |   | 169,608     |   |   |   | 169,608 |   |
|  Accrued interest                                                                                                                                                                                                         |   |      | 66,763      |   |      |   | 60,299      |      |   |   | 53,835      |   |   |   | 47,371 |   |
|  Judgments payable                                                                                                                                                                                                        |   |      | 78,882      |   |      |   | 78,882      |      |   |   | 78,882      |   |   |   | 78,882 |   |
|  Notes payable - current portion (Note 7)                                                                                                                                                                                 |   |      | 1,292,308   |   |      |   | 1,292,308   |      |   |   | 1,292,308   |   |   |   | 1,292,308 |   |
|                                                                                                                                                                                                                           |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
|    Total Current Liabilities                                                                                                                                                                                    |   |      | 1,931,981   |   |      |   | 1,925,517   |      |   |   | 1,919,053   |   |   |   | 1,912,589 |   |
|                                                                                                                                                                                                                           |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
| LONG-TERM DEBT - Notes payable - long term (Note 7)                                                                                                                                                                            |   |      | 0           |   |      |   | 0           |      |   |   | 0           |   |   |   | 0 |   |
|                                                                                                                                                                                                                           |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
|    Total Liabilities                                                                                                                                                                                            |   |      | 1,931,981   |   |      |   | 1,925,517   |      |   |   | 1,919,053   |   |   |   | 1,912,589 |   |
|                                                                                                                                                                                                                           |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES (Note 8)                                                                                                                                                                                         |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
|                                                                                                                                                                                                                           |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
| STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                                                                                                                 |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
|    Common Stock authorized at $0.001 par value;                                                                                                                                                                 |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
| shares issued and outstanding 40,473,605                                                                                                                                                                                       |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
|    Total Common Shares issued and outstanding, respectively                                                                                                                                                     |   |      | 140,474     |   |      |   | 140,474     |      |   |   | 140,474     |   |   |   | 140,474 |   |
|  Additional paid-in capital                                                                                                                                                                                               |   |      | 13,875,209  |   |      |   | 13,875,209  |      |   |   | 13,875,209  |   |   |   | 13,875,209 |   |
|  Stock Subscriptions                                                                                                                                                                                                      |   |      | (10,304     | )      |      |   | (10,304     | )         |   |   | (10,304     | )      |   |   | (10,304 | ) |
|  Accumulated deficit                                                                                                                                                                                                      |   |      | (15,774,442 | )      |      |   | (15,765,891 | )         |   |   | (15,759,781 | )      |   |   | (15,754,213 | ) |
|                                                                                                                                                                                                                           |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
|      Total Stockholders' Equity (Deficit)                                                                                                                                                             |   |      | (1,769,063  | )      |      |   | (1,760,512  | )         |   |   | (1,754,402  | )      |   |   | (1,748,834 | ) |
|                                                                                                                                                                                                                           |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
|      TOTAL LIABILITIES,  AND                                                                                                                                                                |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
|       STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                                                                             |   | $         | 162,918     |   |      | $      | 165,005     |      |   | $      | 164,651     |   |   | $ | 163,755 |   |
|                                                                                                                                                                                                                           |   |      |        |   |      |   |        |      |   |   |        |   |   |   |   |   |
| "The accompanying notes are an integral part of these consolidated financial statements."                                                                                                                                      |   |

----

|                                                                                                                                                                 |        |   |         |   |   |     |   |      |   |      |   |   |      |   |   |      |    |   |       |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|--------|--------------|--------|--------|----------|--------|-----------|--------|-----------|--------|--------|-----------|--------|--------|-----------|---------|--------|------------|--------|
| BROADLEAF CAPITAL PARTNERS, INC. AND SUBSIDIARIES                                                                                                                    |        |   |         |   |   |     |   |      |   |      |   |   |      |   |
| Consolidated Schedule of Investments                                                                                                                                 |        |   |         |   |   |     |   |      |   |      |   |   |      |   |
|                                                                                                                                                                 |        |   |         |   |   |     |   |      |   |      |   |   |      |   |   |      |    |   |       |   |
|                                                                                                                                                                 |        |   | Number       |   |   |     |   |      |   |      |   |   |      |   |   |      |    |   |       |   |
|                                                                                                                                                                 |        |   | Shares Owned |   |   | Original |   |      |   |      |   |   |      |   |   |      |    |   |       |   |
| Company                                                                                                                                                              | Business    |   | or %         |   |   | Cost     |   |      |   | 9/30/2005 |   |   | 6/30/2005 |   |   | 3/31/2005 |    |   | 12/31/2004 |   |
|                                                                                                                                                                 |        |   |         |   |   |     |   |      |   | Unaudited |   |   | Unaudited |   |   | Unaudited |    |   | Audited    |   |
|                                                                                                                                                                 |        |   |         |   |   |     |   |      |   |      |   |   |      |   |   |      |    |   |       |   |
| Canyon Shadows                                                                                                                                                       | Real Estate |   |         | 1      | %      |     | $      | 1,131,961 |   | (a)       |   | $      | 781,655   |   |   | $         | 781,655 |   |       | $      | 781,655 |   |   | $ | 781,655 |   |
|                                                                                                                                                                 |        |   |         |   |   |     |   |      |   |      |   |   |      |   |   |      |    |   |       |   |   |   |   |   |   |   |
|                                                                                                                                                                 |        |   |         |   |   |     |   |      |   |      |   |   |      |   |   |      |    |   |       |   |   |   |   |   |   |   |
| TOTAL INVESTMENTS                                                                                                                                                    |        |   |         |   |   |     |   |      |   |      |   | $      | 781,655   |   |   | $         | 781,655 |   |       | $      | 781,655 |   |   | $ | 781,655 |   |
|                                                                                                                                                                 |        |   |         |   |   |     |   |      |   |      |   |   |      |   |   |      |    |   |       |   |   |   |   |   |   |   |
|                      Schedule of Investments - Descriptions |        |   |         |   |   |     |   |      |   |      |   |   |      |   |   |      |    |   |       |   |   |   |   |   |   |
|                                                                                                                                                                 |        |   |         |   |   |     |   |      |   |      |   |   |      |   |   |      |    |   |       |   |   |   |   |   |   |   |
| a) The Company's Investment Committee has valued this investment at cost,                                                                             |        |   |         |   |   |     |   |      |   |      |   |   |      |   |   |      |    |   |
| less cash distributions to the Company from Canyon Shadows.                                                                                                     |        |   |         |   |   |     |   |      |   |      |   |   |      |   |   |      |    |   |       |   |   |   |
|                                                                                                                                                                 |        |   |         |   |   |     |   |      |   |      |   |   |      |   |   |      |    |   |       |   |   |   |   |   |   |   |

----

|                                                                                      |   |                      |        |   |                     |   |        |      |   |   |        |   |
|-------------------------------------------------------------------------------------------|--------|---------------------------|-------------|--------|--------------------------|--------|-------------|-----------|--------|--------|-------------|--------|
| BROADLEAF CAPITAL PARTNERS, INC. AND SUBSIDIARIES                                         |   |
| Consolidated Statements of Operations                                                     |   |
|                                                                                      |   |                      |        |   |                     |   |        |      |   |   |        |   |
|                                                                                      |   | For the Nine Months Ended |        |   | For the Six Months Ended |   |
|                                                                                      |   | 9/30/2006                 |        |   | 9/30/2005                |   |        | 6/30/2006 |   |   | 6/30/2005   |   |
|                                                                                      |   | Unaudited                 |        |   | Unaudited                |   |        | Unaudited |   |   | Unaudited   |   |
|                                                                                      |   |                      |        |   |                     |   |        |      |   |   |        |   |
| REVENUES                                                                                  |   | $                         | 5,697       |   |                     | $      | 134,711     |      |   | $      | 3,798       |   |   | $ | 134,078 |   |
|                                                                                      |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
| EXPENSES                                                                                  |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
|                                                                                      |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
|    General and administrative                                              |   |                      | 6,534       |   |                     |   | 218,384     |      |   |   | 2,548       |   |   |   | 190,102 |   |
|    Depreciation (Note 5)                                                   |   |                      | 0           |   |                     |   | 0           |      |   |   | 0           |   |   |   | 0 |   |
|                                                                                      |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
|      Total Expenses                                              |   |                      | 6,534       |   |                     |   | 218,384     |      |   |   | 2,548       |   |   |   | 190,102 |   |
|                                                                                      |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
| NET INVESTMENT INCOME(LOSS)                                                               |   |                      | (837        | )      |                     |   | (83,673     | )         |   |   | 1,250       |   |   |   | (56,024 | ) |
|                                                                                      |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                                                    |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
|                                                                                      |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
|    Interest expense                                                        |   |                      | (19,392     | )      |                     |   | (19,392     | )         |   |   | (12,928     | )      |   |   | (12,928 | ) |
|                                                                                      |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
|    Total Other Income (Expense)                                            |   |                      | (19,392     | )      |                     |   | (19,392     | )         |   |   | (12,928     | )      |   |   | (12,928 | ) |
|                                                                                      |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
| INCOME (LOSS) FROM CONTINUING                                                             |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
|  OPERARION BEFORE INCOME TAXES                                                       |   |                      | (20,229     | )      |                     |   | (103,065    | )         |   |   | (11,678     | )      |   |   | (68,952 | ) |
|                                                                                      |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
| Income taxes (Note 2)                                                                     |   |                      | 0           |   |                     |   | 0           |      |   |   | 0           |   |   |   | 0 |   |
|                                                                                      |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
| NET INCOME (LOSS)                                                                         |   |                      | (20,229     | )      |                     |   | (103,065    | )         |   |   | (11,678     | )      |   |   | (68,952 | ) |
|                                                                                      |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
|                                                                                      |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
| BASIC INCOME (LOSS) PER SHARE                                                             |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
|                                                                                      |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
|    Basic Income (Loss) Per Share (Note 2)                                  |   |                      | (0.000      | )      |                     |   | (0.001      | )         |   |   | (0.000      | )      |   |   | (0.001 | ) |
|                                                                                      |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF                                                                |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
|  SHARES OUTSTANDING                                                                  |   |                      | 140,473,605 |   |                     |   | 138,845,115 |      |   |   | 140,473,605 |   |   |   | 135,030,871 |   |
|                                                                                      |   |                      |        |   |                     |   |        |      |   |   |        |   |   |   |   |   |
| "The accompanying notes are an integral part of these consolidated financial statements." |   |

----

|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |
|-------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|----------------------------------|--------|-------------|-----------|--------|--------|-------------|--------|--------|-----------|-------------|--------|-----------|--------|
| BROADLEAF CAPITAL PARTNERS, INC. AND SUBSIDIARIES                                         |   |
| Consolidated Statements of Operations                                                     |   |
|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |
|                                                                                      |   |      |        |   | For the Three Months Ended, |   |        |      |   |
|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |
|                                                                                      |   | 9/30/2006 |        |   | 9/30/2005                        |   |        | 6/30/2006 |   |   | 6/30/2005   |   |   | 3/31/2006 |        |   | 3/31/2005 |   |
|                                                                                      |   | Unaudited |        |   | Unaudited                        |   |        | Unaudited |   |   | Unaudited   |   |   | Unaudited |        |   | Unaudited |   |
|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |
| REVENUES                                                                                  |   | $         | 1,899       |   |                             | $      | 633         |      |   | $      | 1,899       |   |   | $         | 87,110      |   |      | $      | 1,899 |   |   | $ | 46,968 |   |
|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
| EXPENSES                                                                                  |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
|    General and administrative                                              |   |      | 3,986       |   |                             |   | 28,282      |      |   |   | 1,545       |   |   |      | 81,062      |   |      |   | 1,003 |   |   |   | 109,040 |   |
|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
|      Total Expenses                                              |   |      | 3,986       |   |                             |   | 28,282      |      |   |   | 1,545       |   |   |      | 81,062      |   |      |   | 1,003 |   |   |   | 109,040 |   |
|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
| NET INVESTMENT INCOME(LOSS)                                                               |   |      | (2,087      | )      |                             |   | (27,649     | )         |   |   | 354         |   |   |      | 6,048       |   |      |   | 896 |   |   |   | (62,072 | ) |
|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                                                    |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
|    Interest expense                                                        |   |      | (6,464      | )      |                             |   | (6,464      | )         |   |   | (6,464      | )      |   |      | (6,464      | )      |      |   | (6,464 | ) |   |   | (6,464 | ) |
|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
|    Total Other Income (Expense)                                            |   |      | (6,464      | )      |                             |   | (6,464      | )         |   |   | (6,464      | )      |   |      | (6,464      | )      |      |   | (6,464 | ) |   |   | (6,464 | ) |
|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
| INCOME (LOSS) FROM CONTINUING                                                             |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
|  OPERARION BEFORE INCOME TAXES                                                       |   |      | (8,551      | )      |                             |   | (34,113     | )         |   |   | (6,110      | )      |   |      | (416        | )      |      |   | (5,568 | ) |   |   | (68,536 | ) |
|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
| Income taxes (Note 2)                                                                     |   |      | 0           |   |                             |   | 0           |      |   |   | 0           |   |   |      | 0           |   |      |   | 0 |   |   |   | 0 |   |
|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
| NET INCOME (LOSS)                                                                         |   |      | (8,551      | )      |                             |   | (34,113     | )         |   |   | (6,110      | )      |   |      | (416        | )      |      |   | (5,568 | ) |   |   | (68,536 | ) |
|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
| BASIC INCOME (LOSS) PER SHARE                                                             |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
|    Basic Income (Loss) Per Share (Note 2)                                  |   |      | (0.000      | )      |                             |   | (0.000      | )         |   |   | (0.000      | )      |   |      | (0.000      | )      |      |   | (0.000 | ) |   |   | (0.001 | ) |
|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF                                                                |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
|  SHARES OUTSTANDING                                                                  |   |      | 140,473,605 |   |                             |   | 140,473,605 |      |   |   | 140,473,605 |   |   |      | 140,473,605 |   |      |   | 140,473,605 |   |   |   | 129,588,136 |   |
|                                                                                      |   |      |        |   |                             |   |        |      |   |   |        |   |   |      |        |   |      |   |   |   |   |   |   |   |
| "The accompanying notes are an integral part of these consolidated financial statements." |   |

----

|                                                                                      |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |
|-------------------------------------------------------------------------------------------|--------|-----------|---------|--------|--------------------------------------------|--------|----------|-----------|--------|--------|-----------|--------|--------|-----------|---------|--------|-----------|--------|
| BROADLEAF CAPITAL PARTNERS, INC. AND SUBSIDIARIES                                         |   |
| Consolidated Statements of Cash Flows                                                     |   |
|                                                                                      |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |
|                                                                                      |   |      |    |   | For the Nine, Six, and Three Months Ended, |   |     |      |   |
|                                                                                      |   | 9/30/2006 |    |   | 9/30/2005                                  |   |     | 6/30/2006 |   |   | 6/30/2005 |   |   | 3/31/2006 |    |   | 3/31/2005 |   |
|                                                                                      |   | Unaudited |    |   | Unaudited                                  |   |     | Unaudited |   |   | Unaudited |   |   | Unaudited |    |   | Unaudited |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                      |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |
|                                                                                      |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |
| Net income (loss) from continuing operations                                              |   | $         | (20,229 | )      |                                       | $      | (103,065 | )         |   | $      | (11,678   | )      |   | $         | (68,952 | )      |      | $      | (5,568 | ) |   | $ | (68,536 | ) |
| Adjustments to reconcile net loss to net cash                                             |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |   |   |   |   |   |   |
| used by operating activities:                                                             |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |   |   |   |   |   |   |
| Common stock issued for services                                                          |   |      | 0       |   |                                       |   | 0        |      |   |   | 0         |   |   |      | 0       |   |      |   | 0 |   |   |   | 0 |   |
|                                                                                      |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |   |   |   |   |   |   |
| (Increase) decrease in other assets                                                       |   |      | 0       |   |                                       |   | 0        |      |   |   | 0         |   |   |      | 0       |   |      |   | 0 |   |   |   | 0 |   |
| (Increase) decrease in accounts receivable                                                |   |      | 0       |   |                                       |   | 0        |      |   |   | 0         |   |   |      | 0       |   |      |   | 0 |   |   |   | 0 |   |
| Increase (decrease) in accounts payable                                                   |   |      | 0       |   |                                       |   | (29,712  | )         |   |   | 0         |   |   |      | (29,712 | )      |      |   | 0 |   |   |   | 0 |   |
| Increase (decrease) in Acrued Expenses                                                    |   |      | 19,392  |   |                                       |   | 19,392   |      |   |   | 12,928    |   |   |      | 12,928  |   |      |   | 6,464 |   |   |   | 6,464 |   |
| Increase (decrease) in Judgements Payable                                                 |   |      | 0       |   |                                       |   | 0        |      |   |   | 0         |   |   |      | 0       |   |      |   | 0 |   |   |   | 0 |   |
|                                                                                      |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |   |   |   |   |   |   |
|  Net Cash Used in Operating Activities                                               |   |      | (837    | )      |                                       |   | (113,385 | )         |   |   | 1,250     |   |   |      | (85,736 | )      |      |   | 896 |   |   |   | (62,072 | ) |
|                                                                                      |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                      |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |   |   |   |
|                                                                                      |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |   |   |   |   |   |   |
| Funds received from common stock                                                          |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |   |   |   |   |   |   |
| investments and note conversions to stock                                                 |   |      | 0       |   |                                       |   | 68,131   |      |   |   | 0         |   |   |      | 68,131  |   |      |   | 0 |   |   |   | 37,395 |   |
|                                                                                      |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |   |   |   |   |   |   |
|  Net Cash Provided (Used) in Investing Activities                                    |   |      | 0       |   |                                       |   | 68,131   |      |   |   | 0         |   |   |      | 68,131  |   |      |   | 0 |   |   |   | 37,395 |   |
|                                                                                      |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                      |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |   |   |   |
|                                                                                      |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |   |   |   |   |   |   |
| Repayment of notes payable                                                                |   |      | 0       |   |                                       |   | (9,500   | )         |   |   | 0         |   |   |      | (9,500  | )      |      |   | 0 |   |   |   | 0 |   |
| Net Proceeds from borrowings                                                              |   |      | 0       |   |                                       |   | 62,871   |      |   |   | 0         |   |   |      | 62,871  |   |      |   | 0 |   |   |   | 53,371 |   |
| Proceeds from subscriptions payable                                                       |   |      | 0       |   |                                       |   | (27,804  | )         |   |   | 0         |   |   |      | (27,804 | )      |      |   | 0 |   |   |   | (27,804 | ) |
|                                                                                      |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |   |   |   |   |   |   |
|  Net Cash Provided by Financing Activities                                           |   | $         | 0       |   |                                       | $      | 25,567   |      |   | $      | 0         |   |   | $         | 25,567  |   |      | $      | 0 |   |   | $ | 25,567 |   |
|                                                                                      |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |   |   |   |   |   |   |
| NET DECREASE IN CASH                                                                      |   | $         | (837    | )      |                                       | $      | (19,687  | )         |   | $      | 1,250     |   |   | $         | 7,962   |   |      | $      | 896 |   |   | $ | 890 |   |
|                                                                                      |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |   |   |   |   |   |   |
| CASH, BEGINNING OF PERIOD                                                                 |   |      | 1,600   |   |                                       |   | 3,957    |      |   |   | 1,600     |   |   |      | 3,957   |   |      |   | 1,600 |   |   |   | 3,957 |   |
|                                                                                      |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |   |   |   |   |   |   |
| CASH, END OF PERIOD                                                                       |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |   |   |   |   |   |   |
|                                                                                      |   | $         | 763     |   |                                       | $      | (15,730  | )         |   | $      | 2,850     |   |   | $         | 11,919  |   |      | $      | 2,496 |   |   | $ | 4,847 |   |
|                                                                                      |   |      |    |   |                                       |   |     |      |   |   |      |   |   |      |    |   |      |   |   |   |   |   |   |   |
| "The accompanying notes are an integral part of these consolidated financial statements." |   |

----

|                                                                                      |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |
|-------------------------------------------------------------------------------------------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|
|                                                                                      |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |
| BROADLEAF CAPITAL PARTNERS, INC. AND SUBSIDIARIES                                         |   |
| Consolidated Statements of Cash Flows (Continued)                                         |   |
| For the Nine, Six, and Three Months Ended,                                                |   |
|                                                                                      |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |
|                                                                                      |   | 9/30/2006 |   |   | 9/30/2005 |   |   | 6/30/2006 |   |   | 6/30/2005 |   |   | 3/31/2006 |   |   | 3/31/2005 |   |
|                                                                                      |   | Unaudited |   |   | Unaudited |   |   | Unaudited |   |   | Unaudited |   |   | Unaudited |   |   | Unaudited |   |
|                                                                                      |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |
| SUPPLEMENTAL DISCLOSURE OF CASH                                                           |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |
|  FLOW INFORMATION                                                                    |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |
|                                                                                      |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |
|  Interest paid                                                                       |   | $         | 0      |   |      | $      | 0      |      |   | $      | 0         |   |   | $         | 0      |   |      | $      | 0 |   |   | $ | 0 |   |
|  Income taxes paid                                                                   |   | $         | 0      |   |      | $      | 0      |      |   | $      | 0         |   |   | $         | 0      |   |      | $      | 0 |   |   | $ | 0 |   |
|                                                                                      |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF                                                                |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |
|  NON-CASH ACTIVITIES                                                                 |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |
|                                                                                      |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |
|  Common stock issued in conversion                                                   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |
|  of debts and interest                                                               |   | $         | 0      |   |      | $      | 32,179 |      |   | $      | 0         |   |   | $         | 32,179 |   |      | $      | 0 |   |   | $ | 32,179 |   |
|  Common stock issued for services                                                    |   | $         | 0      |   |      | $      | 0      |      |   | $      | 0         |   |   | $         | 0      |   |      | $      | 0 |   |   | $ | 0 |   |
|  Common Stock Issued on debt conversions                                             |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |
|  Common stock issued for subscriptions                                               |   | $         | 0      |   |      | $      | 0      |      |   | $      | 0         |   |   | $         | 0      |   |      | $      | 0 |   |   | $ | 0 |   |
|  Common stock issued for settlements                                                 |   | $         | 0      |   |      | $      | 0      |      |   | $      | 0         |   |   | $         | 0      |   |      | $      | 0 |   |   | $ | 0 |   |
|                                                                                      |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |
| "The accompanying notes are an integral part of these consolidated financial statements." |   |
|                                                                                      |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |

----

----

----

| ● | Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for  identical, unrestricted assets or liabilities.                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ● | Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability; either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g. interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
| ● | Level 3—Inputs that are both significant to the fair value measurement and unobservable.                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

----

|   | · the investee’s revenue and earnings trends relative to predefined milestones and overall business prospects;                                                                                                                                                                                                                                                                                                                                             |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | · When events or changes in circumstances indicate that long-lived assets other than goodwill may be impaired, an evaluation is performed to determine if a write-down to fair value is required. When an asset is classified as held for sale, the asset's book value is evaluated and adjusted to the lower of its carrying amount or fair value less cost to sell. In addition, depreciation and amortization ceases while it is classified as held for sale. |
|   | · the general market conditions in the investee’s industry or geographic area, including regulatory or economic changes;                                                                                                                                                                                                                                                                                                                                   |
|   | · factors related to the investee’s ability to remain in business, such as the investee’s liquidity, debt ratios, and the rate at which the investee is using its cash; and                                                                                                                                                                                                                                                                          |
|   | · the investee’s receipt of additional funding at a lower valuation. If an investee obtains additional funding at a valuation lower than our carrying amount or a new round of equity funding is required for the investee to remain in business, and the new round of equity does not appear imminent, it is presumed that the investment is other than temporarily impaired, unless specific facts and circumstances indicate otherwise.                 |

----

----

|                                                         |   |      |        |   |      |   |        |      |   |
|--------------------------------------------------------------|--------|-----------|-------------|--------|-----------|--------|-------------|-----------|--------|
|                                                         |   | 9/30/2006 |        |   | 6/30/2006 |   |        | 3/31/2006 |   |
|                                                         |   |      |        |   |      |   |        |      |   |
| Net Income (Loss)                                            |   | $         | (20,229     | )      |      | $      | (11,678     | )         |   | $ | (5,568 | ) |
|                                                         |   |      |        |   |      |   |        |      |   |   |   |   |
| Weighted-average common shares outstanding  basic: |   |      |        |   |      |   |        |      |   |   |   |   |
|                                                         |   |      |        |   |      |   |        |      |   |   |   |   |
| Weighted-average common stock                                |   |      | 140,473,605 |   |      |   | 140,473,605 |      |   |   | 140,473,605 |   |
| Equivalents                                                  |   |      |        |   |      |   |        |      |   |   |   |   |
|   Stock options                                    |   |      | -           |   |      |   | -           |      |   |   | - |   |
|   Warrants                                         |   |      | -           |   |      |   | -           |      |   |   | - |   |
|   Convertible Notes                                |   |      | -           |   |      |   | -           |      |   |   | - |   |
| Weighted-average common shares                               |   |      |        |   |      |   |        |      |   |   |   |   |
| outstanding- diluted                                         |   |      | 140,473,605 |   |      |   | 140,473,605 |      |   |   | 140,473,605 |   |
|                                                         |   |      |        |   |      |   |        |      |   |   |   |   |

----

|                                                                                            |   |      |       |   |      |   |       |      |   |
|-------------------------------------------------------------------------------------------------|--------|-----------|------------|--------|-----------|--------|------------|-----------|--------|
| Net deferred tax assets consist of the following components as of |   |
|                                                                                            |   |      |       |   |      |   |       |
|                                                                                            |   | 9/30/2006 |       |   | 6/30/2006 |   |       | 3/31/2006 |   |
|                                                                                            |   |      |       |   |      |   |       |      |   |
|     Deferred tax assets:                                                    |   |      |       |   |      |   |       |      |   |
|        Beginning  NOL Carryover                    |   |      | 14,366,710 |   |      |   | 14,378,388 |      |   |   | 14,383,956 |   |
|                                                                                            |   |      |       |   |      |   |       |      |   |   |   |   |
| Adjusted Taxable Income                                                                         |   |      | (20,229    | )      |      |   | (11,678    | )         |   |   | (5,568 | ) |
|                                                                                            |   |      |       |   |      |   |       |      |   |   |   |   |
|     Valuation allowance                                                     |   |      | 0          |   |      |   | 0          |      |   |   | 0 |   |
|                                                                                            |   |      |       |   |      |   |       |      |   |   |   |   |
|        Ending  NOL Carryover                       |   |      | 14,346,481 |   |      |   | 14,366,710 |      |   |   | 14,378,388 |   |
|                                                                                            |   |      |       |   |      |   |       |      |   |   |   |   |
|     Tax Benefit Carryforward                                                |   |      | 5,021,268  |   |      |   | 5,028,349  |      |   |   | 5,032,436 |   |
|                                                                                            |   |      |       |   |      |   |       |      |   |   |   |   |
|     Valuation allowance                                                     |   |      | (5,021,268 | )      |      |   | (5,028,349 | )         |   |   | (5,032,436 | ) |
|                                                                                            |   |      |       |   |      |   |       |      |   |   |   |   |
|     Net deferred tax asset                                                  |   |      | 0          |   |      |   | 0          |      |   |   | 0 |   |
|                                                                                            |   |      |       |   |      |   |       |      |   |   |   |   |
| Net Allowance                                                                                   |   |      | 5,021,268  |   |      |   | 5,028,349  |      |   |   | 5,032,436 |   |

----

----

|                                                                      |   |      |   |   |      |   |   |      |   |
|---------------------------------------------------------------------------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|
| Fixed assets consist of the following:                                    |   |      |   |   |      |   |   |      |   |
|                                                                      |   |      |   |   |      |   |   |      |   |
| For the Periods Ended,                                                    |   | 9/30/2006 |   |   | 6/30/2006 |   |   | 3/31/2006 |   |
|                                                                      |   |      |   |   |      |   |   |      |   |
|      Furniture and fixtures                      |   | $         | 0      |   |      | $      | 0      |      |   | $ | 0 |   |
|      Computers and software                      |   |      | 3,500  |   |      |   | 3,500  |      |   |   | 3,500 |   |
|      Other equipment                             |   |      | 400    |   |      |   | 400    |      |   |   | 400 |   |
|                                                                      |   |      |   |   |      |   |   |      |   |   |   |   |
|                                                                      |   |      | 3,900  |   |      |   | 3,900  |      |   |   | 3,900 |   |
|                                                                      |   |      |   |   |      |   |   |      |   |   |   |   |
|      Accumulated depreciation                    |   |      | 3,900  |   |      |   | 3,900  |      |   |   | 3,900 |   |
|      Current depreciation expense                |   |      | 0      |   |      |   | 0      |      |   |   | 0 |   |
|                                                                      |   |      |   |   |      |   |   |      |   |   |   |   |
|                                                                      |   |      | 3,900  |   |      |   | 3,900  |      |   |   | 3,900 |   |
|                                                                      |   |      |   |   |      |   |   |      |   |   |   |   |
|      Net fixed assets                            |   | $         | 0      |   |      | $      | 0      |      |   | $ | 0 |   |
|                                                                      |   |      |   |   |      |   |   |      |   |   |   |   |
|                                                                      |   |      |   |   |      |   |   |      |   |   |   |   |
| Most Fixed Assets were retired during the reduction of operations in 2005 |   |

----

|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |
|----------------------------------------------------------------------------------------------------|--------|-----------|-----------|--------|-----------|--------|-----------|-----------|--------|--------|------------|--------|
| Notes payable consist of the following for the periods ended;                                      |   | 9/30/2006 |      |   | 6/30/2006 |   |      | 3/31/2006 |   |   | 12/31/2005 |   |
|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |
|     Note payable at 5%, secured                                                |   |      |      |   |      |   |      |      |   |   |       |   |
|       by an assignment of                                            |   |      |      |   |      |   |      |      |   |   |       |   |
|       partnership cash, interest                                     |   |      |      |   |      |   |      |      |   |   |       |   |
|       payable quarterly, principal due                               |   |      |      |   |      |   |      |      |   |   |       |   |
|       January 1, 2007, convertible to                                |   |      |      |   |      |   |      |      |   |   |       |   |
|       common stock. Resettled as part                                |   |      |      |   |      |   |      |      |   |   |       |   |
|   of the Peacock Note in 2008.                                                           |   | $         | 500,000   |   |      | $      | 500,000   |      |   | $      | 500,000    |   |   | $ | 500,000 |   |
|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|     Note payable at variable rate                                              |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       (18.0% at December 31, 2000)                                   |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       collateralized by deed of trust on                             |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       real property. Lump sum payment                                |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       was due May 21, 1999, currently                                |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       in default. Both general partners since                        |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       deceased. Note written off in 2006                             |   |      | 86,854    |   |      |   | 86,854    |      |   |   | 86,854     |   |   |   | 86,854 |   |
|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|     Note payable at 10%, secured by                                            |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       deed of trust, due March 31, 1996,                             |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       currently in default. Developer of project                     |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       investor since retired. Note written off in 2006               |   |      | 65,000    |   |      |   | 65,000    |      |   |   | 65,000     |   |   |   | 65,000 |   |
|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|     Debentures at 10%, unsecured, were to be                                   |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       convertible into common shares at the                          |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       option of the holder, all debentures                           |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|   were resettled as part of the Peacock note in 2008.                                    |   |      | 139,583   |   |      |   | 139,583   |      |   |   | 139,583    |   |   |   | 139,583 |   |
|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|     Debentures at 10%, unsecured, were to be                                   |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       convertible into common shares at the                          |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       option of the holder, all debentures                           |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       are currently in default.                                      |   |      | 10,383    |   |      |   | 10,383    |      |   |   | 10,383     |   |   |   | 10,383 |   |
|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
| Peacock Family Trust debentures issued during 2004                                                 |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|   with a stated interest rate of 10% per annum.                                          |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|   all debentures were resettled as part of                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|   the Peacock note in 2008.                                                              |   |      | 125,000   |   |      |   | 125,000   |      |   |   | 125,000    |   |   |   | 125,000 |   |
|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
| Convertible note from a related party dated June 28,                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       2004 with a stated rate of 10% per annum payable               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       quarterly. The holder has the right to convert upon            |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|   written request at 80% of market of the five                                           |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|   previous trading days of the conversion request.                                       |   |      | 30,000    |   |      |   | 30,000    |      |   |   | 30,000     |   |   |   | 30,000 |   |
|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|     Convertible note payable, accrues with an                                  |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       interest at a Rate of 6.0% per annum,                          |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       two-year term. Currently in default.                           |   |      | 0         |   |      |   | 0         |      |   |   | 0          |   |   |   | 0 |   |
|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|     Convertible note payable, accrues with an                                  |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       interest at a Rate of 6.0% per annum,                          |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|       two-year term. Currently in default.                           |   |      | 42,988    |   |      |   | 42,988    |      |   |   | 42,988     |   |   |   | 42,988 |   |
|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
| of the company to repay or settle the debts.                                                       |   |      | 92,500    |   |      |   | 92,500    |      |   |   | 92,500     |   |   |   | 92,500 |   |
|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
| Virginia Roberts investment was originally stated                                                  |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
| as Minority Interest investment in 2003 financials,                                                |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
| was reclassed in 2004 to secured demand note against                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
| Canyon Shadows Investment and entitled note                                                        |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
| holder to 21% if Investment distributions at no                                                    |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
| less than $5,000 per quarter.                                                                      |   |      | 200,000   |   |      |   | 200,000   |      |   |   | 200,000    |   |   |   | 200,000 |   |
|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
| Total Notes Payable                                                                                |   |      | 1,292,308 |   |      |   | 1,292,308 |      |   |   | 1,292,308  |   |   |   | 1,292,308 |   |
|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
| Less Current Portion                                                                               |   |      | 1,292,308 |   |      |   | 1,292,308 |      |   |   | 1,292,308  |   |   |   | 1,292,308 |   |
|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
| Long Term Notes Payable                                                                            |   | $         | 0         |   |      | $      | 0         |      |   | $      | 0          |   |   | $ | 0 |   |
|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
| The aggregate principal maturities of notes payable are as follows:                                |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
| All are classified as short term by the Company.                                                   |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
| During these periods,  the  Company  was in default on two notes     |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
| payable.  The note holders have not taken any legal action against the                   |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
| Company as permitted by the agreements.   Accrued  interest  on |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |
| these notes totaled:                                                                               |   | $         | 66,763    |   |      | $      | 60,299    |      |   | $      | 53,855     |   |   | $ | 47,371 |   |
|                                                                                               |   |      |      |   |      |   |      |      |   |   |       |   |   |   |   |   |

----

----

----

----

|                                                                                                                                                                                             |   |      |        |   |      |   |        |      |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|-----------|--------|-------------|-----------|--------|
| The following schedule presents financial highlights for a share of                                                                                                                              |   |      |        |   |      |   |        |
| the Fund outstanding throughout the periods indicated.                                                                                                                                           |   |      |        |   |      |   |        |
|                                                                                                                                                                                             |   |      |        |   |      |   |        |      |   |
|                                                                                                                                                                                             |   | 9/30/2006 |        |   | 6/30/2006 |   |        | 3/31/2006 |   |
|                                                                                                                                                                                             |   |      |        |   |      |   |        |      |   |
| Net Income(Loss)                                                                                                                                                                                 |   | $         | (20,229     | )      |      | $      | (11,678     | )         |   | $ | (5,568 | ) |
|                                                                                                                                                                                             |   |      |        |   |      |   |        |      |   |   |   |   |
| Net Investment Value End of Period                                                                                                                                                               |   | $         | (1,769,063  | )      |      | $      | (1,760,512  | )         |   | $ | (1,754,402 | ) |
| Weighted-average common shares outstanding  basic:                                                                                                                                     |   |      | 140,473,605 |   |      |   | 140,473,605 |      |   |   | 140,473,605 |   |
|                                                                                                                                                                                             |   |      |        |   |      |   |        |      |   |   |   |   |
| Beginning of period Net Asset Value                                                                                                                                                              |   |      | (0.013      | )      |      |   | (0.013      | )         |   |   | (0.013 | ) |
| Income from Net Investment operations Income(Loss)                                                                                                                                          |   |      |        |   |      |   |        |      |   |   |   |   |
|                                                                                                                                                                                             |   | (0.000    | )           |   |      | 0.000  |        |      |   | 0.000 |   |
| Net Losses Securities                        (realized & unrealized) |   |      | -           |   |      |   | -           |      |   |   | - |   |
|                                                                                                                                                                                             |   |      |        |   |      |   |        |      |   |   |   |   |
| Total from investment operations                                                                                                                                                                 |   |      | (0.000      | )      |      |   | 0.000       |      |   |   | 0.000 |   |
|                                                                                                                                                                                             |   |      |        |   |      |   |        |      |   |   |   |   |
|   Other Increases(Decreases)                                                                                                                                                           |   |      | (0.000      | )      |      |   | (0.000      | )         |   |   | (0.000 | ) |
|                                                                                                                                                                                             |   |      |        |   |      |   |        |      |   |   |   |   |
| End of period Net Asset Value                                                                                                                                                                    |   |      | (0.013      | )      |      |   | (0.013      | )         |   |   | (0.013 | ) |
|                                                                                                                                                                                             |   |      |        |   |      |   |        |      |   |   |   |   |

----

----

|   |   |     |                                                                                                          |       |      |                      |    |                       |                     |    |      |      |   |      |      |   |      |    |    |      |   |
|--------|--------|----------|---------------------------------------------------------------------------------------------------------------|------------|-----------|---------------------------|---------|----------------------------|--------------------------|---------|-----------|-----------|--------|-----------|-----------|--------|-----------|---------|---------|-----------|--------|
|   |   |     |                                                                                                          |       |      |                      |    | For the Three Months Ended |                     |    |      |
|   |   |     |                                                                                                          |       | 9/30/2006 |                      |    | 9/30/2005                  |                     |    | 6/30/2006 |      |   | 6/30/2005 |      |   | 3/31/2006 |    |    | 3/31/2005 |   |
|   |   |     |                                                                                                          |       |      |                      |    |                       |                     |    |      |      |   |      |      |   |      |    |    |      |   |
|   |   | Revenues |                                                                                                          |       | $         | 1,899                     |    |                       | $                        | 633     |      |      | $      | 1,899     |      |   | $         | 87,110  |    |      | $      | 1,899 |   |   | $ | 46,968 |   |
|   |   |     |                                                                                                          |       |      |                      |    |                       |                     |    |      |      |   |      |      |   |      |    |    |      |   |   |   |   |   |   |   |
|   | 1      | )        | Officer Wages                                                                                                 |       |      |                      | 0       |                       |                     |    | 19,640    |      |   |      | 0         |   |      |    | 66,337  |      |   |   | 0 |   |   |   | 62,253 |   |
|   |   |     | Wages                                                                                                         |       |      |                      | 0       |                       |                     |    | 0         |      |   |      | 0         |   |      |    | 0       |      |   |   | 0 |   |   |   | 0 |   |
|   |   |     | Rent                                                                                                          |       |      |                      | 0       |                       |                     |    | 5,370     |      |   |      | 0         |   |      |    | 8,700   |      |   |   | 0 |   |   |   | 8,700 |   |
|   | 2      | )        | Professional Fees                                                                                             |       |      |                      | 0       |                       |                     |    | 633       |      |   |      | 0         |   |      |    | 1,676   |      |   |   | 0 |   |   |   | 33,653 |   |
|   | 3      | )        | Administrative                                                                                                |       |      |                      | 1,003   |                       |                     |    | 2,639     |      |   |      | 1,545     |   |      |    | 4,349   |      |   |   | 3,986 |   |   |   | 4,434 |   |
|   |   |     |    Depreciation                                                                                |       |      | 0                         |    |                       |                     | 0       |      |      |   | 0         |      |   |      | 0       |    |      |   | 0 |   |   |   | 0 |   |
|   |   |     |                                                                                                          |       |      |                      |    |                       |                     |    |      |      |   |      |      |   |      |    |    |      |   |   | 0 |   |   |   |   |   |
|   | 4      | )        |    Gain on forgiveness of debt                                                                 |       |      | 0                         |    |                       |                     | 0       |      |      |   | 0         |      |   |      | 0       |    |      |   | 0 |   |   |   | 0 |   |
|   |   |     |    Discontinued Operations                                                                     |       |      | 0                         |    |                       |                     | 0       |      |      |   | 0         |      |   |      | 0       |    |      |   | 0 |   |   |   | 0 |   |
|   |   |     |    Other Income(Expense)                                                                       |       |      | 0                         |    |                       |                     | 0       |      |      |   | 0         |      |   |      | 0       |    |      |   | 0 |   |   |   | 0 |   |
|   |   |     |    Interest expense                                                                            |       |      | (6,464                    | )       |                       |                     | (6,464  | )         |      |   | (6,464    | )         |   |      | (6,464  | )       |      |   | (6,464 | ) |   |   | (6,464 | ) |
|   | 5      | )        |    Loss on investment                                                                          |       |      | 0                         |    |                       |                     | 0       |      |      |   | 0         |      |   |      | 0       |    |      |   | 0 |   |   |   | 0 |   |
|   |   |     |                                                                                                          |       |      |                      |    |                       |                     |    |      |      |   |      |      |   |      |    |    |      |   |   |   |   |   |   |   |   |
|   |   |     |                                                                                                          | NET INCOME |      | $                         | (5,568  | )                          |                     | $       | (34,113   | )         |   | $         | (6,110    | )      |      | $       | (416    | )         |   | $ | (8,551 | ) |   | $ | (68,536 | ) |
|   |   |     |                                                                                                          |       |      |                      |    |                       |                     |    |      |      |   |      |      |   |      |    |    |      |   |   |   |   |   |   |   |   |
|   | 1      | )        | Salaries, Wages & Personnel Costs are for the principal executive officers as noted above.                |       |      |                      |    |                       |
|   | 2      | )        | Professional Fees include bookkeeping, accounting, auditing and legal fees incurred in conjunction with       |       |
|   |   |     | the Company’s public filings processes as well for occasional external help with day-to-day operations, |       |
|   |   |     | as the Company has not hired its permanent accounting or legal staff.                                         |       |      |                      |    |                       |                     |    |      |      |   |      |      |   |
|   | 3      | )        | All Other expenses include travel, entertainment, supplies, postage and other General &                   |       |      |                      |    |                       |
|   |   |     | Administrative expenses incurred in the day to day operations of the Company.                                 |       |      |                      |    |                       |                     |    |      |      |
|   | 4      | )        | Reversal of accounts and notes payable recorded as income by Company                                          |       |      |                      |    |                       |                     |    |      |      |   |      |      |   |
|   | 5      | )        | Realized losses on investments                                                                                |       |      |                      |    |                       |                     |    |      |      |   |      |      |   |      |    |    |      |   |   |   |   |   |   |   |
|   |   |     |                                                                                                          |       |      |                      |    |                       |                     |    |      |      |   |      |      |   |      |    |    |      |   |   |   |   |   |   |   |   |
|   |   |     |                                                                                                          |       |      |                      |    |                       |                     |    |      |      |   |      |      |   |      |    |    |      |   |   |   |   |   |   |   |   |
|   |   |     |                                                                                                          |       |      | For the Nine Months Ended |    |                       | For the Six Months Ended |    |      |      |   |      |      |   |      |    |
|   |   |     |                                                                                                          |       |      | 9/30/2006                 |    |                       | 9/30/2005                |    |      | 6/30/2006 |   |      | 6/30/2005 |   |      |    |    |      |   |   |   |   |
|   |   |     |                                                                                                          |       |      |                      |    |                       |                     |    |      |      |   |      |      |   |      |    |    |      |   |   |   |   |   |   |   |   |
|   |   |     | Revenues                                                                                                      |       |      | $                         | 5,697   |                       |                     | $       | 134,711   |      |   | $         | 3,798     |   |      | $       | 134,078 |      |   |   |   |   |   |   |   |   |
|   |   |     |                                                                                                          |       |      |                      |    |                       |                     |    |      |      |   |      |      |   |      |    |    |      |   |   |   |   |   |   |   |   |
|   | 1      | )        | Officer Wages                                                                                                 |       |      |                      | 0       |                       |                     |    | 148,230   |      |   |      | 0         |   |      |    | 128,590 |      |   |   |   |   |   |   |   |   |
|   |   |     | Wages                                                                                                         |       |      |                      | 0       |                       |                     |    | 0         |      |   |      | 0         |   |      |    | 0       |      |   |   |   |   |   |   |   |   |
|   |   |     | Rent                                                                                                          |       |      |                      | 0       |                       |                     |    | 22,770    |      |   |      | 0         |   |      |    | 17,400  |      |   |   |   |   |   |   |   |   |
|   | 2      | )        | Professional Fees                                                                                             |       |      |                      | 0       |                       |                     |    | 35,962    |      |   |      | 0         |   |      |    | 35,329  |      |   |   |   |   |   |   |   |   |
|   | 3      | )        | Administrative                                                                                                |       |      |                      | 6,534   |                       |                     |    | 11,422    |      |   |      | 2,548     |   |      |    | 8,783   |      |   |   |   |   |   |   |   |   |
|   |   |     |    Depreciation                                                                                |       |      | 0                         |    |                       |                     | 0       |      |      |   | 0         |      |   |      | 0       |    |      |   |   |   |   |   |   |   |
|   |   |     |                                                                                                          |       |      |                      |    |                       |                     |    |      |      |   |      |      |   |      |    |    |      |   |   |   |   |   |   |   |   |
|   | 4      | )        |    Gain on forgiveness of debt                                                                 |       |      | 0                         |    |                       |                     | 0       |      |      |   | 0         |      |   |      | 0       |    |      |   |   |   |   |   |   |   |
|   |   |     |    Discontinued Operations                                                                     |       |      | 0                         |    |                       |                     | 0       |      |      |   | 0         |      |   |      | 0       |    |      |   |   |   |   |   |   |   |
|   |   |     |    Other Income                                                                                |       |      | 0                         |    |                       |                     | 0       |      |      |   | 0         |      |   |      | 0       |    |      |   |   |   |   |   |   |   |
|   |   |     |    Interest expense                                                                            |       |      | (19,392                   | )       |                       |                     | (19,392 | )         |      |   | (12,928   | )         |   |      | (12,928 | )       |      |   |   |   |   |   |   |   |
|   | 6      | )        |    Loss on investment                                                                          |       |      | 0                         |    |                       |                     | 0       |      |      |   | 0         |      |   |      | 0       |    |      |   |   |   |   |   |   |   |
|   |   |     |                                                                                                          |       |      |                      |    |                       |                     |    |      |      |   |      |      |   |      |    |    |      |   |   |   |   |   |   |   |   |
|   |   |     |                                                                                                          | NET INCOME |      | $                         | (20,229 | )                          |                     | $       | (103,065  | )         |   | $         | (11,678   | )      |      | $       | (68,952 | )         |   |   |   |   |   |   |   |   |
|   |   |     |                                                                                                          |       |      |                      |    |                       |                     |    |      |      |   |      |      |   |      |    |    |      |   |   |   |   |   |   |   |   |

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| · | Going concern. Our recurring losses from operations and negative cash flows from operations raise substantial doubt about our ability to continue as a going concern and as a result, our independent registered public accounting firm included an explanatory paragraph in their report on our consolidated financial statements for the year ended December 31, 2005 with respect to this uncertainty. We have prepared our financial statements on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The financial statements do not include any adjustments relating to therecoverability and classification of recorded asset amounts or amounts of liabilities that might be necessary should we be unable to continue in existence. |
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|   | ●The Company lacks personnel with the experience to properly analyze and record complex transactions in accordance with GAAP.                                                                                                                                                                                                                                                                                                                                                              |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | ● The Company has in insufficient quantity of dedicated resources and experienced personnel involved in reviewing and designing internal controls.  As a result, a material misstatement of the interim and annual financial statements could occur and not be prevented or detected on a timely basis.                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | ● The Company has not achieved the optimal level of segregation of duties relative to key financial reporting functions.                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | ● The Company does not have an audit committee or an independent audit committee financial expert.  While not being legally obligated to have an audit committee or independent audit committee financial expert, it is the management’s view that to have an audit committee, comprised of independent board members, and an independent audit committee financial expert is an important entity-level control over the Company’s financial statements.   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | ● The Company has not achieved an optimal segregation of duties for executive officers of the Company.                                                                                                                                                                                                                                                                                                                                                                                     |

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