UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

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

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

(Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 For the quarterly period ended March 31, 2008

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

            For the transition period from __________ to ___________

                        Commission file number: 000-51139

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

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

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

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

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

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

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


<PAGE>

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

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

As of May 14, 2008, there were 9,024,583 shares of the registrant's common stock
issued and outstanding.




<PAGE>


PART I - FINANCIAL INFORMATION

<TABLE>
<CAPTION>

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

         Report of Independent Registered Public Accounting Firm                           F-1

         Consolidated Balance Sheets - March 31, 2008 and
                  December 31, 2007                                                        F-2

         Consolidated Statement of Operations  -
                  Three months ended  March 31, 2008 and 2007 and                          F-3

         Consolidated Statement of Changes in Stockholders' Equity -
                   March 31, 2008                                                          F-4

         Consolidated Statement of Cash Flows -
                  Three months ended March 31, 2008 and 2007                               F-5

         Notes to Consolidated Financial Statements                                        F-6

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

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

Item 4. Controls and Procedures                                                             3

Item 4T.  Controls and Procedures                                                           3

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings -Not Applicable                                                  4

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

Item 3.  Defaults Upon Senior Securities - Not Applicable                                   4

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

Item 5.  Other Information - Not Applicable                                                 5

Item 6.  Exhibits                                                                           5

SIGNATURES                                                                                  6
</TABLE>


<PAGE>


                                     PART I

ITEM 1. FINANCIAL STATEMENTS

<TABLE>
<CAPTION>

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

                                                                                          March 31,        December 31,
                                                                                            2008                2007
                                                                                         (Unaudited)          (Audited)
                                                                                       ----------------    ----------------
<S>                                                                                    <C>                 <C>
ASSETS:
  Current Assets:
     Cash and cash equivalents                                                                 $ 3,189             $ 1,424
     S/T Mortgages receivable                                                                    2,770               2,204
     S/T Note receivable - Jaguar Group LLC                                                      1,392               1,100
     Accrued interest receivable                                                                    54                  46
     Advances receivable                                                                             3                   5
                                                                                       ----------------    ----------------
     Total Current Assets                                                                        7,408               4,779
                                                                                       ----------------    ----------------

  Property, equipment and software, net                                                             71                  39

  Other Assets
     Notes receivable - (Note 4) - Aegis/Grizzle                                                   450                 450
     Investment - BPZ Energy - (note 5)                                                          3,260               3,354
     Investments - (Note 5)                                                                      2,170               1,639
     Other assets                                                                                    5                  15
                                                                                       ----------------    ----------------
       Total Other Assets                                                                        5,885               5,458
                                                                                       ----------------    ----------------

TOTAL ASSETS                                                                               $    13,364            $ 10,276
                                                                                       ================    ================


LIABILITIES & STOCKHOLDERS' EQUITY:
  Current Liabilities:
      Advances repayable - related party                                                          $ 41                $ 15
      Short term borrowings  (Note 7)                                                              991                 285
      Accrued taxes and liabilities                                                                831                 102
                                                                                       ----------------    ----------------
        Total Current Liabilties                                                                 1,863                 402


  Stockholders' Equity:
    Common stock, $0.001 par value, 100,000,000 shares                                               9                   9
        authorized, 9,093,445 and 8,993,583 shares issued
        and outstanding at March 31, 2008 and
        December 31, 2007 respectively
    Additional paid-in capital                                                                   7,557               7,552
    Treasury stock                                                                                (150)               (150)
    Unrealized gain on securities                                                                2,657               2,149
    Accumulated earnings / (deficit)                                                             1,428                 314
                                                                                       ----------------    ----------------
        Total Stockholders' Equity                                                              11,501               9,874
                                                                                       ----------------    ----------------

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY                                                   $    13,364            $ 10,276
                                                                                       ================    ================

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

                                              F-2

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

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

                                                                        For the Three Months Ended
                                                                                 March 31,
                                                                          2008              2007
                                                                     ---------------   ---------------
<S>                                                                  <C>               <C>
Revenue
    Sales                                                                 $     258             $ 224
    Cost of Sales                                                               224                 -
                                                                     ---------------   ---------------
Gross Profit                                                                     34               224
                                                                     ---------------   ---------------

Operating Expenses:
    General and administrative                                                  470               392
    Depreciation and amortization                                                10                 2
                                                                     ---------------   ---------------
        Total operating expenses                                                480               394

Loss from operations                                                           (446)             (170)
                                                                     ---------------   ---------------

Other income (expense)
   Gain on sale of investments                                                2,385               201
   Other loss                                                                   (14)                -
   Interest income                                                               66                 -
   Interest (expense)                                                           (15)                -
   Impairment loss on write off of assets                                       (67)                -
                                                                     ---------------   ---------------

   Total other income                                                         2,422               201
                                                                     ---------------   ---------------

Net Income before minority interest and income tax                            1,976                31
                                                                     ---------------   ---------------

   Minority Interest
      Minority interest in consolidated subsidiary                                -                (8)
                                                                     ---------------   ---------------
Net Income before taxes                                                       1,909                23

   Income Taxes
      Provision for income tax                                                 (795)                -
                                                                     ---------------   ---------------

Net Income                                                                  $ 1,114              $ 23
                                                                     ===============   ===============

Earnings Per Share:
    Basic                                                                    $ 0.12     $           *
    Diluted                                                                  $ 0.07     $           *

Weighted Averge Shares Outstanding:
   Basic                                                                      9,093             7,983
                                                                     ===============   ===============
   Diluted                                                                   15,489            16,097
                                                                     ===============   ===============

              *Less than $(0.01) per share.


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

                                              F-3
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

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

                                                                                                  For the Three Months Ended
                                                                                                          March 31,
                                                                                                   2008                2007
                                                                                             -----------------   -----------------
<S>                                                                                          <C>                 <C>

Cash Flows from Operating Activities:

         Net Income                                                                               $     1,114              $ 23
         Adjustments to reconcile net loss to net cash used in operating activities:
              Impairment on write off of assets                                                            67                 -
              Depreciation expense                                                                         10                 2
              Gain on sale investments                                                                      -              (199)
              Minority interest                                                                             -                 8
         Changes in operating assets and liabilities:
              (Increase) decrease in accounts receivable                                                   (3)               37
              Increase in prepaid expenses and other assets                                                 -               (10)
              Decrease in short term loans receivable                                                    (861)                -
              Increase in short term borrowings                                                           706                 -
              Increase (decrease) in accounts payable                                                      26               (44)
              Increase (decrease) in accrued liabilities and other                                        729                (5)
                                                                                             -----------------   -----------------

Net CashProvided (Used) by Operating Activities                                                         1,788              (188)
                                                                                             -----------------   -----------------

Cash Flows from Investing Activities:
         Investments (increased)/decreased
              Boston real estate                                                                         (290)                -
              Other real estate                                                                          (241)                -
              BPZ warrants/goodwill                                                                        94               362
         Increase in fixed assets                                                                         (99)                -
         Proceeds from sale of equity investments                                                           -               199
                                                                                             -----------------   -----------------

Net Cash (Used) Provided by Investing Activities                                                         (469)              561
                                                                                             -----------------   -----------------

Cash Flows from Financing Activities:
         Cash from exercise of options                                                                      5                 -
         Unrealized gain/(loss) on securities                                                             508                 -
                                                                                             -----------------   -----------------

Net Cash Provided by Financing Activities                                                                 513                 -
                                                                                             -----------------   -----------------

Net Increase in Cash & Cash Equivalents                                                                 1,765               374

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

Ending Cash & Cash Equivalents                                                                    $     3,189             $ 553
                                                                                             =================   =================


Supplemental Disclosure of Cash Flow Information
         Cash paid for Interest                                                                    $       15                 -
                                                                                             =================   =================
         Cash paid for Income Taxes                                                                $      103                 -
                                                                                             =================   =================

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

                                              F-4
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

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

                                    For the Three Months Ended March 31, 2008
                                    (In thousands - except number of shares)
                                                   (Unaudited)

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

Balances, Dec 31, 2004               6,378,048          $ 6       $ 5,911         $ 375         $ -        $ (2,132)       $ 4,160
                                    -----------   ----------    ----------   -----------   ---------   -------------   ------------
<S>                                 <C>           <C>           <C>          <C>           <C>         <C>             <C>
BPZ legacy options exercised                                          963                                                      963
  Options exercised                    250,000            1            13                                                       14
Common stock sold in private         1,322,000            1         1,323                                                    1,324
  placement                                                                                                                      -
Additional paid-in capital from                                     1,203                                                    1,203
  reorganization
Net loss                                                                                                     (1,377)        (1,377)
Comprehensive Income
     Gain on marketable securities                                                  450                                        450
Total Comprehensive gain/(loss)
                                    -----------   ----------    ----------   -----------   ---------   -------------   ------------
Balances, Dec 31, 2005               7,950,048            8         9,413           825           -          (3,509)         6,737

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

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

Net income                                                                                                    1,114          1,114
   Options exercised                   100,000                          5                                                        5
Comprehensive other income                                                                                                       -
   Gain on marketable securities                                                    508                                        508
                                    -----------   ----------    ----------   -----------   ---------   -------------   ------------
Balances - March 31, 2008            9,024,583          $ 9       $ 7,557       $ 2,657      $ (150)        $ 1,428       $ 11,501
                                    ===========   ==========    ==========   ===========   =========   =============   ============




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

                                                      F-5
</TABLE>


<PAGE>




                NAVIDEC FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
               For the Three Months Ended March 31, 2008 and 2007
                                   (Unaudited)

NOTE 1 - ORGANIZATION

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

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

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

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

Starting  in July  2007,  NFS  began  lending  money  to  Northsight  to  enable
Northsight to make short term, first deed of trust backed loans to borrowers who
are  purchasing  deeply  discounted  or  foreclosed  residential  real estate in
Arizona and  Colorado.  During the year ended  December 31,  2007,  NFS had lent
Northsight  $5,826,473.  The loans to  Northsight  yield 12% and are callable on
demand by NFS. As of March 31, 2008, Northsight had approximately  $3,062,000 in
short term bridge loans outstanding. Short term bridge loans outstanding grew by
39% in the quarter ended March 31, 2008.

During the quarter  ended March 31,  2008,  we  incurred  an  operating  loss of
approximately  $446,000.  The Company sold  approximately  150,000 shares of BPZ
Energy  in  the  open  market.   This  activity   produced  a  onetime  gain  of
approximately $2,385,000. Other income contributed an additional $52,000.

Jaguar Group Investments, LLC

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

At this time, the joint venture has not been fully funded.

The joint venture is to provide  wholesale  financing  loan products to the real
estate mortgage industry.

                                      F-6

<PAGE>

                NAVIDEC FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
               For the Three Months Ended March 31, 2008 and 2007
                                   (Unaudited)

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INTERIM PRESENATION

The unaudited  consolidated financial statements and related notes for the three
months  ended  March  31,  2008,  presented  herein  have been  prepared  by the
management of NFS and its subsidiaries  pursuant to the rules and regulations of
the Securities and Exchange  Commission.  Accordingly,  certain  information and
footnote  disclosures  normally  included in  financial  statements  prepared in
accordance  with  generally  accepted  accounting  principles  have been omitted
pursuant to such rules and regulations.  Operating  results for the three months
ended March 31, 2008 are not  necessarily  indicative of the results that may be
expected for the full year. It is suggested  that these  unaudited  consolidated
financial  statements be read in conjunction  with the December 31, 2007 audited
consolidated financial statements.

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

PRINCIPLES OF CONSOLIDATION

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

USE OF ESTIMATES

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

CASH AND CASH EQUIVALENTS

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


                                      F-7

<PAGE>


                NAVIDEC FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
               For the Three Months Ended March 31, 2008 and 2007
                                   (Unaudited)

CONCENTRATION OF CREDIT RISK

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

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

No sales to  unaffiliated  customers  represented  10% or more of the  Company's
revenue for the three months ended March 31, 2008.

INVESTMENTS

Investments  in  publicly  traded  equity  securities  over  which  NFS does not
exercise  significant  influence are recorded at market value in accordance with
Financial   Accounting  Statement  ("FAS")  No.  115,  "Accounting  for  Certain
Investments in Debt and Equity  Securities",  which requires that all applicable
investments be classified as trading  securities,  available for sale securities
or  held-to-maturity   securities.   The  Company  has  investments  treated  as
available-for-sale  securities  that are restricted from sale in the open market
under  Section 144 and have limited  trading  volume.  There can be no assurance
that we will realize the recorded  value of this  investment  due to the size of
the investment and its limited trading volume. Comprehensive income includes net
income or loss and changes in equity from the market price  variations  in stock
and  warrants  held by the Company.  The  Company's  comprehensive  gain for the
quarter ended March 31, 2008 was approximately $2,657,000.

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

FAIR VALUE OF FINANCIAL INSTRUMENTS

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


                                      F-8

<PAGE>


                NAVIDEC FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
               For the Three Months Ended March 31, 2008 and 2007
                                   (Unaudited)

REVENUE RECOGNITION

Interest Revenues

Revenues  from  interest  are  recorded  at the time  they are  earned  thus the
revenues  shown are for  interest  actually  received  and the accruals for that
which is due to the Company.  Interest  revenues for the quarter ended March 31,
2008 were approximately $66,000.

Mortgage Revenues

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

INCOME TAXES

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

At  March  31,  2008,  the  Company  had an  accrued  income  tax  liability  of
approximately  $795,000  related  primarily to profits  generated on the sale of
stock assets.

ACCRUALS

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

STOCK BASED COMPENSATION

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

                                      F-9

<PAGE>

                NAVIDEC FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
               For the Three Months Ended March 31, 2008 and 2007
                                   (Unaudited)

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

NET INCOME (LOSS) PER SHARE

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

The dilutive effect of 6,396,511  options and warrants have been included in the
determination of diluted earnings per share.

COMPREHENSIVE INCOME (LOSS)

Comprehensive  income  (loss)  includes net income or loss and changes in equity
from the market price  variations  in the BPZ stock held by the Company.  During
the  quarter  ended  March  31,  2008,  the  unrealized  gain from BPZ stock was
$1,507,500. This gives, the Company's a comprehensive gain for the quarter ended
March 31, 2008 of approximately $1,507,500.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

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

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

                                      F-10

<PAGE>


                NAVIDEC FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
               For the Three Months Ended March 31, 2008 and 2007
                                   (Unaudited)


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

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

NOTE 3 - INVESTMENT IN BPZ

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

At March 31,  2008,  the  closing  market  price per share of BPZ was $21.73 per
share.  The  Company's  "investments  in BPZ",  150,000  shares,  was  valued at
approximately  $3,259,500  on March 31,  2008  (300,000  shares  were  valued at
$3,354,000 on December 31, 2007).

NOTE 4 - NOTES RECEIVABLE

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



                                      F-11

<PAGE>


                NAVIDEC FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
               For the Three Months Ended March 31, 2008 and 2007
                                   (Unaudited)


In July 2007, Northsight, Inc. (formerly Navidec Mortgage Holdings, Inc.), a 98%
owned subsidiary of the Company,  began making short term loans to purchasers of
residential  properties  who  purchase  their  property  as part of or after the
repossession in a foreclosure proceeding.  As of March 31, 2008, the Company had
made  $2,770,254  in such  loans.  The loans are made  primarily  to good credit
borrowers and are secured by a first mortgage on the purchased  properties.  The
average number of days  outstanding for the loans are less than 90 days, and the
primary takeout on the loans is long term financing  through  secondary  sources
such as the Federal National Mortgage Association.

On December 13, 2007,  Northsight,  Inc.  (formerly  Navidec Mortgage  Holdings,
Inc.)  entered  into a loan  agreement  with  Welend  Associated  Group,  LLC, a
Colorado  limited  liability  company and Jaguar Group,  LLC, a Colorado limited
liability  company,  each with joint and severable  liability,  in the amount of
$1,100,000.This  was  increased by $391,000  during the quarter  ended March 31,
2008.  The note  carries an interest  rate of 0% and has a maturity  date of six
months  from the date of the  note.  Security  for the note is a first  security
interest in the  debtor's  warehouse  line of credit with  Colorado  State Bank.
During February 2008, Northsight entered into a joint venture agreement with the
Jaguar group. (See Note 1)

NOTE -5 - INVESTMENTS

In November of 2007,  Northsight,  Inc. (a 98% owned  subsidiary of the Company)
entered  into a  purchase  agreement  to  acquire a 3 unit  property  in Boston,
Massachusetts.  The objective is to rehabilitate  the property and then sell it.
As of March 31,  2008  Northsight  had  invested  a total of  $1,530,000  in the
property.

On December 20, 2007, the subsidiary,  Northsight,  Inc.  repossessed a property
with  a  value  of  $359,564  securing  one  of  its  short  term  loans  due to
non-payment.  During the quarter  ended March 31, 2008,  the Company took back a
second  property  with a value  of  $280,663  for  non-payment.  Both  of  these
properties  are held as inventory,  provide rental income to the Company and may
be held to rent or sold in the future.

The Company holds 150,000 shares of BPZ Energy, Inc. as of March 31, 2008. Based
on trades  executed on December  31,  2007,  these shares have a market value of
$3,259,000.  Management  believes that this valuation is accurate and consistent
with prior valuations.

                                      F-12

<PAGE>


                NAVIDEC FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
               For the Three Months Ended March 31, 2008 and 2007
                                   (Unaudited)

NOTE 6 - CAPITAL LEASES OBLIGATIONS

NFS acquired no property  under capital lease  arrangements  during the quarters
ended March 31, 2008 or 2007.

NOTE 7 - SHORT TERM BORROWINGS

During the quarter ended March 31, 2008,  the Company's  subsidiary  Northsight,
Inc.  arranged  for a bank line of  credit.  As of the end of the  quarter,  the
subsidiary had drawn a total of  approximately  $155,000 against a total line of
$3,000,000.

NOTE 8 - SUBSIDIARIES

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

We are currently  operating in the mortgage services sector.  During the quarter
ended March 31,  2008,  the revenues for the  mortgage  services  business  were
approximately  $258,000.  During the  quarter  ended  March 31,  2007,  mortgage
services generated approximately $224,000 in revenues.  During the quarter ended
March 31,  2008,  we incurred a loss from  operations  of  $446,000.  During the
quarter  ended  March  31,  2007,   we  incurred  a  loss  from   operations  of
approximately $171,000.

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







                                      F-13

<PAGE>

<TABLE>
<CAPTION>

                NAVIDEC FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
               For the Three Months Ended March 31, 2008 and 2007
                                   (Unaudited)

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


                                            For the Three Months Ended                 For the Three Months Ended
                                                  March 31, 2008                             March 31, 2007
                                               (Data in thousands)                        (Data in thousands)
                                      ---------------------------------------    ---------------------------------------

                                        Navidec     Northsight   Northsight        Navidec    Northsight    Northsight
                                       Financial       Inc        Mortgage        Financial       Inc        Mortgage
                                       Services                      LLC          Services                     LLC
                                      ------------ ------------- ------------    ------------ ------------ -------------
<S>                                   <C>          <C>           <C>             <C>          <C>          <C>

Revenue
  Sales                                $       -      $     110     $    149       $      -      $     -      $    224

  Cost of Sales                                -            114          110                                       186
                                      ------------ ------------- ------------    ------------ ------------ -------------

Gross Profit                                   -             (4)          39              -            -            38

Operating Expenses

  General and Administrative                 318             87           67            131            -            75

  Depreciation                                                2            8              2
                                      ------------ ------------- ------------    ------------ ------------ -------------

Total Operating Expenses                     318             89           75            133            -            75

Other Income/(Expense)
  Gain on sale of investments              2,385                                        199

  Interest income                             18             48                           2
  Interest expense                            (1)           (14)

  Other income/(expense)                    (875)
                                      ------------ ------------- ------------    ------------ ------------ -------------

Total Other Income/(Expense)               1,527             34            -            201            -             -


Net Income (Loss)                      $   1,209    $       (59)  $      (36)            68            -     $     (37)
                                      ============ ============= ============    ============ ============ =============
</TABLE>

NOTE 9 - EQUITY TRANSACTIONS

COMMON STOCK

During the quarter ended March 31, 2008, a shareholder of the Company, exercised
options at $0.05 per share for the purchase of 100,000  shares of the  Company's
restricted common stock.

STOCK OPTIONS

During the quarter ended March 31, 2008, the Company did not issue shares of its
common stock pursuant to the exercise of vested employee stock options.

During the quarter ended March 31, 2008, a shareholder of the Company  exercised
options exercisable for 100,000 shares of the Company's  restricted common stock
at $0.05 per share.

                                      F-14


<PAGE>


                NAVIDEC FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
               For the Three Months Ended March 31, 2008 and 2007
                                   (Unaudited)


During the quarter ended March 31, 2008, no options expired.


At March 31, 2008, all outstanding  and  exercisable  options were fully vested.
The aggregate  intrinsic value of outstanding  fully-vested  options as of March
31, 2008 was approximately $185,000.

A summary of the option plan is as follows:

                                                        2008

                                                            Weighted Average
                                           Shares            Exercise Price

Outstanding, January 1, 2008               3,618,510            $     1.18
  Granted                                          -                     -
  Cancelled                                        -                     -
  Expired                                          -                     -
  Exercised                                 (100,000)
                                           ----------
Outstanding, March 31, 2008                3,581,510             $    1.18
                                           =========             =========
Options Exercisable , March 31, 2008       3,581,510             $    1.18
                                           =========             =========


WARRANTS

At March 31,  2008,  the  following  warrants  to  purchase  common  stock  were
outstanding:

           Number of common
      shares covered by warrants          Exercise Price      Expiration Date

              1,332,500                      $ 4.00             August 2010
              1,332,500                        2.00             August 2010
                150,000                        1.00              July 2010
            -----------
              2,815,000

     During the  quarter  ended  March 31,  2008 the  Company  did not issue any
warrants.




                                      F-15

<PAGE>



                NAVIDEC FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
               For the Three Months Ended March 31, 2008 and 2007
                                   (Unaudited)


NOTE 10 - COMMITMENTS AND CONTINGENCIES

OPERATING LEASES

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

DEFINED CONTRIBUTION PLAN

NFS has a 401(k)  profit  sharing  plan (the  "Plan").  Subject to  limitations,
eligible  employees may make  voluntary  contributions  to the Plan. The Company
may, at its discretion,  make additional  contributions to the Plan. The Company
did not contribute during the quarter ended March 31, 2008.
















                                      F-16


<PAGE>



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

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

OVERVIEW

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

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

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

RESULTS OF OPERATIONS

For the Three  Months  Ended March 31, 2008  compared to the Three  Months Ended
March 31, 2007

During the three months ended March 31, 2008,  we  recognized  sales of $258,000
from the activities of our subsidiary  Northsight and its subsidiary  Northsight
Mortgage  Group,  LLC.  The  sales  are a  result  of  Northsight's  originating
residential  mortgage  loans.  During the three months ended March 31, 2007,  we
recognized  sales of  $224,000.  The  increase  of  $34,000  was a result of the
development  of a new bridge loan  program that  enables  purchasers  to acquire
discounted residential real estate.

During the three months ended March 31,  2008,  we incurred  $224,000 in cost of
sales. During the period ended March 31, 2007, we did not recognize any costs in
connection with our sales.

During the three  months  ended March 31,  2008,  we  recognized  a gross profit
margin of $34,000  compared to  $224,000  for the three  months  ended March 31,
2007.  The decrease of $190,000 was a result of a change in accounting  policies

                                       1

<PAGE>

whereby we now recognize salaries and consulting services as part of the cost of
sales in Northsight's mortgage operations.

During the three  months  ended  March 31,  2008,  we incurred  total  operating
expenses of $480,000  compared to $394,000  during the three  months ended March
31, 2007.  The increase of $86,000 is result of a  redirection  of  Northsight's
mortgage  operations  to include an emphasis on short term bridge  loans and the
opening of Northsight's offices in Colorado and focus on the Colorado market, as
seen in the increase of $78,000 in general and administrative  expenses.  During
the three  months  ended March 31, 2008 we incurred  general and  administrative
expense of $470,000 compared to $392,000 during the three months ended March 31,
2007.

During the year ended March 31, 2008,  we  recognized  net income of  $1,114,000
compared to $23,000  during the three months ended March 31, 2007.  The increase
of $1,091,000 was a result of the $2,385,000  gain on the sale of shares we hold
in BPZ Petroleum.  During the three months ended March 31, 2008, we sold 150,000
shares  of BPZ for  cash of  approximately  $2,385,000  to  expand  Northsight's
mortgage operations, create our bridge loan product and increase our bridge loan
portfolio

LIQUIDITY

Net cash  provided by operating  activities  during the three months ended March
31,  2008 was  $1,721,000,  compared  to net cash used in  operating  activities
during the three  months  ended  March 31,  2007 of  $188,000.  During the three
months ended March 31, 2008,  the net cash  provided  represented  net income of
$1,114,000, adjusted for the non-cash item of depreciation expense of $10,000.

During the three months ended March 31, 2007, the net cash used  represented net
income of $23,000,  adjusted  certain  non-cash items consisting of depreciation
expense of $2,000,  a gain on the sale of investments of $199,000 and a minority
interest of $8,000.

During the three  months  ended  March 31,  2008,  we used  $469,000  in cash in
investing  activities.  We invested  $32,000 in fixed  assets,  $290,000 in real
estate in Boston,  Massachusetts  and  $241,000 in other real estate  prospects.
During  the three  months  ended  March  31,  2008,  we  eliminated  $94,000  in
connection with the goodwill/warrants of BPZ.

During the three months ended March 31, 2007,  we received cash of $561,000 from
our  investment  activities,  consisting  of  $191,000  from the sale of  equity
investments and $362,000 due to an increase in the value of our warrants in BPZ.

During the three months ended March 31, 2008,  we  recognized  $513,000 from our
financing  activities.  We had an  unrealized a gain of $508,000 on  securities.
During the three  months  ended  March 31,  2007,  we did not  receive any funds
through our financing activities.

At March 31, 2008, we had total current assets of $7,408,000, consisting of cash
of  $3,189,000,  mortgage  receivables  of  $2,770,000,  a  note  receivable  of
$1,392,000,  accrued interest receivable of $54,000 and an advance receivable of
$3,000.  At March 31, 2008,  we had total  current  liabilities  of  $1,863,000,
consisting of an advance  payable of $41,000,  short term borrowings of $991,000
and accrued taxes and  liabilities  of $831,000.  Current  assets exceed current
liabilities by $5,545,000.

CRITICAL ACCOUNTING POLICIES

NFS has identified the policies below as critical to NFS business operations and
the understanding of NFS results from operations.  The impact and any associated
risks  related  to  these  policies  on the  Company's  business  operations  is
discussed   throughout   Management's   Discussion  and  Analysis  of  Financial
Conditions and Results of Operations where such policies affect NFS reported and
expected  financial  results.  For a detailed  discussion on the  application of

                                       2

<PAGE>

these and other accounting policies, see Note 2 in the Notes to the Consolidated
Financial  Statements  beginning  on page F-6 of this  document.  Note  that the
Company's  preparation  of this  document  requires  NFS to make  estimates  and
assumptions   that  affect  the  reported  amount  of  assets  and  liabilities,
disclosure of  contingent  assets and  liabilities  at the date of NFS financial
statements,  and the  reported  amounts  of  revenue  and  expenses  during  the
reporting period.  There can be no assurance that actual results will not differ
from those estimates.

REVENUE RECOGNITION

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

REVENUES BUSINESS DEVELOPMENT SERVICES

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

REVENUES FROM MORTGAGE SERVICES

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

In July 2007 Navidec Mortgage  Holdings,  Inc., a wholly owned subsidiary of the
Company,  in conjunction with Northsight  Mortgage,  and 80% owned subsidiary of
the  Company  began  making  short  term  loans  to  purchasers  of  residential
properties who purchase their property as part of or after the repossession in a
foreclosure proceeding. As of March 31, 2008, the Company had made $4,162,000 in
such loans.  The loans are secured by first deeds of trust on  residential  real
estate properties.

RESERVES FOR BAD DEBT

NFS's policy on reserves for bad debt  determines the timing and  recognition of
expenses.  The Company  follows  guidelines that reserve based off of historical
and account specific trends;  however,  certain judgments affect the application
of NFS bad debt reserve policy. NFS receivables are recorded net of an allowance
for doubtful  accounts which requires  management to estimate  amounts due which
may not be collected.  This estimate requires  consideration of general economic
conditions,  overall  historical  trends related to the Company's  collection of
receivables,  customer  specific payment history,  and customer specific factors
affecting their ability to pay amounts due.  Management  routinely  assesses and
revises its estimate of the  allowance  for doubtful  accounts.  As of March 31,
2008, no allowance for bad debt was recorded.

GOODWILL AND INTANGIBLE ASSETS

Intangible  assets are amortized on a  straight-line  basis over their estimated
useful lives.  Goodwill is evaluated annually to determine if its value has been
impaired.  On September 11, 2003, Old Navidec entered into a purchase  agreement
with Northsight and its sole member that provided for the transfer of 80% of the
issued and outstanding  membership units of Northsight to Old Navidec  resulting
in the  realization  of $190,000  of  goodwill.  This  membership  interest  was
transferred  to NFS  pursuant to the terms of the merger  agreement.  Management
determined  that no impairment for Goodwill should be carried as an asset on its
books for the three months ended March 31, 2008.


                                       3
<PAGE>

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

NFS is exposed to the impact of interest  rate  changes and change in the market
values  of the  Company's  investments.  Based on NFS's  market  risk  sensitive
instruments  outstanding  as of March  31,  2008,  as  described  below,  it has
determined  that there was no  material  market risk  exposure to the  Company's
consolidated financial position, results of operations, or cash flows as of such
date. NFS does not enter into  derivatives or other  financial  instruments  for
trading or speculative purposes.

INTEREST RATE RISK - At March 31, 2008,  the  Company's  exposure to market rate
risk for changes in interest  rates relates  primarily to its mortgage  services
business.  NFS has not  used  derivative  financial  instruments  in its  credit
facilities.  A  hypothetical  10%  increase  in  the  Prime  rate  would  not be
significant to the Company's financial position,  results of operations, or cash
flows.

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

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

ITEM 3.  QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not Applicable

ITEM 4.  CONTROLS AND PROCEDURES
Disclosures Controls and Procedures

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

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

ITEM 4T. CONTROLS AND PROCEDURES

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

Our management is responsible for establishing and maintaining adequate internal
control over financial  reporting for the company in accordance  with as defined
in Rules  13a-15(f) and 15d-15(f)  under the Exchange Act. Our internal  control


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<PAGE>

over financial  reporting is designed to provide reasonable  assurance regarding
the  reliability  of  financial  reporting  and  the  preparation  of  financial
statements  for  external   purposes  in  accordance  with  generally   accepted
accounting  principles.  Our internal control over financial  reporting includes
those policies and procedures that:

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

         (ii)  provide  reasonable  assurance that  transactions are recorded as
               necessary to permit preparation

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

Management's  assessment of the  effectiveness  of the small  business  issuer's
internal  control over financial  reporting is as of the quarter ended March 31,
2008. We believe that internal control over financial reporting is effective. We
have not identified any, current material weaknesses  considering the nature and
extent of our current operations and any risks or errors in financial  reporting
under current operations.

Because of its inherent  limitations,  internal control over financial reporting
may not prevent or detect misstatements.  Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate  because of changes in  conditions,  or that the degree of compliance
with the policies or procedures may deteriorate.

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

There  was no change in our  internal  control  over  financial  reporting  that
occurred  during the fiscal  quarter ended March 31, 2008,  that has  materially
affected,  or is reasonably  likely to materially  affect,  our internal control
over financial reporting.


                           PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

                NONE


ITEM 2.  CHANGES IN SECURITIES

The Company made the following unregistered sales of its securities from January
1, 2008 through March 31, 2008:

During the quarter  ended March 31, 2008, a  shareholder  of Company,  exercised
options  with an exercise  price of $0.05 per share for the  purchase of 100,000
shares of the Company's restricted common stock.


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<PAGE>


Exemption From Registration Claimed

All of the sales by the Company of its unregistered  securities were made by the
Company in reliance upon Section 4(2) of the  Securities Act of 1933, as amended
(the "1933  Act").  All of the  individuals  and/or  entities  listed above that
purchased the unregistered securities were almost all existing shareholders, all
known  to  the  Company  and  its  management,   through  pre-existing  business
relationships,   as  long  standing  business  associates,  and  employees.  All
purchasers  were  provided  access  to  all  material  information,  which  they
requested,  and all  information  necessary to verify such  information and were
afforded access to management of the Company in connection with their purchases.
All  purchasers of the  unregistered  securities  acquired such  securities  for
investment and not with a view toward distribution, acknowledging such intent to
the Company.  All certificates or agreements  representing  such securities that
were issued contained  restrictive legends,  prohibiting further transfer of the
certificates or agreements representing such securities, without such securities
either being first  registered  or  otherwise  exempt from  registration  in any
further resale or disposition.


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

                NONE

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

               NONE.

ITEM 5.  OTHER INFORMATION

               NONE.


ITEM 6.  EXHIBITS

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

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

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


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<PAGE>






                                   SIGNATURES


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





                                             NAVIDEC FINANCIAL SERVICES, INC.
                                             (Registrant)



Dated: May 14, 2008                          By: /s/ John McKowen
                                                 ----------------
                                                 John McKowen, President &
                                                 Chief Accounting Officer










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