UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

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

                                    FORM 10Q
                                -----------------

(Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
    1934
                  For the quarterly period ended June 30, 2008

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

                        For the transition period from __________ to ___________

                        Commission file number: 000-51139

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

      Colorado                                                13-4228144
-----------------------                                      ------------
(State of Incorporation)                                (IRS Employer ID Number)

          2000 South Colorado Blvd., Suite 200, Denver, Colorado 80222
                 -----------------------------------------------
                    (Address of principal executive offices)

                                  303-222-1000
                           --------------------------
                         (Registrant's Telephone number)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the past 12 months (or for such shorter  period that the registrant was required
to file such reports),  and (2) has been subject to the filing  requirements for
the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the  registrant is a large  accelerated  file, an
accelerated filer, a non-accelerated  filer, or a smaller reporting company. See
the definitions of "large accelerated  filer,"  "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer [  ]                              Accelerated filer [  ]
Non-accelerated filer [  ] (Do not check if a smaller reporting company)
Smaller reporting company [X]

<PAGE>

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

Indicate  the number of share  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

As of June 30, 2008,  there were  9,024,583  shares of the  registrant's  common
stock issued and outstanding.




<PAGE>

<TABLE>
<CAPTION>

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements  (Unaudited)                                                Page
                                                                                          ----
<S>      <C>                                                                              <C>

         Consolidated Balance Sheets - June 30, 2008 and
                  December 31, 2007                                                        F-1

         Consolidated Statement of Operations  -
                  Six and Three months ended June 30, 2008 and 2007                        F-2

         Consolidated Statement of Changes in Stockholders' Equity -
                   June 30, 2008                                                           F-3

         Consolidated Statement of Cash Flows -
                  Six months ended June 31, 2008 and 2007                                  F-4

         Notes to Consolidated Financial Statements                                        F-5

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

Item 3.  Quantitative and Qualitative Disclosures About Market Risk - Not Applicable

Item 4. Controls and Procedures                                                             3

Item 4T.  Controls and Procedures                                                           3

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings -Not Applicable                                                  4

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                        4

Item 3.  Defaults Upon Senior Securities - Not Applicable                                   4

Item 4.  Submission of Matters to a Vote of Security Holders - Not Applicable               5

Item 5.  Other Information - Not Applicable                                                 5

Item 6.  Exhibits                                                                           5

SIGNATURES                                                                                  6
</TABLE>



<PAGE>




                                     PART I

ITEM 1. FINANCIAL STATEMENTS



<PAGE>

<TABLE>
<CAPTION>

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

                                                                                           June 30,         December 31,
                                                                                             2008               2007
                                                                                           Unaudited           Audited
                                                                                        ----------------   ----------------
<S>                                                                                     <C>                <C>

ASSETS:
  Current Assets:
     Cash and cash equivalents                                                                  $ 1,873            $ 1,424
     S/T Mortgages receivable - net of allowance                                                  6,030              2,204
     S/T Note receivable - Jaguar Group LLC - net of allowance (Notes 1,4)                          677              1,100
     Accrued interest receivable                                                                     88                 46
     Advances receivable                                                                             17                  5
     A/R - Jaguar Group LLC (Notes 1, 4)                                                            291                  -
                                                                                        ----------------   ----------------
       Total Current Assets                                                                       8,976              4,779
                                                                                        ----------------   ----------------

  Property, equipment and software, net                                                              68                 39

  Other Assets
     Note receivable - (Note 4) - Aegis/Grizzle                                                     450                450
     Investment - BPZ Energy - (note 5)                                                               -              3,354
     Investment - Boston Property (Note 5)                                                        1,890              1,279
     Real estate owned - net of impairment (Note 5)                                                 791                360
     Other assets                                                                                     -                 15
                                                                                        ----------------   ----------------
       Total Other Assets                                                                         3,131              5,458
                                                                                        ----------------   ----------------

TOTAL ASSETS                                                                                $    12,175           $ 10,276
                                                                                        ================   ================


LIABILITIES & STOCKHOLDERS' EQUITY:
  Current Liabilities:
      Advances repayable - related party                                                            $ -               $ 15
      Accounts Payable                                                                               17                  -
      Short term borrowings  (Note 7)                                                             1,527                285
      Accrued taxes and liabilities                                                                 870                102
                                                                                        ----------------   ----------------
        Total Current Liabilties                                                                  2,414                402

    Minority Interest                                                                                                    -

  Stockholders' Equity:
    Common stock, $0.001 par value, 100,000,000 shares                                                9                  9
        authorized, 9,024,583 shares issued
        and outstanding at June 30, 2008 and
        8,924,583 as of December 31, 2007
    Additional paid-in capital                                                                    7,546              7,552
    Treasury stock                                                                                 (150)              (150)
    Unrealized gain on securities                                                                     -              2,149
    Accumulated earnings                                                                          2,356                314
                                                                                        ----------------   ----------------
        Total Stockholders' Equity                                                                9,761              9,874
                                                                                        ----------------   ----------------

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY                                                    $    12,175           $ 10,276
                                                                                        ================   ================


        The accompanying notes to the consolidated financial statements are an integral part of these statements.
                                              F-1
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

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

                                                                    For the Three Months Ended    For the Six Months Ended
                                                                            June 30,                      June 30,
                                                                      2008           2007           2008           2007
                                                                   ------------   ------------   ------------   ------------
                                                                    (Unaudited)    (Unaudited)    (Unaudited)   (Unaudited)
<S>                                                                <C>            <C>            <C>            <C>

Revenue
    Sales                                                             $    351          $ 156          $ 454          $ 380
    Interest revenues                                                      123                           169
    Cost of Sales                                                          120              -            191              -
                                                                   ------------   ------------   ------------   ------------
Gross Profit                                                               354            156            432            380
                                                                   ------------   ------------   ------------   ------------

Operating Expenses:
    General and administrative                                           1,858            446          2,523            838
    Depreciation and amortization                                            2              2              3              4
                                                                   ------------   ------------   ------------   ------------
        Total operating expenses                                         1,860            448          2,526            842

Loss from operations                                                    (1,506)          (292)        (2,094)          (462)
                                                                   ------------   ------------   ------------   ------------
Other income (expense)
   Gain on sale of investments                                           3,052            868          5,422          1,067
   Other (loss) or Gain                                                                     -                            52
   Net rental income                                                         8              -              7              -
   Misc non-operating income/(expense)                                      (5)                          (70)
   Interest income                                                           5             50             23
   Interest (expense)                                                       (2)                          (26)
                                                                   ------------   ------------   ------------   ------------

   Total other income                                                    3,058            918          5,356          1,119
                                                                   ------------   ------------   ------------   ------------

Net Income before minority interest and income tax                       1,552            626          3,262            657
                                                                   ------------   ------------   ------------   ------------
   Minority Interest
      Minority interest in consolidated subsidiary                                          -                            (8)

                                                                   ------------   ------------   ------------   ------------
Net Income (Loss) before taxes                                           1,552            626          3,262            649

   Income Taxes
      Provision for income tax                                            (941)             -         (1,196)             -
                                                                   ------------   ------------   ------------   ------------

Net Income (Loss)                                                        $ 611          $ 626        $ 2,066          $ 649
                                                                   ============   ============   ============   ============
Earnings Per Share:
    Basic                                                               $ 0.07         $ 0.08         $ 0.23         $ 0.08
    Diluted                                                             $ 0.04         $ 0.04         $ 0.13         $ 0.04

Weighted Averge Shares Outstanding:
   Basic                                                                 9,025          7,983          9,025          7,983
                                                                   ============   ============   ============   ============
   Diluted                                                              16,489         16,097         16,489         16,097
                                                                   ============   ============   ============   ============

    The accompanying notes to consolidated financial statements are an integral part of these statements.
                                          F-2
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

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

                                                                                                      For the Six Months Ended
                                                                                                             June 30,
                                                                                                       2008              2007
                                                                                                  ---------------   ----------------
<S>                                                                                               <C>               <C>
Cash Flows from Operating Activities:

        Net Income                                                                                    $ 2,066            $ 6496
        Adjustments to reconcile net income to net cash used in operating activities:
             Depreciation expense                                                                           3                 2
             Gain on sale investments                                                                  (5,412)           (1,067)
             Increase in reserves and impairments                                                       1,483                 -
             Gain on settlement of debt                                                                     -               (50)
             Minority interest                                                                              -                 8
        Changes in operating assets and liabilities:
             Accounts receivable                                                                            -                22
             Prepaid expenses and other assets                                                            (53)               42
             Short term loans receivable                                                               (2,453)              450
             Accounts payable                                                                               2               (22)
             Accrued liabilities and other                                                               (708)              (32)
                                                                                                  ---------------   ----------------

Net Cash (Used)/Provided by Operating Activities                                                       (5,072)                2
                                                                                                  ---------------   ----------------

Cash Flows from Investing Activities:
        Investments (increased)/decreased
             Boston real estate                                                                        (1,042)                -
             Other real estate                                                                           (627)                -
        Increase in fixed assets                                                                          (39)                -
        Other assets                                                                                       15                 -
        Unrealized gain/(loss) on securities                                                             (911)                -
        Proceeds from sale of equity investments                                                        8,120             1,026
                                                                                                  ---------------   ----------------

Net Cash Provided by Investing Activities                                                               5,516             1,026
                                                                                                  ---------------   ----------------

Cash Flows from Financing Activities:
        Net increase/(decrease) in Additional Paid in Capital                                               5                 -
        Post-merger proceeds from exercise of BPZ Options                                                   -               479
                                                                                                  ---------------   ----------------

Net Cash Provided by Financing Activities                                                                   5               479
                                                                                                  ---------------   ----------------

Net Increase in Cash & Cash Equivalents                                                                   449             1,508

Beginning Cash & Cash Equivalents                                                                       1,424               179
                                                                                                  ---------------   ----------------

Ending Cash & Cash Equivalents                                                                        $ 1,873          $  1,687
                                                                                                  ===============   ================


Supplemental Disclosure of Cash Flow Information
        Cash paid for Interest                                                                         $   11                 -
                                                                                                  ===============   ================
        Cash paid for Income Taxes                                                                     $  350                 -
                                                                                                  ===============   ================



        The accompanying notes to consolidated financial statements are an integral part of these statements.
                                              F-3
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                                        NAVIDEC FINANCIAL SERVICES, INC.
                                CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

                                        For the Six Months Ended June 30, 2008 (In
                                        thousands - except number of shares)

                                              Voting            Additional   Unrealized   Treasury   Accumulated   Stockholder
                                           Common Stock          Paid-in      Gain        Stock       Profit        Equity
                                      -----------------------
                                        Shares       Amount      Capital                             (Deficit)
                                      -----------               ----------  ----------   --------   ------------   ----------
<S>                                   <C>           <C>         <C>         <C>          <C>        <C>            <C>

Balances, Dec 31, 2004                 6,378,048         $ 6      $ 5,911       $ 375        $ -       $ (2,132)     $ 4,160
                                      -----------   ---------   ----------  ----------   --------   ------------   ----------

BPZ legacy options exercised                                          963                                                963
  Options exercised                      250,000           1           13                                                 14
Common stock sold in private           1,322,000           1        1,323                                              1,324
  placement                                                                                                                -
Additional paid-in capital from                                     1,203                                              1,203
  reorganization
Net loss                                                                                                 (1,377)      (1,377)
Comprehensive Income
     Gain on marketable securities                                                450                                    450
Total Comprehensive gain/(loss)
                                      -----------   ---------   ----------  ----------   --------   ------------   ----------
Balances, Dec 31, 2005                 7,950,048           8        9,413         825          -         (3,509)       6,737

Net loss                                                                                                   (464)        (464)
Comprehensive Income
    Gain on marketable securities                                                 658                                    658
Total Comprehensive gain/(loss)
                                      -----------   ---------   ----------  ----------   --------   ------------   ----------
Balances, Dec 31, 2006                 7,950,048           8        9,413       1,483          -         (3,973)       6,931

Net income                                                                                                4,287        4,287
  Options exercised                    1,000,000           1           49                                                 50
  Correct BPZ transaction                 33,397                        2                                                  2
  Correct private placement               10,000
Remove BPZ warrants                                                (1,912)                                            (1,912)
Treasury stock - Armijo settlement       (68,862)                                           (150)                       (150)
Comprehensive other income
   Gain on marketable securities                                                  666                                    666
                                      -----------   ---------   ----------  ----------   --------   ------------   ----------
Balances, Dec 31, 2007                 8,924,583           9        7,552       2,149       (150)           314        9,874

Net income                                                                                                2,066        2,066
   Warrants exercised                    100,000                        5                                                  5
Comprehensive other income                                                                                                 -
   Gain on marketable securities                                               (2,149)                                (2,149)
   Adjust for minority interest                                       (11)                                  (24)         (35)


                                      -----------   ---------   ----------  ----------   --------   ------------   ----------
Balances - June 30, 2008               9,024,583         $ 9      $ 7,546         $ -     $ (150)       $ 2,356      $ 9,761
                                      ===========   =========   ==========  ==========   ========   ============   ==========




        The accompanying notes to consolidated financial statements are an integral part of these statements
                                                      F-4
</TABLE>

<PAGE>


                NAVIDEC FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 For the Six Months Ended June 30, 2008 and 2007
                                   (Unaudited)

NOTE 1 - ORGANIZATION

Navidec  Financial  Services,  Inc.  ("NFS" or "Company")  was  incorporated  in
December 2002, as a wholly owned subsidiary of Navidec Inc. ("Old Navidec").  In
September  2004,  Old Navidec  consummated a reverse  merger  agreement with BPZ
Energy, Inc. a Texas corporation established in 2001 ("BPZ") whereby Old Navidec
transferred all of its asset, liabilities and historical operations into NFS and
Old  Navidec  changed its name to BPZ Energy  Inc.  Also  pursuant to the merger
agreement,  Old Navidec affected a one share of NFS for one share of Old Navidec
spin off to the shareholders of record of Old Navidec.

NFS is now a holding  company that is in the business of creating or acquiring a
controlling  interest in development  stage  enterprises with the expectation of
further developing the enterprise and then taking the enterprise public.

On September  11,  2003,  Old Navidec  purchased  an 80% interest in  Northsight
Mortgage Group, LLC ("NMG"),  an Arizona  mortgage broker.  NFS received the 80%
interest in NMG as part of the merger  agreement  with BPZ. On May 4, 2005,  the
Company formed Navidec Mortgage Holdings,  Inc., a Colorado corporation ("NMH"),
as a subsidiary of NFS and received  2,000,000 common shares of NMH. On November
11, 2007, NMH amended its articles of  incorporation in order to change its name
to Northsight, Inc. ("Northsight").

On October 12, 2007, NFS exchanged its 80% interest in NMG for 3,000,000  common
shares of Northsight to bring the total common shares of Northsight owned by NFS
to  5,000,000  shares.  On October  12,  2007,  Northsight  then  purchased  the
remaining  20%  minority  interest in NMG from the  minority  member for 100,000
shares  of  Northsight.  As a  result  of  this  transaction,  NFS  owns  98% of
Northsight and the former minority member of NMG owns 2% of Northsight.

On July 9, 2008, the board of directors of NFS declared a dividend  distribution
of a Unit of Northsight,  Inc ("Northsight").  The Units will be distributed one
Unit of Northsight  for each 2.27336 shares of Navidec.  Navidec  currently owns
20,000,000 Units of Northsight.  Navidec will distribute  4,000,000 Units to its
shareholders   resulting  in  Navidec  owning   16,000,000  after  the  dividend
distribution.  The Northsight  Units to be distributed will consist of one share
of Northsight,  a Northsight A Purchase Warrant,  exercisable at $2.00 per share
until July 1,  2013,  and a B Purchase  Warrant  exercisable  at $4.00 per share
until July 1, 2013.

Starting  in July  2007,  NFS  began  lending  money  to  Northsight  to  enable
Northsight  to make short term,  first deed of trust  secured loans to borrowers
who are purchasing  deeply  discounted or foreclosed  residential real estate in
Arizona and  Colorado.  During the year ended  December 31,  2007,  NFS had lent
Northsight approximately  $5,826,000.  The loans to Northsight yield 12% and are
callable on demand by NFS. As of June 30, 2008, NFS had approximately $6,030,000
(net of  allowance)  and as of December  31, 2007 had  $2,204,000  in short term
bridge loans  outstanding.  Short term bridge loans  outstanding grew by 174% in
the six months ended June 30, 2008 compared to December 31, 2007 balances.

During the  quarter  ended June 30,  2008,  we  incurred  an  operating  loss of
approximately  $1,506,000  compared to an  operating  loss of  $446,000  for the
quarter  ending March 31,  2008.  The increase in the loss is largely due to the
Company establishing  reserves against notes receivable and real estate owned in
the amount of $1,483,000.

<PAGE>

During the quarter  ending June 30, 2008, the Company sold 174,813 shares of BPZ
Energy in the open market at an average price per share of $23.33. This activity
produced a onetime gain, before taxes, of approximately $3,027,000. Other income
contributed an additional approximate $6,000. During the quarter ending June 30,
2008, the Company liquidated all of their position in BPZ Energy.

Southie   Development,   LLC  (Southie)  was  formed  in  January  2008  and  is
wholly-owned  by NFS.  The  purpose of Southie  is to develop  residential  real
estate for resale and to own and manage  residential  real estate  acquired  via
default of real estate loans owned by NFS. Once a real estate loan defaults, NFS
transfers the property to Southie for development and management. As part of the
management and  development of the properties  transferred to it, Southie honors
any  existing   residential   leases,   will   potentially   expend  monies  for
rehabilitation  of the property with the goal of selling the property in a short
time  period,  usually  less than one year.  However,  if the Company  deems the
property to be a good longer term  investment,  they might hold the property for
longer periods.

The Company  purchased a home in South Boston on December 4, 2007 (Thomas  Park)
and began improving the property with the intent to construct three  condominium
units for resale.  The purchase price was $1,200,000  plus closing costs.  As of
May 19,  2008,  the  Company  acquired  a  $1,200,000  line with Mt.  Washington
Cooperative  Bank for the  development  of Thomas Park. The line is due November
19, 2009, monthly interest only payments, with a prime plus 2% interest rate and
an interest rate floor of 7%. As of June 30, 2008, the balance owed on this line
was $558,000.  As of June 30, 2008, the Company had invested $1,890,000 less the
bank line of $558,000. The Company estimates that construction will be completed
by October 2008.

Jaguar Group Investments, LLC

In February  2008,  our  subsidiary,  Northsight  entered  into a joint  venture
agreement  with  Jaguar  Group,  LLC.  The  purpose of this joint  venture is to
provide wholesale financing loan products to the real estate mortgage industry.

Northsight  purchased 50% equity and voting interest in Jaguar Investment Group,
LLC (Jaguar) and the remaining  50% is owned by Jaguar  Group,  LLC. Each equity
interest was purchased for $4 million  dollars,  to be in the form of cash, real
estate equity, and/or any form of consideration agreed by both members.

At this time,  the joint  venture  has not been fully  funded.  The  Company has
committed  $1,100,000  toward the joint venture and recognizes  this amount as a
short term note receivable. The Company also has approximately $291,000 in loans
waiting to be funded by Jaguar. The Company has reserved  approximately $423,000
against the short term note receivable and the  receivable.  It is the Company's
intent to continue their involvement in this joint venture.


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INTERIM PRESENATION

The unaudited  consolidated  financial  statements and related notes for the six
months  ended  June  30,  2008,  presented  herein  have  been  prepared  by the
management of NFS and its subsidiaries  pursuant to the rules and regulations of
the Securities and Exchange  Commission.  Accordingly,  certain  information and
footnote  disclosures  normally  included in  financial  statements  prepared in
accordance  with  generally  accepted  accounting  principles  have been omitted
pursuant  to such rules and  regulations.  Operating  results for the six months

<PAGE>

ended June 30, 2008 are not  necessarily  indicative  of the results that may be
expected for the full year. It is suggested  that these  unaudited  consolidated
financial  statements be read in conjunction  with the December 31, 2007 audited
consolidated financial statements.

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

PRINCIPLES OF CONSOLIDATION

The accompanying  consolidated  financial statements include the accounts of NFS
and its subsidiary,  Northsight,  Inc.,  Northsight  Mortgage  formerly known as
Navidec Mortgage Holdings,  Inc., and Southie Development,  LLC. NFS owns 98% of
Northsight and the former minority member or Northsight Mortgage Group, LLC owns
2%  of  Northsight,  Inc.  NFS  owns  100%  of  Southie  Development,  LLC.  All
significant  inter-company  balances and  transactions  have been  eliminated in
consolidation.

USE OF ESTIMATES

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

CASH AND CASH EQUIVALENTS

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

CONCENTRATION OF CREDIT RISK

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

NFS  performs  ongoing  evaluations  of its  clients'  financial  condition  and
generally  does not require  collateral,  except for billings in advance of work
performed.  Management reviews accounts receivable  periodically and reduces the
carrying  amount  by a  valuation  allowance  that  reflects  management's  best
estimate  of  amounts  that  may not be  collectible.  Allowances,  if any,  for
uncollectible   accounts   receivable  are  determined  based  upon  information
available  and  historical  experience.  There was no  allowance at December 31,
2007.

However,  during the three months ended June 30, 2008 management  felt, based on
prevailing  market  conditions,  that it was  necessary  to establish a reserve.
During the three months ended June 30, 2008, a reserve of approximately $853,000
was established for short term notes  receivable and a reserve of  approximately
$198,000 was established for the real estate owned by the Company.

No sales to  unaffiliated  customers  represented  10% or more of the  Company's
revenue for the six months ended June 30, 2008.


<PAGE>

INVESTMENTS

Investments  in  publicly  traded  equity  securities  over  which  NFS does not
exercise  significant  influence are recorded at market value in accordance with
Financial   Accounting  Statement  ("FAS")  No.  115,  "Accounting  for  Certain
Investments in Debt and Equity  Securities,"  which requires that all applicable
investments be classified as trading  securities,  available for sale securities
or  held-to-maturity   securities.   The  Company  has  investments  treated  as
available-for-sale  securities  that are restricted from sale in the open market
under  Section 144 and have limited  trading  volume.  There can be no assurance
that we will realize the recorded  value of this  investment  due to the size of
the investment and its limited trading volume. Comprehensive income includes net
income or loss and changes in equity from the market price  variations  in stock
and  warrants  held by the Company.  The  Company's  comprehensive  gain for the
quarter ended June 30, 2008 was approximately $3,052,000.

Investments in non-publicly  traded equity securities or  non-marketable  equity
securities are stated at the lower of cost or estimated realizable value.

FAIR VALUE OF FINANCIAL INSTRUMENTS

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

REVENUE RECOGNITION

Interest Revenues

Revenues  from  interest  are  recorded  at the time  they are  earned  thus the
revenues  shown are for  interest  actually  received  and the accruals for that
which is due to the Company. Interest revenues for the six months ended June 30,
2008 were  approximately  $169,000 ($123,000 for the three months ended June 30,
2008).

Mortgage Revenues

The Company  primarily  recognizes its operating revenue through its subsidiary,
Northsight,  Inc.,  by  charging  origination  fees from  borrowers  and earning
interest and penalty fees on outstanding  loan balances.  Northsight  recognizes
fee and interest income on bridge,  asset and conventional  mortgage loans after
mortgage  loan  transactions  close.  Northsight  accrues  interest  and penalty
interest income at the end of each quarter.

INCOME TAXES

Provision for income taxes represents actual or estimated amounts payable on tax
return filings each year.  Deferred tax assets and  liabilities are recorded for
the estimated future tax effects of temporary  differences between the tax basis
of assets and  liabilities  and  amounts  reported in the  accompanying  balance
sheets,  and for  operating  loss and tax credit carry  forwards.  The change in
deferred  tax assets and  liabilities  for the period  measures the deferred tax
provision  or benefit for the period.  Effects of changes in enacted tax laws on
deferred  tax assets and  liabilities  are  reflected as  adjustment  to the tax
provision  or benefit in the period of  enactment.  NFS deferred tax assets have
been  reduced by a valuation  allowance  to the extent it was deemed more likely
than not, that some or all of the deferred tax assets would not be realized.

<PAGE>

At  June  30,  2008,  the  Company  had  an  accrued  income  tax  liability  of
approximately  $842,000  related  primarily to profits  generated on the sale of
stock assets.

ACCRUALS

The Company follows the practice of paying all bills when received and therefore
has not accrued any expenses.

STOCK BASED COMPENSATION

Beginning  January 1, 2006,  the Company  adopted the provisions of and accounts
for   stock-based   compensation  in  accordance  with  Statement  of  Financial
Accounting  Standards  (SFAS) No. 123 - revised  2004 (SFAS  123R),  Share-Based
Payment,  which  replaced SFAS No. 123 (SFAS 123),  Accounting  for  Stock-based
Compensation,  and supersedes APB Opinion No. 25 (APB 25),  Accounting for Stock
Issued  to  Employees.  Under  the fair  value  recognition  provisions  of this
statement,  stock-based compensation cost is measured at the grant date based on
the fair value of the award and is  recognized  as  expense  on a  straight-line
basis over the requisite service period,  which generally is the vesting period.
The Company elected the  modified-prospective  method, under which prior periods
are not revised for comparative purposes.  The valuation provisions of SFAS 123R
apply to new grants and to grants that were outstanding as of the effective date
and are subsequently modified.

All options  granted prior to the adoption of SFAS 123R and  outstanding  during
the periods presented were fully-vested at the date of adoption.

NET INCOME (LOSS) PER SHARE

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

The dilutive effect of approximately  7,464,000 options and warrants at June 30,
2008, has been included in the determination of diluted earnings per share.

COMPREHENSIVE INCOME (LOSS)

Comprehensive  income  (loss)  includes net income or loss and changes in equity
from the market price  variations  in the BPZ stock held by the Company.  During
the three months ended June 30, 2008,  all of the  remaining  shares of BPZ were
sold representing a gain of approximately $3,207,000 and a gain of approximately
$5,381,000 for the six months ending June 30, 2008.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In  February  2007,  the FASB issued  SFAS No.  159,  The Fair Value  Option for
Financial Assets and Financial  Liabilities (SFAS No. 159). SFAS No. 159 permits
entities to choose to measure,  on an item-by-item  basis,  specified  financial
instruments and certain other items at fair value.  Unrealized  gains and losses
on items for which the fair value  option has been  elected  are  required to be
reported in earnings  at each  reporting  date.  SFAS No. 159 is  effective  for
fiscal years  beginning  after  November 15, 2007,  the  provisions of which are
required to be applied prospectively. We believe that SFAS 159 should not have a
material impact on our financial position or results of operations

<PAGE>

In  December  2007,  the FASB  issued  SFAS No.  141  (Revised  2007),  Business
Combinations,  or SFAS No. 141R.  SFAS No. 141R will change the  accounting  for
business combinations. Under SFAS No. 141R, an acquiring entity will be required
to recognize all the assets acquired and liabilities assumed in a transaction at
the  acquisition-date  fair value with  limited  exceptions.  SFAS No. 141R will
change the accounting  treatment and disclosure for certain  specific items in a
business   combination.   SFAS  No.  141R  applies   prospectively  to  business
combinations  for which the acquisition date is on or after the beginning of the
first  annual  reporting  period  beginning  on  or  after  December  15,  2008.
Accordingly,  any  business  combinations  we  engage  in will be  recorded  and
disclosed following existing GAAP until January 1, 2009. We expect SFAS No. 141R
will have an impact on accounting for business combinations once adopted but the
effect is dependent upon  acquisitions  at that time. We are still assessing the
impact of this pronouncement.

In December  2007,  the FASB issued SFAS No. 160,  "Noncontrolling  Interests in
Consolidated Financial Statements--An Amendment of ARB No. 51, or SFAS No. 160".
SFAS  No.  160  establishes  new  accounting  and  reporting  standards  for the
noncontrolling  interest  in a  subsidiary  and  for  the  deconsolidation  of a
subsidiary.  SFAS No. 160 is effective  for fiscal  years  beginning on or after
December 15, 2008. We believe that SFAS 160 should not have a material impact on
our financial position or results of operations.

In March  2008,  the FASB  issued  SFAS No.  161  Disclosures  about  Derivative
Instruments and Hedging Activities.  SFAS No. 161 requires additional disclosure
related to derivatives  instruments  and hedging  activities.  The provisions of
SFAS No. 161 are  effective  as of January 1, 2008 and the Company is  currently
evaluating the impact of adoption.

NOTE 3 - INVESTMENT IN BPZ

Upon  consummation  of the merger  transaction  between Old Navidec and BPZ, BPZ
issued  604,246  shares of its common stock to NFS.  These shares were issued in
consideration of NFS's  assumption of all of the pre-merger  business assets and
liabilities of Old Navidec.  These shares qualify as "marketable  securities" as
that term is defined by SFAS 115 (and as further  defined in  Footnote 2 to that
Statement). Under this definition, if the equity security is restricted for sale
by a  governmental  or other  contractual  requirement,  but the  holder  of the
security has the power to cause such  requirement  of restriction to be met in a
manner that the security would reasonably be expected to qualify for sale within
one year,  the security is not  considered  restricted  for the purposes of SFAS
115. As such, we are required to record our  investment  in these  securities at
their fair value.

The Company's  "investments in BPZ," of 300,000 shares were valued at $3,354,000
on December 31, 2007. The Company held no shares of BPZ at June 30, 2008.

NOTE 4 - NOTES RECEIVABLE

During the year ended December 31, 2007, we entered a transaction  with a former
officer of the Company, Mr. Robert Grizzle. In exchange for Mr. Grizzle's shares
in the  Company,  on May 3,  2007,  Mr.  Grizzle  executed  a note  payable  for
$450,000. The note carries an 8% interest rate and is secured by 1,000,000 Aegis
common shares, 1,500,000 Aegis preferred shares, 220,000 shares of the Company's
common  stock and 200,000  options to purchase  shares of the  Company's  common
stock at $0.05 per share  held by Mr.  Grizzle.  The note is a limited  recourse
note whereby Mr.  Grizzle is  personally  responsible  for one half the original
principal  and  interest.  The balance  owed is secured by Mr.  Grizzle's  Aegis
common and preferred  shares and the Company's common stock.  Further,  the note
provides  that at the earlier of one year from the date that the common stock of
the Company is publicly traded and his shares are registered for resale under an
effective  registration  statement filed by the Company or December 31, 2009. On
September 30, 2007, Mr. Grizzle resigned as the Chief Operating  Officer and the
Chief Financial Officer of the Company.

<PAGE>

In July 2007, Northsight, Inc. (formerly Navidec Mortgage Holdings, Inc.), a 98%
owned subsidiary of the Company,  began making short term loans to purchasers of
residential  properties  who  purchase  their  property  as part of or after the
repossession in a foreclosure  proceeding.  As of June 30, 2008, the Company had
made  approximately  $6,030,000 in such loans.  The loans are made  primarily to
good  credit  borrowers  and are secured by a first  mortgage  on the  purchased
properties.  The average numbers of days outstanding for the loans are less than
90 days,  and the primary  takeout on the loans is long term  financing  through
secondary sources such as the Federal National Mortgage Association.

As of December 31, 2007,  the Company had  $2,204,000 in short term bridge loans
outstanding.  Short term bridge loans outstanding grew by 174% in the six months
ended June 30, 2008 compared to December 31, 2007 balances. This increase is due
to increased marketing of the short term loan offering by the Company.

In June 2008, the Company transferred the ownership of the short term loans from
Northsight,  Inc. to the Company.  Due to this  transfer,  the Company funds and
owns the loans. There is no longer an intercompany transfer of funds.

On December 13, 2007,  Northsight,  Inc.  (formerly  Navidec Mortgage  Holdings,
Inc.)  entered  into a loan  agreement  with  Welend  Associated  Group,  LLC, a
Colorado limited  liability  company and Jaguar Group,  LLC, (Jaguar) a Colorado
limited  liability  company,  each with joint and  severable  liability,  in the
amount of $1,100,000. The note carries an interest rate of 0% and has a maturity
date of six months from the date of the note.  As  consideration  for making the
loan to Jaguar,  the Company  received is able to utilize  Jaguar's line funding
capabilities  through  third  party  lenders.  Security  for the note is a first
security  interest in the debtor's  warehouse line of credit with Colorado State
Bank.  As of June 30,  2008 there is an  additional  receivable  from Jaguar for
approximately  $291,000 which  represents loans funded by NFS but not yet funded
by Jaguar.  Further,  as of June 30, 2008,  there $968,200 in payables to Jaguar
representing loans made by NFS that are owed to Jaguar.

Subsequent to June 30, 2008, NFS became aware of  operational  issues at Jaguar.
Based on this concern, management decided to reserve for the net receivable owed
from Jaguar,  which, as for June 30, 2008 was the note receivable from Jaguar or
$1,100,000,  the account  receivable  from Jaguar of $291,323,  less the payable
owing to Jaguar of $968,200, for a net reserve of $423,132.

NOTE 5 - INVESTMENTS

In December  2007,  Northsight,  Inc. (a 98% owned  subsidiary  of the  Company)
purchased  a 3 unit  property  in Boston,  Massachusetts.  The  objective  is to
rehabilitate  the property and then sell it. During the quarter  ending June 30,
2008,  this property was transferred to Southie  Development,  LLC (a 100% owned
subsidiary of the Company).  As of June 30, 2008,  the Company and  subsidiaries
had invested a total of approximately  $1,890,000 in the property.  Part of this
investment  is  funded  by a  $1,200,000  line of  credit  from  Mt.  Washington
Cooperative Bank, which $558,000 was due on this line as of June 30, 2008.

On December 20, 2007, the subsidiary,  Northsight,  Inc.  repossessed a property
with  a  value  of  $359,564  securing  one  of  its  short  term  loans  due to
non-payment.  During the quarter  ended March 31, 2008,  the Company took back a
second  property  with a value of $280,663 for  non-payment.  During the quarter
ended June 30, 2008, the Company  acquired another property via repossession for
$305,000 and  recognized  at the loan  balance and placed the property  into its
inventory.  The Company has expended fix up costs on these  properties  and have
added the cost to the valuation.  All of these  properties are held as inventory
and provide rental income to the Company.  The properties may be held to rent or
may be sold in the future.  For the quarter  ending June 30, 2008, the valuation
of these real estate owned  properties  is $988,711  less a reserve of $197,742,
for a net  inventory  balance of $790,969.  It is  management's  belief that the
carrying value of these properties is less than the fair market value.

<PAGE>

During  the  quarter  ending  June  30,  2008,  the  Company  transferred  these
properties  from its  subsidiary,  Northsight,  Inc.  to its  other  subsidiary,
Southie Developments LLC.

NOTE 6 - CAPITAL LEASES OBLIGATIONS

NFS acquired no property under capital lease arrangements  during the six months
ended June 30, 2008 or 2007.

NOTE 7 - SHORT TERM BORROWINGS

During the six months ended June 30, 2008, the Company's subsidiary  Northsight,
Inc. arranged for a bank line of credit. During the three months ended March 31,
2008, the subsidiary had drawn a total of approximately $155,000 against a total
line of  $3,000,000.  During the three months  ended June 30, 2008,  the Company
paid the  outstanding  amount on the line and at June 30,  2008 owes  nothing on
this line. The line expires on August 31, 2008,  and it is the Company's  intent
not to renew this line.

During the quarter ending June 30, 2008, the Company arranged for a construction
line of credit for $1,200,000,  due November,  2009. Proceeds from this line are
used  strictly for the  renovation  of the property in Boston with the intent to
resale.  As for June 30, 2008, the balance  outstanding  was $558,336.  See also
Note 5.

NOTE 8 - SUBSIDIARIES

The accompanying  consolidated  financial statements include the accounts of NFS
and its subsidiary, Northsight, Inc. (formerly called Navidec Mortgage Holdings,
Inc), its subsidiary Northsight Mortgage Group, LLC. of Phoenix, Arizona, and is
subsidiary, Southie Development, LLC. All significant inter-company balances and
transactions have been eliminated in consolidation.

We are  currently  operating in the  mortgage  services  sector.  During the six
months ended June 30, 2008, the revenues for the mortgage services and brokerage
business were  approximately  $454,000 ($351,000 for the three months ended June
30,  2008).  During  the six  months  ended  June 30,  2007,  mortgage  services
generated approximately $156,000 in revenues. During the three months ended June
30,  2008,  we incurred a loss from  operations  of  $1,506,000.  During the six
months ended June 30, 2007, we incurred a loss from operations of  approximately
$2,094,000.

Northsight  is focused on the  Arizona  and  Colorado  mortgage  markets  and is
primarily  engaged in the business of marketing and brokering  mortgages secured
by real estate with an emphasis on  providing  credit  worthy  individuals  with
interim  financing  for the purchase of  repossessed  or  auctioned  residential
properties.

Operating results for each of the segments of the Company are as follows:

<TABLE>
<CAPTION>

                                               For the Six Months Ended                    For the Six Months Ended
                                                    June 30, 2008                                June 30, 2007
                                                 (Data in thousands)                          (Data in thousands)
                                        ---------------------------------------      --------------------------------------

                                          Navidec      Northsight    Southie           Navidec      Northsight    Southie
                                         Financial        Inc          LLC            Financial        Inc          LLC
                                          Services                                     Services
                                        ------------- ------------- -----------      ------------- ------------- ----------
<S>                                     <C>           <C>           <C>              <C>           <C>           <C>
Revenue
  Sales                                  $       -     $      623                     $      -      $    380       $     -
  Cost of Sales                                               191
                                        ------------- ------------- -----------      ------------- ------------- ----------

<PAGE>

Gross Profit                                     -            432         -                  -           380             -

Operating Expenses
  General and Administrative                 1,917            408       198                378           460

  Depreciation                                                  3                            4
                                        ------------- ------------- -----------      ------------- ------------- ----------

Total Operating Expenses                     1,917            411       198                382           460             -

Other Income/(Expense)
  Gain on sale of investments                5,422                                       1,067
  Net rental Income                                                       7
  Interest income                               23                                          52
  Interest expense                              (3)           (23)

  Other income/(expense)                       (70)             -
                                        ------------- ------------- -----------      ------------- ------------- ----------

Total Other Income/(Expense)                 5,372            (23)        7              1,119             -             -

Income Taxes                                (1,196)


Net Income (Loss)                        $   2,259    $        (2)  $  (191)               737           (80)            -
                                        ============= ============= ===========      ============= ============= ==========
</TABLE>

NOTE 9 - EQUITY TRANSACTIONS

COMMON STOCK

During the three  months  ended June 30,  2008,  the  Company  did not issue any
shares of its common stock.

STOCK OPTIONS

During  the six  months  ended  June 30,  2008,  a  shareholder  of the  Company
exercised  options  exercisable  for 100,000 shares of the Company's  restricted
common stock at $0.05 per share.

During the six months ended June 30, 2008, no options expired.

At June 30, 2008, all outstanding and exercisable options were fully vested. The
aggregate  intrinsic  value of outstanding  fully-vested  options as of June 30,
2008 was approximately $1,165,000.

A summary of the option plan is as follows:

                                                         2008
                                                              Weighted Average
                                              Shares           Exercise Price

Outstanding,  January 1, 2008                  3,681,510         $     1.18
  Granted                                              -                  -
  Cancelled                                            -                  -
  Expired                                              -                  -
  Exercised                                     (100,000)                 -
                                               ---------          ---------
Outstanding, June 30, 2008                     3,581,510          $    1.18
                                               =========          =========
Options Exercisable , June 30, 2008            3,581,510          $    1.18
                                               =========          =========

WARRANTS

At June  30,  2008,  the  following  warrants  to  purchase  common  stock  were
outstanding:

<PAGE>

       Number of common
  shares 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


During  the six  months  ended  June 30,  2008 the  Company  did not  issue  any
warrants.

NOTE 10 - COMMITMENTS AND CONTINGENCIES

OPERATING LEASES

In February  2008,  the Company  along with its  subsidiary,  Northsight  opened
offices at 2000 S. Colorado Blvd,  Suite 200,  Denver,  Colorado.  The lease for
this  office  is  approximately  $4,601  per  month.  The  lease  has a term  of
approximately 3 years.

DEFINED CONTRIBUTION PLAN

NFS has a 401(k)  profit  sharing  plan (the  "Plan").  Subject to  limitations,
eligible  employees may make  voluntary  contributions  to the Plan. The Company
may, at its discretion,  make additional  contributions to the Plan. The Company
did not contribute during the quarter ended June 30, 2008.

NOTE 11 - SUBSEQUENT EVENTS

On July 1, 2008, the Company awarded  options to purchase  200,000 shares of the
Company's stock at $2.00 per share to a newly appointed  director.  One-third of
these  shares vest upon the granting  date,  1/3 of the shares in 12 months from
the grant date and the  remaining  amount in two years from the grant date.  The
term of the option agreement is 10 years.

On July 28, 2008, the Company awarded options to purchase  200,000 shares of the
Company's  stock at $2.00 per share to a new  employee.  One-third of the shares
vest in 12 months of the grant date,  1/3 of the shares vest in 24 months of the
grant date and the remaining  vest in 36 months from the grant date. The term of
the option agreement is 10 years.

On July 9,  2008,  The Board of  Directors  of  Navidec  declared  two  dividend
distributions for its shareholders as of September 8, 2008, record date.

The first dividend is a distribution of two Navidec  Warrants to purchase common
shares of Navidec, $.001 par value, for each share of Navidec. The Units consist
of an A Warrant,  exercisable  at $2.00 per share  until  July 1, 2013,  and a B
Warrant exercisable at $4.00 per share until July 1, 2013.

The second dividend is distribution of a Unit of Northsight, Inc ("Northsight").
The Units will be distributed  one Unit of Northsight for each 2.27336 shares of
Navidec.  Navidec  currently owns 20,000,000  Units of Northsight.  Navidec will
distribute  4,000,000  Units to its  shareholders  resulting  in Navidec  owning
16,000,000  after  the  dividend  distribution.   The  Northsight  Units  to  be
distributed  will  consist of one share of  Northsight,  a Northsight A Purchase
Warrant,  exercisable  at $2.00 per share  until July 1, 2013,  and a B Purchase
Warrant exercisable at $4.00 per share until July 1, 2013.


<PAGE>


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

The  following  discussion  should  be read in  conjunction  with our  unaudited
financial  statements and notes thereto included herein. In connection with, and
because we desire to take  advantage  of, the "safe  harbor"  provisions  of the
Private  Securities  Litigation Reform Act of 1995, we caution readers regarding
certain forward looking statements in the following  discussion and elsewhere in
this report and in any other statement made by, or on our behalf, whether or not
in future filings with the Securities and Exchange  Commission.  Forward-looking
statements are statements not based on historical  information  and which relate
to future  operations,  strategies,  financial  results  or other  developments.
Forward looking  statements are necessarily based upon estimates and assumptions
that are inherently  subject to significant  business,  economic and competitive
uncertainties and  contingencies,  many of which are beyond our control and many
of which,  with  respect to future  business  decisions,  are subject to change.
These  uncertainties and contingencies can affect actual results and could cause
actual results to differ  materially from those expressed in any forward looking
statements  made by, or on our behalf.  We  disclaim  any  obligation  to update
forward-looking statements.

OVERVIEW

NFS is a holding  company  that is in the  business of  creating or  acquiring a
controlling  interest in development  stage  enterprises with the expectation of
further developing the enterprise and then taking the enterprise public.

NFS owns 98% of its subsidiary,  Northsight, Inc. ("Northsight").  Northsight is
focused on the Arizona (through its subsidiary Northsight, Mortgages Group, LLC)
and  Colorado  mortgage  markets  and is  primarily  engaged in the  business of
marketing  and  brokering  mortgages  secured by real estate with an emphasis on
providing credit worthy  individuals with interim  financing for the purchase of
repossessed or auctioned residential properties.

In February  2008,  our  subsidiary,  Northsight  entered  into a joint  venture
agreement  with Jaguar Group,  LLC.  Northsight  purchased 50% equity and voting
interest in Jaguar  Investment  Group, LLC ("Jaguar  Investment  Group") and the
remaining 50% is owned by Jaguar Group,  LLC. Each equity interest was purchased
for $4 million dollars, in the form of cash, real estate equity, and/or any form
of consideration  agreed by both members.  The joint venture is to provide whole
sale financing loan products to the real estate mortgage industry.

In January 2008,  the Company  formed  Southie  Development,  LLC (Southie) as a
wholly-owned subsidiary of NFS. The purpose of Southie is to develop residential
real estate for resale and to own and manage  residential  real estate  acquired
via default of real estate loans owned by NFS. Once a real estate loan defaults,
NFS transfers the property to Southie for development and management. As part of
the  management and  development  of the  properties  transferred to it, Southie
honors any existing  residential  leases,  will  potentially  expend  monies for
rehabilitation  of the property with the goal of selling the property in a short
time period, usually less than one year.

On July 1, 2008,  Ms. Jolee Henry was appointed to the Board of  Directors.  Ms.
Henry received an option  exercisable  for 200,000 shares of the Company's stock
at $2.00 per share.  One-third of these shares vest upon the granting  date, 1/3
of the shares in 12 months from the grant date and the  remaining  amount in two
years from the grant date. The term of the option agreement is 10 years.

On July 9,  2008,  The Board of  Directors  of  Navidec  declared  two  dividend
distributions for its shareholders as of September 8, 2008, record date.

<PAGE>

The first dividend is a distribution of two Navidec  Warrants to purchase common
shares of Navidec, $.001 par value, for each share of Navidec. The Units consist
of an A Warrant,  exercisable  at $2.00 per share  until  July 1, 2013,  and a B
Warrant exercisable at $4.00 per share until July 1, 2013.

The second dividend is distribution of a Unit of Northsight, Inc ("Northsight").
The Units will be distributed  one Unit of Northsight for each 2.27336 shares of
Navidec.  Navidec  currently owns 20,000,000  Units of Northsight.  Navidec will
distribute  4,000,000  Units to its  shareholders  resulting  in Navidec  owning
16,000,000  after  the  dividend  distribution.   The  Northsight  Units  to  be
distributed  will  consist of one share of  Northsight,  a Northsight A Purchase
Warrant,  exercisable  at $2.00 per share  until July 1, 2013,  and a B Purchase
Warrant exercisable at $4.00 per share until July 1, 2013.

On  July  31,  2008,  President  Bush  signed  into  law a  package  of  housing
legislation called the Federal Housing and Economic Recovery Act that is largely
focused on safeguarding  Fannie Mae and Freddie Mac. While it still is too early
to gauge the impact of this legislation on the Company,  management  believes it
would have no material negative impact, and could assist in mortgage  operations
going forward.


RESULTS OF OPERATIONS

For the Three Months Ended June 30, 2008 compared to the Three Months Ended June
30, 2007

During  the  three  months  ended  June  30,  2008,  we   recognized   sales  of
approximately  $351,000 from the activities of our subsidiary Northsight and its
subsidiary   Northsight   Mortgage  Group,  LLC.  The  sales  are  a  result  of
Northsight's  originating  residential  mortgage loans.  During the three months
ended June 30, 2007, we recognized  sales of $156,000.  The increase of $195,000
was a result of the  development  of a new  bridge  loan  program  that  enables
purchasers to acquire discounted residential real estate.

During the three  months ended June 30,  2008,  we incurred  $120,000 in cost of
sales.  During the period ended June 30, 2007, we did not recognize any costs in
connection with our sales.

During the three months ended June 30, 2008, we recognized a gross profit margin
of $354,000  compared to $156,000 for the three months ended June 30, 2007.  The
increase of $198,000  was a result of  increased  mortgage  loan  activity,  but
reduced by a change in accounting policies whereby we now recognize salaries and
consulting  services  as part of the  cost of  sales  in  Northsight's  mortgage
operations.

During the three  months  ended  June 30,  2008,  we  incurred  total  operating
expenses of $1,860,000  compared to $448,000  during the three months ended June
30, 2007. The increase of $1,412,000 is a result of  establishing  loan loss and
real estate own reserves  totaling  approximately  $1,483,000.  During the three
months  ended June 30, 2008 we incurred  general and  administrative  expense of
$1,858,000 compared to $446,000 during the three months ended June 30, 2007.

During  the three  months  ended  June 30,  2008,  we  recognized  net income of
$611,000  compared to $626,000  during the three months ended June 30, 2007. The
decrease  of $15,000  was  largely  the result of the  $3,052,000  gain less tax
accrual of $941,000 on the sale of shares we hold for investment,  including BPZ
Petroleum and the establishment of loan reserves of $1,483,000. During the three
months  ended  March  31,  2008,  we sold  150,000  shares  of BPZ  for  cash of
approximately $2,385,000 and during the three months ended June 30, 2008 we sold
184,813  shares of BPZ for a gain of  $3,207,000.  Proceeds  were used to expand
Northsight's  mortgage  operations,  create our bridge loan product and increase
our bridge loan portfolio.


<PAGE>


For the Six Months Ended June 30, 2008 compared to the Six Months Ended June 30,
2007

During the six months ended June 30, 2008, we recognized  sales of $454,000 from
the  activities  of our  subsidiary  Northsight  and its  subsidiary  Northsight
Mortgage  Group,  LLC.  The  sales  are a  result  of  Northsight's  originating
residential  mortgage  loans.  During the six months  ended  June 30,  2007,  we
recognized  sales of  $380,000.  The  increase  of  $74,000  was a result of the
development  of a new bridge loan  program that  enables  purchasers  to acquire
discounted residential real estate.

During the six months  ended June 30,  2008,  we  incurred  $191,000  in cost of
sales.  During the period ended June 30, 2007, we did not recognize any costs in
connection with our sales.

During the six months ended June 30, 2008,  we  recognized a gross profit margin
of $432,000  compared to $380,000 for the six months  ended June 30,  2007.  The
increase  of $52,000 was a result of  increased  mortgage  activity  offset by a
change in accounting  policies whereby we now recognize  salaries and consulting
services as part of the cost of sales in Northsight's mortgage operations.

During the six months ended June 30, 2008, we incurred total operating  expenses
of  $2,526,000  compared to $842,000  during the six months ended June 30, 2007.
The  increase of  $1,684,000  is result of  establishing  a loan loss reserve of
$1,483,000 and a redirection of Northsight's  mortgage  operations to include an
emphasis on short term bridge loans and the opening of  Northsight's  offices in
Colorado and focus on the Colorado market, as seen in the increase of $1,685,000
in general and  administrative  expenses.  During the six months  ended June 30,
2008 we incurred general and  administrative  expense of $2,523,000  compared to
$838,000 during the six months ended June 30, 2007.

During  the six  months  ended  June 30,  2008,  we  recognized  net  income  of
$2,066,000  compared to $649,000  during the six months ended June 30, 2007. The
increase of $1,417,000 was a result of the  $5,381,000  gain less tax accrual of
$1,196,000  on the sale of shares  we hold in BPZ  Petroleum.  During  the three
months  ended  March  31,  2008,  we sold  150,000  shares  of BPZ  for  cash of
approximately $2,385,000 and during the three months ended June 30, 2008 we sold
184,813  shares of BPZ for a gain of  $3,207,000.  Proceeds  were used to expand
Northsight's  mortgage  operations,  create our bridge loan product and increase
our bridge loan portfolio.

LIQUIDITY

Net cash used by operating  activities during the six months ended June 30, 2008
was $5,072,000, compared to net cash provided in operating activities during the
six months  ended June 30, 2007 of $2,000.  During the six months ended June 30,
2008, the net cash provided  represented net income of $2,066,000,  adjusted for
the  non-cash  item of  depreciation  expense of  $3,000,  a gain on the sale of
investments of $5,412,000, and impairments of $1,483,000.

During the six months ended June 30,  2007,  the net cash used  represented  net
income of $649,000,  adjusted  certain non-cash items consisting of depreciation
expense of $2,000,  a gain on the sale of  investments  of  $1,067,000,  gain on
settlement of debt for $50,000, and a minority interest of $8,000.

During the six months ended June 30,  2008,  we provided  $5,516,000  in cash in
investing  activities.  We invested $39,000 in fixed assets,  $1,042,000 in real
estate in Boston,  Massachusetts,  $627,000 (net of  impairments) in real estate
owned,  $15,000 in other assets and a net of $7,209,000  from the sale of equity
investments.

During the six months ended June 30, 2007, we received  cash of $1,026,000  from
our investment activities, consisting solely of the sale of equity investments.

<PAGE>

During the six months  ended June 30, 2008,  net cash  provided  from  financing
activities was $5,000.  During the six months ended June 30, 2007, we recognized
$479,000 from the post-merger proceeds from exercise of BPZ options.

At June 30, 2008, we had total current assets of $8,976,000,  consisting of cash
of $1,873,000,  net mortgage receivables of $6,030,000, a net note receivable of
$677,000,  accrued  interest  receivable  of  $88,000,  accounts  receivable  of
$291,000 and an advance  receivable  of $17,000.  At June 30, 2008, we had total
current liabilities of $2,414,000, consisting of an accounts payable of $17,000,
short term  borrowings  of  $1,527,000  and  accrued  taxes and  liabilities  of
$870,000. Current assets exceed current liabilities by $6,562,000.

CRITICAL ACCOUNTING POLICIES

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

REVENUE RECOGNITION

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

REVENUES BUSINESS DEVELOPMENT SERVICES

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

REVENUES FROM MORTGAGE SERVICES

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

In July 2007 Navidec Mortgage  Holdings,  Inc., a wholly owned subsidiary of the
Company,  in conjunction with Northsight  Mortgage,  and 80% owned subsidiary of
the  Company  began  making  short  term  loans  to  purchasers  of  residential
properties who purchase their property as part of or after the repossession in a
foreclosure proceeding.  As of June 30, 2008, the Company had made $7,453,000 in
such loans that have yet to be placed  outside the  Company in a permanent  loan
takeout.  The loans are  secured  by first  deeds of trust on  residential  real
estate properties.

As of June 30, 2008,  the Company also holds  $570,000 in escrow for the benefit
of the property owners  recognized under short term loans. This is recognized as
a  reduction  on the total  amount of short  term  loans,  for a net short  term

<PAGE>

mortgage  receivable  of  $6,030,000.   This  balance  includes  a  reserve  for
uncollectible of $853,000.

RESERVES FOR BAD DEBT

NFS  receivables  are recorded net of an allowance for doubtful  accounts  which
requires  management to estimate  amounts due which may not be  collected.  This
estimate  requires   consideration  of  general  economic  conditions,   overall
historical trends related to the Company's  collection of receivables,  customer
specific payment history,  and customer specific factors affecting their ability
to pay amounts due.  Management  routinely  assesses and revises its estimate of
the allowance for doubtful accounts.

For the quarter ending June 30, 2008 NFS established a reserve against bad debts
as follows:

         Reserve for short term mortgages receivables         $853,000
         Reserve for Real Estate Owned                        $198,000
         Reserve for amounts owed from Jaguar                 $423,000


GOODWILL AND INTANGIBLE ASSETS

Intangible  assets are amortized on a  straight-line  basis over their estimated
useful lives. Goodwill is evaluated quarterly to determine if its value has been
impaired.  On September 11, 2003, Old Navidec entered into a purchase  agreement
with Northsight and its sole member that provided for the transfer of 80% of the
issued and outstanding  membership units of Northsight to Old Navidec  resulting
in the  realization  of $190,000  of  goodwill.  This  membership  interest  was
transferred  to NFS  pursuant to the terms of the merger  agreement.  Management
determined  that Goodwill  should be written off as an asset on its books during
the six months ended June 30,, 2008.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

NFS is exposed to the impact of interest  rate  changes and change in the market
values  of the  Company's  investments.  Based on NFS's  market  risk  sensitive
instruments  outstanding  as of  June  30,  2008,  as  described  below,  it has
determined  that there was no  material  market risk  exposure to the  Company's
consolidated financial position, results of operations, or cash flows as of such
date. NFS does not enter into  derivatives or other  financial  instruments  for
trading or speculative purposes.

INTEREST  RATE RISK - At June 30, 2008,  the  Company's  exposure to market rate
risk for changes in interest  rates relates  primarily to its mortgage  services
business.  NFS has not  used  derivative  financial  instruments  in its  credit
facilities.  A  hypothetical  10%  increase  in  the  Prime  rate  would  not be
significant to the Company's financial position,  results of operations, or cash
flows.

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

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

ITEM 3.  QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not Applicable


<PAGE>


ITEM 4.  CONTROLS AND PROCEDURES
Disclosures Controls and Procedures

We have adopted and maintain disclosure controls and procedures (as such term is
defined in Rules 13a 15(e) and 15d-15(e)  under the  Securities  Exchange Act of
1934,  as  amended  (the  "Exchange  Act"))  that are  designed  to ensure  that
information  required to be disclosed in our reports  under the Exchange Act, is
recorded,  processed,  summarized and reported within the time periods  required
under  the  SEC's  rules and forms  and that the  information  is  gathered  and
communicated to our management, including our Chief Executive Officer (Principal
Executive Officer) and Principal Financial Officer, as appropriate, to allow for
timely decisions regarding required disclosure.

As required by SEC Rule 15d-15(b),  Mr. McKowen, our Chief Executive Officer and
Principal  Accounting  Officer,  carried out an evaluation under the supervision
and with the participation of our management, of the effectiveness of the design
and operation of our disclosure controls and procedures pursuant to Exchange Act
Rule  15d-14 as of the end of the period  covered by this  report.  Based on the
foregoing evaluation, Mr. McKowen has concluded that our disclosure controls and
procedures  are  effective  in  timely  alerting  them to  material  information
required  to be  included  in  our  periodic  SEC  filings  and to  ensure  that
information  required to be disclosed in our periodic SEC filings is accumulated
and communicated to our management,  including our Chief Executive  Officer,  to
allow  timely  decisions  regarding  required  disclosure  as a  result  of  the
deficiency in our internal control over financial reporting discussed below.

ITEM 4T. CONTROLS AND PROCEDURES

Management's Quarterly Report on Internal Control over Financial Reporting.

Our management is responsible for establishing and maintaining adequate internal
control over financial  reporting for the company in accordance  with as defined
in Rules  13a-15(f) and 15d-15(f)  under the Exchange Act. Our internal  control
over financial  reporting is designed to provide reasonable  assurance regarding
the  reliability  of  financial  reporting  and  the  preparation  of  financial
statements  for  external   purposes  in  accordance  with  generally   accepted
accounting  principles.  Our internal control over financial  reporting includes
those policies and procedures that:

     (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

     (iii)     provide  reasonable  assurance  regarding  prevention  or  timely
               detection of unauthorized

Management's  assessment of the  effectiveness  of the small  business  issuer's
internal  control over  financial  reporting is as of the quarter ended June 30,
2008. We believe that internal control over financial reporting is effective. We
have not identified any, current material weaknesses  considering the nature and
extent of our current operations and any risks or errors in financial  reporting
under current operations.

Because of its inherent  limitations,  internal control over financial reporting
may not prevent or detect misstatements.  Also, projections of any evaluation of

<PAGE>

effectiveness to future periods are subject to the risk that controls may become
inadequate  because of changes in  conditions,  or that the degree of compliance
with the policies or procedures may deteriorate.

This quarterly  report does not include an  attestation  report of the Company's
registered  public  accounting  firm regarding  internal  control over financial
reporting.  Management's  report was not subject to attestation by the Company's
registered  public accounting firm pursuant to temporary rules of the Securities
and Exchange  Commission  that permit the Company to provide  only  management's
report in this annual report.

There  was no change in our  internal  control  over  financial  reporting  that
occurred  during the fiscal  quarter  ended June 30, 2008,  that has  materially
affected,  or is reasonably  likely to materially  affect,  our internal control
over financial reporting.


                           PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

                NONE

ITEM 2.  CHANGES IN SECURITIES

During the period of April 1, 2008 through  June 30,  2008,  the Company did not
make any sales of its unregistered securities.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

                NONE

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

               NONE.

ITEM 5.  OTHER INFORMATION

               NONE.


ITEM 6.  EXHIBITS

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

     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


<PAGE>




                                   SIGNATURES


            Pursuant to the  requirements  of Section 12 of the  Securities  and
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.





                                             NAVIDEC FINANCIAL SERVICES, INC.
                                             (Registrant)



Dated: August 12, 2008                       By: /s/ John McKowen
                                                 -------------------------------
                                                 John McKowen, President &
                                                 Chief Accounting Officer