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

                                   FORM 10-QSB

(Mark One)

[x] Quarterly Report pursuant to Section 13 or 15(d) of the Securities  Exchange
    Act of 1934 For the quarterly period ended June 30, 2007

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

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


                        Commissions file number 000-51139


                        NAVIDEC FINANCIAL SERVICES, INC.
   ---------------------------------------------------------------------------

             (Exact name of Registrant as specified in its charter)

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



         8310 South Valley Highway, 3rd Floor, Englewood, Colorado 80112
   ---------------------------------------------------------------------------
                    (Address of principal executive offices)

                   Registrant's telephone number: 303-222-1000

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

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

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

As of August 10, 2007,  there were  7,983,445  shares of issuer's  sole class of
common shares outstanding.

Transitional Small Business Disclosure Format (Check One):

                            Yes [_]        No  [X]



<PAGE>

<TABLE>
<CAPTION>

                NAVIDEC FINANCIAL SERVICES, INC. AND SUBSIDARIES.

                                      INDEX

                                                                                      Page Number

PART I.           FINANCIAL INFORMATION
<S>                                                                                     <C>

   Item 1.    Financial Statements

              Condensed Consolidated Balance Sheet as of June 30, 2007
                 and December 31, 2006                                                  F-1

              Condensed Consolidated  Statements of Operations for the Three
                  and Six Months ended June 30, 2007 and 2006                           F-2

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

              Notes to the Condensed Consolidated Financial Statements                  F-4


   Item 2.    Management's Discussion and Analysis of Financial
              Condition and Results of Operations                                        3

   Item 3.    Controls and Procedures                                                    8

   Item 3(A)T.  Controls and Procedures                                                  8

PART II.          OTHER INFORMATION

   Item 1.  Legal Proceedings                                                            8

   Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                  9

   Item 3.  Defaults Upon Senior Securities - Not Applicable                             9

   Item 4.  Submission of Matters to a Vote of Security Holders                          9
                - Not Applicable

   Item 5.  Other Information - Not Applicable                                           9

   Item 6.  Exhibits                                                                     9

SIGNATURES                                                                              10
</TABLE>


<PAGE>


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

<PAGE>

PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements.

<TABLE>
<CAPTION>


                Navidec Financial Services, Inc. And Subsidiaries
                      Condensed Consolidated Balance Sheets
                                 (In thousands)

                                                                   June 30, 2007      December 31, 2006
                                                                    (Unaudited)            (Audited)
<S>                                                                <C>                <C>
ASSETS
CURRENT ASSETS:
             Cash and cash equivalents                                  $   1,687           $    179
             Marketable securities                                              3                  3
             Accounts receivable, net                                          28                 50
        Prepaid expenses                                                       --                 42
                                                                       ----------------    -------------------
                     Total current assets                                   1,718                274
                                                                       ----------------    -------------------

PROPERTY, EQUIPMENT, AND SOFTWARE, net                                         27                 25

OTHER ASSETS:
             Notes receivable                                                 450                900
             Investments in  BPZ                                            5,383              5,587
             Other assets                                                      11                 75
             Goodwill                                                         190                190
                                                                       ----------------    -------------------
              Total other assets                                            6,034              6,752
                                                                       ----------------    -------------------
TOTAL ASSETS                                                           $    7,779           $  7,051
                                                                       ================    ===================

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
             Accounts payable                                                  56                 78
                                                                       ----------------    -------------------
                     Total current liabilities                                 56                 78
                                                                       ----------------    -------------------

MINORITY INTEREST                                                              50                 43

   COMMITMENTS & CONTINGENCIES (Note 5)

STOCKHOLDERS' EQUITY:
             Common stock, $0.001 par value, 100,000,000 shares
             authorized,                                                        9                  8
             8,983,445 and 7,950,048 voting shares issued and
             outstanding, at June 30, 2007
              and December 31, 2006, respectively
             Additional paid in capital                                     9,413              9,413
        Unrealized Gain on Securities                                       1,758              1,483
             Accumulated Deficit                                           (3,326)            (3,973)

                                                                       ----------------    -------------------
Total stockholders' equity                                                  7,673              6,931
                                                                       ----------------    -------------------

                                                                       ----------------    -------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                             $    7,779           $  7,051
                                                                       ================    ===================

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

                                      F-1
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                         Navidec Financial Services, Inc. and Subsidiary
                         Condensed Consolidated Statement of Operations
                                           (UNAUDITED)

                                                     For the Three Months Ended    For the Six Months Ended
                                                              June 30,                     June 30,

                                                         2007           2006            2007          2006
                                                         ----           ----            ----          ----
<S>                                                     <C>              <C>              <C>        <C>
CONTINUED OPERATIONS

REVENUE
                                                               156           318               380        641
COST OF REVENUE
                                                        -----------      --------         ---------   --------
GROSS PROFIT
                                                               156           318               380        641
                                                        -----------      --------         ---------   --------
OPERATING EXPENSES:
     General and administrative                                446           539               838      1,102
     Impairment, depreciation and amortization                   2             2                 4          6
                                                        -----------      --------         ---------   --------
        Total operating expenses                               448           541               842      1,108
                                                        -----------      --------         ---------   --------
LOSS FROM OPERATIONS                                          (292)         (223)             (462)      (467)
                                                        ===========      ========         =========   ========
OTHER INCOME (EXPENSE):
     Gain on sale of investments                              868           100             1,067        266
     Interest income(expense)
     Gain on settlement of debt
                                                        -----------      --------         ---------   --------
Total other income (expense)                                  918           111             1,119        294

NET INCOME (LOSS) FROM  OPERATIONS                            626         (112)               657      (173)
                                                        -----------      --------         ---------   --------

NET INCOME (LOSS) BEFORE MINORITY INTEREST                    626         (112)               657      (173)

     Minority Interest in Consolidatd Subsidary                 -           (1)               (8)        (5)
                                                        -----------      --------         ---------   --------
NET INCOME (LOSS)                                             626         (113)               649      (178)
                                                        ===========      ========         =========   ========
NET INCOME (LOSS) PER SHARE:
                                                                               $                     $
     Basic                                              $    0.07        (0.01)        $     0.08     (0.02)
                                                        ===========      ========         =========   ========
     Diluted                                            $    0.05             $        $     0.08   $ (0.02)
                                                        ===========      ========         =========   ========
WEIGHTED AVERAGE SHARES OUTSTANDING:

     Basic                                                  8,983         7,950             7,983      7,950
                                                        ===========      ========         =========   ========
     Diluted                                               12,998         7,950             7,983      7,950
                                                        ===========      ========         =========   ========

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

                                      F-2
</TABLE>

<PAGE>

<TABLE>
<CAPTION>


                 Navidec Financial Services, Inc. and Subsidiary
                 Condensed Consolidated Statement of Cash Flows
                                 (In Thousands)
                                   (UNAUDITED)

                                                                           For the Six Months Ended
                                                                                   June 30,
<S>                                                                           <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
     Net income (loss)                                                        $     649    $     (178)
     Adjustments to reconcile net loss to net cash
        Used in operating activities:
        Depreciation and amortization                                                 2             6

        Loss (Gain) on investments                                               (1,067)         (102)
        Loss (Gain) on settlement of debt                                           (50)            -
        Minority interest                                                             8             5
     Changes in operating assets and liabilities:                                     -             -
        Accounts receivable                                                          22            (2)
        Prepaid expenses and other assets                                            42            44
        Accounts payable                                                            (22)         (126)
        Accrued liabilities                                                           -            85
        Notes receivable                                                            450          (221)
        Other                                                                       (32)           14
                                                                                --------       -------
     Net cash used in operating activities:                                         (40)         (645)
                                                                                --------       -------
CASH FLOWS FROM INVESTING ACTIVITIES:
        Proceeds from sale of equity investments                                  1,026           773
        Purchase of BPZ stock                                                         -             -
                                                                                --------       -------
     Net cash provided by investing activities                                    1,068           773
                                                                                --------       -------
CASH FLOWS FROM FINANCING ACTIVITIES:

        Payments on notes payable and capital lease obligations                       -          (300)
        Post-merger proceeds from exercise of BPZ Options                           479           289
        Proceeds from private placement of common stock                               -             -
                                                                                --------       -------
     Net cash (used in) provided by financing activities                            479           (11)
                                                                                --------       -------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                              1,507           117
                                                                                --------       -------
CASH AND CASH EQUIVALENTS, beginning of period                                      179           398
                                                                                --------       -------
CASH AND CASH EQUIVALENTS, end of period                                          1,687           515
                                                                                ========       =======
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
        Cash paid for interest                                                        -            13
                                                                                ========       =======
        Cash paid for taxes                                                           -             -
                                                                                ========       =======

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

                                      F-3
</TABLE>

<PAGE>

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

NOTE 1 - ORGANIZATION

GENERAL OVERVIEW

Navidec   Financial   Services,   Inc.  (the  Company  or  NFS)  was  originally
incorporated as Navidec  Capital,  Inc. by John McKowen and Navidec,  Inc. ("Old
Navidec")  as founders in the State of  Colorado  in December  2002.  In October
2003, the Company was renamed Navidec  Financial  Services,  Inc. As a part of a
Merger Agreement ("Merger  Agreement"),  dated July 8, 2004, between BPZ Energy,
Inc. ("BPZ") and Old Navidec, the wholly-owned  subsidiary of Old Navidec,  NFS,
was spun-off as a dividend,  pro rata, to the  shareholders of Old Navidec.  The
Merger Agreement  provided,  among other things,  for the transfer of all of the
business assets and  liabilities of Old Navidec and its  subsidiaries to NFS and
for the  spin-off  of NFS to the  shareholders  of Old  Navidec  pro  rata as of
September 9, 2004, the record date for the share distribution.

The  separation  of NFS from Old Navidec and the  distribution  of Old Navidec's
historical business to NFS was a condition to the merger transaction between Old
Navidec and BPZ. In contemplating the merger transaction, the Board of Directors
of Old Navidec  determined that separating its historical  business  development
division and mortgage services division from its new oil and gas exploration and
production  business and distributing the common stock of the subsidiary NFS pro
rata to the Old Navidec  shareholders  was  advisable  to protect  the  economic
interests of the  existing  Old Navidec  shareholders.  Old  Navidec's  board of
directors  believed  that the  separation  of NFS from Old Navidec would provide
both companies with the  opportunity  to focus  exclusively on their  respective
businesses and their unique  opportunities.  In addition,  the separation should
enable  each  company  to  enhance  its  strategic,  financial  and  operational
flexibility, and better facilitate future financings.

The merger  transaction  was  consummated  on September 10, 2004. On February 2,
2005,  all of the shares of NFS common  stock  required to be  distributed  as a
dividend pursuant to the merger and spin-off transaction were distributed to the
Old Navidec shareholders of record as of September 9, 2004.

NFS SERVICES

NFS is in the business of  identifying  and acquiring  controlling  interests in
development  stage  companies or business  operations  and/or  engaging in joint
ventures to further their growth by providing capital, consulting, personnel and
other services, both internally and through outside sources. After acquiring its
interest in companies or joint  ventures,  NFS may either sell them privately or
publicly,   or  NFS  may   distribute  the  shares  of  such  companies  to  NFS
shareholders,  or continue to operate them. NFS may also, from time to time, for
a negotiated fee provide capital, consulting, personnel and other services, both
internally and through the use of subcontractors, to development stage companies
that NFS has decided not to acquire.

NORTHSIGHT MORTGAGE GROUP, LLC

On  September  11, 2003,  Old Navidec  entered  into a purchase  agreement  with
Northsight  Mortgage Group,  LLC  ("Northsight").  The sole member of Northsight
provided for the transfer of 80% of the issued and outstanding  membership units
of  Northsight  to Old Navidec in exchange for the issuance of 42,667  shares of
Old Navidec common stock with  additional  shares being placed in escrow.  After

                                      F-4

<PAGE>

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

the audit of Northsight's December 31, 2003 financial statements,  an additional
42,667  shares of Old  Navidec's  common  stock was issued to the sole member of
Northsight  and an aggregate of 43,562 shares of Old Navidec's  common stock was
issued to two  employees  of  Northsight,  pursuant to the terms of the purchase
agreement in exchange for the transfer of any trade names,  trademarks  or trade
dress related to Northsight. At that time, the balance of the Old Navidec shares
subject to the escrow  were  adjusted  pursuant  to the  purchase  agreement  to
provide for a total of 197,056 shares of Old Navidec that are to be released and
issued to the two  employees  in equal  annual  installments  over a three  year
period  beginning  on  September  11,  2004 and ending on  September  11,  2006.
Following this  adjustment,  the total  acquisition cost for the 80% interest in
Northsight was valued at $246,320.  The 80% ownership interest in Northsight was
transferred  and  assigned  by Old  Navidec to NFS  pursuant to the terms of the
merger  transaction.  In May of 2005, NFS established Navidec Mortgage Holdings,
Inc. ("Mortgage Holdings"), a Colorado corporation and a wholly-owned subsidiary
of NFS, which is the holding company of the mortgage-related entities and assets
of NFS.

Northsight  is  subject  to  the   regulations  of  the  Arizona  State  Banking
Commission,  and is also  subject  to  Federal  regulations  regarding  consumer
protection,  including  Truth-In-Lending and RESPA, since it originates consumer
loans.

AEGIS BUSINESS GROUP, INC.

On April 7,  2005,  NFS  entered  into a Stock  Purchase  Agreement  with  Aegis
Business  Group,  Inc., a Colorado  corporation  ("AegisUSA"),  in which NFS was
entitled to receive  3,000,000  shares of AegisUSA  common  stock and  2,000,000
shares of  AegisUSA  Series B  Convertible  Preferred  Stock in  exchange  for a
purchase price of $625,000, to be paid over a period of 90 days, and by agreeing
to  exchange  shares of NFS common  stock for all of the issued and  outstanding
shares of the AegisUSA Series A Preferred Stock.  The negotiated  purchase price
was  based  on the  pro  forma  financial  information,  business  plan  and the
anticipated  capital  funding  requirements of AegisUSA as presented by AegisUSA
management in its solicitation of NFS to invest in AegisUSA.

AegisUSA failed to achieve the milestones and objectives provided by AegisUSA in
the pro formas  presented to the Company.  As a result,  the Company declined to
provide further capital investment in AegisUSA.

In the fall of 2005 Robert  Grizzle,  the current  President and Chief Operating
Officer (COO) of the Company and Ralph Armijo, a director of the Company,  asked
the Company to sell the equity  acquired in AegisUSA so that they could continue
with the business  development of AegisUSA.  On December 13, 2005, the equity in
AegisUSA owned by the Company was sold to Ralph Armijo and Robert Grizzle.

The terms and conditions of the sale were negotiated, considered and approved at
arm's length by the Company's CEO, John McKowen,  with the assistance of outside
legal counsel to the Company. On December 13, 2005, Aegis was sold to Mr. Robert
Grizzle and Mr. Ralph Armijo. The terms of the sale provided for a $100,000 cash
payment to NFS at the closing of the sale and a $528,000 note due and payable to
NFS on December 31, 2006 and the personal guarantees of the purchasers. The note
caries an 8%  interest  rate and is  secured  by  2,000,000  common  shares  and
3,000,000 preferred shares of Aegis. The 288,862 shares of NFS common stock held
by the purchasers were also pledged as collateral against the note. In addition,
the note carries a price escalation of approximately  $33,334 per month for each
month that the note remains unpaid after January 31, 2006,  until such time that
a cumulative  escalation  of $400,000 is reached.  No interest is accrued on the
escalation amounts,  unless and until the note is in default, at which point the
cumulative  escalation  amount also carries an interest  charge at 8% per annum.
Further,  the terms of the sale also called for the  cancellation  of all common
stock exchange rights that initially had been given by NFS to the holders of all
of the issued and outstanding shares of AegisUSA Series A Preferred Stock at the
time of the  original  purchase  of Aegis  by NFS.  As a  result  of this  sale,
effective  December  2005,  NFS  discontinued  all  of its  technology  services
operations.

                                      F-5

<PAGE>

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

On May 3, 2007, the Company reached a settlement  agreement with Mr. Grizzle and
Mr. Armijo, whereby Mr. Armijo paid the Company $300,000 in cash and surrendered
to the Company 68,862 shares of the Company's common stock and 100,000 shares of
his fully  vested  options to purchase the  Company's  common stock at $0.28 per
share. This surrender represents 100% of Mr. Armijo's ownership in the Company's
common stock and 100% Mr.  Armijo's  options to purchase the common stock of the
Company.  Based upon an agreed upon value of $150,000 which equals approximately
$1.055 per share,  which  approximates the price per share of the Company's most
recent private  placement  sales price per share of the Company's  common stock,
Mr.  Grizzle  executed a note  payable to the Company for  $450,000,  due on the
earlier  of one year  from the date  that the  common  stock of the  Company  is
publicly  traded and his shares are  registered  for resale  under an  effective
registration  statement  filed by the Company or  December  31,  2009.  The note
caries an 8% interest  rate and is secured by  1,000,000  Aegis  common  shares,
1,500,000 Aegis preferred  shares,  220,000 shares of the Company's common stock
and 200,000  options to purchase  shares of the Company's  common stock at $0.05
per share held by Mr. Grizzle.

NOTE 2 - BASIS OF PRESENTATION AND MANAGEMENT OPINION

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

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

PRINCIPLES OF CONSOLIDATION

The accompanying  consolidated  financial statements include the accounts of NFS
and its  subsidiaries,  Northsight  Mortgage Group, LLC (an 80% ownership),  and
Navidec  Mortgage  Holdings,  Inc. All  significant  inter-company  balances and
transactions have been eliminated in consolidation.  In April 2005, NFS acquired
Aegis Business Group,  Inc.  ("Aegis"),  a technology  company that develops and
markets security  solutions related to identity and computer access  management.
In December 2005, Aegis was sold to two  individuals,  one of whom is an officer
of NFS and one of who was at the time,  a director  of NFS.  As a result of this
sale,  effective  December 13, 2005 we  discontinued  all operations  within the
technology  division.  As of that date the  operations of Aegis USA, Inc. are no
longer consolidated into the financials of Navidec Financial Services, Inc.

                                      F-6

<PAGE>


USE OF ESTIMATES

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

CASH AND CASH EQUIVALENTS

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

CONCENTRATION OF CREDIT RISK

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

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

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

INVESTMENTS

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

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-7

<PAGE>

REVENUE RECOGNITION

Contract Revenues

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

Other Revenues

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

NET INCOME (LOSS) PER SHARE

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

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


NOTE 3 - INVESTMENT IN BPZ

Significant  estimates were made with respect to the valuation of certain of our
investments in BPZ common stock and BPZ common stock  purchase  warrants that we
have been  granted.  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  Statement  of  Financial
Accounting  Standard Number (SFAS) 115  "Accounting  for Certain  Investments in
Debt and  Equity  Securities."  (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.

Further, due to certain  registration rights and contractual  conditions related
to the  exercise  of these  warrants,  we  believe  that they do not  qualify as
derivative  securities  as the term is defined under SFAS 133,  "Accounting  for
Derivative Instruments and Hedging Activities" and as such should be recorded at
their fair value as  stipulated  under the  guidance of SFAS 115 (see  paragraph
above) and EITF 96-11 "Accounting for Forward Contracts and Purchased Options to
Acquire  Securities  Covered by FASB  Statement No. 115". To this end (using the
Black-Scholes  options pricing model), we have estimated the fair value of these
warrants  to be $4.91 per  share as of June 30,  2007 Had we not  treated  these
warrants as marketable  securities they would have been recorded on our books at
the lower of cost or basis,  which in this case would be zero.  The  Company has
accounted  for the receipt of stock and  warrants as a  contribution  of capital
from BPZ.

At year end, December 31, 2006, the closing market price was $4.10 per share and
as of June 30, 2007, the closing market price per share was $5.58. The Company's
"investments in BPZ" is valued at approximately $5,383,000 on June 30, 2007.

                                      F-8

<PAGE>

Due to the large block of shares held by us and due to the significant number of
shares  underlying  the  warrants  relative to the trading  volume of BPZ, it is
uncertain if we could  liquidate  our positions in BPZ at an amount equal to the
estimated  fair value.  Actual  proceeds from the sale of the stock or the stock
received  upon  exercise of the  warrants  may be  significantly  lower than the
amount recorded on the balance sheet.

Under the terms of the merger  agreement,  cash  proceeds  from the  exercise of
certain  legacy  stock  options in Old  Navidec  (now BPZ) are payable to NFS as
additional  contributed  capital.  For the three and six  months  ended June 30,
2007,  approximately  $279,000  and  $479,000  respectively  was credited to NFS
equity accounts from the exercise of such options.

NOTE 4 - SUBSIDIARIES

The  accompanying   condensed  consolidated  financial  statements  include  the
accounts  of NFS and its  subsidiaries,  Northsight  Mortgage  Group,  LLC,  and
Navidec  Mortgage  Holdings,  Inc. All  significant  inter-company  balances and
transactions have been eliminated in consolidation.  In April 2005, NFS acquired
Aegis Business Group,  Inc.  ("Aegis"),  a technology  company that develops and
markets security  solutions related to identity and computer access  management.
In December 2005, Aegis was sold to two  individuals,  one of whom is an officer
of NFS and one of who was at the time,  a director  of NFS.  As a result of this
sale,  effective  December 13, 2005 we  discontinued  all operations  within the
technology  division.  As of that date, the operations of Aegis USA, Inc. are no
longer consolidated into the financial statements of the Company.

The mortgage services division is focused on the Phoenix, and Scottsdale Arizona
markets and is primarily engaged in the business of marketing,  originating, and
brokering residential mortgages secured by real estate.

NOTE 5 - COMMITMENTS AND CONTINGENCIES

OPERATING LEASES

NFS entered into an operating  lease for office  facilities at 8310 South Valley
Highway, 3rd Floor, Englewood,  Colorado, which expires in September 2007. As of
June 30, 2007 the  remaining  obligation  for the year of 2007 is  approximately
$12,000.

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

DEFINED CONTRIBUTION PLAN

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

LITIGATION

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

                                      F-9

<PAGE>

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

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

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

NOTE 6 - STOCKHOLDERS EQUITY

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

NOTE 7 - SUBSEQUENT EVENTS

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 August 10, 2007, the Company had made $1,263,000
in such  loans.  The loans are  secured  by a first  mortgage  on the  purchased
properties.






                                      F-10

<PAGE>


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

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

OVERVIEW
--------

NFS is in the business of  identifying  and acquiring  controlling  interests in
development  stage  companies or business  operations to further their growth by
providing capital, consulting, personnel and other services, both internally and
through outside sources.  After developing  acquired  companies,  NFS may either
sell  them  privately  or  publicly,  or NFS may  distribute  to  shares in such
companies to the NFS shareholders,  or NFS may continue to operate them. NFS may
also  from  time  to time  provide  capital,  consulting,  personnel  and  other
services, both internally and through the use of subcontractors,  to development
stage companies that it has decided not to acquire.

NORTHSIGHT

On  September  11, 2003,  Old Navidec  entered  into a purchase  agreement  with
Northsight  Mortgage Group, LLC ("Northsight") and its sole member that provided
for the  transfer  of 80% of the  issued  and  outstanding  membership  units of
Northsight  to Old Navidec in exchange for the issuance of shares of Old Navidec
common stock. Pursuant to the terms of the purchase agreement,  42,667 shares of
Old  Navidec  common  stock were  issued to the sole  member of  Northsight  and
additional  shares  were  placed in  escrow.  After  the  audit of  Northsight's
December 31, 2003  financial  statements,  an  additional  42,667  shares of Old
Navidec  common  stock  were  issued  to the sole  member of  Northsight  and an
aggregate  of 43,562  shares of Old  Navidec  common  stock  were  issued to two
employees  of  Northsight,  pursuant to the terms of the  purchase  agreement in
exchange for the transfer of any trade names,  trademarks or trade dress related
to Northsight. At that time, the balance of the shares subject to the escrow was
adjusted  pursuant to the  purchase  agreement to provide for a total of 197,056
shares that are to be released  and issued to the two  employees in equal annual
installments over a three year period beginning on September 11, 2004 and ending
on September 11, 2006.  Following this adjustment the total acquisition cost for
the 80%  interest  in  Northsight  was  valued at  $246,320.  The 80%  ownership
interest  in  Northsight  was  transferred  and  assigned  by Old Navidec to NFS
pursuant to the terms of the merger transaction. In May of 2005, NFS established
Navidec Mortgage Holdings,  Inc. ("Mortgage  Holdings"),  a Colorado corporation
and  wholly-owned  subsidiary  of  NFS,  that  is  the  holding  company  of the
mortgage-related entities and assets of NFS.

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 August 10, 2007, the Company had made $1,263,000
in such  loans.  The loans are  secured  by a first  mortgage  on the  purchased
properties.

AEGIS BUSINESS GROUP

On April 7,  2005,  NFS  entered  into a Stock  Purchase  Agreement  with  Aegis
Business  Group,  Inc., a Colorado  corporation  ("AegisUSA"),  in which NFS was
entitled to receive  3,000,000  shares of AegisUSA  common  stock and  2,000,000
shares of  AegisUSA  Series B  Convertible  Preferred  Stock in  exchange  for a
purchase price of $625,000, to be paid over a period of 90 days, and by agreeing

                                       3

<PAGE>

to  exchange  shares of NFS common  stock for all of the issued and  outstanding
shares of the AegisUSA Series A Preferred Stock.  The negotiated  purchase price
was  based  on the  pro  forma  financial  information,  business  plan  and the
anticipated  capital  funding  requirements of AegisUSA as presented by AegisUSA
management in its solicitation of NFS to invest in AegisUSA.

AegisUSA failed to achieve the milestones and objectives provided by AegisUSA in
the pro formas  presented  to  Company.  As a result,  the  Company  declined to
provide further capital investment in AegisUSA.

In the  fall of 2005,  Robert  Grizzle,  the  current  President  and COO of the
Company, and Ralph Armijo, a director of the Company,  asked the Company to sell
the equity  acquired in AegisUSA so that they could  continue  with the business
development  of AegisUSA.  On December 13, 2005, the equity in AegisUSA owned by
the  Company  was sold to  Ralph  Armijo  and  Robert  Grizzle.  The  terms  and
conditions of the sale were negotiated,  considered and approved at arm's length
by the Company's CEO, John McKowen, with the assistance of outside legal counsel
to the Company.  On December 13, 2005,  Aegis was sold to Mr. Robert Grizzle and
Mr. Ralph Armijo.  The terms of the sale provided for a $100,000 cash payment to
NFS at the  closing  of the sale and a $528,000  note due and  payable to NFS on
December 31, 2006 and the personal guarantees of the purchasers. The note caries
an 8% interest  rate and is secured by  2,000,000  common  shares and  3,000,000
preferred  shares of Aegis.  The 288,862  shares of NFS common stock held by the
purchasers  were also pledged as collateral  against the note. In addition,  the
note  carries a price  escalation  of  approximately  $33,334 per month for each
month that the note remains unpaid after January 31, 2006,  until such time that
a cumulative  escalation  of $400,000 is reached.  No interest is accrued on the
escalation amounts, unless and until, the note is in default, at which point the
cumulative  escalation  amount also carries an interest  charge at 8% per annum.
Further,  the terms of the sale also called for the  cancellation  of all common
stock exchange rights that initially had been given by NFS to the holders of all
of the issued and outstanding shares of AegisUSA Series A Preferred Stock at the
time of the  original  purchase  of Aegis  by NFS.  As a  result  of this  sale,
effective  December  2005,  NFS  discontinued  all  of its  technology  services
operations.

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

On May 3, 2007, the Company reached a settlement  agreement with Mr. Grizzle and
Mr. Armijo, whereby Mr. Armijo paid the Company $300,000 in cash and surrendered
to the Company 68,862 shares of the Company's common stock and 100,000 shares of
his fully  vested  options to purchase the  Company's  common stock at $0.28 per
share. This surrender represents 100% of Mr. Armijo's ownership in the Company's
common stock and 100% Mr.  Armijo's  options to purchase the common stock of the
Company.  Based  upon an  agreed  upon  value  of  $150,000,  which  relates  to
approximately  $1.055  per share  which  approximates  the most  recent  private
placement  sales price per share of the  Company's  common  stock,  Mr.  Grizzle
executed a note payable to the Company for  $450,000,  due on the earlier of one
year from the date that the common  stock of the Company is publicly  traded and
his shares are registered for resale under an effective  registration  statement
filed by the Company or December 31, 2009.  The note caries an 8% interest  rate
and is secured by  1,000,000  Aegis common  shares,  1,500,000  Aegis  preferred
shares,  220,000  shares of the  Company's  common stock and 200,000  options to
purchase  shares of the  Company's  common  stock at $0.05 per share held by Mr.
Grizzle.


                                       4
<PAGE>

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

The  Company's  primary  business  strategy  going  forward will be to focus its
resources  on the  acquisition  of new  companies  or  business  operations  and
continued development of previous  acquisitions.  NFS describes in this document
the businesses that were  contributed to NFS by Old Navidec in the separation as
if they were NFS businesses for all historical periods described.  References in
this document to the historical assets, liabilities, businesses or activities of
Old Navidec or NFS business are  generally  intended to refer to the  historical
assets, liabilities,  businesses or activities of the contributed business as it
was  conducted  as  part  of Old  Navidec  and  its  subsidiaries  prior  to the
separation.  NFS is now an  independent  company and Old Navidec does not have a
continuing stock ownership interest in NFS. NFS historical  financial results as
part of Old Navidec  contained  herein may not reflect NFS financial  results in
the future.

The  operating  expenses  of NFS  consist of  general  and  administrative,  and
depreciation  and  amortization.  General and  administrative  expenses  consist
primarily of salary and benefit  expenses for NFS  employees.  It also  includes
expenses associated with NFS's office facility.

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

The Company recognized revenues for the three and six months ended June 30, 2007
of approximately $156,000 and $380,000, respectively,  compared to approximately
$318,000 and $641,000,  respectively,  for the three and six month periods ended
June 30,  2006.  The overall  decrease  in revenue  was  primarily a result of a
down-turn in the mortgage industry.

During the three and six months ended June 30, 2007,  general and administrative
expenses were approximately $446,000 and $838,000,  respectively, as compared to
$539,000  and  $1,102,000,  respectively,  for the same  periods  in  2006.  The
decrease  in  general  and  administrative  expenses  is  largely  as  result of
managements continued efforts to reduce and eliminate general and administrative
costs.

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

NFS recorded  losses from  operations  of  approximately  $292,000 and $462,000,
respectively,  for the three and six month periods ended June 30, 2007. The loss
from operations  remained  relatively flat as compared to losses from operations
of approximately  $223,000 and $467,000 for the same periods in 2006. During the
three month  period ended June 30,  2007,  there was a slight  increase in costs
primarily due to a write-down of prepaid expenses.

During the three and six month  periods  ended June 30,  2007,  the Company sold
shares of BPZ Energy; in connection with the sales, the Company recognized gains
of approximately $868,000 and $1,067,000, respectively.

During the three and six months  ended June 30, 2007,  the Company  recognized a
net income of  $626,000  and  $647,000,  respectively.  This is  compared to net
losses of  approximately  $113,000 and $178,000 during the same periods in 2006.
Net income per share was approximately  $0.07 and $0.08,  respectively,  for the
three and six months  ended June 30,  2007.  Net losses for the same  periods in
2006 were $0.01 and $0.02 per  share,  respectively.  The  overall  increase  in
earnings per share as compared to the similar  periods in 2006 is primarily as a
result of realized gains from the sale of shares of BPZ Energy.

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

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

         o     Equity proceeds through private placements of NFS securities;

                                       5
<PAGE>

         o     Revenue generated from operations;

         o     Loans and lines of credit;

         o     Sales of equity investments; and

         o     Proceeds from the exercise of legacy Old Navidec Options.

Cash flow from  operations has not  historically  been sufficient to sustain NFS
operations without the above additional sources of capital. As of June 30, 2007,
the Company had cash and cash  equivalents  of  approximately  $1,687,000  and a
working capital surplus of approximately $1,662,000.

Net  cash  used in the  Company's  operating  activities  totaled  approximately
$40,000 for the six months ended June 30, 2007.

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

As a result of proceeds received from the exercise of legacy Old Navidec options
(now BPZ Energy,  Inc.),  that NFS was entitled to receive pursuant to the terms
of the  merger  transaction,  net cash  provided  by  financing  activities  was
approximately $479,000 for the six months ended June 30, 2007.


CRITICAL ACCOUNTING POLICIES

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

REVENUE RECOGNITION

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

REVENUES BUSINESS DEVELOPMENT SERVICES

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


                                       6
<PAGE>

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 August 10, 2007, the Company had made $1,263,000
in such  loans.  The loans are  secured  by a first  mortgage  on the  purchased
properties.

RESERVES FOR BAD DEBT

NFS's policy on reserves for bad debt  determines the timing and  recognition of
expenses.  The Company  follows  guidelines that reserve based off of historical
and account specific trends;  however,  certain judgments affect the application
of NFS bad debt reserve policy. NFS receivables are recorded net of an allowance
for doubtful  accounts which requires  management to estimate  amounts due which
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 June 30,
2007, no allowance for bad debt was recorded.

GOODWILL AND INTANGIBLE ASSETS

Intangible  assets are amortized on a  straight-line  basis over their estimated
useful lives.  Goodwill is evaluated annually to determine if its value has been
impaired.  On September 11, 2003, Old Navidec entered into a purchase  agreement
with Northsight and its sole member that provided for the transfer of 80% of the
issued and outstanding  membership units of Northsight to Old Navidec  resulting
in the  realization  of $190,000  of  goodwill.  This  membership  interest  was
transferred  to NFS  pursuant to the terms of the merger  agreement.  Management
determined  that no  impairment  should be realized  for the three  months ended
March 31, 2007.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

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

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

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


                                       7
<PAGE>

Item 3.  Controls and Procedures

a.       Evaluation of Disclosure Controls and Procedures:

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

b.       Changes in Internal Control over Financial Reporting:

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

ITEM 3(A)T. CONTROLS AND PROCEDURES

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


                           PART II - OTHER INFORMATION

Item 1. Legal Proceedings

On February  14, 2006,  BPZ filed a Petition in the  District  Court of Arapahoe
County,  Colorado for the appointment of a receiver and the judicial dissolution
of NFS ("the  Action").  On May 19,  2006,  BPZ and the Company  entered  into a
Settlement  Agreement  and Mutual  Release  (the  "Agreement")  by and among the
Company,   BPZ,  and  John  McKowen,   the  Chief   Executive   Officer  of  NFS
(collectively,  the "Parties").  The Agreement  settles all disputes amongst the
Parties relating to the Action.  The Agreement provides for among other things a
complete  mutual release  between the Parties of any and all claims  relating to
the Action.  The  Agreement  provides for among other  things a complete  mutual
release  between the Parties of any and all claims  relating to the Action.  The
Agreement  settles all disputes amongst the Parties relating to the Action.  The
Agreement  provides for among other things a complete mutual release between the
Parties  of any and all  claims  relating  to the  Action.  The  Agreement  also
provides that the  expiration  date that  currently  applies to the BPZ warrants
held by NFS will be extended to a date that is one year  following the effective
date of the  registration  of the BPZ shares  underlying  the  warrants.  BPZ is
obligate to use good faith and reasonably  diligent  efforts to obtain effective
registration  of such  shares and will bear any  related,  direct and  customary
registration  expense.  On June 20, 2006, the Court  dismissed the petition with
prejudice and further issued a declaratory judgment and finding of fact that BPZ
was not now nor had it ever been shareholder of NFS since September 9, 2004, the
record date of the spin-off.

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


                                       8
<PAGE>

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


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

         The Company made the  following  unregistered  sales of its  securities
from January 1, 2007 to June 30, 2007.

        NONE


Exemption From Registration Claimed


Item 3. Defaults Upon Senior Securities.

         None


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

         None


Item 5. Other Information.

         None

Item 6. Exhibits.

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

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



<PAGE>




                                   SIGNATURES

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


                        NAVIDEC FINANCIAL SERVICES, INC.

                             By /S/ Robert D. Grizzle
                             ------------------------
                             Robert D. Grizzle
                             COO, President and Principal Accounting Officer

                             Date:   August __, 2007


                             By: /S/ John McKowen
                             -------------------------
                             John McKowen, Chief Executive Officer

Date:  August 14, 2007