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 September 30, 2003

   [ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
        SECURITIES EXCHANGE ACT OF 1934

      For the transition period from _________________ to _________________

                         Commission file number: 0-29049


                            Silverado Financial, Inc.
          -----------------------------------------------------------
              (Exact name of Registrant as specified in its charter)

            Nevada                                             86-0824125
--------------------------------------------------------------------------------
(State or other jurisdiction of                             (I.R.S. Employer
incorporation or organization)                           Identification Number)

   1475 S. Bascom Avenue, Suite 210
            Campbell, CA                                          95008
----------------------------------------                        ----------
(Address of principal executive offices)                        (Zip Code)

                                 (408) 371-2301
          ------------------------------------------------------------
              (Registrant's telephone number, including area code)

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  preceding 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 [X] No [ ]

As of September 30, 2003,  14,077,066  shares of the registrant's  common stock,
$0.01 par value per share, were issued and outstanding.


                                       1
<PAGE>


                            SILVERADO FINANCIAL, INC.
                              INDEX TO FORM 10-QSB

                                                                            Page
PART I.   FINANCIAL INFORMATION

Item 1. Financial Statements ................................................ 3

     Consolidated Balance Sheet as of September 30, 2003 .................... 3

     Consolidated Statements of Operation for the nine months
     and three months ended September 30, 2003 and 2002 ..................... 4

     Consolidated Statements of Changes in Stockholders' Equity for
     the nine months ended September 30, 2003 and 2002 ...................... 5

     Consolidated Statements of Cash Flow for the nine months and
     three months ended September 30, 2003 and 2002 ......................... 6

     Notes to Financial Statements .......................................... 8

Item 2. Management's Discussion and Analysis of Financial Condition and
        Results of Operations .............................................. 17

Item 3. Controls and Procedures ............................................ 20

PART II. OTHER INFORMATION

Item 1. Legal Proceedings .................................................. 21

Item 2. Changes in Securities .............................................. 21

Item 3. Defaults Upon Senior Securities .................................... 21

Item 4. Submissions of Matters to a Vote of Security Holders ............... 21

Item 5. Other Information .................................................. 21

Item 6. Exhibits and Reports on Form 8-K ................................... 22

SIGNATURES ................................................................. 22

                                       2
<PAGE>



PART I. FINANCIAL INFORMATION

                          ITEM 1. FINANCIAL STATEMENTS

                            SILVERADO FINANCIAL, INC.
                           CONSOLIDATED BALANCE SHEET
                          (A Development Stage Company)
                               SEPTEMBER 30, 2003
                                   (unaudited)

                                     ASSETS
CURRENT ASSETS
   Cash                                                      $   3,277
   Receivables                                                  11,405
   Marketable securities held for sale                          17,775
                                                      ----------------
Total Current Assets                                            32,457

OTHER ASSETS
   Intellectual property                                     1,398,020
   Furniture, fixtures & equipment-net                         124,637
   Other                                                         6,900
                                                      ----------------

Total assets                                               $ 1,562,014
                                                      ================

                                  LIABILITIES
                                  -----------
CURRENT
   Accounts Payable                                         $  149,954
   Accrued interest                                             21,500
   Convertible notes payable                                    36,000
   Due to affiliates                                            15,000
                                                      ----------------
                                                               222,454
OTHER LIABILITIES
   Note payable                                                275,000
                                                      ----------------
Total liabilities                                              497,454

STOCKHOLDERS' EQUITY
Preferred stock, $.001 par value,
   1,000,000 shares authorized, none issued
Common stock, $.001 par value, 20,000,000 shares                14,077
   authorized, 14,077,066 issued and outstanding
Additional paid-in capital                                  10,332,590
(Deficit) accumulated during the development stage          (9,282,107)
                                                      ----------------
Total stockholders' equity                                   1,064,560
                                                      ----------------

Total liabilities and stockholders' equity                 $ 1,562,014
                                                      ================

                 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

                                       3
<PAGE>

                            SILVERADO FINANCIAL, INC.
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF OPERATION
                                   (unaudited)
<table>
<caption>
                                                                                                       Cumulative from
                                                                                                         Nov. 21, 1994
                                        For the nine months ended      For the three months ended        (Inception) to
                                              September 30,                   September 30,              September 30,
                                          2003           2002           2003             2002               2003
                                     ---------------------------------------------------------------------------------
<S>                                        <C>          <C>              <C>             <C>                    <C>
Revenues
  Commission & processing revenue         $43,823            $0          $25,998              $0               $43,823
  Cost of sales                           (30,152)            0          (20,971)              0               (30,152)
                                     ---------------------------------------------------------------------------------
Gross profit                               13,671             0            5,027               0                13,671
                                     ---------------------------------------------------------------------------------

Operating expenses
  Research and development                      0        (9,183)               0               0               688,563
  Impairment on intellectual property           0             0                0               0             2,168,038
  Consulting                              394,397             0          222,979               0             3,639,521
  General and administrative              241,959        51,293            5,311          12,214             2,703,614
  Depreciation                             11,538             0            6,809               0                11,538
                                     ---------------------------------------------------------------------------------
Total operating expenses                  647,894        42,110          235,099          12,214             9,211,274
                                     ---------------------------------------------------------------------------------

Other Income and Expense
  Interest income                               9                              0                                 6,963
  Interest (expense)                      (19,211)         (120)          (6,917)              0               (26,031)
                                     ---------------------------------------------------------------------------------
Total non-operating expense               (19,202)         (120)          (6,917)              0               (19,068)
                                     ---------------------------------------------------------------------------------

Net (Loss) from operations               (653,425)      (42,230)        (236,989)        (12,214)           (9,216,671)

Other revenues and expenses
  (Loss) gain on sale of investments       (6,201)            0                0               0               (78,665)
   Licensing revenue from                       0             0                0               0                13,229
   intellectual property
                                     ---------------------------------------------------------------------------------
Net (Loss)                              $(659,626)     $(42,230)       $(236,989)       $(12,214)          $(9,282,107)
                                     =================================================================================

Net (Loss) per share:
Basic and Diluted                          $(0.06)       $(0.01)          $(0.02)         $(0.00)
                                     ===========================================================

WEIGHTED AVERAGE SHARES OUTSTANDING:
  Basic & Diluted                      11,934,667     5,828,181       13,421,606       6,000,000
                                     ===========================================================
</table>

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

                                       4
<PAGE>




                            SILVERADO FINANCIAL, INC.
                          (A Development Stage Company)
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                                   (unaudited)
<table>
<caption>

                                                                                                          Net
                                                                                          (Deficit)    Unrealized
                                                                                         Accumulated  Holding loss
                                                         Common Stock       Additional      During    on available
                                                 -----------------------     Paid-In     Development    for sale
                                                       Shares    Amount      Capital        Stage      securities         Total
                                                 --------------------------------------------------------------------------------
<S>                                                      <C>       <C>         <C>           <C>           <C>              <C>
Balance at December 31, 2001                         5,739,408    $5,739     $8,475,587   $(8,219,508)     $(7,476)      $254,342
Shares issued for services                             260,592       261         54,937                                    55,198
Net loss for quarter ended Sept. 30, 2002                                                      42,230)                    (42,230)
                                                 --------------------------------------------------------------------------------
                                                     6,000,000    $6,000     $8,530,524   $(8,261,738)     $(7,476)      $267,310
                                                 ================================================================================

Balance at December 31, 2002                        10,400,000   $10,400     $9,616,027   $(8,622,481)      $7,399     $1,011,345
Net unrealized holding (loss) on
 securities available held for sale                                                                         (7,399)        (7,399)

Shares issued for payables                             566,365      $566       $170,109                                   170,675
Shares issued for services                           2,214,822     2,215        388,304                                   390,519
Shares issued for Realty Capital                       729,452       730        126,924                                   127,654
Shares issued for debt                                 228,372       228         48,848                                    49,076
Finders fees                                                                     (1,000)                                   (1,000)
Shares issued for rounding                                  55                                                                  0
Cancellation of shares from sale of intellectual                                                                                0
property                                               (62,000)      (62)       (16,622)                                  (16,684)
Net unrealized holding (loss) on                                                                                                0
 securities available held for sale                                                                                             0
Net loss for quarter ended September 30, 2003                                                (659,626)                   (659,626)
                                                 --------------------------------------------------------------------------------
                                                    14,077,066     $14,077  $10,332,590   $(9,282,107)          $0     $1,064,560
                                                 ================================================================================
</table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS



                                       5
<PAGE>

                            SILVERADO FINANCIAL, INC.
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF CASH FLOW
                                   (unaudited)
<table>
<caption>

                                                                                                                Cumulative from
                                               For the nine months ended     For the three months ended      November 21, 1994
                                                        September 30,                  September 30,             (Inception ) to
                                                --------------------------------------------------------------
                                                      2003         2002           2003           2002         September 30, 2003
                                                --------------------------------------------------------------------------------
<S>                                                    <C>          <C>            <C>            <C>                <C>
OPERATING ACTIVITIES

  Net (loss) income for the period                  $(659,626) $  (42,230)      $(236,989)       $ (12,213)          $(9,282,107)
   Adjustments to reconcile net
     cash used by operations:
        Depreciation expense                           11,538                       6,809                                 11,538
        Write down on intellectual property
and patents                                                                                                            2,086,837
        Loss (gain) on sale of marketable
           securities                                   6,201                                                             78,665
        Rockford shares issued for services                                                                               32,275
        Common stock issued for services              390,519      26,766                                              2,174,201
        Common stock issued for payables and
            debt                                      218,751      28,432         236,700                                410,751
        Common stock issued for Financial
Software Inc.                                                                                                          1,089,903
        Common stock issued for Realty Capital
Corporation                                           127,654                                                            127,654
        Fair value of options granted                                                                                  2,082,113
       (Increase)/decrease  in accounts
             receivable                                 1,222                       2,972                                (11,405)
       (Increase)/decrease  in prepaid expenses                       300                                                      0
       (Increase)/decrease  in furniture, fixtures
& equipment                                          (134,271)                                                          (134,271)
       (Increase)/decrease  in other assets                                                                               (8,803)
        Increase/(decrease) in accounts payable        42,045      11,434           5,339              481               151,053
        Increase/(decrease) in accrued interest        18,408                       6,917                                 21,500
        Increase/(decrease) in due to affiliates      (40,000)    (28,432)        (30,000)                                15,000
        Increase/(decrease) in convertible notes
           payable                                     10,000                      10,000                                 36,000
        Increase/(decrease) in note payable                 0                                                            275,000
                                                --------------------------------------------------------------------------------
Net Cash (Used) by Operating Activities                (7,559)     (3,730)          1,748          (11,732)             (844,096)

FINANCING ACTIVITIES

  Proceeds from private placements                                                                                     1,347,830
  Proceeds from exercise of stock options                                                                              1,006,750
  Proceeds from conversion of debenture                                                                                  200,000
                                                --------------------------------------------------------------------------------
     Cash provided from financing activities                0           0               0                0             2,554,580
                                                --------------------------------------------------------------------------------


                                       6
<PAGE>

 CONSOLIDATED STATEMENTS OF CASH FLOW - continued

INVESTING ACTIVITIES

   Cost of patents                                                                                                      (168,430)
  Proceeds from sale of marketable securities          10,275                                                            103,774
   Acquisition of sotware system                                                                                      (1,398,020)
   Investment in Rockford Technologies                                                                                  (207,756)
   Investment in marketable securities                                                                                   (36,775)
                                                --------------------------------------------------------------------------------
      Cash (used) in investment activities             10,275              0             0                0            (1,707,207)
                                                --------------------------------------------------------------------------------

Increase (decrease) in cash                             2,716      (3,730)          1,748          (11,732)                3,277
Cash at beginning of period                               561       9,100           1,529           17,102                     0
                                                --------------------------------------------------------------------------------
Cash at end of period                                $  3,277    $  5,370        $  3,277         $  5,370          $      3,277
                                                ================================================================================

Interest expense                                     $ 19,211     $   120        $  6,917           $    -          $     26,031

SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES


Cancellation of 62,000 common shares in sale of
  intellectual property and Rockford shares             $   0          $   0         $   0           $   0         $     (16,684)
                                                =================================================================================

Issuance of common stock for licensing agreements
    and intellectual property                           $   0          $   0        $   0            $   0         $   2,005,350
                                                ==================================================================================
</table>

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS


                                       7
<PAGE>


                            SILVERADO FINANCIAL, INC.
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                FOR NINE MONTHS ENDED SEPTEMBER 30, 2003 and 2002


The  unaudited  financial  statements  included  herein were  prepared  from the
records  of  the  Company  in  accordance  with  Generally  Accepted  Accounting
Principles. These financial statements reflect all adjustments which are, in the
opinion of  management,  necessary to provide a fair statement of the results of
operations  and  financial  position  for the interim  periods.  Such  financial
statements  generally  conform to the  presentation  reflected in the  Company's
Forms  10-QSB and 10-KSB filed under its  previous  name of Rhombic  Corporation
with the  Securities  and Exchange  Commission  for the year ended  December 31,
2002. The current  interim period  reported herein should be read in conjunction
with the Company's Form 10-KSB  subject to  independent  audit at the end of the
year.

Note 1 - ORGANIZATION AND BASIS OF PRESENTATION

On November 19th,  2002, the Company  acquired all of the issued and outstanding
shares of Financial  Software,  Inc., (FSI) a New Jersey corporation  engaged in
the  development  of  Internet  and  Intranet  financial  software in edition to
operating several Financial Industry publishing web-sites.  This acquisition was
completed on a share for share  exchange  basis for 22,000,000 pre reverse split
shares  (5,500,000 post reverse split shares) of the Company's common stock. FSI
was acquired in order to gain access to certain  proprietary  software  products
owned by FSI which the  Company  intends to  further  develop  and  extend  into
comprehensive mortgage platforms called MortgageCenter and FinanCenter.

A majority of the shareholders of record on February 10, 2003 voted to amend the
Articles of Incorporation of the Registrant to change the name of the Company to
Silverado  Financial,  Inc.  and to  change  the  authorized  common  shares  to
20,000,000 and the authorized  preferred  shares to 1,000,000 as described in an
information  statement  filed  on Form  14C with  the  Securities  and  Exchange
Commission  on February 11, 2003.  The  Registrant  filed with the  Secretary of
State of Nevada a Certificate of Amended  Articles of Incorporation on March 21,
2003.

Effective April 29, 2003 the Company changed its trading name and trading symbol
to "SLVO" on the OTCBB and decreased the number of issued and outstanding shares
of common stock by issuing one new share for each five shares held.  This action
was done in conjunction  with the  shareholder  approval of February 10, 2003 to
amend the Articles of  Incorporation of the Registrant to change the name of the
Company to Silverado Financial,  Inc. and to change the authorized common shares
to 20,000,000 and the authorized preferred shares to 1,000,000.

On May 9, 2003,  in a non-arms  length  transaction  with John E.  Hartman,  the
company's  president,  the company issued  729,452  shares of restricted  common
stock at a purchase price of $0.175 per share, which was based on the prior five
days average  trading price,  in exchange for all of the  outstanding  shares of
Realty Capital Corporation. The purchase price of Realty Capital Corporation was
$127,654  and was  the  net  asset  value  of  Realty  Capital  Corporation,  as
determined  by an  independent,  third party  valuation.  The shares were issued
under Section 4(2) of the 1933 Securities Act.

GOING CONCERN AND PLAN OF OPERATION

As shown in the accompanying financial statements, the Company had a net loss of
$659,626 and $236,989 for the nine months and three months ended  September  30,


                                       8
<PAGE>
GOING CONCERN AND PLAN OF OPERATION - continued

2003. It has incurred an accumulated  deficit of $9,282,107 and has a deficit in
working capital of $189,997 as of September 30, 2003. The ability of the Company
to continue as a going concern is dependent on obtaining  additional capital and
financing  and  operating at a  profitable  level.  The Company  intends to seek
additional  capital  either through debt or equity  offerings,  or a combination
thereof,  and to  seek  acquisitions  which  will  generate  sales  volume  with
operating margins sufficient to achieve profitability.  The financial statements
do not include any adjustments  that might be necessary if the Company is unable
to  continue  as a  going  concern.  The  independent  auditor's  report  on the
financial statements for the year ended December 31, 2002 expressed  substantial
doubt  about the ability of the  Company to  continue  as a  going-concern.  The
results  of  operations  for  the  period  ended  September  30,  2003  are  not
necessarily  indicative  of the results that may be expected for the year ending
December 31, 2003.

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CONSOLIDATION

The consolidated financial statements include the results of operations, account
balances and cash flows of the Company and its wholly owned  subsidiaries  after
elimination of inter-company transactions

CASH AND EQUIVALENTS

The Company considers cash to be all short-term,  highly liquid investments that
are readily convertible to known amounts of cash and have original maturities of
three months or less.

FINANCIAL INSTRUMENTS

Financial  instruments  consist  primarily of cash,  investments  in  marketable
securities and  obligations  under accounts  payable and accrued  expenses.  The
carrying amounts of cash, accounts receivable,  accounts payable,  notes payable
and accrued  expenses  approximate fair value because of the short term maturity
of those instruments.

INVESTMENTS

Statements of Financial  Accounting  Standards No. 115,  Accounting  for Certain
Investments  in Debt and  Equity  Securities,  ("SFAS  115")  requires  that all
applicable  investments be classified as trading securities,  available for sale
securities  or held to  maturity  securities.  The  Company  did  not  have  any
investments classified as trading securities or held-to-maturity securities. The
statement  further  requires that  available for sale  securities be reported at
fair value, with unrealized gains and losses excluded from earnings but reported
in a separate  component  of  shareholders'  equity (net of the effect of income
taxes)  until they are sold.  At the time of sale,  any gains or losses  will be
recognized as a component of operating results.

At September 30, 2003 and 2002,  respectively,  the Company's  investments  were
held for sale.

INTELLECTUAL PROPERTY

The Company's intellectual property is comprised of a software platform acquired
with the acquisition of Financial Services Inc. in 2002.

                                       9
<PAGE>

The Company  periodically  evaluates the recoverability of intangible assets and
takes into account events or  circumstances  that warrant  revised  estimates of
useful  lives  or  that  indicate  that  an  impairment  exists.  The  Company's
intangible assets will be subject to amortization when put into productive use.


IMPAIRMENT OF LONG-LIVED ASSETS

In the event that facts and  circumstances  indicate that the cost of long-lived
assets,  primarily  intellectual  property  and patents,  may be  impaired,  the
Company performs a recoverability  evaluation. If an evaluation is required, the
discounted  estimated  future cash flows associated with the assets are compared
to the assets'  carrying amount to determine  whether a write-down to fair value
is required.

In August 2001,  the FASB issued SFAS No. 144 ("SFAS 144")  "Accounting  for the
Impairment  or Disposal of  Long-Lived  Assets."  SFAS 144 became  effective  on
January 1, 2002 and  supersedes  SFAS No. 121 ("SFAS 121"),  Accounting  for the
Impairment of Long-Lived  Assets and for accounting and reporting  provisions of
APB Opinion No. 30, "Reporting the Results of  Operations-Reporting  the Effects
of  Disposal  of a  Segment  of  a  Business,  and  Extraordinary,  Unusual  and
Infrequently  Occurring Events and  Transactions," for the disposal of a segment
of a business.  The new standard  establishes a single accounting model based on
the framework  established in SFAS 121 for long-lived  assets classified as held
for  sale  be  presented  separately  in  the  consolidated  Balance  Sheet  and
eliminates  the  requirement  to allocate  goodwill to  long-lived  assets to be
tested for impairment.

Effective  January 1, 2002,  impairment of goodwill and  intangible  assets with
indefinite lives will be determined under SFAS 142 as discussed above.

STOCK-BASED COMPENSATION

Statement of  Financial  Accounting  Standard  (SFAS) No. 123,  "Accounting  for
Stock-Based  Compensation",  ("SFAS 123") as amended by SFAS No. 148 "Accounting
for  Stock-Based   Compensation  -  Transition  and   Disclosure",   established
accounting  and  disclosure  requirements  using a  fair-value  based  method of
accounting  for  stock-based  employee  compensation.  The Company  periodically
issues  options  to  consultants  and  members  of the Board of  Directors.  The
estimated  value of these options is determined in accordance  with SFAS No. 123
and expensed as the granted options vest to the grantees.

INCOME TAXES

The Company accounts for income taxes under the liability method pursuant to the
Statement of  Financial  Accounting  Standards  No. 109,  Accounting  for Income
Taxes,  ("SFAS 109").  Deferred taxes arise from temporary  differences,  due to
differences between accounting methods for tax and financial statement purposes.

LOSS PER SHARE

Net loss per share is calculated  using the weighted average number of shares of
common stock outstanding during the year.

USE OF ESTIMATES

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent  assets and  liabilities at the date of the financial  statements and


                                       10
<PAGE>

USE OF ESTIMATES - continued

the  reported  amounts of revenues  and expenses  during the  reporting  period.
Actual results could differ from those estimates.


NEW TECHNICAL PRONOUNCEMENTS

In May 2003,  SFAS 150,  "Accounting  for  Certain  Financial  Instruments  with
Characteristics  of both  Liabilities  and Equity",  was issued.  This Statement
establishes  standards  for  how  an  issuer  classifies  and  measures  certain
financial  instruments with  characteristics  of both liabilities and equity. It
requires that an issuer classify a financial instrument that is within its scope
as a liability (or an asset in some  circumstances).  Many of those  instruments
were previously classified as equity. Generally, a financial instrument, whether
in the form of shares or otherwise,  that is mandatorily  redeemable,  i.e. that
embodies  an  unconditional  obligation  requiring  the  issuer  to redeem it by
transferring its shares or assets at a specified or determinable date (or dates)
or upon an event that is certain to occur, must be classified as a liability (or
asset in some  circumstances).  In some cases,  a financial  instrument  that is
conditionally  redeemable  may  also be  subject  to the  same  treatment.  This
Statement does not apply to features that are embedded in a financial instrument
that is not a derivative (as defined) in its entirety. For public entities, this
Statement is effective for financial  instruments entered into or modified after
May 31, 2003.  The adoption of SFAS 150 did not effect the  Company's  financial
position or results of operations.

Note 3 - INTELLECTUAL PROPERTY

Since its inception, the Company entered into numerous agreements as a result of
having  acquired  certain  rights to  various  complex  intellectual  scientific
properties.  On November  19, 2002 the Company  acquired  intellectual  property
comprised of a software  platform  acquired with Financial  Services Inc. during
2002.

During the quarter ended June 30, 2003, in a non-arms  length  transaction  with
Robert George Krushnisky, a director of the company, the company received 62,000
shares of its own common stock together with cancellation of an outstanding debt
in the  amount of  $1,100 in  exchange  for all of the  scientific  intellectual
property  assets acquired prior to the acquisition of FSI in November of 2002 as
well as all shares of Rockford Technology held for sale by the company.

The Company  periodically  analyzes its investment in intellectual  property for
impairment.  The stages of development in which the intellectual  property is in
make estimation of value or  determination of impairment a difficult task. There
has been no substantive  revenues generated or value derived from the technology
since its acquisition. The Company has determined that there is no evidence that
the book  value  of the  intellectual  property  is  impaired  until it has been
determined  that  there is no  likely  commercial  application  or one that will
produce adequate cash flow to support those values.

On November 19, 2002, in connection with the acquisition of Financial  Software,
Inc., the Company acquired certain software, web sites and intellectual property
which can aggregate financial information from a large number of data sources on
an  individual  basis,  amalgamate  the data and provide  accurate  and detailed
insight into an individual's  personal  financial  picture on a real time basis.
This  software  can manage a host of  disparate  objectives  as they relate to a
persons  financial goals, be they investment or debt related or any combination.
This software suite, together with mortgage generation capabilities can create a
variety of new and different  mortgage,  investment or insurance  products.  The
Company recorded the software on its books at the seller's basis of $1,398,020.

                                       11
<PAGE>

At September  30, 2003,  the Company owned the software  platform  acquired with
Financial Services Inc. during 2002.

Note 4 - INVESTMENTS

The Company has the following investments at September 30, 2003:

                                                  September 30, 2003
                                                -------------------------
                                                               Estimated
                                                    Cost       Fair Value
                                                    ----       ----------
     AVAILABLE FOR SALE SECURITIES

     Limelight Media Group Inc., fka
     Showintel Networks, Inc.                       $17,775       $17,775
                                                   ---------- -----------
     Totals                                         $17,775       $17,775
                                                   ========== ===========

The Company did not acquire or sell any marketable  securities  during the third
quarter of 2003.

The  estimated  fair value of the 197,500  shares of Limelight  Media Group Inc.
held by the  Company  was  estimated  based on the quoted  trading  price of the
security at September 30, 2003. The security began trading under its new name of
Limelight Media Group Inc. on November 10, 2003.

Note 5 - INCOME TAXES

The Company  does not provide any current or deferred  income tax  provision  or
benefit for any period  presented  because it has experienced  operating  losses
since inception.  At September 30, 2003 and 2002, the Company has  approximately
$9,282,107  and  $8,254,339 of net operating  losses  available to offset future
federal  income tax liability  and  $3,647,487  and  $2,920,532 of net operating
losses  available to offset future state income tax  liability.  The Company has
provided a full valuation  allowance  because of the  uncertainty  regarding the
utilization of the net operating loss carry forwards.

<table>
<caption>
                                                    For the nine months ended September 30,
                                                  -----------------------------------------
                                                        2003                  2002
                                                  -----------------    --------------------
<S>                                                     <C>                   <C>
Tax effects of carryforward benefits:
    Net operating loss carryforwards                   $ 3,478,531             $ 3,171,316
                                                  -----------------    --------------------
Total current and deferred income tax benefit            3,478,531               3,171,316
Valuation allowance                                     (3,478,531)             (3,171,316)
                                                  -----------------    --------------------
Benefit of income taxes                                      $ -0-                    $ -0-
                                                  =================    ====================
</table>

Income tax components for the nine months ended  September 30, 2003 and 2003 are
as follows:

                                       12
<PAGE>

Note 5 - INCOME TAXES- continued

                                   For the nine months ended September 30,
                                  -----------------------------------------
                                               2003                  2002
                                  -----------------    --------------------
Income tax benefit:
    Federal                               $ 224,273                $ 14,358
    State                                    29,155                   1,867
                                  -----------------    --------------------
Total current and deferred income
   tax benefit                              253,428                  16,225
Valuation allowance                        (253,428)                (16,225)
                                  -----------------    --------------------
Benefit of income taxes                         $-0-                    $-0-
                                  =================    ====================

Income tax expense  does not differ from  amounts  computed by applying the U.S.
Federal income tax rate of 34% and the state rate of 7% at December 31, 2002 and
2001, except for the valuation allowance.

At September 30, 2003, the Company's  realized net operating  losses expire over
the next 20 years for  federal  and five years for state  income  tax  purposes.
Future  realization  of the net deferred  tax assets is dependent on  generating
sufficient taxable income prior to their expiration.  The realized net operating
losses expire, as follows:

                 Expiration           Federal                  State
            -----------------  ------------------     --------------

            2004                                           $ 301,975
            2005                                           1,835,135
            2006                                             289,298
            2007                                              63,361
            2008                                           1,159,718
            2009                     $     44,994
            2010                          379,485
            2011                          461,101
            2012                          236,028
            2018                          861,526
            2019                          603,950
            2020                        3,670,269
            2021                          578,596
            2022                          126,723
            2023                        2,319,435
                             --------------------     --------------
  Total net operating loss available  $ 9,282,107          3,649,487
                             ====================     ==============

Note 6 - NOTES PAYABLE

Note Payable

As part of the acquisition of Financial  Services  Software,  the Company became
obligated under a note for $275,000 at 8% per annum, payable monthly, in arrears
and  amortized  over  eighteen  equal  installments  of $16,258.  Principal  and
interest  payments  due under the note will not be paid  until the  Company  has
raised  sufficient  capital  through  the sale of stock and /or notes to raise a
minimum of four times the  monthly  payment  due.  Further,  additional  monthly
payments are abated until the Company is able to maintain  sufficient capital to


                                       13
<PAGE>

Note Payable - continued

allow it to remain cash flow positive and continue  making the  payments.  There
was $18,986 of accrued unpaid interest at September 30, 2003.

Convertible Notes payable

The Company has three  convertible  notes  payable  totaling  $36,000 at 10% per
annum  maturing  during the third  quarter of 2004 as a result of the  Company's
extensions of two convertible  notes that were originated during 2002. There was
$1,989 of accrued unpaid interest at September 30, 2003.

Assuming the Company has the ability to make all note payments under their terms
commencing  October 1, 2003 and does not convert or extend the convertible notes
payable, the minimum annual payments are as follows:

               Year     $ Amount
               2003     $ 48,774
               2004      226,296
               2005       48,774
                       ---------
             Total      $323,844
                       =========

Note 7 - COMMITMENTS

During May 2003, the Company became  responsible for a lease entered into by its
subsidiary,  Realty  Capital  Corporation,  during October 2002 for 3,179 square
feet in an office building in Campbell, California. The lease is for a period of
two years ending on October 31, 2004. The base rental under the lease is $80,111
per annum ($6,675.90 per month) during the first twelve month period and $82,514
($6,876.17 per month) during the second twelve month period.  The lease provides
for the Company to pay its  proportionate  share of the landlord's  common costs
during second twelve month period.

Rent  expenses  totaled  $40,003 and $2,400 for the nine months ended  September
2003 and  2002,  respectively  and  $19,975  and $0 for the three  months  ended
September 2003 and 2002, respectively.

Minimum future commitments under all operating leases are as follows:

                          Years Ending                Amount
                          December 31,
                       --------------------     --------------------

                              2003                           $20,428
                              2004                            68,762
                                                --------------------
                                                             $89,190
                                                ====================


Note 8 - STOCKHOLDERS' EQUITY

During the first two  quarters of 2003 the company  issued a total of  2,382,884
common  shares at a deemed value of $500,224.  A total of 1,090,001  shares were
issued for services at a deemed value of $198,519,  563,376  common  shares were
issued for debt and  payables  at a deemed  value of  $174,051,  729,452  common
shares were issued to the  Company's  president  John E.  Hartman for all of the
outstanding  shares of Realty Capital  Corporation at a deemed value of $127,654


                                       14
<PAGE>

Note 8 - STOCKHOLDERS' EQUITY - continued

and 62,000  common  shares were  returned to the  treasury  and  cancelled  in a
transaction  involving  the sale of the  scientific  intellectual  property to a
director of the Company at a deemed value of $16,684.

During the  quarter  ended  September  30,  2003,  the  Company  issued  300,000
restricted common shares to an individual for investor relations services valued
at $48,000.  The shares were issued under  Section  4(2) of the 1933  Securities
Act. The Company also issued 226,363 restricted common shares to the officers of
the Company for accrued  compensation  of $45,000.  The shares were issued under
Section  4(2) of the 1933  Securities  Act.  The  Company  also  issued  300,000
restricted common shares to a public relations firm at a deemed value of $65,000
for investor  relations  services and issued 206,200 restricted common shares to
officers  of the Company for  services  rendered  during the quarter at a deemed
value of $30,000.  All of the shares were issued under  Section 4(2) of the 1933
Securities Act.

During  the  quarter  ended   September  30,  2003,  the  Company  issued  5,000
unrestricted  shares under its S-8 2003  Employees and  Compensation  Plan to an
individual  at a deemed  value of $700 for legal  services  rendered  during the
prior quarter ended June 30, 2003.

During the  quarter  ended  September  30,  2003,  the  Company  issued  284,591
unrestricted  shares  to two  consultants  under  its  S-8  2003  Employees  and
Compensation Plan at a deemed value of $49,000 for various  consulting  services
rendered during the current quarter ended September 30, 2003 relating to matters
of corporate governance, software consulting, legal and other services.

Note 9 - STOCK OPTIONS

The Company issues stock options  periodically to consultants and members of the
Board of Directors.  The Company has adopted  Statement of Financial  Accounting
Standards  No.  123,  "Accounting  for  Stock-Based  Compensation".  For options
granted in the period ended September 30, 2003, that were granted to individuals
other than  employees,  the  intrinsic  value method  prescribed  by  Accounting
Principles  Board Opinion No. 25,  "Accounting  for Stock Issued to  Employees",
does not apply. Accordingly, compensation cost has been recognized for the stock
options granted to other than employees.

Under the provisions of SFAS No. 123, the number of fully vested options granted
of 0 and  100,000  options for the periods  ended  September  30, 2003 and 2002,
respectively,  were used to determine  compensation cost. There was no charge to
expense for the value of options during the periods ended September 30, 2003 and
2002.

The Board of Directors  authorized the granting of no options during the periods
ended  September  30,  2003 and 2002,  respectively.  The  price of any  options
granted  pursuant to these grants is not to be less than 100 percent of the fair
market  value of the shares on the date of grant.  The  options  expire one year
from date of grant and are immediately vested.

Note 10 - COMMON STOCK

At September 30, 2003 and 2002, the Company had 14,077,066 and 6,000,000  shares
outstanding, respectively. The Company has 20,000,000 shares of $0.001 par value
authorized.

                                       15
<PAGE>

Note 11 - LOSS PER SHARE

Loss per share of common stock has been computed  based on the weighted  average
number of shares  outstanding.  As of September 30, 2003 and 2002,  the weighted
average  number  of  shares  outstanding  for the nine  months  then  ended  was
11,934,667   and   5,828,181,   respectively.   There  were  no  dilutive  items
outstanding; therefore, basic and diluted losses per share are the same.

Note 12 - CREDIT RISK AND OTHER CONCENTRATIONS

The Company has  historically  relied upon cash raised in private  placements of
the Company's common stock for working capital.  At times, the Company maintains
cash  balances at banks that exceed  insured  limits.  At September 30, 2003 and
2002 the Company did not have funds on deposit that exceeded the insured limits.

Note 13 -SUBSEQUENT EVENTS

On November 17, 2003 the Company  acquired all of the outstanding  common shares
of San  Francisco  Funding  Inc. in exchange  for One  Hundred,  Fifty  Thousand
(150,000)  shares of the  Company's  restricted  common  stock and  Twenty  Five
Thousand   (25,000)  shares  of  the  Company's   Restricted  Series  A  Secured
Convertible Preferred Stock.

On  November  17,  2003,  the board of  directors  of the Company  approved  the
issuance of 25,000 shares of restricted  Series A  Convertible  Preferred  Stock
with a face value of $250,000  and bearing  cumulative  dividends at six percent
(6%) per  year.  The  Preferred  shares  shall  have a right to  convert  to ten
restricted common shares, at the option of the holder,  per each Preferred share
converted by the holder.  The preferred shares may be redeemed by the Company at
its  option at any time after  their  issuance  for an amount  equal to the face
value of each share plus any unpaid accrued dividends. The Preferred shares have
no right to vote in any shareholder  meetings unless  converted to Common by the
holder.  The  Preferred  shares  are  secured  against  all of the shares of San
Francisco Funding purchased by the Company.

The Company  intends to allow San  Francisco  Funding to continue to operate its
mortgage  banking  operation with its same  management and directors as a wholly
owned subsidiary.

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


                                       16
<PAGE>


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

THIS REPORT CONTAINS  FORWARD-LOOKING  STATEMENTS  WITHIN THE MEANING OF SECTION
21E OF THE  SECURITIES  EXCHANGE  ACT OF 1934,  INCLUDING,  WITHOUT  LIMITATION,
STATEMENTS REGARDING THE COMPANY'S EXPECTATIONS,  BELIEFS,  INTENTIONS OR FUTURE
STRATEGIES THAT ARE SIGNIFIED BY THE WORDS "EXPECTS", "ANTICIPATES",  "INTENDS",
"BELIEVES",  OR SIMILAR LANGUAGE.  SUCH FORWARD-LOOKING  STATEMENTS INCLUDE, BUT
ARE  NOT  LIMITED  TO,  THE  SEEKING  OF  REVENUE  PRODUCING  ACQUISITIONS,  THE
DEVELOPMENT PLANS FOR THE TECHNOLOGIES OF THE COMPANY,  TRENDS IN THE RESULTS OF
THE COMPANY'S DEVELOPMENT, ANTICIPATED DEVELOPMENT PLANS, OPERATING EXPENSES AND
THE COMPANY'S  ANTICIPATED  CAPITAL  REQUIREMENTS AND CAPITAL  RESOURCES.  THESE
FORWARD-LOOKING  STATEMENTS INVOLVE RISKS,  UNCERTAINTIES AND OTHER FACTORS. ALL
FORWARD-LOOKING  STATEMENTS  INCLUDED IN THIS DOCUMENT ARE BASED ON  INFORMATION
AVAILABLE  TO THE  COMPANY  ON THE DATE  HEREOF  AND  SPEAK  ONLY AS OF THE DATE
HEREOF.  THE FACTORS  DISCUSSED  BELOW UNDER  "FORWARD-LOOKING  STATEMENTS"  AND
ELSEWHERE IN THIS  QUARTERLY  REPORT ON FORM 10-QSB ARE AMONG THOSE FACTORS THAT
IN SOME CASES HAVE  AFFECTED  THE  COMPANY'S  RESULTS AND COULD CAUSE THE ACTUAL
RESULTS  TO  DIFFER  MATERIALLY  FROM  THOSE  PROJECTED  IN THE  FORWARD-LOOKING
STATEMENTS.  IN ADDITION,  THE  FOLLOWING  DISCUSSION  IS INTENDED TO PROVIDE AN
ANALYSIS OF THE COMPANY'S  FINANCIAL  CONDITION AND PLAN OF OPERATION AND SHOULD
BE READ IN  CONJUNCTION  WITH THE COMPANY'S  FINANCIAL  STATEMENTS AND THE NOTES
THERETO.


GENERAL:

Since its inception during 1994 as Rhombic Corporation,  the Company has been in
the  development  stage and its  efforts  have  been  primarily  focused  on the
acquisition of the rights to innovative  technologies  that could  ultimately be
developed into numerous  applications.  During the years of 1999 through 2001 it
began to focus on the  research  and  development  of its  portfolio of acquired
technologies  and to  develop  specific  applications  in  order  to  make  them
commercially  marketable.  The business strategy of the Company was to develop a
specific  application  from  a  technology,  then  commence  or  contract  for a
marketing effort for the developed application that would generate sales.

In 2002 the  Company  concluded  that it could not raise  capital  to pursue its
planned  efforts  for its  scientific  technology  and began  seeking  potential
acquisition candidates.  During the fourth quarter of 2002 the Company appointed
John Hartman as Chief  Executive  Officer and  director  and Sean  Radetich as a
director.

On November 11, 2002,  the board of  directors  of the  Registrant  approved the
issuance of  22,000,000  pre reverse split  restricted  shares  (5,500,000  post
reverese  split  shares)of  its common stock for the  acquisition  of all of the
issued  and  outstanding  shares  of  Financial  Software,   Inc.  ("FSI").  The
transaction was closed on November 19, 2002. The value of the  consideration  in
the exchange was determined at arms length by FSI and the registrant. FSI was in
the financial services technology and publishing industry.

A majority of the shareholders of record on February 10, 2003 voted to amend the
Articles of Incorporation of the Registrant to change the name of the Company to
Silverado  Financial,  Inc.  and to  change  the  authorized  common  shares  to
20,000,000 and the authorized  preferred  shares to 1,000,000 as described in an
information  statement  filed  on Form  14C with  the  Securities  and  Exchange
Commission  on February 11, 2003.  The  Registrant  filed with the  Secretary of
State of Nevada a Certificate of Amended  Articles of Incorporation on March 21,
2003.

                                       17
<PAGE>

It is the  intention  of  Silverado  Financial,  Inc.  "Silverado"  to  become a
multifaceted  technology and real estate  services  company.  To achieve its new
business plan,  Silverado will acquire or modify its current software technology
to target the real estate lending  markets and to serve as a parent to companies
that would provide financial publishing, mortgage brokerage and mortgage banking
real estate services to customers through a developed software application.

Silverado is currently considering the acquisition of firms or the establishment
of business  lines in the mortgage  brokerage,  investment  advisory,  insurance
brokerage and commercial and residential mortgage banking sectors.

On May 9, 2003,  in a non-arms  length  transaction  with John E.  Hartman,  the
company's  president,  the company issued  729,452  shares of restricted  common
stock at a purchase price of $0.175 per share, which was based on the prior five
days average  trading price,  in exchange for all of the  outstanding  shares of
Realty Capital Corporation. The purchase price of Realty Capital Corporation was
$127,654  and was  the  net  asset  value  of  Realty  Capital  Corporation,  as
determined  by an  independent,  third party  valuation.  The shares were issued
under Section 4(2) of the 1933 Securities Act.

The  competition in the technology  proliferation  and transfer market is highly
intense  and is based on product  and  technology  recognition  and  acceptance,
novelty and marketability of an invention,  price, and sales expertise.  The new
management of the Company is reviewing its intellectual property and patents and
considering seeing potential buyers.

The  Company  does not have any  employees  and  uses  consultants  for  matters
pertaining  to  coordinating  technology  development  and  administration.  The
Company may hire  employees  during the next twelve  months  depending  upon its
success  in  developing  prototype  applications  for  sale and  financing  more
development.

RESULTS OF OPERATIONS:

Comparison of Quarter Ended September 30, 2003 and 2002

The  Company  generated  revenues  of $25,998  against  $20,971 in cost of sales
resulting in a gross profit of $5,027 from  operations  during the third quarter
of 2003.  The Company  did not have a revenue  generating  operation  during the
third  quarter of 2002 and was seeking  investment  capital  for its  scientific
intellectual property along with acquisition candidates.

During the third  quarter of 2003 the  Company  incurred  $5,311 in general  and
administrative expenses compared to $12,214 during the third quarter ended 2002.
These expenses were comprised of travel,  office expenses and transfer agent and
shareholder expenses.

Consulting  fees during the third  quarter 2003 were  $222,979  compared to none
during the third quarter of 2002.

On July 3, 2003,  the Company  issued  300,000  restricted  common  shares to an
individual for investor  relations  services valued at $48,000.  The shares were
issued under Section 4(2) of the 1933 Securities Act.

On September 11, 2003, the Company issued 300,000  restricted common shares to a
public  relations  firm at a deemed  value of  $65,000  for  investor  relations
services and issued 206,200  restricted common shares to officers of the Company
for services  rendered  during the quarter at a deemed value of $30,000.  All of
the shares were issued under Section 4(2) of the 1933 Securities Act.

                                       18
<PAGE>

During the  quarter  ended  September  30,  2003,  the  Company  issued  284,591
unrestricted  shares  to two  consultants  under  its  S-8  2003  Employees  and
Compensation Plan at a deemed value of $49,000 for various  consulting  services
rendered during the current quarter ended September 30, 2003 relating to matters
of corporate governance, software consulting, legal and other services.

Additional  consulting  fees during the third  quarter of 2003 of  approximately
$30,000 was incurred for  consulting  fees  pertaining to  increasing  the sales
force of Realty Capital Corporation and evaluating potential acquisitions.

LIQUIDITY AND CAPITAL RESOURCES:

Management's  objective  during  the third  quarter  of 2003 was to  acquire  an
operating mortgage brokerage company to increase its revenues;  thereby enabling
the acquisition of warehouse lines to commence mortgage banking operations.

At  September  30,  2002 the  Company  had $5,370 in cash and $32,094 in current
payables.  At September 30, 2003 the Company had  approximately  $3,277 in cash,
$11,405 in  receivables,  $17,775 in  marketable  securities  and  approximately
$218,954 in current payables.

During the quarter ended September 30, 2003 the Company issued  1,356,182 common
shares  valued at $237,000 of which  $45,700 was for  payables  and $191,300 for
services  during the period.  During the quarter  ended  September  30, 2002 the
Company  issued 50,000  restricted  common shares valued at $31,500 for services
during that period.

The Company has warrants  outstanding to purchase  65,000 shares of common stock
in the Company for $29,250 expiring October 1, 2005.

The Company  believes  that it has  sufficient  capital and resources to support
operations  through  the  remainder  of 2003.  It  anticipates  that the capital
requirements for the balance of the period ending December 31, 2003 will require
that  additional  cash be raised from  external  sources.  It believes that this
requirement will be met by cash equity investments.

SUBSEQUENT EVENTS:

On November 17, 2003 the Company  acquired all of the outstanding  common shares
of San  Francisco  Funding  Inc. in exchange  for One  Hundred,  Fifty  Thousand
(150,000)  shares of the  Company's  restricted  common  stock and  Twenty  Five
Thousand   (25,000)  shares  of  the  Company's   Restricted  Series  A  Secured
Convertible Preferred Stock.

On  November  17,  2003,  the board of  directors  of the Company  approved  the
issuance of 25,000 shares of restricted  Series A  Convertible  Preferred  Stock
with a face value of $250,000  and bearing  cumulative  dividends at six percent
(6%) per  year.  The  Preferred  shares  shall  have a right to  convert  to ten
restricted common shares, at the option of the holder,  per each Preferred share
converted by the holder.  The preferred shares may be redeemed by the Company at
its  option at any time after  their  issuance  for an amount  equal to the face
value of each share plus any unpaid accrued dividends. The Preferred shares have
no right to vote in any shareholder  meetings unless  converted to Common by the
holder.  The  Preferred  shares  are  secured  against  all of the shares of San
Francisco Funding purchased by the Company.

The Company  intends to allow San  Francisco  Funding to continue to operate its
mortgage  banking  operation with its same  management and directors as a wholly
owned subsidiary.

                                       19
<PAGE>

FORWARD LOOKING STATEMENTS:

Certain  statements  made in this  report on Form 10-QSB are  "forward  looking"
statements within the meaning of the Private Securities Litigation Reform Act of
1995. Such statements  involve known and unknown risks,  uncertainties and other
factors  that may cause  actual  results,  performance  or  achievements  of the
Company  to be  materially  different  from any future  results  implied by such
forward looking statements.  Although the Company believes that the expectations
reflected  in  such  forward  looking   statements  are  based  upon  reasonable
assumptions, the Company's actual results could differ materially from those set
forth in the forward looking statements. Certain factors that might cause such a
difference  might  include:  the  failure of the  registrants  efforts to secure
additional  equity capital,  the inability to  successfully  execute the revised
business  plan,  the success or failure to implement  the  management to operate
possible acquisitions profitably, and the registrant's planned marketing, public
relations and promotional campaigns.

RISK FACTORS:

The Company  continues to be subject to a number of risk factors,  including the
uncertainty  of  developing  a  commercial   application  for  its  intellectual
property,  the ability of management to successfully  acquire and manage revenue
generating  operating  companies  profitably,  the  need for  additional  funds,
competition,   technological   obsolescence  and  the   difficulties   faced  by
development stage companies in general.

ITEM 3: CONTROLS AND PROCEDURES

a)   Disclosure  controls  and  procedures.  Within 90 days  before  filing this
     report,  an evaluation  was performed  under the  supervision  and with the
     participation  of the Company's  management,  including the CEO and CFO, of
     the  effectiveness  of the design and operation of its disclosure  controls
     and  procedures.  Based  on  that  evaluation,  the  Company's  management,
     including the CEO and CFO, concluded that the Company's disclosure controls
     and procedures were effective as of the date of the evaluation.

(b)  Internal controls.  Since the date of the evaluation described above, there
     have not been any significant  changes in the Company's internal accounting
     controls  or  in  other  factors  that  could  significantly  affect  those
     controls.

                                       20
<PAGE>


                          PART II -- OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

There are no legal  proceedings  against the Company.  The Company is unaware of
any proceedings contemplated against it.

ITEM 2. CHANGES IN SECURITIES

On July 3, 2003,  the Company  issued  300,000  restricted  common  shares to an
individual for investor  relations  services valued at $48,000.  The shares were
issued under Section 4(2) of the 1933 Securities Act.

On July 15, 2003,  the Company issued  226,363  restricted  common shares to the
officers of the Company for  accrued  compensation  of $45,000.  The shares were
issued under Section 4(2) of the 1933 Securities Act.

On September 11, 2003, the Company issued 300,000  restricted common shares to a
public  relations  firm at a deemed  value of  $65,000  for  investor  relations
services and issued 206,200  restricted common shares to officers of the Company
for services  rendered  during the quarter at a deemed value of $30,000.  All of
the shares were issued under Section 4(2) of the 1933 Securities Act.

During  the  quarter  ended   September  30,  2003,  the  Company  issued  5,000
unrestricted  shares under its S-8 2003  Employees and  Compensation  Plan to an
individual  at a deemed  value of $700 for legal  services  rendered  during the
prior quarter ended June 30, 2003.

During the  quarter  ended  September  30,  2003,  the  Company  issued  284,591
unrestricted  shares  to two  consultants  under  its  S-8  2003  Employees  and
Compensation Plan at a deemed value of $49,000 for various  consulting  services
rendered during the current quarter ended September 30, 2003 relating to matters
of corporate governance, software consulting, legal and other services.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

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

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.


                                       21
<PAGE>

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

     3.01 Stock Purchase Agreement to purchase San Francisco Funding, Inc. dated
          November 17, 2003.
     31.1 QUARTERLY  CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY
          ACT OF 2002
     31.2 QUARTERLY  CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY
          ACT OF 2002
     32.1 Certificate of Chief Executive  Officer pursuant to 18 U.S.C.  Section
          1350, as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of
          2002.
     32.2 Certificate of Chief Financial  Officer pursuant to 18 U.S.C.  Section
          1350, as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of
          2002.



SIGNATURES

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

                                       SILVERADO FINANCIAL, INC.

                                           /s/ John E. Hartman
                                           -------------------------------------
Date: November 18, 2003                     By: John E. Hartman
                                           President and Chief Executive Officer


                                           /s/ Albert A. Golusin
                                           -------------------------------------
Date:  November 18, 2003                   By: Albert A. Golusin
                                          Chief Financial Officer


                                       22
<PAGE>