----

----

| Colorado                 |   | 000-51139                |   | 13-4228144                        |
|--------------------------|--------|--------------------------|--------|-----------------------------------|
| (State of Incorporation) |   | (Commission File Number) |   | (IRS Employer Identification No.) |

----

Table of Contents

|                                    |                                                                                                  | Page   |
|-----------------------------------------|-------------------------------------------------------------------------------------------------------|--------|
| Item 1                                  | Financial Statements (Unaudited)                                                                      |   |
|                                    | Consolidated Balance SheetsJune 30, 2009 and  December 31, 2008                             | 1      |
|                                    | Consolidated Statements of Operations – Three months andsix months ended June 30, 2009 and 2008 | 2      |
|                                    | Consolidated Statements of Cash Flows – Six months ended June 30, 2009 and 2008                 | 3      |
|                                    | Consolidated Statement of Changes in Stockholders’ Equity – June 30, 2009                 | 4      |
|                                    | Notes to Consolidated Financial Statements                                                            | 5      |
| Item 2                                  | Management’s Discussion and Analysis of Financial Conditionand Results of Operations            | 23     |
| Item 3                                  | Quantitative and Qualitative Disclosures About Market Risk                                            | 28     |
| Item 4                                  | Controls and Procedures                                                                               | 28     |
| Item 4T                                 | Controls and Procedures                                                                               | 29     |
|  PART II – OTHER INFORMATION |                                                                                                  |
| Item 1                                  | Legal Proceedings                                                                                     | 31     |
| Item 2                                  | Changes in Securities                                                                                 | 31     |
| Item 3                                  | Defaults Upon Senior Securities – Not Applicable                                                | 31     |
| Item 4                                  | Submission of Matters to a Vote of Security Holders – Not Applicable                            | 31     |
| Item 5                                  | Other Information – Not Applicable                                                              | 31     |
| Item 6                                  | Exhibits                                                                                              | 33     |
|                                    | SIGNATURES                                                                                            |   |

----

Consolidated Balance Sheets

|                                         |                                              |                                                                                                                                                                                |                                                                                         |                                                                                                          |                                                                                                                | June 30, 2009 Unaudited                                                       | December 31, 2008 Audited                                                     |
|----------------------------------------------|---------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
| ASSETS:                                      |                                              |                                                                                                                                                                                |                                                                                         |                                                                                                          |                                                                                                                |
|                                         | Current Assets:                                   |                                                                                                                                                                                |                                                                                         |                                                                                                          |
|                                         |                                              | Cash and cash equivalents                                                                                                                                                           | $                                                                                            |               776                       |                874                       |
|                                         |                                              | Marketable securities                                                                                                                                                               |                                                                                         |               911                       |                    - |
|                                         |                                              | S/T Mortgages receivable - Net of allowance for bad debts of $162 and $476 and unearned revenue of $0 and $6 on June 30, 2009 and December 31, 2008, respectively                   |                                                                                         |               209                       |             2,197                                       |
|                                         |                                              | S/T Note receivable - Jaguar Group LLC  net of $1,407 allowance on March 31, 2009 and December 31, 2008 (Note 3)                                                          |                                                                                         |                   - |                    - |
|                                         |                                              | S/T Note receivable - Aegis/Grizzle (Note 3)                                                                                                                                        |                                                                                         |               450                       | -                                                                                                                   |
|                                         |                                              | Accrued interest receivable                                                                                                                                                         |                                                                                         |                80                  |                 88                  |
|                                         |                                              | Advances receivable                                                                                                                                                                 |                                                                                         |                  4       |                    - |
|                                         |                                              | Income taxes receivable                                                                                                                                                             |                                                                                         |               171                       |                    - |
|                                         |                                              | Deferred tax asset                                                                                                                                                                  |                                                                                         |               184                       |                    - |
|                                         |                                              | Prepaid expenses                                                                                                                                                                    |                                                                                         |                  4       |                 21                  |
|                                         | Total Current Assets                              |                                                                                                                                                                                |            2,789                      |             3,180                                 |
|                                         |                                              |                                                                                                                                                                                |                                                                                         |                                                                                                          |                                                                                                                |                                                                          |                                                                          |
|                                         |   Property, equipment and software, net |                                                                                                                                                                                |                88 |                114                 |
|                                         |                                              |                                                                                                                                                                                |                                                                                         |                                                                                                          |                                                                                                                |                                                                          |                                                                          |
|                                         | Other Assets                                      |                                                                                                                                                                                |                                                                                         |                                                                                                          |
|                                         |                                              | Notes receivable - Mauriello, net of allowance of $151 (Note 3)                                                                                                                     |                                                                                         |                   - |                    - |
|                                         |                                              | Note receivable – Aegis/Grizzle (Note 3)                                                                                                                                      |                                                                                         | -                                                                                                             | 450                                                                                                                 |
|                                         |                                              | Investment in Boston Property, net of impairment of $341 on June 30, 2009 and $492 on December 31, 2008                                                                             |                                                                                         |            2,514                                       |             2,315                                       |
|                                         |                                              | Other real estate owned - net of impairment of $609 and $298 and accumulated depreciation of $50 and $27 on June 30, 2009 and December 31, 2008, respectively (Note 5)              |                                                                                         |            2,965                                       |             3,288                                       |
|                                         |                                              | Investment in BPZ (Note 5)                                                                                                                                                          |                                                                                         |               191                       |                    - |
|                                         |                                              | Other assets                                                                                                                                                                        |                                                                                         |                10                  |                   3       |
|                                         |                                              |                                                                                                                                                                                |        Total Other Assets                                 |                                                                                                          |            5,680                                             |             6,056 |
| TOTAL ASSETS                                 | $                                                 |            8,557                                                                                                             |             9,350                |
|                                         |                                              |                                                                                                                                                                                |                                                                                         |                                                                                                          |                                                                                                                |                                                                          |                                                                          |
| LIABILITIES & STOCKHOLDERS' EQUITY:      |                                              |                                                                                                                                                                                |                                                                                         |
|                                         | Current Liabilities:                              |                                                                                                                                                                                |                                                                                         |                                                                                                          |
|                                         |                                              | Accounts payable                                                                                                                                                                    | $                                                                                            |                18                  |                149                       |
|                                         |                                              | Short term borrowings  (Note 5)                                                                                                                                           |                                                                                         |            1,625                                       |             1,391                                       |
|                                         |                                              | Accrued taxes payable (Note 2)                                                                                                                                                      |                                                                                         |                 -             |                 85                  |
|                                         |                                              | Deposits held                                                                                                                                                                       |                                                                                         |                21                  |                  -             |
|                                         |                                              | Accrued liabilities                                                                                                                                                                 |                                                                                         |                  8       |                 38                  |
|                                         | Total Current Liabilities                         |                                                                                                                                                                                |            1,672                      |             1,663                                 |
|                                         |                                              |                                                                                                                                                                                |                                                                                         | Total Liabilities                                                                                             |                                                                                                                |            1,672       |             1,663 |
|                                         |                                              |                                                                                                                                                                                |                                                                                         |                                                                                                          |                                                                                                                |                                                                          |                                                                          |
|                                         | Stockholders' Equity:                             |                                                                                                                                                                                |                                                                                         |                                                                                                          |
|                                         |                                              | Common stock, $0.001 par value, 100,000,000 shares authorized, 8,884,583 and  9,019,057 shares issued and outstanding at June 30, 2009 and December 31, 2008 respectively |                                                                                         |                  9       |                   9       |
|                                         |                                              | Additional paid-in capital                                                                                                                                                          |                                                                                         |            8,986                                       |             8,873                                       |
|                                         |                                              | Accumulated other comprehensive income (Note 2)                                                                                                                                     |                                                                                         |                16                  |                    - |
|                                         |                                              | Accumulated (deficit)                                                                                                                                                               |                                                                                         |         (2,126)                                                       |           (1,195)                                                 |
|                                         |                                              |                                                                                                                                                                                |         Total Stockholders' Equity                   |                                                                                                          |            6,885                                             |             7,687 |
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $                                                 |            8,557                                                                                                             |             9,350                |

----

Table of Contents

Consolidated Statements of Operations

|                                                                     | Three Months Ended                                                                                                                          |                                                                                                                                  | Six Months Ended |
|--------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|------------------|
|                                                                     | June 30, 2009                                                                                                                               | June 30, 2008 RESTATED                                                                                                                |             | June 30, 2009 | June 30, 2008 RESTATED |
|                                                                     |                                                                                                                                        |                                                                                                                                  |             |   |   |
| Revenue                                                                  |  $               137                                        |  $               468                                  |             |  $               294 |  $               790 |
| Cost of loan fees including facilities and commissions                   |                     69                  |                  316                             |             |                 141 |                  502 |
| Gross Profit                                                             |                     68                  |                 152                                   |             |                 153 |                  288 |
|                                                                     |                                                                                                                                        |                                                                                                                                  |             |   |   |
| Operating Expenses:                                                      |                                                                                                                                        |                                                                                                                                  |             |   |   |
|     General and administrative                       |                     77                  |              1,787                                                   |             |                 682 |              2,397 |
|     Depreciation and amortization                    |                     27                  |                       2 |             |                     43 |                     10 |
|         Total operating expenses |                  104                                   |               1,789                                             |             |                  725 |              2,407 |
| Loss from operations                                                     |                  (36)                                  |             (1,637)                                                       |             |                 (572) |              (2,119) |
|                                                                     |                                                                                                                                        |                                                                                                                                  |             |   |   |
| Other income (expense)                                                   |                                                                                                                                        |                                                                                                                                  |             |   |   |
| Impairments                                                              |                 (338)                                       |                      -       |             |                (478) |                        - |
|    Gain on sale of BPZ investment                         |                     -                   |              3,148                                                   |             |                        - |               5,635 |
|    Interest income                                        |                     18                  |                       9 |             |                     14 |                       9 |
|    Interest (expense)                                     |                        - |                 (56)                                  |             |                  (21) |                  (87) |
| Other income (expense)                                                   |                (127)                                             |                  22                              |             |                 (77) |                  (42) |
|    Total other income                                     |                 (447)                                       |               3,123                                             |             |                 (562) |               5,515 |
|                                                                     |                                                                                                                                        |                                                                                                                                  |             |   |   |
| Net Income (Loss) before taxes                                           |                (483)                                             |              1,486                                                   |             |              (1,134) |               3,396 |
|                                                                     |                                                                                                                                        |                                                                                                                                  |             |   |   |
|    Income Taxes                                           |                                                                                                                                        |                                                                                                                                  |             |   |   |
| Income tax (expense) benefit                                             |                  141                                   |                 (621)                                 |             |                  203 |              (1,334) |
| Net Income (Loss)                                                        |  $             (342)                                                  |  $              865                                        |             |  $             (931) |  $            2,062 |
|                                                                     |                                                                                                                                        |                                                                                                                                  |             |   |   |
| (Loss) Earnings Per Share:                                               |                                                                                                                                        |                                                                                                                                  |             |   |   |
|     Basic                                            |  $            (0.04)                                                       |  $             0.10                                             |             |  $            (0.10) |  $             0.23 |
|                                                                     |                                                                                                                                        |                                                                                                                                  |             |   |   |
| Weighted Average Shares Outstanding:                                     |                                                                                                                                        |                                                                                                                                  |             |   |   |
|    Basic                                                  | 8,952                                                                                                                                       | 9,025                                                                                                                                 |             | 8,957 | 9,025 |

----

Table of Contents

Consolidated Statements of Cash Flows

|                                                   |                                                                                                                                     |                                                                                                                                                          | For the Six Months Ended June 30,                                                                                                                                   |
|--------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                   |                                                                                                                                     |                                                                                                                                                          | 2009                                                                                                                                                                | 2008 RESTATED |
| Cash Flows from Operating Activities:                  |                                                                                                                                     |                                                                                                                                                          |
|                                                   | Net Income (Loss)                                                                                                                        |  $                 (931)                                            |  $                 2,062                                                  |
|                                                   | Adjustments to reconcile net income or (loss) to net cash used in operating activities:                                                  |                                                                                                                                                          |
|                                                   |                                                                                                                                     | Depreciation                                                                                                                                                  |                        27                        |                         10 |
|                                                   |                                                                                                                                     | Increase in reserves and impairments                                                                                                                          |                      566                                   |                     1,439 |
|                                                   |                                                                                                                                     | Gain from REOs sold                                                                                                                                           |                       (56)                            |                            - |
|                                                   |                                                                                                                                     | Reduction of allowance for bad debts                                                                                                                          |                     (478)                                       |                            - |
|                                                   |                                                                                                                                     | (Gain) Loss on sale investments                                                                                                                               |                        69                        |                    (5,635) |
|                                                   |                                                                                                                                     | Option expense                                                                                                                                                |                        38                        |                            - |
|                                                   | Changes in operating assets and liabilities:                                                                                             |                                                                                                                                                          |                                                                                                                                                                |
|                                                   |                                                                                                                                     | Deferred revenue                                                                                                                                              |                         (6)                 |                         52 |
|                                                   |                                                                                                                                     | Accounts receivable                                                                                                                                           |                         (4)                 |                       (291) |
|                                                   |                                                                                                                                     | Prepaid expenses and other assets                                                                                                                             |                        17                        |                        (31) |
|                                                   |                                                                                                                                     | Short term loans receivable                                                                                                                                   |                      986                                   |                    (4,566) |
|                                                   |                                                                                                                                     | Income tax receivable                                                                                                                                         |                     (171)                                       |                            - |
|                                                   |                                                                                                                                     | Deferred tax asset                                                                                                                                            |                     (184)                                       |                            - |
|                                                   |                                                                                                                                     | Accrued interest and advances                                                                                                                                 |                          8             |                            - |
|                                                   |                                                                                                                                     | Accounts payable                                                                                                                                              |                     (131)                                       |                           2 |
|                                                   |                                                                                                                                     | Accrued liabilities and other                                                                                                                                 |                       (94)                            |                        744 |
| Net Cash Provided by/(Used in) Operating Activities    |                     (344)            |                    (6,214)                                     |
|                                                   |                                                                                                                                     |                                                                                                                                                          |                                                                                                                                                                |   |
| Cash Flows from Investing Activities:                  |                                                                                                                                     |                                                                                                                                                          |
|                                                   | Investments (increased)/decreased                                                                                                        |                                                                                                                                                          |                                                                                                                                                                |
|                                                   |                                                                                                                                     | Boston real estate                                                                                                                                            |                     (199)                                       |                       (556) |
|                                                   |                                                                                                                                     | Marketable securities purchased                                                                                                                               |               (123,702)                                                                       |                    (2,088) |
|                                                   |                                                                                                                                     | Proceeds from marketable securities sold                                                                                                                      |                123,276                                                                   |                     8,126 |
|                                                   |                                                                                                                                     | Proceeds from REO properties sold                                                                                                                             |                   1,196                                                   |                            - |
|                                                   | Increase in borrowings                                                                                                                   |                          -       |                     1,241                                       |
|                                                   | Purchase of fixed assets                                                                                                                 |                          -       |                        (51)                      |
|                                                   | Other assets                                                                                                                             |                         (7)           |                           4       |
| Net Cash Provided by/(Used in) Investing Activities    |                      564        |                     6,676                                 |
|                                                   |                                                                                                                                     |                                                                                                                                                          |                                                                                                                                                                |   |
| Cash Flows from Financing Activities:                  |                                                                                                                                     |                                                                                                                                                          |
|                                                   | Option exercise proceeds                                                                                                                 |                          -       |                           5       |
|                                                   | Payoff of real estate loan                                                                                                               |                     (250)                                 |                            - |
|                                                   | Retirement of Common Stock                                                                                                               |                       (68)                      |                            - |
| Net Cash Provided by/(Used in) Financing Activities    |                     (318)            |                           5 |
| Net Increase (Decrease) in Cash & Cash Equivalents |                       (98) |                        467                 |
| Beginning Cash & Cash Equivalents                  |                      874        |                     1,407                                 |
| Ending Cash & Cash Equivalents                     |  $                  776                   |  $                 1,874                                            |
|                                                   |                                                                                                                                     |                                                                                                                                                          |                                                                                                                                                                |   |
| Supplemental Disclosure of Cash Flow Information       |                                                                                                                                     |                                                                                                                                                          |
|                                                   | Non cash settlement on short term mortgages and transfers                                                                                |  $                1,256                                                  |  $                    586                                  |
|                                                   | Cash paid for Interest                                                                                                                   |  $                    21                             |  $                      11                       |
|                                                   | Cash paid for Income Taxes                                                                                                               |  $                       -            |  $                    350                                  |
|                                                   | Cash received from Income tax refunds                                                                                                    |  $                  227                                        |  $                        -            |
|                                                   | Margin debt increase                                                                                                                     |  $                  484                                        |  $                        -            |

----

Table of Contents

CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY

|                                     |                                                                      |                                                                                  |                                                          |                                                          |                                                                |                                                                            |                                                                                              | Accumulated                                                                                       |                                                                              |                                                                                        |                                                                  |                                                                                        |
|------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------|
|                                     |                                                                      | Voting                                                                                |                                                          | Additional                                                    |                                                                | Other                                                                           |                                                                                              |                                                                                              |                                                                              | Stockholder                                                                                 |
|                                     |                                                                      | Common Stock                                                                          |                                                          | Paid-in                                                       |                                                                | Comprehensive                                                                   |                                                                                              | Accumulated                                                                                       |                                                                              | Equity                                                                                      |
|                                     |                                                                      | Shares                                                                                |                                                          | Amount                                                        |                                                                | Capital                                                                         |                                                                                              | Income                                                                                            |                                                                              | (Deficit)                                                                                   |                                                                  |                                                                                        |
|                                     |                                                                      |                                                                                  |                                                          |                                                          |                                                                |                                                                            |                                                                                              |                                                                                              |                                                                              |                                                                                        |                                                                  |                                                                                        |
| Balance, December 31, 2006 (as restated) |        7,950                           | $                                                                                     |           8 | $                                                             |       8,210                           | $                                                                               |            1,483                           | $                                                                                                 |          (3,678)                     | $                                                                                           |         6,023                 |
|                                     |                                                                      |                                                                                  |                                                          |                                                          |                                                                |                                                                            |                                                                                              |                                                                                              |                                                                              |                                                                                        |                                                                  |                                                                                        |
| Net income                               |             - |                                                                                  |          -       |                                                          |            - |                                                                            |                 - |                                                                                              |           2,301                 |                                                                                        |         2,301                 |
|                                     | Options exercised                                                         |        1,000                                       |                                                          |           1 |                                                                |            49            |                                                                                              |                 - |                                                                              |                - |                                                                  |              50            |
|                                     | Correct BPZ transaction                                                   |             33            |                                                          |          -       |                                                                |              2 |                                                                                              |                 - |                                                                              |                - |                                                                  |                2 |
|                                     | Correct private placement                                                 |               9 |                                                          |          -       |                                                                |            -             |                                                                                              |                 - |                                                                              |                - |                                                                  |              -             |
|                                     | Legacy Option Exercise                                                    |             -             |                                                          |          -       |                                                                |          647                       |                                                                                              |                 - |                                                                              |                - |                                                                  |            647                       |
|                                     | Retirement of stock - Armijo settlement                                   |         (68)                                  |                                                          |          -       |                                                                |      (150)                                             |                                                                                              |                 - |                                                                              |                - |                                                                  |           (150)                           |
|                                     | Gain on marketable securities                                             |             -             |                                                          |          -       |                                                                |            -             |                                                                                              |                95      |                                                                              |                - |                                                                  |              95            |
| Balances, December 31, 2007              |        8,924                           |                                                                                  | 9                                                             | $                                                             | 8,758                                                               |                                                                            | 1,578                                                                                             |                                                                                              | (1,377)                                                                           |                                                                                        | 8,968                                                                 |
|                                     |                                                                      |                                                                                  |                                                          |                                                          |                                                                |                                                                            |                                                                                              |                                                                                              |                                                                              |                                                                                        |                                                                  |                                                                                        |
| Net Income                               |             - |                                                                                  |          -       |                                                          |            - |                                                                            |                 - |                                                                                              |              182 |                                                                                        |            182 |
|                                     | Options exercised                                                         |           100                       |                                                          |          -       |                                                                |              5 |                                                                                              |                 - |                                                                              |                - |                                                                  |                5 |
|                                     | Change in unrealized gains                                                |             -             |                                                          |          -       |                                                                |            -             |                                                                                              |           (1,578)                               |                                                                              |                - |                                                                  |        (1,578)                                           |
|                                     | Options issued                                                            |             -             |                                                          |          -       |                                                                |          114                       |                                                                                              |                 - |                                                                              |                - |                                                                  |            114                       |
|                                     | Retirement of Stock- open market purchases                                |           (5)                       |                                                          |          -       |                                                                |          (4)                       |                                                                                              |                 - |                                                                              |                - |                                                                  |               (4)     |
| Balances, December 31, 2008              |        9,019                           |                                                                                  | 9                                                             |                                                          | 8,873                                                               |                                                                            |                 - |                                                                                              | (1,195)                                                                           |                                                                                        | 7,687                                                                 |
|                                     |                                                                      |                                                                                  |                                                          |                                                          |                                                                |                                                                            |                                                                                              |                                                                                              |                                                                              |                                                                                        |                                                                  |                                                                                        |
| Net (Loss)                               |             - |                                                                                  |          -       |                                                          |            - |                                                                            |                 - |                                                                                              |             (931)     |                                                                                        |           (931)     |
|                                     | Stock-based compensation expense                                          |             -             |                                                          |          -       |                                                                |            38            |                                                                                              |                 - |                                                                              |                - |                                                                  |              38            |
|                                     | Retirement of Stock - open market purchases                               |       (135)                                             |                                                          |          -       |                                                                |        (68)                                  |                                                                                              |                 - |                                                                              |                - |                                                                  |             (68)                |
|                                     | Unrealized gain (loss) on marketable securities                           |             -             |                                                          |          -       |                                                                |            -             |                                                                                              |               (14)          |                                                                              |                - |                                                                  |             (14)                |
|                                     | Recovered BPZ stock (Notes 2, 4)                                          |             -             |                                                          |          -       |                                                                |          143                       |                                                                                              |                30      |                                                                              |                - |                                                                  |            173                       |
| Balances, June 30, 2009                  |        8,894                           | $                                                                                     |           9 | $                                                             |       8,986                           | $                                                                               |                16      | $                                                                                                 |          (2,126)                     | $                                                                                           |         6,885                 |

----

Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

| ·   | Creating or acquiring a controlling interest in development stage enterprises with the expectation of further developing the enterprise and then taking the enterprise public.  |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The operation of Northsight, Inc., its subsidiary, designed to take advantage of current distressed residential real estate market through the purchase of properties, property management for its own properties and for other owners, and real estate sales. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Trading public securities solely for the Company’s own account (“Trading Account”).  Trading is limited to no more than 35% of net tangible shareholder equity.  The Trading Account was 5.2% of net shareholder equity as of December 31, 2008 and 13.3% (before the margin balance) as of June 30, 2009. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

| Part 1—Real estate owned at end of period (in thousands)    | Part 2—Rental income (in thousands) |
|-------------------------------------------------------------------|-------------------------------------------|
| Column A—List classification of property as indicated below | Column B—Amount of incombrances     | Column C—Initial cost to company | Column D—Cost of improvements, etc. | Column E—Amount at which carried at close of period | Column F—Reserve for depreciation and impairments | Column G—Rents due and accrued at end of period | Column H—Total rental income applicable to period | Column I—Expended for interest, taxes, repairs and expenses | Column J—Net income applicable to period |
| Farms                                                             |                                      |   |   |   |   |   |   |   |   |
| Residential                                                       |                                      |   |   |   |   |   |   |   |   |
| Arizona                                                           |                                      | 1,928 | 36 | 1,964 | 418 | 0 | 31 | 9 | 22 |
| Colorado                                                          |                                      | 1,465 | 68 | 1,536 | 163 | 0 | 5 | 23 | (19) |
| Massachusetts                                                     | 1,141                                     | 1,200 | 1,655 | 2,855 | 341 | 0 | 0 | 0 | 0 |
|                                                              |                                      |   |   |   |   |   |   |   |   |
| Apartments and business                                           |                                      |   |   |   |   |   |   |   |   |
| Unimproved                                                        |                                      | 123 | 0 | 123 | 78 | 0 | 0 | 1 | (1) |
|       Total                         | 1,141                                     | 4,716 | 1,759 | 6,479 | 1,000 | 0 | 36 | 33 | 3 |
| Rent from properties sold during period                           |                                      |   |   |   |   |   |   |   |   |
|       Total                         | $1,141                                    | $4,716 | $1,759 | $6,479 | $1,000 | $0 | $36 | $33 | $3 |

| Real Estate Detail (in thousands)                    |   | Boston Property | Other Real Estate Owned | Total   |
|------------------------------------------------------|--------|-----------------|-------------------------|---------|
| Beginning Balance,  January 1, 2009        |   | $2,315          | $3,288                  | $5,603  |
| Additions during the period:                         |   |            |                    |    |
| Acquisitions through foreclosure                     |   |            | 1,256                   | 1,256   |
| Other acquisitions                                   |   |            |                    |    |
| Improvements, etc.                                   |   | 48              | 158                     | 206     |
| Other (describe) – impairment reclassification |   | 151             | -                       | 151     |
| Deductions during the period:                        |   |            |                    |    |
| Cost of  real estate sold                  |   |            | (1,403)                 | (1,403) |
| Impairments                                          |   |            | (311)                   | (311)   |
| Other (describe) - depreciation                      |   |            | (23)                    | (23)    |
| Ending Balance, June 30, 2009                        |   | $2,514          | $2,965                  | $5,479  |

----

Table of Contents

| Asset Type                       | Life in Years | June 30,  2009 | December 31, 2008 |
|----------------------------------|---------------|---------------------|-------------------|
| Office equipment & Furniture | 5 – 7   | $92,000             | $ 92,000          |
| Computers                        | 3             | 86,000              | 96,000            |
| Website                          | 3             | 2,000               | 2,000             |
| Subtotal                         |          | 180,000             | 190,000           |
| Less Accumulated Depreciation    |          | (92,000)            | (76,000)          |
| Net Book Value                   |          | $ 88,000            | $ 114,000         |

----

Table of Contents

----

Table of Contents

----

Table of Contents

| Note From                         | Due           | Principal Amount | Annual Interest rate | Accrued Interest | Security                                 |
|-----------------------------------|---------------|------------------|----------------------|------------------|------------------------------------------|
| Robert Grizzle                    | Oct 17, 2009  | $450,000         | 8%                   | $78,000          | Shares and options in Navidec and Aegis  |
| Welend-Jaguar                     | June 13, 2008 | $1,407,000       | 0%                   | $-0-             | Junior security in residential mortgages |
| Various short term home mortgages | Various       | $371,000         | 9.95% to 14%         | $2,000           | First mortgage                           |

----

Table of Contents

----

Table of Contents

----

Table of Contents

|                          |                               | For the Six Months Ended June 30, 2009                         |                                                                      | For the Six Months Ended June 30, 2008                                      |
|-------------------------------|------------------------------------|----------------------------------------------------------------|---------------------------------------------------------------------------|-----------------------------------------------------------------------------|
|                          |                               |                                                           | (In thousands)                                                            |                                                                        | (In thousands) |
|                          |                               |                                                           | Navidec Financial Services                                                |                                                                        | Northsight, Inc. |   | Southie, LLC |   | Legendary Investment Group, LLC |   | Navidec Financial Services |   | Northsight, Inc. |   | Southie, LLC |   | Legendary Investment Group, LLC |
| Revenue                       |                               |                                                           |                                                                      |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                          | Loan fees, interest and other      | $                                                              |           35            |                                                                        |           126 |   |         91 |   |              42 |   |           53 |   |           738 |   |             - |   |               - |
|                          | Cost of Services                   |                                                           |             - |                                                                        |           (11) |   |     (110) |   |             (20) |   |             - |   |          (502) |   |             - |   |               - |
| Gross Profit                  |                               |           35 |                                                                      |           115             |   |       (19) |   |              22 |   |           53 |   |           236 |   |             - |   |               - |
|                          |                               |                                                           |                                                                      |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Operating Expenses      |                               |         195            |                                                                      |           372             |   |    587 |   |              50 |   |      1,792 |   |           375 |   |        195 |   |               - |
|                          |                               |                                                           |                                                                      |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Income/(Expense)        |                               |                                                           |                                                                      |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                          | Gain (loss) on sale of investments |                                                           |          (69)                |                                                                        |               - |   |             - |   |                - |   |      5,635 |   |               - |   |             - |   |               - |
|                          | Other income/(expense)             |                                                           |             5 |                                                                        |             (7) |   |       (12) |   |                - |   |        (110) |   |           (26) |   |      (30) |   |               - |
| Total Other Income/(Expense)  |                               |          (64)     |                                                                      |             (7) |   |          (12) |   |                - |   |      5,525 |   |           (26) |   |          (30) |   |               - |
|                          |                               |                                                           |                                                                      |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income Before Taxes           |                               |        (224)                |                                                                      |          (264)                 |   |     (618) |   |             (28) |   |      3,786 |   |          (165) |   |     (225) |   |               - |
|                          |                               |                                                           |                                                                      |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income Taxes (Expense)/Credit |                               |           76 |                                                                      |         69                          |   |        48 |   |              10 |   |     (1,420) |   |            76 |   |       10 |   |               - |
| Net Income (Loss)             | $                                  |        (148)                |                                                                      |          (195)                 |   |     (570) |   |             (18) |   |      2,366 |   |           (89) |   |     (215) |   |               - |

----

Table of Contents

| ·   | Trading profits, at the time of purchase of Company stock, realized during the present fiscal year on all securities traded by Navidec; or |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An amount equal to a maximum of one percent (1%) of Navidec tangible net assets; or |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | An amount of re-purchase not to exceed $500,000. |
|--------------------|--------------------------------------------------|

|                            | Navidec  | Northsight |
|---------------------------------|----------|------------|
| Expected stock price volatility | 43%      | 43%        |
| Risk-free interest rate         | 2.64%    | 2.64%      |
| Expected option life (years)    | 3.8 to 6 | 6          |
| Expected annual dividend yield  | 0%       | 0%         |

----

Table of Contents

|                                    | Shares     | Weighted AverageExercise Price |
|-----------------------------------------|------------|--------------------------------|
| Outstanding, January 1, 2008            | 3,681,510  | $1.18                          |
| Granted                                 | 760,000    | $2.00                          |
| Cancelled                               | (400,000)  | $1.00                          |
| Expired                                 | -          | -                              |
| Exercised                               | ( 100,000) | $ 0.05                         |
| Outstanding,  January 1, 2009 | 3,941,510  | $ 1.33                         |
| Granted                                 | -          | -                              |
| Cancelled                               | -          | -                              |
| Expired                                 | -          | -                              |
| Exercised                               | -          | -                              |
| Outstanding, June 30, 2009              | 3,941,510  | $ 1.33                         |
| Options Exercisable, June 30, 2009      | 3,248,177  | $ 1.16                         |

|                                    | Shares    | Weighted AverageExercise Price |
|-----------------------------------------|-----------|--------------------------------|
| Outstanding, January 1, 2008            | -         | -                              |
| Granted                                 | 1,200,000 | -                              |
| Cancelled                               | (617,223) | $0.50                          |
| Expired                                 | -         | -                              |
| Exercised                               | -         | -                              |
| Outstanding,  January 1, 2009 | 582,777   | $0.50                          |
| Granted                                 | -         | -                              |
| Cancelled                               | (360,001) | $0.50                          |
| Expired                                 | -         | -                              |
| Exercised                               |  -   | -                              |
| Outstanding, June 30, 2009              | 222,776   | $ 0.50                         |
| Options Exercisable, June 30, 2009      | 189,444   | $ 0.50                         |

----

Table of Contents

| Number of commonshares covered by warrants | Exercise Price | Expiration Date |
|--------------------------------------------|----------------|-----------------|
| 1,332,500                                  | $ 4.00         | August 2010     |
| 1,332,500                                  | 2.00           | August 2010     |
|     150,000            | 1.00           | July 2010       |
| 2,815,000                                  |           |            |

| Period | Amount Due |
|--------|------------|
| 2009   | $91,000    |
| 2010   | $105,000   |
| 2011   | $12,000    |

----

Table of Contents

| Period | Amount Due |
|--------|------------|
| 2009   | $ 13,000   |
| 2010   | $ 6,000    |
| 2011   | $ 5,000    |

| Federal Rate                  | 34.00%  |
|-------------------------------|---------|
| State Rate                    | 4.63%   |
| Federal benefit of State Rate | (1.57)% |
| Net Effective Rate            | 37.06%  |

| (in thousands)                          |      |
|-----------------------------------------|-----------|
| Book loss before tax                    | $ (1,134) |
| Adjustments to increase taxable income: |      |
| Non-deductible impairments              | 566       |
| Stock option expense                    | 18        |
| Other increases                         | 2         |
| Adjustments to decrease taxable income: | -         |
| Taxable Income (Loss)                   | $ (548)   |
| Tax (benefit) at net effective rate     | $ (203)   |

----

Table of Contents

----

Table of Contents

ITEM 2.

| ·   | Creating or acquiring a controlling interest in development stage enterprises with the expectation of further developing the enterprise and then taking the enterprise public.  |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The operation of Northsight, Inc., a company designed to take advantage of current distressed residential real estate market through the purchase of properties, property management for its own properties and for other owners, and real estate sales. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Trading public securities solely for the Company’s own account (“Trading Account”).  Trading is limited to no more than 35% of net tangible shareholder equity.  The Trading Account was 5.2% of net shareholder equity as of December 31, 2008 and 13.3% (before the margin balance) as of June 30, 2009. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| ·   | Trading profits, at the time of purchase of Company stock, realized during the present fiscal year on all securities traded by Navidec; or |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An amount equal to a maximum of one percent (1%) of Navidec tangible net assets; or |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | An amount of re-purchase not to exceed $500,000. |
|--------------------|--------------------------------------------------|

----

Table of Contents

----

Table of Contents

----

Table of Contents

| Allowance for short term mortgages receivables | $ 162,000  |
|------------------------------------------------|------------|
| Allowance for Real Estate Owned                | $ 609,000  |
| Allowance for Boston Property (Thomas Park)    | $ 341,000  |
| Allowance for Mauriello note                   | $ 151,000  |
| Allowance for amounts owed from Jaguar         | $1,407,000 |

----

Table of Contents

ITEM 3

----

Table of Contents

ITEM 4T

|   | (i) | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| ·   | An inability to ensure there is timely analysis and review of accounting records, spreadsheets, and supporting data; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | an inability to effectively monitor access to, or maintain effective controls over changes to, certain financial application programs and related data. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | we have authorized the addition of additional staff members to the finance department to ensure that there are sufficient resources within the department to prepare our financial statements and disclosures in accordance with accounting principles generally accepted in the United States of America; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | we are in the process of analyzing our processes for all business units and the establishment of formal policies and procedures with necessary segregation of duties, which will establish mitigating controls to compensate for the risk due to lack of segregation of duties., and  |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | we are utilizing an accounting system with audit trails; |
|--------------------|----------------------------------------------------------|

| ·   | after issuance of quarterly and yearly financials, we password protect any subsequent accounting entries which must be approved by the Controller, or a more senor staff or officer; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | we have implemented a system to scan source documents into the accounting system; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | check requests and journal entries over a set amount must be approved; |
|--------------------|------------------------------------------------------------------------|

| ·   | the controller approves checks to be paid before the final check signatures, and |
|--------------------|----------------------------------------------------------------------------------|

| ·   | we are beginning segregating important finance and accounting functions such as check reconciliation and approvals. |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

PART II. OTHER INFORMATION

| Exhibit 31 | Certification of Chief Executive Officer pursuant to Section 302 of  the Sarbanes-Oxley Act  |
|------------|-------------------------------------------------------------------------------------------------------------|
| Exhibit 32 | Certification of Principal Executive Officer pursuant to Section 906  of the Sarbanes-Oxley Act   |

----

Table of Contents

|                                          | NAVIDEC FINANCIAL SERVICES, INC.                                                                                  (Registrant)  |
|-----------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   Dated: August 12,  2009 |   By: /s/ John McKowen                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|                                          | John McKowen, President & Chief Accounting Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |

----

Table of Contents

Exhibit 31

----

Table of Contents

|   Dated: August 12, 2009 |   By: /s/ John McKowen                       |
|------------------------------------|--------------------------------------------------------|
|                               | John McKowen, President & Chief Accounting Officer |

----

Table of Contents

|   Dated: August 12, 2009 |   By: /s/ John McKowen                       |
|------------------------------------|--------------------------------------------------------|
|                               | John McKowen, President & Chief Accounting Officer |

----