----

----

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

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Table of Contents

|                                    |                                                                                                                  | Page   |
|-----------------------------------------|-----------------------------------------------------------------------------------------------------------------------|--------|
| Item      1                             | Financial      Statements (Unaudited)                                                                                 |   |
|                                    | Consolidated Balance SheetsSeptember      30, 2009 and  December 31, 2008                                   | 1      |
|                                    | Consolidated Statements of Operations – Three months      andnine      months ended September 30, 2009 and 2008 | 2      |
|                                    | Consolidated Statements of Cash Flows – Nine months      ended September 30, 2009 and 2008                      | 3      |
|                                    | Consolidated Statement of Changes in Stockholders’ Equity      – September 30, 2009                       | 4      |
|                                    | Notes to Consolidated Financial    Statements                                                                         | 5      |
| Item 2                                  | Management’s      Discussion and Analysis of Financial Conditionand      Results of Operations                  | 26     |
| Item 3                                  | Quantitative      and Qualitative Disclosures About Market Risk                                                       | 32     |
| Item 4                                  | Controls      and Procedures                                                                                          | 32     |
| Item 4T                                 | Controls      and Procedures                                                                                          | 33     |
|  PART II – OTHER INFORMATION |                                                                                                                  |
| Item      1                             | Legal      Proceedings                                                                                                | 35     |
| Item      1A                            | Risk      Factors – Not      Applicable                                                                         | 35     |
| Item      2                             | Changes      in Securities                                                                                            | 35     |
| Item      3                             | Defaults      Upon Senior Securities – Not      Applicable                                                      | 35     |
| Item      4                             | Submission      of Matters to a Vote of Security Holders                                                              | 36     |
| Item      5                             | Other      Information – Not      Applicable                                                                    | 36     |
| Item      6                             | Exhibits                                                                                                              | 36     |
|                                    | SIGNATURES                                                                                                            |   |

----

Consolidated Balance Sheets

|                                              |                                                   |                                                                                                                                                                                                    |                                                                                            | (In      Thousands)                                                                                                       |                                                                                                                                  | September      30, 2009 Unaudited                                                               | December      31, 2008 Audited                                                                  |
|---------------------------------------------------|--------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|
| ASSETS:                                           |                                                   |                                                                                                                                                                                                    |                                                                                            |                                                                                                                      |                                                                                                                                  |
|                                              | Current      Assets:                                   |                                                                                                                                                                                                    |                                                                                            |                                                                                                                      |
|                                              |                                                   | Cash      and cash equivalents                                                                                                                                                                          |                                                                                            | $           1,005                                                  |                   874                       |
|                                              |                                                   | Mortgages      receivable - Net of allowance for bad debts of $476 and unearned revenue      of $6 on December 31, 2008 (Note 2)                                                                        |                                                                                            |                   -             |                2,197                                       |
|                                              |                                                   | Note      receivable - Jaguar Group LLC  net of $1,407 allowance on Sept      30, 2009 and December 31, 2008 (Note 3)                                                                         |                                                                                            |                   -             |                       - |
|                                              |                                                   | Note      receivable - Aegis/Grizzle (Note 3)                                                                                                                                                           |                                                                                            |               450                                   |                       - |
|                                              |                                                   | Note      receivable - related party (Notes 3, 11, 12)                                                                                                                                                  |                                                                                            |               122                                   |                       - |
|                                              |                                                   | Accrued      interest receivable                                                                                                                                                                        |                                                                                            |                87                              |                     88            |
|                                              |                                                   | Advances      and accounts receivable                                                                                                                                                                   |                                                                                            |                  2                   |                       - |
|                                              |                                                   | Income      taxes receivable                                                                                                                                                                            |                                                                                            |               510                                   |                       - |
|                                              |                                                   | Deposits                                                                                                                                                                                                |                                                                                            |               120                                   |                       - |
|                                              |                                                   | Prepaid      expenses                                                                                                                                                                                   |                                                                                            |                28                              |                     21            |
|                                              |                                                   | Assets      held for sale                                                                                                                                                                               |                                                                                            |               123                                   |                       - |
|                                              | Total      Current Assets                              |                                                                                                                                                                                                    |            2,447                         |                3,180                           |
|                                              |                                                   |                                                                                                                                                                                                    |                                                                                            |                                                                                                                      |                                                                                                                                  |                                                                                            |                                                                                            |
|                                              |   Property, equipment and      software, net |                                                                                                                                                                                                    |               103         |                   114           |
|                                              |                                                   |                                                                                                                                                                                                    |                                                                                            |                                                                                                                      |                                                                                                                                  |                                                                                            |                                                                                            |
|                                              | Other      Assets                                      |                                                                                                                                                                                                    |                                                                                            |                                                                                                                      |
|                                              |                                                   | Mortgages      receivable - Net of allowance for bad debts of $162 (Notes 2,      3)                                                                                                                    |                                                                                            |               209                                   |                       - |
|                                              |                                                   | Notes      receivable - Mauriello, net of allowance of $151 (Note 3)                                                                                                                                    |                                                                                            |                   -             |                       - |
|                                              |                                                   | Notes      receivable - Aegis/Grizzle (Note 3)                                                                                                                                                          |                                                                                            |                   -             |                   450                       |
|                                              |                                                   | Investment      in Boston Property, net of impairment of $463 on Sept 30, 2009 and $492 on      December 31, 2008 (Note 4)                                                                              |                                                                                            |            2,442                                                   |                2,315                                       |
|                                              |                                                   | Land      and water shares (Note 4)                                                                                                                                                                     |                                                                                            |            2,561                                                   |                       - |
|                                              |                                                   | Options      on real estate (Note 4)                                                                                                                                                                    |                                                                                            |            2,850                                                   |                       - |
|                                              |                                                   | Other      real estate owned - net of impairment of $538 and $298 and accumulated      depreciation of $67 and $27 on Sept 30, 2009 and December 31, 2008,      respectively (Note 4)                   |                                                                                            |            1,773                                                   |                3,288                                       |
|                                              |                                                   | Other      assets                                                                                                                                                                                       |                                                                                            |                   -             |                       3 |
|                                              | Total      Other Assets                                |                                                                                                                                                                                                    |            9,835                         |                6,056                           |
| TOTAL      ASSETS                                 |                                                   | $         12,385                                                                                                                                           |                9,350 |
|                                              |                                                   |                                                                                                                                                                                                    |                                                                                            |                                                                                                                      |                                                                                                                                  |                                                                                            |                                                                                            |
| LIABILITIES      & STOCKHOLDERS' EQUITY:      |                                                   |                                                                                                                                                                                                    |                                                                                            |
|                                              | Current      Liabilities:                              |                                                                                                                                                                                                    |                                                                                            |                                                                                                                      |
|                                              |                                                   | Accounts      payable                                                                                                                                                                              |                                                                                            | $               23                             |                   149                       |
|                                              |                                                   | Short      term borrowings  (Note 5)                                                                                                                                                          |                                                                                            |            1,141                                                   |                1,391                                       |
|                                              |                                                   | Accrued      taxes payable (Note 2)                                                                                                                                                                     |                                                                                            |                   -             |                     85            |
|                                              |                                                   | Deposits      held                                                                                                                                                                                      |                                                                                            |                25                              |                     -             |
|                                              |                                                   | Accrued      liabilities                                                                                                                                                                                |                                                                                            |                   -             |                     38            |
|                                              | Total      Current Liabilities                         |                                                                                                                                                                                                    |            1,189                         |                1,663                           |
|                                              | Note      Payable - Roehrich (Note 4)                  |                                                                                                                                                                                                    |            2,175                         |                     - |
|                                              |                                                   |                                                                                                                                                                                                    |                                                                                            | Total      Liabilities                                                                                                    |                                                                                                                                  |            3,364                         |                1,663 |
|                                              |                                                   |                                                                                                                                                                                                    |                                                                                            |                                                                                                                      |                                                                                                                                  |                                                                                            |                                                                                            |
|                                              | Stockholders'      Equity:                             |                                                                                                                                                                                                    |                                                                                            |                                                                                                                      |
|                                              |                                                   | Common      stock, $0.001 par value, 100,000,000 shares authorized, 8,876,583      and  9,019,057 shares issued and outstanding at September 30,      2009 and December 31, 2008 respectively |                                                                                            |                  9                   |                       9 |
|                                              |                                                   | Noncontrolling      interest in a subsidiary (Note 2)                                                                                                                                                   |                                                                                            |            2,850                                                   |                       - |
|                                              |                                                   | Additional      paid-in capital                                                                                                                                                                         |                                                                                            |            9,030                                                   |                8,873                                       |
|                                              |                                                   | Accumulated      (deficit)                                                                                                                                                                              |                                                                                            |           (2,868)                                                       |               (1,195)                                           |
|                                              |                                                   |                                                                                                                                                                                                    |         Total      Stockholders' Equity                 |                                                                                                                      |            9,021                                                               |                7,687 |
| TOTAL      LIABILITIES & STOCKHOLDERS' EQUITY |                                                   | $         12,385                                                                                                                                           |                9,350 |

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Table of Contents

Consolidated Statements of Operations

|                                                                          | Three      Months Ended                                                                                                                     |                                                                                                                                        | Nine      Months Ended |
|-------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|------------------------|
|                                                                          | September      30, 2009                                                                                                                     | September      30, 2008 RESTATED                                                                                                            |                   | September      30, 2009 | September      30, 2008 RESTATED |
|                                                                          |                                                                                                                                        |                                                                                                                                        |                   |   |   |
| Revenue                                                                       |                                                                                                                                        |                                                                                                                                        |                   |   |   |
| Loan      Fees and real estate income                                         |  $                 (39)                           |  $                221                                  |                   |  $                255 |  $                675 |
| Interest      revenues                                                        |                     40                  |                     33                  |                   |                     40 |                    202 |
| Cost      of loan fees including facilities and commissions                   |                   (109)                           |                   (476)                           |                   |                   (250) |                   (667) |
| Gross      Profit                                                             |                   (108)                           |                   (222)                           |                   |                     45 |                    210 |
|                                                                          |                                                                                                                                        |                                                                                                                                        |                   |   |   |
| Operating      Expenses:                                                      |                                                                                                                                        |                                                                                                                                        |                   |   |   |
|     General      and administrative                       |                    763                       |                 1,203                                       |                   |                 1,445 |                 3,598 |
|     Depreciation      and amortization                    |                     16                  |                     23                  |                   |                     59 |                     26 |
|         Total      operating expenses |                    779                       |                 1,226                                       |                   |                 1,504 |                 3,624 |
| Loss      from operations                                                     |                   (887)                           |                (1,448)                                           |                   |                (1,459) |                (3,414) |
|                                                                          |                                                                                                                                        |                                                                                                                                        |                   |   |   |
| Other      income (expense)                                                   |                                                                                                                                        |                                                                                                                                        |                   |   |   |
| Impairments                                                                   |                   (263)                           |                        - |                   |                   (741) |                        - |
|    Gain      on sale of investments                            |                     38                  |                    (10)                      |                   |                     38 |                 5,604 |
|    Interest      income                                        |                     19                  |                     21                  |                   |                     33 |                     44 |
|    Interest      (expense)                                     |                    (24)                      |                    (40)                      |                   |                    (45) |                    (66) |
| Other      income (expense)                                                   |                     68                  |                   (175)                           |                   |                      (9) |                   (238) |
|    Total      other income (expense)                           |                   (162)                           |                   (204)                           |                   |                   (724) |                 5,344 |
| Net      (Loss) Income before taxes                                           |                (1,049)                                           |                (1,652)                                           |                   |                (2,183) |                 1,930 |
|                                                                          |                                                                                                                                        |                                                                                                                                        |                   |   |   |
| Minority      Interest in consolidated subsidiary                             |                        - |                        - |                   |                        - |                    (24) |
| Net      (Loss) Income before taxes                                           |                (1,049)                                           |                (1,652)                                           |                   |                (2,183) |                 1,906 |
|                                                                          |                                                                                                                                        |                                                                                                                                        |                   |   |   |
|    Income      Taxes                                           |                                                                                                                                        |                                                                                                                                        |                   |   |   |
| Income      tax (expense) benefit                                             |                    307                       |                    112                       |                   |                    510 |                (1,084) |
| Net      (Loss) Income                                                        |  $               (742)                                      |  $            (1,540)                                                      |                   |  $            (1,673) |  $                822 |
|                                                                          |                                                                                                                                        |                                                                                                                                        |                   |   |   |
| (Loss)      Earnings Per Share:                                               |                                                                                                                                        |                                                                                                                                        |                   |   |   |
|     Basic                                                 |  $              (0.08)                                           |  $              (0.17)                                           |                   |  $              (0.19) |  $               0.09 |
|                                                                          |                                                                                                                                        |                                                                                                                                        |                   |   |   |
| Weighted      Average Shares Outstanding:                                     |                                                                                                                                        |                                                                                                                                        |                   |   |   |
|    Basic                                                       | 8,881                                                                                                                                       | 9,025                                                                                                                                       |                   | 8,948 | 9,025 |

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Table of Contents

Consolidated Statements of Cash Flows

|                                                        |                                                                                                                              |                                                                                                                                                    | For      the Nine Months Ended Sept 30,                                                                                                                             |
|-------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                        |                                                                                                                              |                                                                                                                                                    | 2009                                                                                                                                                                | 2008      RESTATED |
| Cash      Flows from Operating Activities:                  | (In      Thousands)                                                                                                               |
|                                                        | Net      (Loss) Income                                                                                                            |  $               (1,673)                                                |  $                    822                                  |
|                                                        | Adjustments      to reconcile net income or (loss) to net cash used in operating      activities:                                 |
|                                                        |                                                                                                                              | Depreciation                                                                                                                                            |                        59                        |                         26 |
|                                                        |                                                                                                                              | Increase      in reserves and impairments                                                                                                               |                      741                                   |                     2,412 |
|                                                        |                                                                                                                              | Loss      from REOs sold                                                                                                                                |                          8             |                            - |
|                                                        |                                                                                                                              | Reduction      of allowance for bad debts                                                                                                               |                     (478)                                       |                            - |
|                                                        |                                                                                                                              | (Gain)      Loss on sale investments                                                                                                                    |                        38                        |                    (5,604) |
|                                                        |                                                                                                                              | Stock      based compensation                                                                                                                           |                        93                        |                            - |
|                                                        |                                                                                                                              | Minority      Interest                                                                                                                                  |                          -             |                         24 |
|                                                        | Changes      in operating assets and liabilities:                                                                                 |                                                                                                                                                    |                                                                                                                                                                |
|                                                        |                                                                                                                              | Deferred      revenue                                                                                                                                   |                         (6)                 |                            - |
|                                                        |                                                                                                                              | (Increase)      in accounts receivable                                                                                                                  |                         (4)                 |                          (1) |
|                                                        |                                                                                                                              | Decrease      (increase) in accrued interest receivable                                                                                                 |                          1             |                        (67) |
|                                                        |                                                                                                                              | (Increase)      decrease in prepaid expenses and other assets                                                                                           |                     (125)                                       |                         62 |
|                                                        |                                                                                                                              | Decrease      (increase) in mortgage loans receivable                                                                                                   |                   1,048                                                   |                    (2,408) |
|                                                        |                                                                                                                              | (See      Supplemental Information below)                                                                                                               |                                                                                                                                                                |   |
|                                                        |                                                                                                                              | (Increase)      in income tax receivable                                                                                                                |                     (510)                                       |                            - |
|                                                        |                                                                                                                              | (Decrease)      increase in accounts payable                                                                                                            |                     (118)                                       |                        550 |
|                                                        |                                                                                                                              | (Decrease)      increase in accrued liabilities and other                                                                                               |                       (88)                            |                        667 |
| Net      Cash Provided by/(Used in) Operating Activities    |                  (1,014)                     |                    (3,517)                               |
|                                                        |                                                                                                                              |                                                                                                                                                    |                                                                                                                                                                |   |
| Cash      Flows from Investing Activities:                  |                                                                                                                              |                                                                                                                                                    |
|                                                        | Investments      (increased)/decreased                                                                                            |                                                                                                                                                    |                                                                                                                                                                |
|                                                        |                                                                                                                              | Boston      real estate                                                                                                                                 |                     (127)                                       |                    (1,308) |
|                                                        |                                                                                                                              | Other      residential real estate                                                                                                                      |                     (123)                                       |                            - |
|                                                        |                                                                                                                              | Marketable      securities purchased                                                                                                                    |               (124,357)                                                                       |                            - |
|                                                        |                                                                                                                              | Proceeds      from marketable securities sold                                                                                                           |                124,207                                                                   |                     3,268 |
|                                                        |                                                                                                                              | Sale      of BPZ shares                                                                                                                                 |                      270                                   |                            - |
|                                                        |                                                                                                                              | Proceeds      from REO properties sold                                                                                                                  |                   2,109                                                   |                            - |
|                                                        | Increase      in loans receivable, related party                                                                                  |                     (122)                           |                            - |
|                                                        | Purchase      of fixed assets                                                                                                     |                          - |                        (79)                      |
|                                                        | Purchase      of land, water shares, and options                                                                                  |                  (2,561)                                           |                            - |
|                                                        | Other      assets                                                                                                                 |                          3 |                            - |
| Net      Cash Provided by/(Used in) Investing Activities    |                     (701)     |                     1,881                           |
|                                                        |                                                                                                                              |                                                                                                                                                    |                                                                                                                                                                |   |
| Cash      Flows from Financing Activities:                  |                                                                                                                              |                                                                                                                                                    |
|                                                        | Increase      in long term borrowings                                                                                             |                   2,175                                       |                        933                       |
|                                                        | Payoff      real estate loan                                                                                                      |                     (250)                           |                            - |
|                                                        | Retirement      of Common Stock                                                                                                   |                       (79)                |                            - |
| Net      Cash Provided by/(Used in) Financing Activities    |                   1,846                 |                        933           |
| Net      Increase (Decrease) in Cash & Cash Equivalents |                      131 |                       (703)               |
| Beginning      Cash & Cash Equivalents                  |                      874 |                     1,407                           |
| Ending      Cash & Cash Equivalents                     |  $                1,005                      |  $                    704                      |
|                                                        |                                                                                                                              |                                                                                                                                                    |                                                                                                                                                                |   |
| Supplemental      Disclosure of Cash Flow Information       |                                                                                                                              |                                                                                                                                                    |
|                                                        | Non      cash settlement on short term mortgages and transfers                                                                    |  $                3,864                                            |  $                 1,995                                                  |
|                                                        | Cash      paid for Interest                                                                                                       |  $                    46                       |  $                      66                       |
|                                                        | Cash      paid for Income Taxes                                                                                                   |  $                       -      |  $                    350                                  |
|                                                        | Cash      received from Income tax refunds                                                                                        |  $                  310                                  |  $                        -            |

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Table of Contents

CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY

|                                          |                                                                      |                                                                                  |                                                          |                                                          |   |       |                                                                |                                                                            |                                                                                              | Accumulated                                                                                       |                                                                              |                                                                                        |                                                                  |                                                                                        |
|-----------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|--------|------------|---------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------|
|                                          |                                                                      | Voting                                                                                |                                                          | Noncontrolling                                                |   | Additional |                                                                | Other                                                                           |                                                                                              |                                                                                              |                                                                              | Stockholder                                                                                 |
|                                          |                                                                      | Common      Stock                                                                     |                                                          | Interest      in a                                            |   | Paid-in    |                                                                | Comprehensive                                                                   |                                                                                              | Accumulated                                                                                       |                                                                              | Equity                                                                                      |
|                                          |                                                                      | Shares                                                                                |                                                          | Amount                                                        |   | Subsidiary |                                                                | 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)                               |             - |                                                                                  |          -       |                                                          | -      |       |            - |                                                                            |                 - |                                                                                              |          (1,673)                     |                                                                                        |       (1,551)                           |
|                                          | Noncontrolling      interest in a subsidiary (Note 2)                     | -                                                                                     |                                                          | -                                                             |   | 2,850      |                                                                | -                                                                               |                                                                                              | -                                                                                                 |                                                                              | -                                                                                           |                                                                  | 2,850                                                                                       |
|                                          | Stock-based      compensation expense                                     |             -             |                                                          |          -       |   | -          |                                                                |            93            |                                                                                              |                 - |                                                                              |                - |                                                                  |              93            |
|                                          | Retirement      of Stock - open market purchases                          |       (143)                                             |                                                          |          -       |   | -          |                                                                |        (79)                                  |                                                                                              |                 - |                                                                              |                - |                                                                  |             (79)                |
|                                          | Unrealized      gain (loss) on marketable securities                      |             -             |                                                          |          -       |   | -          |                                                                |            -             |                                                                                              | -                                                                                                 |                                                                              |                - |                                                                  |             (18)                |
|                                          | Recovered      BPZ stock (Notes 2, 4)                                     |             -             |                                                          |          -       |   | -          |                                                                |          143                       |                                                                                              |                 - |                                                                              |                - |                                                                  |            143                       |
| Balances,      September 30, 2009             |        8,876                           | $                                                                                     |           9 | $                                                             | 2,850  | $          |      9,030                                 | $                                                                               | -                                                                                                 | $                                                                                                 |          (2,868)                     | $                                                                                           |         9,021                 |

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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 estatesales. |

| · 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 0.3% (before the margin balance) as of      September 30, 2009. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 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 encum-brances    | 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                                                                |                                           | 1,519 | 14 | 1,533 | 407 | 0 | 46 | 13 | 33 |
| Colorado                                                               |                                           | 716 | 5 | 721 | 121 | 0 | 14 | 22 | (8) |
| Massachusetts                                                          | 1,141                                          | 1,200 | 1,705 | 2,905 | 463 | 0 | 0 | 0 | 0 |
| Apartments      and business                                           |                                           |   |   |   |   |   |   |   |   |
| Unimproved                                                             |                                           |   |   |   |   |   |   |   |   |
|        VA                                                         |                                           | 123 | 0 | 123 | 78 | 0 | 0 | 1 | (1) |
|        CO                                                         | 600                                            | 600 | 0 | 600 | 0 | 0 | 0 | 0 | 0 |
| Total                                                                  | 1,141                                          | 4,158 | 1,724 | 5,882 | 1,069 | 0 | 60 | 36 | 24 |
| Rent      from properties sold during period                           |                                           |   |   |   |   |   |   |   |   |
|  Total                                                            | 1,741                                          | 4,158 | 1,724 | 5,882 | 1,069 | 0 | 60 | 36 | 24 |

| 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                     |                 | 3,864                        | 3,864   |
| Other      acquisitions                                   |                 | 600                          | 600     |
| Improvements,      etc.                                   | 220                  | 158                          | 378     |
| Other      (describe) – impairment reclassification | 29                   | -                            | 29      |
| Deductions      during the period:                        |                 |                         |    |
| Cost      of  real estate sold                  |                 | (5,259)                      | (5,259) |
| Impairments                                               | (122)                | (240)                        | (362)   |
| Other      (describe) - depreciation                      |                 | (40)                         | (40)    |
| Ending      Balance, September 30, 2009                   | $2,442               | $2,371                       | $4,813  |

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| Asset      Type                       | Life      in Years | September       30, 2009 | December      31, 2008 |
|---------------------------------------|--------------------|-------------------------------|------------------------|
| Office      equipment & Furniture | 5 –      7   | $107,000                      | $      92,000          |
| Computers                             | 3                  | 85,000                        | 96,000                 |
| Website                               | 3                  | 2,000                         | 2,000                  |
| Subtotal                              |               | 194,000                       | 190,000                |
| Less      Accumulated Depreciation    |               | (91,000)                      | (76,000)               |
| Net      Book Value                   |               | $      103,000                | $      114,000         |

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| Note      From                         | Due                | Principal      Amount | Annual      Interest Rate | Accrued      Interest | Security                                      |
|----------------------------------------|--------------------|-----------------------|---------------------------|-----------------------|-----------------------------------------------|
| Robert      Grizzle                    | Oct      17, 2009  | $450,000              | 8%                        | $87,000               | Shares      and options in Navidec and Aegis  |
| John      Stroh II                     | Feb      18, 2010  | $122,000              | 5%                        | $-0-                  | Cattle      and shares in Navidec             |
| Jaguar      Group                      | June      13, 2008 | $1,407,000            | 0%                        | $-0-                  | Junior      security in residential mortgages |
| Mauriello                              | Oct      30, 2014  | $151,000              | 8%                        | $-0-                  | unsecured                                     |
| Various      short term home mortgages | Various            | $371,000              | 9.95%      to 14%         | $-0-                  | First      mortgage                           |
| Total                                  |               | $2,501,000            |                      |                  |                                          |
| Less      Allowances                   |               | $1,720,000            |                      |                  |                                          |
| Net      Receivables                   |               | $781,000              |                      |                  |                                          |

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|                               |                                    | For      the Nine Months Ended Sept 30, 2009                   |                                                                      | For      the Nine Months Ended Sept 30, 2008                                |
|------------------------------------|-----------------------------------------|----------------------------------------------------------------|---------------------------------------------------------------------------|-----------------------------------------------------------------------------|
|                               |                                    | (In      thousands)                                            |                                                                      | (In      thousands)                                                         |
|                               |                                    |                                                           | Navidec      Financial Services                                           |                                                                        | Northsight,      Inc. |   | Southie,      LLC |   | Legendary      Investment Group, LLC |   | Two      Rivers Water Co. |   | HCIC      Holdings JV |   | Navidec      Financial Services |   | Northsight,      Inc. |   | Southie,      LLC |   | Legendary      Investment Group, LLC |
| Revenue                            |                                    |                                                           |                                                                      |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               | Loan      fees, interest and other      | $                                                              |           52            |                                                                        |           135 |   |           46 |   |              62 |   |                - |   |                - |   |         129 |   |           725 |   |           23 |   |               - |
|                               | Cost      of Services                   |                                                           |             - |                                                                        |           (14) |   |        (172) |   |             (64) |   |                - |   |                - |   |             - |   |          (667) |   |             - |   |               - |
| Gross      Profit                  |                                    |           52 |                                                                      |           121             |   |        (126) |   |              (2) |   |                - |   |                - |   |         129 |   |            58 |   |           23 |   |               - |
|                               |                                    |                                                           |                                                                      |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Operating Expenses      |                                    |         728            |                                                                      |           456             |   |         797 |   |              34 |   |            21 |   |          209 |   |      3,119 |   |           488 |   |           17 |   |               - |
|                               |                                    |                                                           |                                                                      |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Income/(Expense)        |                                    |                                                           |                                                                      |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               | Gain      (loss) on sale of investments |                                                           |           38            |                                                                        |               - |   |             - |   |                - |   |                - |   |                - |   |      5,604 |   |               - |   |             - |   |               - |
|                               | Other      income/(expense)             |                                                           |           17            |                                                                        |             (6) |   |          (32) |   |                - |   |                - |   |                - |   |          (57) |   |           (22) |   |        (205) |   |               - |
| Total      Other Income/(Expense)  |                                    |           55 |                                                                      |             (6) |   |          (32) |   |                - |   |                - |   |                - |   |      5,547 |   |           (22) |   |      (205) |   |               - |
| Income      Before Taxes           |                                    |      (621)                            |                                                                      |          (341)                 |   |        (955) |   |          (36) |   |           (21) |   |         (209) |   |      2,557 |   |          (452) |   |       (199) |   |               - |
| Income      Taxes (Expense)/Credit |                                    |         205            |                                                                      |            98        |   |         109 |   |              13 |   |               8 |   |             77 |   |     (1,254) |   |           170 |   |             - |   |               - |
| Net      Income (Loss)             | $                                       |    (416)                                        |                                                                      |          (243)                 |   |        (846) |   |             (23) |   |           (13) |   |         (132) |   |      1,303 |   |          (282) |   |       (199) |   |               - |

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| ·   | 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. |
|--------------------|------------------------------------------------------|

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|                                 | 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%         |

|                                         | 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,      September 30, 2009         | 3,941,510       | $      1.33                              |
| Options      Exercisable, September 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,      September 30, 2009         | 222,776   | $      0.50                              |
| Options      Exercisable, September 30, 2009 | 189,444   | $      0.50                              |

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| 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                                            |                |                 |

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| Period | Amount      Due |
|--------|-----------------|
| 2009   | $      19,000   |
| 2010   | $      73,000   |
| 2011   | $      21,000   |

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

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| (in      thousands)                          |           |
|----------------------------------------------|----------------|
| Book      loss before tax                    | $      (2,061) |
| Adjustments      to increase taxable income: |           |
| Non-deductible      impairments              | 619            |
| Stock      option expense                    | 51             |
| Other      increases                         | 15             |
| Adjustments      to decrease taxable income: | -              |
| Taxable      Income (Loss)                   | $      (1,376) |
| Tax      (benefit) at net effective rate     | $      (510)   |

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ITEM 2.

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| ·   | 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. |
|--------------------|------------------------------------------------------|

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| Allowance      for short term mortgages receivables |   | $ | 162,000   |   |
|-----------------------------------------------------|--------|---|-----------|--------|
| Allowance      for Real Estate Owned                |   | $ | 1,068,000 |   |
| Allowance      for Boston Property (Thomas Park)    |   | $ | 463,000   |   |
| Allowance      for Mauriello note                   |   | $ | 151,000   |   |
| Allowance      for amounts owed from Jaguar         |   | $ | 1,407,000 |   |

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ITEM 3.  QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUTMARKET RISK.

ITEM 4.  CONTROLS AND PROCEDURES

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ITEM 4T. CONTROLS AND PROCEDURES

|   | (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 financialstatements. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | 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 and the ability to      attach source documentation to financial  entries; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | after      issuance of quarterly and yearly financials, we password protect any      subsequent accounting entries which must be approved by the Chief      Financial Officer or President; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 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      Chief Financial Officer approves checks to be paid before the final check      signatures, and |
|--------------------|---------------------------------------------------------------------------------------------------------|

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

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PART II. OTHER INFORMATION

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| 1.   | To      elect five (5) persons to the Board of Directors for the ensuing      year. |
|----------------|-------------------------------------------------------------------------------------|

| 2.   | To      ratify the appointment of our auditors, Schumacher and Associates,      Inc. |
|----------------|--------------------------------------------------------------------------------------|

| 3.   | To      amend the Articles of Incorporation to change the name of the Company from      Navidec Financial Services, Inc. to Two Rivers Water    Company. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | To      amend the Articles of Incorporation to allow for Shareholder Action by      Written Consent. |
|----------------|------------------------------------------------------------------------------------------------------|

| Exhibit      31.1 | Certification      of Chief Executive Officer pursuant to Section 302 of  the      Sarbanes-Oxley Act     |
|-------------------|---------------------------------------------------------------------------------------------------------------------|
| Exhibit      31.2 | Certification      of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley      Act                |
| Exhibit      32.1 | Certification      of Principal Executive Officer pursuant to Section 906  of the      Sarbanes-Oxley Act |
| Exhibit      32.2 | Certification      of Principal Financial Officer pursuant to Section 906 of the      Sarbanes-Oxley Act            |

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|                                                 | NAVIDEC      FINANCIAL SERVICES,      INC.          (Registrant)  |
|------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|
|   Dated:      November 16,  2009 |   By:      /s/ John McKowen                                                                                    |
|                                                 | John      McKowen, President                                                                                             |
|                                                 | By:      /s/ Wayne Harding                                                                                               |
|                                                 | Wayne      Harding, Chief Financial Officer                                                                              |

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|   Dated:      November 16,  2009 |   By:      /s/ John McKowen |
|------------------------------------------------------|---------------------------------------|
|                                                 | John      McKowen, President          |

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|   Dated:      November 16,  2009 |   By:      /s/ Wayne Harding,     |
|------------------------------------------------------|---------------------------------------------|
|                                                 | Wayne      Harding, Chief Financial Officer |

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|   Dated:      November 16,  2009 |   By:      /s/ John McKowen      |
|------------------------------------------------------|--------------------------------------------|
|                                                 | John      McKowen, Chief Executive Officer |

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|   Dated:      November 16,  2009 |   By:      /s/ Wayne Harding      |
|------------------------------------------------------|---------------------------------------------|
|                                                 | Wayne      Harding, Chief Financial Officer |

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