UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

(Mark One)

[x] Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange
    Act of 1934

                For the quarterly period ended September 30, 2007

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Exchange Act of
    1934

           For the transition period from                to
                                          ---------------    --------------


                        Commissions file number 000-51139


                        NAVIDEC FINANCIAL SERVICES, INC.
   ---------------------------------------------------------------------------
             (Exact name of Registrant as specified in its charter)

     COLORADO                                         13-4228144
     --------                                         ----------
     (State or other                                  (IRS Employer
     jurisdiction of                                  Identification No.)
     Incorporation)



                   456 Madison Street, Denver, Colorado 80206
         ---------------------------------------------------------------
                    (Address of principal executive offices)

                   Registrant's telephone number: 303-222-1000

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or
for such shorter  period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.

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

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).

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

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

As of November 9, 2007,  there were  8,983,445  shares of issuer's sole class of
common shares outstanding.

Transitional Small Business Disclosure Format (Check One):

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



<PAGE>



                NAVIDEC FINANCIAL SERVICES, INC. AND SUBSIDARIES.

                                      INDEX
<TABLE>
<CAPTION>

                                                                                 Page Number
                                                                                 -----------
<S>                                                                              <C>

PART I.           FINANCIAL INFORMATION

   Item 1.    Financial Statements

              Condensed Consolidated Balance Sheet as of September 30, 2007           F-1
                 and December 31, 2006
              Condensed Consolidated Statements of Operations for
                  the Three and Nine Months ended September 30, 2007 and 2006         F-2

              Condensed Consolidated Statements of Cash Flows for
                 the Nine Months ended September 30, 2007 and 2006                    F-3

              Notes to the Condensed Consolidated Financial Statements                F-4


   Item 2.    Management's Discussion and Analysis of Financial                        1
              Condition and Results of Operations

   Item 3.    Controls and Procedures                                                  2

   Item 3(A)T.  Controls and Procedures                                                3

PART II.          OTHER INFORMATION

   Item 1.  Legal Proceedings                                                          6

   Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                7
                  -Not Applicable

   Item 3.  Defaults Upon Senior Securities - Not Applicable                           7

   Item 4.  Submission of Matters to a Vote of Security Holders
                  - Not Applicable                                                     7

   Item 5.  Other Information - Not Applicable                                         7

   Item 6.  Exhibits                                                                   7

SIGNATURES                                                                             8
</TABLE>



<PAGE>



PART I.  FINANCIAL INFORMATION

Item 1.     Financial Statements.


<TABLE>
<CAPTION>

                        NAVIDEC FINANCIAL SERVICES, INC. AND SUBSIDIARY
                                  Consolidated Balance Sheets
                                         (In Thousands)

                                                                                        September 30,    December 31,
                                                                                           2007              2006
                                                                                       (Unaudited)         (Audited)
                                                                                     -----------------   --------------
<S>                                                                                  <C>                 <C>
ASSETS:
  Current Assets:
     Cash and cash equivalents                                                                $ 2,758            $ 179
     Marketable securities                                                                          3                3
     Accounts receivable, related party                                                            27               50
     Accrued interest                                                                              39                -
     Prepaid expenses                                                                               -               42
                                                                                     -----------------   --------------
     Total Current Assets                                                                       2,827              274
                                                                                     -----------------   --------------

  Property, equipment and software, net                                                            27               25

  Other Assets
     Notes receivable                                                                           1,798              900
     Investments in BPZ                                                                         3,896            5,587
     Other assets                                                                                  15               75
     Goodwill                                                                                     190              190
                                                                                     -----------------   --------------
       Total Other Assets                                                                       5,899            6,752
                                                                                     -----------------   --------------

TOTAL ASSETS                                                                              $     8,753          $ 7,051
                                                                                     =================   ==============


LIABILITIES & STOCKHOLDERS' EQUITY:
  Current Liabilities:
      Accounts payable                                                                           $ 17             $ 77
                                                                                     -----------------   --------------
        Total Current Liabilties                                                                   17               77
                                                                                     -----------------   --------------

  MINORITY INTEREST IN CONSOLIDATED SUBSIDIARY                                                     49               43

  COMMITMENTS & CONTINGENCIES (Note 5)

  Stockholders Equity:
    Common stock, $0.001 par value, 100,000,000 shares                                              9                8
        authorized, 8,983,445 and 7,950,047 shares issued and outstanding,
        September 30, 2007 and December 31, 2006, respectively
    Additional paid-in capital                                                                  7,389            9,413
    Unrealized gain on securities                                                               2,307            1,483
    Accumulated deficit                                                                        (1,016)          (3,973)
                                                                                     -----------------   --------------
        Total Stockholders' Equity                                                              8,677            6,931
                                                                                     -----------------   --------------

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY                                                  $     8,753        $   7,051
                                                                                     =================   ==============
</TABLE>


                The accompanying notes to the consolidated financial statements
                           are an integral part of these statements.

                                              F-1

<PAGE>

<TABLE>
<CAPTION>

                        NAVIDEC FINANCIAL SERVICES, INC. AND SUBSIDIARY
                                    Statement of Operations
                                         (In Thousands)
                                          (Unaudited)

                                                      For the Three Months Ended            For the Nine Months Ended
                                                             September 30,                         September 30,
                                                       2007               2006               2007               2006
                                                  ----------------   ----------------   ----------------   ----------------
<S>                                               <C>                <C>                <C>                <C>
Revenue                                                 $      97     $          329     $          484     $          971
    Cost of Sales                                               -                 16                  -                  -
                                                  ----------------   ----------------   ----------------   ----------------
Gross Profit                                                   97                314                484                971
                                                  ----------------   ----------------   ----------------   ----------------

Operating Expenses:
    General and administrative                                334                532              1,172              1,641
    Impairment, depreciation and amortization                   -                  2                  4                  8
                                                  ----------------   ----------------   ----------------   ----------------
        Total operating expenses                              334                534              1,176              1,649

Loss from operations                                         (237)              (220)              (692)              (679)
                                                  ----------------   ----------------   ----------------   ----------------

Other income (expense)
   Realized gain on sale of investments                     2,484                  -              3,551                 66
   Gain on sale of Aegis USA                                    -                100                  -                300
   Gain on settelment of debt                                   -                  -                 50                  -
   Interest income                                             15                 11                 56                 21
   Other income                                                 -                  -                  -                 17
                                                  ----------------   ----------------   ----------------   ----------------

   Total other income                                       2,499                111              3,657                403
                                                  ----------------   ----------------   ----------------   ----------------

Net Income (Loss) From Operations                         $ 2,262             $ (109)           $ 2,965             $ (276)
                                                  ================   ================   ================   ================

Net Income (Loss) Before
   Minority Interest                                        2,262               (109)             2,965               (276)
      Minority interest in consolidated subsidiary              -                 (1)                (8)               (10)

Net Income (Loss)                                         $ 2,262             $ (110)           $ 2,957             $ (286)
                                                  ================   ================   ================   ================

Earnings Per Share:
    Basic                                                  $ 0.25            $ (0.01)            $ 0.33             $(0.04)
    Diluted                                                $ 0.17            $ (0.01)            $ 0.23             $(0.04)

Weighted Averge Shares Outstanding:
   Basic                                                    8,983              7,950              8,983              7,950
                                                  ================   ================   ================   ================
   Diluted                                                 12,998              7,950             12,998              7,950
                                                  ================   ================   ================   ================
</TABLE>



                  The accompanying notes to consolidated financial statements
                           are an integral part of these statements.

                                              F-2

<PAGE>

<TABLE>
<CAPTION>

                       NAVIDEC FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                              Consolidated Statement of Cash Flows
                                         (In Thousands)
                                          (Unaudited)

                                                                                            For the Nine Months Ended
                                                                                                   September 30,
                                                                                            2007                 2006
                                                                                      -----------------    -----------------
<S>                                                                                   <C>                  <C>
Cash Flows from Operating Activities:

     Net Income (Loss)                                                                     $     2,957              $ (286)
     Adjustments to reconcile net loss to net cash used in oprating activities:
        Depreciation expense                                                                         4                   9
        Gain on sale investments                                                                (3,551)                 (8)
        Gain on settlement of debt                                                                 (50)                  -
        Minority interest                                                                            8                  10
    Changes in operating assets and liabilities:
          Accounts receivable                                                                       23                  20
          Accrued interest                                                                         (39)                  -
          Prepaid expenses and other assets                                                        102                 (54)
          Accounts payable                                                                         (60)               (131)
          Accrued liabilities                                                                        -                 (85)
          Notes receivable                                                                         898                (332)
          Other                                                                                      -                  (6)
                                                                                      -----------------    -----------------

Net Cash Used by Operating Activities                                                              292                (863)
                                                                                      -----------------    -----------------

Cash Flows from Investing Activities:
     Purchase of equipment                                                                          (2)                  -
     Proceeds from sale of equity investments                                                    1,068                 808
                                                                                      -----------------    -----------------

Net Cash Used by Investing Activities                                                            1,068                 808
                                                                                      -----------------    -----------------

Cash Flows from Financing Activities:
     Payments on notes payable and capital lease obligations                                         -                (300)
     Post-merger proceeds from exercise of BPZ Options                                           1,219                 289
                                                                                      -----------------    -----------------

Net Cash Provided by Financing Activities                                                        1,219                 (11)
                                                                                      -----------------    -----------------

Net Increase in Cash & Cash Equivalents                                                          2,579                 (65)

Beginning Cash & Cash Equivalents                                                                  179                 398
                                                                                      -----------------    -----------------

Ending Cash & Cash Equivalents                                                             $     2,758               $ 333
                                                                                      =================    =================


Supplemental Disclosure of Cash Flow Information
     Cash paid for Interest                                                                  $      -                   13
                                                                                      =================    =================
     Cash paid for Income Taxes                                                              $      -                    -
                                                                                      =================    =================
</TABLE>


          The accompanying notes to consolidated financial statements
                   are an integral part of these statements.

                                      F-3

<PAGE>


                NAVIDEC FINANCIAL SERVICES, INC. AND SUBSIDIARIES
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
             For the Three and Nine Months Ended September 30, 2007
                                   (Unaudited)


NOTE 1 - ORGANIZATION

GENERAL OVERVIEW

Navidec Financial  Services,  Inc. (the Company or NFS) is a diversified holding
company that was founded by John  McKowen,  the  Company's  Chairman and CEO, in
December 2002. NFS is in the business of identifying and acquiring a controlling
interest  in  development  stage  enterprises  with the  expectation  of further
developing the enterprise and then taking it public.

BPZ Resources, Inc.

BPZ Resources, Inc. ("BPZ") is a publicly traded company with significant assets
in Peru that went public  through a reverse  merger  engineered by the Company's
CEO when he was the President and CEO of the  predecessor of BPZ ("Old Navidec")
and former parent of NFS. The Company holds a significant  portion of its assets
in the form of BPZ common stock.  The Company received common stock and warrants
of BPZ in September 2004 as part of the consideration for completing the reverse
merger with BPZ.  BPZ's common stock is listed on the  American  Stock  Exchange
under the symbol BZP.

NAVIDEC MORTGAGE HOLDINGS, INC.

On May 4, 2005 the Company formed Navidec Mortgage  Holdings,  Inc. ("NMH") as a
wholly owned  subsidiary  of NFS.  NMH  provides low loan to value,  high yield,
short term,  personally  guaranteed real estate  collateralized  bridge loans on
residential and commercial properties to high quality borrowers.

Starting  in July 2007,  NFS began  lending  capital to NMH,  pursuant  to a 12%
Debenture  Agreement,  and as of September 30, 2007 NFS has lent NMH $3,955,000.
NMH makes real estate  bridge loans to high  quality  borrowers  who  personally
guarantee the loan. The bridge loans are secured by a first deed of trust,  with
no more than 70% loan to value.

On September  30, 2007,  NMH had bridge loans to third  parties  outstanding  of
$1,348,000.  By September  30, 2007,  NMH had lent and been repaid the principal
and interest on $762,000 in residential bridge loans.

NORTHSIGHT MORTGAGE GROUP, LLC

On September  11, 2003,  through Old Navidec,  NFS  purchased an 80% interest in
Northsight Mortgage Group, LLC  ("Northsight").  Northsight is a mortgage broker
subject to the regulations of the Arizona State Banking Commission,  and is also
subject  to  Federal  regulations   regarding  consumer  protection,   including
Truth-In-Lending and RESPA, since it originates consumer loans.

AEGIS BUSINESS GROUP, INC.

On April 7,  2005,  NFS  entered  into a Stock  Purchase  Agreement  with  Aegis
Business Group, Inc., a Colorado corporation ("AegisUSA"), whereby NFS purchased
3,000,000  shares of  AegisUSA  common  stock and  2,000,000  shares of AegisUSA
Series B Convertible  Preferred  Stock for $625,000.  On December 13, 2005,  NFS
sold those shares to Mr. Robert Grizzle, the then Chief Operating Officer of NFS


                                       F-4
<PAGE>

and Mr. Ralph  Armijo a former  director.  The terms of the sale  provided for a
$100,000  cash payment to NFS at the closing of the sale and a $528,000 note due
and  payable to NFS on  December  31, 2006 and the  personal  guarantees  of the
purchasers.  The note  carried an 8% interest  rate and was secured by 2,000,000
common  shares,  3,000,000  preferred  shares of Aegis and 288,862 shares of NFS
common  stock held by the  purchasers.  In  addition,  the note  carried a price
escalation  of  approximately  $33,334  per month for each  month  that the note
remains  unpaid  after  January  31,  2006,  until  such time that a  cumulative
escalation of $400,000 was reached.

For the year ended  December 31, 2005,  NFS realized a gain on the sale of Aegis
of  approximately  $744,000.  As of  December  31,  2006,  NFS  had  accrued  an
additional,  approximately  $442,000 in price escalation and interest charges on
the sale of Aegis. At December 31, 2006, no payments due under the note had been
made. On January 16, 2007, the note was in default for non-payment.  Pursuant to
the terms of the note and sale  agreement,  on or about  January 22,  2007,  the
Company  demanded  and  received  all  Aegis  and NFS  stock  pledged  under the
agreement,  however,  such  stock  has not been  registered  in the name of NFS.
Between February 1, 2007 and April 6, 2007, the parties attempted to negotiate a
settlement  and pay-off of the debt. On April 9, 2007,  under the terms of note,
the Company filed a Demand for  Arbitration  with the Judicial  Arbiter Group in
Denver, Colorado.

On May 3, 2007, the Company reached a settlement  agreement with Mr. Grizzle and
Mr. Armijo, whereby Mr. Armijo paid the Company $300,000 in cash and surrendered
to the Company 68,862 shares of the Company's common stock and 100,000 shares of
his fully  vested  options to purchase the  Company's  common stock at $0.28 per
share. This surrender represents 100% of Mr. Armijo's ownership in the Company's
common stock and 100% Mr.  Armijo's  options to purchase the common stock of the
Company.  Based upon an agreed upon value of $150,000 which equals approximately
$1.05 per share,  which  approximates  the price per share of the Company's most
recent private placement sales price per share of the Company's common stock,

Mr.  Grizzle  executed a note  payable to the Company for  $450,000,  due on the
earlier  of one year  from the date  that the  common  stock of the  Company  is
publicly  traded and his shares are  registered  for resale  under an  effective
registration  statement  filed by the Company or  December  31,  2009.  The note
caries an 8% interest  rate and is secured by  1,000,000  Aegis  common  shares,
1,500,000 Aegis preferred  shares,  220,000 shares of the Company's common stock
and 200,000  options to purchase  shares of the Company's  common stock at $0.05
per share held by Mr.  Grizzle.  On September 30, 2007, Mr. Grizzle  resigned as
the Chief  Operating  Officer of the Company.  Mr.  Grizzle will  continue as an
interim  independent  contractor  with the Company to transition  the accounting
functions of the Company in an orderly manner.

NOTE 2 - BASIS OF PRESENTATION AND MANAGEMENT OPINION

The unaudited condensed  consolidated financial statements and related notes for
the first quarter of 2007 presented  herein have been prepared by the management
of NFS and  its  subsidiaries  pursuant  to the  rules  and  regulations  of the
Securities  and  Exchange  Commission.   Accordingly,  certain  information  and
footnote  disclosures  normally  included in  financial  statements  prepared in
accordance  with  generally  accepted  accounting  principles  have been omitted
pursuant to such rules and  regulations.  Operating  results for the nine months
ended September 30, 2007 are not necessarily  indicative of the results that may
be expected for the full year. It is suggested  that these  unaudited  condensed
consolidated  financial  statements be read in conjunction with the December 31,
2006 audited consolidated financial statements.

In the  opinion  of  management,  all  adjustments  (consisting  only of  normal
recurring adjustments), which are necessary for a fair presentation of operating
results for the interim period presented have been made.

PRINCIPLES OF CONSOLIDATION

The accompanying  consolidated  financial statements include the accounts of NFS
and its  subsidiaries,  Northsight  Mortgage Group, LLC (an 80% ownership),  and
Navidec  Mortgage  Holdings,  Inc. All  significant  inter-company  balances and


                                       F-5
<PAGE>

transactions have been eliminated in consolidation.  In April 2005, NFS acquired
Aegis Business Group,  Inc.  ("Aegis"),  a technology  company that develops and
markets security  solutions related to identity and computer access  management.
In December 2005, Aegis was sold to two  individuals,  one of whom is an officer
of NFS and one of who was at the time,  a director  of NFS.  As a result of this
sale,  effective  December 13, 2005 we  discontinued  all operations  within the
technology  division.  As of that date the  operations of Aegis USA, Inc. are no
longer consolidated into the financials of Navidec Financial Services, Inc.

USE OF ESTIMATES

The  preparation  of  financial  statements  in  conformity  generally  accepted
accounting principles in the United States requires management to make estimates
and assumptions.  These estimates and assumptions affect the reported amounts of
assets and  liabilities,  disclose of contingent  assets and  liabilities at the
date of the  financial  statements  and the  reported  amounts of  revenues  and
expenses during the reported period. Actual results could differ materially from
those estimates.

CASH AND CASH EQUIVALENTS

For purposes of reporting cash flows, NFS considers cash and cash equivalents to
include highly liquid  investments with original  maturities of 90 days or less.
Those are readily convertible into cash and not subject to significant risk from
fluctuations  in interest  rates.  The  recorded  amounts  for cash  equivalents
approximate  fair  value  due  to  the  short-term  nature  of  these  financial
instruments.

CONCENTRATION OF CREDIT RISK

Financial instruments that potentially subject NFS to significant concentrations
of credit risk include cash  equivalents,  notes  receivable  and trade accounts
receivable.  The Company maintains its cash and investment  balances in the form
of bank demand deposits, money market accounts, commercial papers and short-term
notes with financial  institutions that management believes to be of high credit
quality.  Accounts  receivable  are  typically  unsecured  and are derived  from
transactions with and from customers primarily located in the United States.

NFS  performs  ongoing  evaluations  of its  clients'  financial  condition  and
generally  does not require  collateral,  except for billings in advance of work
performed.  Management reviews accounts receivable  periodically and reduces the
carrying  amount  by a  valuation  allowance  that  reflects  management's  best
estimate  of  amounts  that  may not be  collectible.  Allowances,  if any,  for
uncollectible   accounts   receivable  are  determined  based  upon  information
available  and  historical  experience.  There was no allowance  with respect to
clients' accounts receivable at September 30, 2007.

No sales to  unaffiliated  customers  represented  10% or more of the  Company's
revenue for the nine months ended September 30, 2007.

INVESTMENTS

Investments  in  publicly  traded  equity  securities  over  which  NFS does not
exercise  significant  influence are recorded at market value in accordance with
Financial Accounting Standard (FAS) No. 115, "Accounting for Certain Investments
in Debt and Equity Securities",  which requires that all applicable  investments
be  classified  as  trading   securities,   available  for  sale  securities  or
held-to-maturity   securities.   The   Company   has   investments   treated  as
available-for-sale  securities  that are restricted from sale in the open market
under Rule 144 of the  Securities Act of 1933 and have limited  trading  volume.
There  can be no  assurance  that we will  realize  the  recorded  value of this
investment  due to the size of the investment  and its limited  trading  volume.
Investments in non-publicly  traded equity securities or  non-marketable  equity
securities are stated at the lower of cost or estimated realizable value.


                                       F-6
<PAGE>

FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying value of cash and cash equivalents,  trade receivables and payables
approximated their fair value because of their short-term nature. Investments in
debt securities are recorded at their amortized cost,  which  approximates  fair
value because of their  short-term  maturity.  Investments in marketable  equity
securities  are  recorded  at  fair  value  based  upon  quoted  market  prices.
Investments in  non-marketable  equity securities are based upon recent sales of
similar  securities by the investees and approximated  their carrying value. The
Company's  borrowings  approximate  their  carrying  amounts based upon interest
rates currently available to the Company.

REVENUE RECOGNITION

Contract Revenues

Revenues  from  time  and  materials  contracts  are  recognized  as the work is
completed.   Revenue  recognition  for  time  and  materials  contracts  is  not
significantly impacted by judgments and estimates.  When work is performed based
on fixed price  agreements,  it is generally of a short  duration and revenue is
recognized when the work is completed.

Other Revenues

Revenues from mortgage brokerage operations are generally related to interest on
bridge loans and transaction  based fees that are recognized at the consummation
of the transactions, generally when mortgage transactions close.

NET INCOME (LOSS) PER SHARE

Basic net income  (loss) per share is  computed by  dividing  net income  (loss)
available to common  shareholders  for the period by the weighted average number
of common shares outstanding for the period. Diluted net income (loss) per share
is  computed by dividing  the net income  (loss) for the period by the  weighted
average  number of common and  potential  common shares  outstanding  during the
period, if the effect of the potential common shares is dilutive.

Potentially  dilutive  securities  consisting of 4,015,000  options and warrants
have been excluded from the  determination of diluted earnings per share because
their effect would be anti-dilutive.

NOTE 3 - INVESTMENT IN BPZ

Upon  consummation  of the merger  transaction  between Old Navidec and BPZ, BPZ
issued  604,246  shares of its common stock to NFS.  These shares were issued in
consideration of NFS's  assumption of all of the pre-merger  business assets and
liabilities of Old Navidec.

The Company has accounted for the receipt of stock as a contribution  of capital
from BPZ.

At year end, December 31, 2006, the closing market price was $4.10 per share and
as of September  30,  2007,  the closing  market price per share was $7.80.  The
Company's  "investments  in  BPZ"  is  valued  at  approximately  $3,896,000  on
September 30, 2007.

NOTE 4 - SUBSIDIARIES

The  accompanying   condensed  consolidated  financial  statements  include  the
accounts  of NFS and its  subsidiaries,  Northsight  Mortgage  Group,  LLC,  and
Navidec  Mortgage  Holdings,  Inc. All  significant  inter-company  balances and
transactions have been eliminated in consolidation.  In April 2005, NFS acquired


                                       F-7
<PAGE>

Aegis Business Group,  Inc.  ("Aegis"),  a technology  company that develops and
markets security  solutions related to identity and computer access  management.
In December 2005, Aegis was sold to two  individuals,  one of whom is an officer
of NFS and one of who was at the time,  a director  of NFS.  As a result of this
sale,  effective  December 13, 2005, we discontinued  all operations  within the
technology  division.  As of that date, the operations of Aegis USA, Inc. are no
longer consolidated into the financial statements of the Company.

NOTE 5 - COMMITMENTS AND CONTINGENCIES

OPERATING LEASES

Northsight  Mortgage  Group has a lease for office space at 8520 E. Shea,  #111,
Scottsdale,  Arizona  with an  obligation  of $80,366 per year for fiscal  years
2007, 2008, and 2009.

The  Company  leases  approximately  1,500 sq. ft. of office  space for $3,500 a
month,  on a month to month basis,  at the CEO's home at 456 Madison St. Denver,
CO.

DEFINED CONTRIBUTION PLAN

NFS has a 401(k)  profit  sharing  plan (the  "Plan").  Subject to  limitations,
eligible  employees may make  voluntary  contributions  to the Plan. The Company
may, at its discretion,  make additional  contributions to the Plan. The Company
did not  contribute  during  the  three  and six  months  ended  June 30,  2007.
Effective  June 30, 2007,  the Company has elected to terminate the Plan and has
instructed the third party administrator of the Plan to distribute the assets of
the Plan to the  participants.  Such  termination  and  distribution  will  take
approximately six months to complete.

LITIGATION

On February  14, 2006,  BPZ filed a Petition in the  District  Court of Arapahoe
County,  Colorado for the appointment of a receiver and the judicial dissolution
of NFS ("the  Action").  On May 19,  2006,  BPZ and the Company  entered  into a
Settlement  Agreement  and Mutual  Release  (the  "Agreement")  by and among the
Company,   BPZ,  and  John  McKowen,   the  Chief   Executive   Officer  of  NFS
(collectively,  the "Parties").  The Agreement  settles all disputes amongst the
Parties relating to the Action.  The Agreement provides for among other things a
complete  mutual release  between the Parties of any and all claims  relating to
the Action.

The Agreement also provides that the expiration  date that currently  applies to
the  BPZ  warrants  held by NFS  will be  extended  to a date  that is one  year
following the effective date of the  registration  of the BPZ shares  underlying
the warrants.  BPZ is obligate to use good faith and reasonably diligent efforts
to obtain  effective  registration  of such  shares  and will bear any  related,
direct and customary registration expense. On June 20, 2006, the Court dismissed
the  petition  with  prejudice  and further  issued a  declaratory  judgment and
finding  of fact  that BPZ was not now nor had it ever been  shareholder  of NFS
since September 9, 2004, the record date of the spin-off.

On April 4, 2006, NFS received  notice that a default  judgment had been entered
in favor of NFS in Denver District  Court,  Colorado in a matter pending in that
court between NFS, Larson International  Limited,  and Leslie Greyling.  NFS had
brought an action  against  Larson  International  Limited  and Leslie  Greyling
(collectively "Larson") alleging among other things non-performance with regards
to a business  consulting  agreement  between Old Navidec and Larson.  The court
awarded NFS  approximately  $420,000 in cash and the court  ordered that 100,000
shares of BPZ Energy common stock revert back to NFS. NFS had initially conveyed
these shares to Larson as compensation under the business consulting  agreement.
NFS had been holding the shares pending completion of the services  contemplated
under the business consulting agreement.

In the normal  course of  business,  the Company is subject to, and may become a
party to,  litigation  regarding  disputes with vendors and  employment  issues.
Management believes there are no  other matters  currently in  litigation,  that


                                       F-8
<PAGE>

could have a material impact on the Company's  financial  position or results of
operations.

NOTE 6 - STOCKHOLDERS EQUITY

During the nine months ended  September 30, 2007, the Company  issued  1,000,000
shares of its common  stock  pursuant to the exercise of vested  employee  stock
options.

NOTE 7 - SUBSEQUENT EVENTS

The Company has agreed in principle  to purchase  the 20%  minority  interest in
Northsight  in exchange  for 100,000  shares of NMH.  However,  the  transaction
cannot  be  completed  until  it  has  been  approved  by  the  Arizona  Banking
Commission.

The Company has agreed in principle with the 20% minority interest of Northsight
to contribute the subsequent  100% ownership of NOrthsight  into NMH in exchange
for an additional  3,000,000 common shares of NMH. When those  transactions have
been  completed,  if approved by the Arizona  Banking  Commission,  NFS will own
5,000,000  common shares of NMH, and the current 20% minority  interest owner of
Northsight  will no longer own any interest in  Northsight  but will own 100,000
common shares of NMH.











                                       F-9
<PAGE>

ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

The  following  discussion  is intended to provide an analysis of the  Company's
financial  condition  and  should  be read in  conjunction  with  NFS  financial
statements  and the notes  thereto set forth  herein.  The matters  discussed in
these  sections that are not  historical  or current  facts deal with  potential
future   circumstances  and  developments.   NFS  actual  results  could  differ
materially from the results discussed in the forward-looking statements. Factors
that could cause or  contribute  to such  differences  include  those  discussed
below.

OVERVIEW
--------

NFS is a  diversified  holding  company that was founded by  Management  for the
purpose of identifying and acquiring a controlling interest in development stage
enterprises  with the expectation of further  developing the enterprise and then
taking it public. Management founded the Company with the belief that because of
the complex public company  regulatory  environment in the United States and the
difficulty in raising start-up capital, a business which was proficient in those
areas would be in high demand.  The Company believes that for such a business to
succeed it has to only invest in those companies  whose business  operations are
timely and has great Management. NFS has four principal assets, cash, BPZ common
stock,  NMH common  stock and  debentures,  and a $450,000 a secured note from a
former officer of the Company.

Management  has  considerable  experience  in  evaluating  business  cycles  and
industry trends and the Company  depends on Managements  judgment and experience
to be successful.  NFS expects its acquired  enterprises  to generate  operating
income and profits.  However, NFS will not generate significant operating income
and profits but rather grow through the increased value and sale of its acquired
enterprises.

The continued growth in shareholder value of BPZ, which Management expects,  and
the growth of NMH and the future public offering of NMH common stock is expected
to result in an  increase in  investment  capital  available  to the Company and
increased shareholder value. The Company believes it can evaluate, acquire, fund
and conduct a public offering for an acquisition over a two year time cycle.

It is  important  that in the future NFS own the  majority,  if not all,  of the
enterprises  it starts or acquires  so as not to be  considered  and  Investment
Company under the terms of the Investment Company Act of 1940.

The Company focuses on acquiring  enterprises it believes will become attractive
to the capital markets in the near future so that a favorable public offering of
the acquired enterprise can be conducted.

Management  believes  that NFS can offer  growing  enterprises,  that wish to go
public,  the opportunity to grow their company and focus on the  requirements of
growth without  having to deal with the  complexity of the regulatory  market or
the uncertainties of initial capital raises.

BPZ Resources, Inc.

In 2003 and 2004, the Company's Management,  through its predecessor parent, Old
Navidec,  sought to acquire  oil & gas assets in the  belief  that those  assets
would  increase  in  value  over  the  near  term.  In  September  2004,   after
considerable search and evaluation,  Management,  through its predecessor parent
company,  Old  Navidec,  completed a reverse  merger with BPZ and a  significant
return on investment was realized by the shareholders of Old Navidec and NFS.

BPZ is a  publicly  traded  company  with  significant  assets  in Peru that has
recently successfully  completed drilling and testing two oil & gas wells in the
Corvina field in northwest  Peru. BPZ expects to be begin  producing and selling
crude oil in November  2007. The Company holds and expects to continue to hold a


                                       1
<PAGE>

significant  portion of its assets in the form of BPZ common stock.  The Company
received  common  stock and  warrants  of BPZ in  September  2004 as part of the
consideration  for completing the reverse merger with BPZ. BPZ's common stock is
listed on the American Stock Exchange under the symbol BZP.

The  Company's  ownership of BPZ common  stock and warrants may be  considered a
passive investment  according to the Investment Company Act of 1940. As such BPZ
common stock when combined with other passive  assets owned by NFS cannot exceed
more than 40% of the net  tangible  assets of NFS without NFS being  required to
register as an Investment  Company under the terms of the Investment Company Act
of 1940. Therefore, NFS has liquidated all of its BPZ warrants, which expired in
December 2007, and some of its common stock of BPZ to avoid being  considered an
Investment  Company.  The Company may need to  liquidate  more of its BPZ common
stock so as not to be required to register as an Investment Company.

NAVIDEC MORTGAGE HOLDINGS, INC.

On May 4, 2005 the Company formed Navidec Mortgage  Holdings,  Inc. ("NMH") as a
wholly owned subsidiary of NFS. NMH was formed to take advantage of a Management
perceived  impending  liquidity  and credit  crisis in the real  estate  capital
markets that would be brought on by rising interest rates. NMH provides low loan
to  value,   high  yield,   short  term,   personally   guaranteed  real  estate
collateralized  bridge loans on residential  and  commercial  properties to high
quality borrowers.

Starting  in July 2007,  NFS began  lending  capital to NMH,  pursuant  to a 12%
Debenture  Agreement,  and as of September 30, 2007 NFS has lent NMH $3,955,000.
NMH makes real estate  bridge loans to high  quality  borrowers  who  personally
guarantee the loan. The bridge loans are secured by a first deed of trust,  with
no more  than 70% loan to  value.  The  loans  generally  pay a  minimum  of 14%
interest and a minimum of 2% loan  origination  fee. The loans are generally out
for a term of 60 days for  residential  properties  and 120 days for  commercial
properties.  Prior to making the bridge loan,  NMH develops a take-out  strategy
that  returns the interest and  principal  to NMH.  Often the take-out  strategy
involves a permanent  conventional  financing  that is  arranged  by  Northsight
mortgage, a subsidiary of NFS. To increase the yield on loans made, NMH obtained
a line of credit for  $3,000,000  from  First  Community  Banks and is  actively
seeking  additional  lines of credit.  NMH  restricts  the  leverage on its real
estate loans to no more than 5:1, debt to equity loan ratio.

On  September  30, 2007,  NMH had bridge loans  outstanding  of  $1,348,000.  By
September  30, 2007,  NMH had lent and been repaid the principal and interest on
$762,000 in residential  bridge loans.  The average  residential  bridge loan is
$265,363.

NMH  expects  to grow its  volume  of loans by  networking  through  experienced
independent  commercial and residential real estate mortgage brokers.  NMH has a
national  centralized  loan  processing  center in Scottsdale,  Arizona.  NMH is
developing a website that will enable NMH  approved  mortgage  brokers to submit
loan applications, complete loan documents and process loans online.

NORTHSIGHT MORTGAGE GROUP, LLC

On September  11, 2003,  through Old Navidec,  NFS  purchased an 80% interest in
Northsight Mortgage Group, LLC  ("Northsight").  Northsight is a mortgage broker
subject to the regulations of the Arizona State Banking Commission,  and is also
subject  to  Federal  regulations   regarding  consumer  protection,   including
Truth-In-Lending and RESPA, since it originates consumer loans.

As part  of the  overall  business  strategy  in  mortgage  lending,  Northsight
provides long term conventional loans to residential and commercial borrowers to
take out the short term bridge loans made by NMH.

                                       2

<PAGE>

AEGIS BUSINESS GROUP, INC.

On April 7,  2005,  NFS  entered  into a Stock  Purchase  Agreement  with  Aegis
Business Group, Inc., a Colorado corporation ("AegisUSA"), whereby NFS purchased
3,000,000  shares of  AegisUSA  common  stock and  2,000,000  shares of AegisUSA
Series B Convertible  Preferred  Stock for $625,000.  On December 13, 2005,  NFS
sold those shares to Mr. Robert Grizzle, the then Chief Operating Officer of NFS
and Mr. Ralph  Armijo a former  director.  The terms of the sale  provided for a
$100,000  cash payment to NFS at the closing of the sale and a $528,000 note due
and  payable to NFS on  December  31, 2006 and the  personal  guarantees  of the
purchasers.  The note  carried an 8% interest  rate and was secured by 2,000,000
common  shares,  3,000,000  preferred  shares of Aegis and 288,862 shares of NFS
common  stock held by the  purchasers.  In  addition,  the note  carried a price
escalation  of  approximately  $33,334  per month for each  month  that the note
remains  unpaid  after  January  31,  2006,  until  such time that a  cumulative
escalation of $400,000 was reached.

For the year ended  December 31, 2005,  NFS realized a gain on the sale of Aegis
of  approximately  $744,000.  As of  December  31,  2006,  NFS  had  accrued  an
additional,  approximately  $442,000 in price escalation and interest charges on
the sale of Aegis. At December 31, 2006, no payments due under the note had been
made. On January 16, 2007, the note was in default for non-payment.  Pursuant to
the terms of the note and sale  agreement,  on or about  January 22,  2007,  the
Company  demanded  and  received  all  Aegis  and NFS  stock  pledged  under the
agreement,  however,  such  stock  has not been  registered  in the name of NFS.
Between February 1, 2007 and April 6, 2007, the parties attempted to negotiate a
settlement  and pay-off of the debt. On April 9, 2007,  under the terms of note,
the Company filed a Demand for  Arbitration  with the Judicial  Arbiter Group in
Denver, Colorado.

On May 3, 2007, the Company reached a settlement  agreement with Mr. Grizzle and
Mr. Armijo, whereby Mr. Armijo paid the Company $300,000 in cash and surrendered
to the Company 68,862 shares of the Company's common stock and 100,000 shares of
his fully  vested  options to purchase the  Company's  common stock at $0.28 per
share. This surrender represents 100% of Mr. Armijo's ownership in the Company's
common stock and 100% Mr.  Armijo's  options to purchase the common stock of the
Company.  Based upon an agreed upon value of $150,000 which equals approximately
$1.05 per share,  which  approximates  the price per share of the Company's most
recent private placement sales price per share of the Company's common stock,

Mr.  Grizzle  executed a note  payable to the Company for  $450,000,  due on the
earlier  of one year  from the date  that the  common  stock of the  Company  is
publicly  traded and his shares are  registered  for resale  under an  effective
registration  statement  filed by the Company or  December  31,  2009.  The note
caries an 8% interest  rate and is secured by  1,000,000  Aegis  common  shares,
1,500,000 Aegis preferred  shares,  220,000 shares of the Company's common stock
and 200,000  options to purchase  shares of the Company's  common stock at $0.05
per share held by Mr.  Grizzle.  On September 30, 2006, Mr. Grizzle  resigned as
the Chief  Operating  Officer of the Company.  Mr.  Grizzle will  continue as an
interim  independent  contractor  with the Company to transition  the accounting
functions of the Company in an orderly manner.

NFS STRATEGY
------------

The  Company's  primary  business  strategy  going  forward will be to focus its
resources  on  the  development   and   anticipated   public  offering  of  NMH.
Additionally, the Company will continue its search for a new business enterprise
to acquire or start.  The Company  expects to acquire,  fund,  develop and bring
public a new business enterprise every 1 1/2 years.

The  operating  expenses  of NFS  consist of  general  and  administrative,  and
depreciation  and  amortization.  General and  administrative  expenses  consist
primarily of office expenses and salary and benefit expenses for NFS employees.

                                       3

<PAGE>

RESULTS OF OPERATIONS
---------------------

The Company  recognized  revenues for the three and nine months ended  September
30,  2007 of  approximately  $97,000  and  $484,000,  respectively,  compared to
approximately $329,000 and $971,000,  respectively, for the three and nine month
periods ended September 30, 2006. The overall  decrease in revenue was primarily
a result of a down-turn in the mortgage industry.

During  the  three  and nine  months  ended  September  30,  2007,  general  and
administrative    expenses   were   approximately   $334,000   and   $1,172,000,
respectively, as compared to $532,000 and $1,641,000, respectively, for the same
periods in 2006. The decrease in general and administrative  expenses is largely
as result of managements  continued  efforts to reduce and eliminate general and
administrative costs.

Depreciation  and amortization for the three and nine months ended September 30,
2007  remained  relatively  constant over  previous  periods with  approximately
$2,000 and $4,000 being recorded for each of the respective periods in 2007.

NFS recorded  losses from  operations  of  approximately  $237,000 and $692,000,
respectively, for the three and nine month periods ended September 30, 2007. The
loss from  operations  remained  relatively  flat as  compared  to  losses  from
operations of approximately  $220,000 and $679,000 for the same periods in 2006.
During the three month  period  ended  September  30,  2007,  there was a slight
increase in costs primarily due to a write-down of prepaid expenses.

During the three and nine month  periods ended  September 30, 2007,  the Company
sold shares of BPZ Energy; in connection with the sales, the Company  recognized
gains of approximately $2,484,000 and $3,551,000, respectively.

During  the  three  and nine  months  ended  September  30,  2007,  the  Company
recognized a net income of  $2,321,000  and  $2,957,000,  respectively.  This is
compared to net losses of  approximately  $110,000 and $276,000  during the same
periods  in 2006.  Net  income  per  share  was  approximately  $.25  and  $.33,
respectively, for the three and nine months ended September 30, 2007. Net losses
for the same periods in 2006 were $0.01 and $0.03 per share,  respectively.  The
overall  increase  in earnings  per share as compared to the similar  periods in
2006 is primarily  as a result of realized  gains from the sale of shares of BPZ
Energy.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

From the Company's  inception  through  September  30, 2007,  NFS has funded its
operations primarily from the following sources:

         o     Equity precedes through private placements of NFS securities;

         o     Revenue generated from operations;

         o     Loans and lines of credit;

         o     Sales of equity investments; and

         o     Proceeds from the exercise of legacy Old Navidec Options.

Cash flow from  operations has not  historically  been sufficient to sustain NFS
operations without the above additional sources of capital.  As of September 30,
2007, the Company had cash and cash equivalents of approximately  $2,758,000 and
a working capital surplus of approximately $2,741,000.

Net cash provided by the Company's  operating  activities totaled  approximately
$292,000 for the nine months ended September 30, 2007.

                                       4

<PAGE>

Net cash flow from investing  activities  during the nine months ended September
30,  2007 was  approximately  $1,068,000.  This was  realized as a result of the
warrant  exercise and sale of approximately  210,000 shares of BPZ Energy,  Inc.
common stock.

As a result of proceeds received from the exercise of legacy Old Navidec options
(now BPZ Energy,  Inc.),  that NFS was entitled to receive pursuant to the terms
of the  merger  transaction,  net cash  provided  by  financing  activities  was
approximately $1,219,000 for the nine months ended September 30, 2007.

CRITICAL ACCOUNTING POLICIES

NFS has identified the policies below as critical to NFS business operations and
the understanding of NFS results from operations.  The impact and any associated
risks  related  to  these  policies  on the  Company's  business  operations  is
discussed   throughout   Management's   Discussion  and  Analysis  of  Financial
Conditions and Results of Operations where such policies affect NFS reported and
expected  financial  results.  For a detailed  discussion on the  application of
these and other accounting policies, see Note 2 in the Notes to the Consolidated
Financial  Statements  beginning  on page F-6 of this  document.  Note  that the
Company's  preparation  of this  document  requires  NFS to make  estimates  and
assumptions   that  affect  the  reported  amount  of  assets  and  liabilities,
disclosure of  contingent  assets and  liabilities  at the date of NFS financial
statements,  and the  reported  amounts  of  revenue  and  expenses  during  the
reporting period.  There can be no assurance that actual results will not differ
from those estimates.

REVENUE RECOGNITION

NFS follows very specific and detailed guidelines in measuring revenue; however,
certain  judgments may affect the  application  of NFS revenue  policy.  Revenue
results are  difficult  to  predict,  and any  shortfall  in revenue or delay in
recognizing revenue could cause NFS operating results to vary significantly from
quarter to quarter and could result in future operating losses.

REVENUES BUSINESS DEVELOPMENT SERVICES

Revenue from NFS business  development  services is generally  derived from time
and materials  contracts  and is  recognized  as the work is completed.  Revenue
recognition for time and materials  contracts is not  significantly  impacted by
judgments and estimates. Within the business development division a small amount
of the work is performed based on fixed price  agreements.  When this occurs the
projects are generally of a short  duration and revenue is  recognized  when the
project is completed.

REVENUES FROM MORTGAGE SERVICES

Revenues  from  mortgage   brokerage   operations   are  generally   related  to
transaction-based   fees  and  are  recognized  at  the   consummation   of  the
transactions, generally when mortgage transactions close.

In July 2007 Navidec Mortgage  Holdings,  Inc., a wholly owned subsidiary of the
Company,  in conjunction with Northsight  Mortgage,  and 80% owned subsidiary of
the  Company  began  making  short  term  loans  to  purchasers  of  residential
properties who purchase their property as part of or after the repossession in a
foreclosure proceeding.  As of November 9, 2007, the Company had made $1,388,000
in such  loans.  The loans are  secured  by a first  mortgage  on the  purchased
properties.

RESERVES FOR BAD DEBT

NFS's policy on reserves for bad debt  determines the timing and  recognition of
expenses.  The Company  follows  guidelines that reserve based off of historical
and account specific trends;  however,  certain judgments affect the application
of NFS bad debt reserve policy. NFS receivables are recorded net of an allowance
for doubtful  accounts which requires  management to estimate  amounts due which

                                       5

<PAGE>

may not be collected.  This estimate requires  consideration of general economic
conditions,  overall  historical  trends related to the Company's  collection of
receivables,  customer  specific payment history,  and customer specific factors
affecting their ability to pay amounts due.  Management  routinely  assesses and
revises its estimate of the allowance for doubtful accounts. As of September 30,
2007, no allowance for bad debt was recorded.

GOODWILL AND INTANGIBLE ASSETS

Intangible  assets are amortized on a  straight-line  basis over their estimated
useful lives.  Goodwill is evaluated annually to determine if its value has been
impaired.  On September 11, 2003, Old Navidec entered into a purchase  agreement
with Northsight and its sole member that provided for the transfer of 80% of the
issued and outstanding  membership units of Northsight to Old Navidec  resulting
in the  realization  of $190,000  of  goodwill.  This  membership  interest  was
transferred  to NFS  pursuant to the terms of the merger  agreement.  Management
determined  that no  impairment  should be realized  for the three  months ended
September 30, 2007.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

NFS is exposed to the impact of interest  rate  changes and change in the market
values  of the  Company's  investments.  Based on NFS's  market  risk  sensitive
instruments  outstanding  as of September 30, 2007, as described  below,  it has
determined  that there was no  material  market risk  exposure to the  Company's
consolidated financial position, results of operations, or cash flows as of such
date. NFS does not enter into  derivatives or other  financial  instruments  for
trading or speculative purposes.

INTEREST  RATE RISK - At September 30, 2007,  the  Company's  exposure to market
rate risk for  changes in  interest  rates  relates  primarily  to its  mortgage
services  business.  NFS has not used  derivative  financial  instruments in its
credit  facilities.  A hypothetical  10% increase in the Prime rate would not be
significant to the Company's financial position,  results of operations, or cash
flows.

INVESTMENT RISK - In addition to the Company's investments in securities of BPZ,
from time to time NFS has made  investments  in equity  instruments in companies
for business and strategic purposes. These investments,  when held, are included
in other  long-term  assets and are  accounted  for under the cost method  since
ownership is less than twenty percent (20%) and NFS does not assert  significant
influence.

INFLATION -- NFS does not believe that inflation will have a material  impact on
its future operations.


Item 3.  Controls and Procedures

a.       Evaluation of Disclosure Controls and Procedures:

The  management of the company has evaluated the  effectiveness  of the issuer's
disclosure  controls  and  procedures  as of the end of the period of the report
June 30, 2007 and have concluded that the disclosure controls, internal controls
and procedures are adequate and effective based upon their  evaluation as of the
evaluation date.

b.       Changes in Internal Control over Financial Reporting:

There  were no changes  in the small  business  issuers  internal  control  over
financial  reporting  identified  in  connection  with  the  Company  evaluation
required by  paragraph  (d) of Rule 13a-15 or Rule 15d-15 under the Exchange act
that occurred  during the small  business  issuers last fiscal  quarter that has
materially  affected or is  reasonable  likely to materially  affect,  the small
business issuers internal control over financial reporting.

                                       6

<PAGE>

ITEM 3(A)T. CONTROLS AND PROCEDURES

There have been no changes in the small business  issuers  internal control over
financial  reporting  identified in connection  with the evaluation  required by
paragraph  (d) of Rule  240.15d-15  that  occurred  during  the  small  business
issuer's  last fiscal  quarter that has  materially  affected,  or is reasonable
likely to materially  affect,  the small business issuer's internal control over
financial reporting.


                           PART II - OTHER INFORMATION

Item 1. Legal Proceedings

On April 4, 2006, NFS received  notice that a default  judgment had been entered
in favor of NFS in Denver District  Court,  Colorado in a matter pending in that
court between NFS, Larson International  Limited,  and Leslie Greyling.  NFS had
brought an action  against  Larson  International  Limited  and Leslie  Greyling
(collectively  Larson") alleging among other things non-performance with regards
to a business  consulting  agreement  between Old Navidec and Larson.  The court
awarded NFS  approximately  $420,000 in cash and the court  ordered that 100,000
shares of BPZ Energy common stock revert back to NFS. NFS had initially conveyed
these shares to Larson as compensation under the business consulting  agreement.
NFS had been holding the shares pending completion of the services  contemplated
under the business consulting agreement.

In the normal  course of  business,  the Company is subject to, and may become a
party to,  litigation  regarding  disputes with vendors and  employment  issues.
Management  believes there are no other matters  currently in litigation,  other
than the SEC investigation  described above that could have a material impact on
the Company's financial position or results of operations.

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

         The  Company  has not  made  any  sales of its  securities  during  the
quarterly period of July 1, 2007 through September 30, 2007.


Item 3. Defaults Upon Senior Securities.

         None

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

         None

Item 5. Other Information.

         None

Item 6. Exhibits.

         The following is a complete list of exhibits filed as part of this Form
10-QSB.  Exhibit numbers  correspond to the numbers in the Exhibit Table of Item
601 of Regulation S-B.

         31.1  Certification by the Chief Executive  Officer pursuant to Section
               302 of the Sarbanes-Oxley Act.
         31.2  Certification  by the Principal  Accounting  Officer  pursuant to
               Section 302 of the Sarbanes-Oxley Act.
         32.1  Certification by the Chief Executive  Officer pursuant to Section
               906 of the Sarbanes-Oxley Act.
         32.2  Certification  by the Principle  Accounting  Officer  pursuant to
               Section 906 of the Sarbanes-Oxley Act.

                                       7

<PAGE>



                                   SIGNATURES

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


                        NAVIDEC FINANCIAL SERVICES, INC.

                                      By /s/ John R. McKowen
                                      ------------------------
                                      Principal Accounting Officer

                                      Date:  November 14, 2007


                                      By: /s/ John R. McKowen
                                      ---------------------------
                                      John R. McKowen, Chief Executive Officer

                                      Date:  November 14, 2007








                                       8