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

                                   FORM 10-QSB

(Mark One)
              [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended: December 31, 2005
                                               --------------------

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

                        For the transition period from to
                         Commission file number 0-17304
                                               ---------

                             CISTERA NETWORKS, INC.
    -------------------------------------------------------------------------
                     (Exact name of small business issuer as
                            specified in its charter)

                     Nevada                              91-1944887
--------------------------------------------------------------------------------
             (State or other jurisdiction              (IRS Employer
         of incorporation or organization)           Identification No.)

                 17304 Preston Road, Suite 975, Dallas, TX 75252
    -------------------------------------------------------------------------
                    (Address of principal executive offices)

                                 (972) 381-4699
                            Issuer's telephone number

                            CNH Holdings Company, Inc
              (Former name, former address and former fiscal year,
                         if changed since last report.)

         Check whether the issuer (1) filed all reports  required to be filed by
 Section 13 or 15(d) of the  Exchange Act 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 X No

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


                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDING DURING THE PRECEDING FIVE YEARS

         Check whether the registrant  filed all documents and reports  required
to be  filed  by  Section  12,  13 or  15(d)  of  the  Exchange  Act  after  the
distribution  of securities  under a plan  confirmed by a court.  Yes [ ] No [X]



<PAGE>





                      APPLICABLE ONLY TO CORPORATE ISSUERS

         State the number of shares  outstanding of each of the issuer's classes
of common equity,  as of the latest practical date:  December 31, 2005 7,999,441


         Transitional Small Business Disclosure Format (check one).
Yes      ;  No   X
    ----       -----






































<PAGE>



                                     PART I

ITEM 1.  FINANCIAL STATEMENTS

                      CISTERA NETWORKS, INC. AND SUBSIDIARY
                      (Formerly CNH Holdings Company, Inc.)
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                                (Unaudited)
                                                                                 December 31,         March 31,
                                                                                    2005                2005
                                                                             ------------------  ------------------
Current Assets:
<S>                                                                          <C>                 <C>
   Cash                                                                      $           96,304  $           38,632
   Accounts Receivable                                                                  187,084             359,123
   Other Receivable                                                                      24,427              26,639
   Inventory                                                                             21,252              17,694
   Prepaid Expenses                                                                      12,663               6,041
   Receivable from XBridge                                                                    -             453,889
                                                                             ------------------  ------------------

      Total Current Assets                                                              341,730             902,018
                                                                             ------------------  ------------------

Fixed Assets:
   Computer Equipment                                                                   117,496              71,099
   Trade Show Booth & Fixtures                                                            8,774               7,756
   Office Equipment                                                                      72,880              53,776
   Property held under capital leases                                                    10,205              10,205
   Less Accumulated Depreciation                                                       (100,109)            (34,689)
                                                                             ------------------  ------------------

      Net Fixed Assets                                                                  109,246             108,147
                                                                             ------------------  ------------------

Intangible Assets:
   Licensing Rights                                                                           -             375,500
   Intellectual Property                                                              4,852,576                   -
   Software Development                                                                 366,039                   -
   Less Amortization                                                                   (478,212)            (35,985)
                                                                             ------------------  ------------------

      Net Intangible Assets                                                           4,740,403             339,515
                                                                             ------------------  ------------------

Total Assets                                                                 $        5,191,379  $        1,349,680
                                                                             ==================  ==================
</TABLE>







<PAGE>



                      CISTERA NETWORKS, INC. AND SUBSIDIARY
                      (Formerly CNH Holdings Company, Inc.)
                           CONSOLIDATED BALANCE SHEETS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                (Unaudited)
                                                                                December 31,          March 31,
                                                                                    2005                2005
                                                                             ------------------  ------------------
Current Liabilities:
<S>                                                                          <C>                 <C>
   Accounts Payable                                                          $          534,712  $        1,920,725
   Accrued Liabilities                                                                  404,169             154,977
   Related Party Payables                                                                78,477              80,179
   Notes Payable                                                                         40,000                   -
   Current portion of deferred income                                                   104,846                   -
   Current portion of long-term debt                                                      3,468               3,032
                                                                             ------------------  ------------------
      Total Current Liabilities                                                       1,165,672           2,158,913
                                                                             ------------------  ------------------

Long-Term Liabilities
   Lease obligation payable                                                               3,321               5,925
   Convertible promissory notes                                                         324,179           1,173,217
   Deferred income                                                                      134,591             103,775
                                                                             ------------------  ------------------
     Total Long-Term Liabilities                                                        462,091           1,282,917
                                                                             ------------------  ------------------

     Total Liabilities                                                                1,627,763           3,441,830
                                                                             ------------------  ------------------

Stockholders' Equity:
   Common Stock, Par value $.001
     Authorized  50,000,000 and 10,000,00  shares at December 31, 2005 and March
     31, 2005 Issued 7,999,441 shares at December 31, 2005 and
     4,467,938 shares at March 31, 2005                                                   7,999               4,469
   Paid-In Capital                                                                    8,614,690           1,245,324
   Retained Deficit                                                                  (5,059,073)         (3,341,943)
                                                                             ------------------  ------------------
      Total Stockholders' Equity                                                      3,563,616          (2,092,150)
                                                                             ------------------  ------------------

Total Liabilities and Stockholders' Equity                                   $        5,191,379  $        1,349,680
                                                                             ==================  ==================
</TABLE>








                             See accompanying notes.


<PAGE>



                      CISTERA NETWORKS, INC. AND SUBSIDIARY
                      (Formerly CNH Holdings Company, Inc.)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                          For the Three Months Ended              For the Nine Months Ended
                                                 December 31,                            December 31,
                                           2005                2004                2005                2004
                                     -----------------  ------------------  ------------------  ------------------
<S>                                  <C>                <C>                 <C>                 <C>
Revenues                             $         329,699  $          228,199  $        1,310,418  $        1,036,507
Cost of Goods Sold                              92,092              53,938             320,374             213,510
                                     -----------------  ------------------  ------------------  ------------------

Gross Profit                                   237,607             174,261             990,044             822,997
                                     -----------------  ------------------  ------------------  ------------------

Expenses:
   Sales & Marketing                           378,745                   -             414,841               3,569
   Research & Development                      130,688                   -             388,748                   -
   Software Consulting                         195,249             357,444             734,584           1,572,063
   General & Administrative                    364,429             201,031           1,066,165             427,277
                                     -----------------  ------------------  ------------------  ------------------
      Total Expenses                         1,069,111             558,475           2,604,338           2,002,909
                                     -----------------  ------------------  ------------------  ------------------

Other Income (Expenses)
   Interest Income                                 397               1,310               1,448               1,310
   Interest Expense                            (53,763)             (7,024)           (104,285)            (13,715)
                                     -----------------  ------------------  ------------------  ------------------

     Net Loss                        $        (884,870) $         (389,928) $       (1,717,131) $       (1,192,317)
                                     =================  ==================  ==================  ==================

Basic & Diluted
Earnings (Loss) per Share            $          (0.11)  $           (0.10)  $           (0.22)  $           (0.31)
                                     =================  ==================  ==================  ==================

Weighted Average Shares                      7,999,441           3,958,358           7,999,441           3,958,358
                                     =================  ==================  ==================  ==================
</TABLE>










                             See accompanying notes.


<PAGE>



                      CISTERA NETWORKS, INC. AND SUBSIDIARY
                      (Formerly CNH Holdings Company, Inc.)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                         (Unaudited)
                                                                                  For the Nine Months Ended
                                                                                         December 31,
                                                                                   2005                 2004
                                                                            ------------------  ------------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
<S>                                                                         <C>                 <C>
Net Loss                                                                    $       (1,717,131) $       (1,192,317)
Adjustments used to reconcile net loss to net
  cash provided by (used in) operating activities:
Depreciation & Amortization                                                            303,826              33,861
Deferred Income                                                                        135,662              94,590
Accrued interest converted to convertible debt                                               -               7,000
Accrued expenses converted to convertible debt                                               -              48,000
Stock issued for accrued interest                                                       87,392                   -
Stock issued for accrued liabilities                                                   543,004                   -
(Increase) Decrease in Accounts Receivable                                             158,202             (40,640)
(Increase) Decrease in Other Receivable                                                      -             (10,673)
(Increase) Decrease in Inventory                                                        (3,558)             (4,762)
(Increase) Decrease in Prepaid Expenses                                                 (5,321)             (3,210)
(Increase) Decrease in Xbridge Receivable                                             (569,525)           (215,561)
Increase (Decrease) in Related Party Payables                                             (428)                   -
Increase (Decrease) in Accrued Liabilities                                             249,329             444,106
Increase (Decrease) in Accounts Payable                                                297,557             672,272
                                                                            ------------------  ------------------
   Net Cash Used in Operating Activities                                              (520,991)           (167,334)
                                                                            ------------------  ------------------

CASH FLOWS FROM INVESTING
ACTIVITIES:
Cash acquired from XBridge                                                               2,834                   -
Purchase of Equipment                                                                  (23,504)           (100,731)
                                                                            ------------------  ------------------
   Net cash provided by Investing Activities                                           (20,670)           (100,731)
                                                                            ------------------  ------------------

CASH FLOWS FROM FINANCING
ACTIVITIES:
Capital lease                                                                                -              10,205
Payments on capital lease                                                               (2,167)               (434)
Sale of Common Stock                                                                   583,500                   -
Cash received from convertible debt                                                          -           1,029,000
Proceeds from loans                                                                     50,000              75,755
Payments made on shareholder loans                                                     (32,000)            (17,000)
                                                                            ------------------  ------------------
   Net Cash Provided by Financing Activities                                           599,333           1,097,526
                                                                            ------------------  ------------------
</TABLE>




<PAGE>



                      CISTERA NETWORKS, INC. AND SUBSIDIARY
                      (Formerly CNH Holdings Company, Inc.)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                         (Unaudited)
                                                                                  For the Nine Months Ended
                                                                                          December 31,
                                                                                    2005               2004
                                                                            ------------------  ------------------
<S>                                                                                     <C>                <C>
Net (Decrease) Increase in Cash & Cash Equivalents                                      57,672             829,461
Cash and Cash Equivalents at Beginning of Period                                        38,632                 963
                                                                            ------------------  ------------------
Cash and Cash Equivalents at End of Period                                  $           96,304  $          830,424
                                                                            ==================  ==================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
  Interest                                                                  $                 - $                -
  Franchise and income taxes                                                $                 - $                -

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES:
</TABLE>

         On December 31, 2005, the Company issued 946,392 shares of stock due to
the  conversion  of note  principal  and interest  from private  placement  fund
holders. The amount of principal  represented by these shares was $859,000.  The
amount of accrued interest represented by these shares was $87,392.













                             See accompanying notes.



<PAGE>



                      CISTERA NETWORKS, INC. AND SUBSIDIARY
                      (Formerly CNH Holdings Company, Inc.)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - NATURE OF OPERATIONS AND GOING CONCERN

         The accompanying  financial statements have been prepared in conformity
with  accounting  principles  generally  accepted  in the United  States,  which
contemplates the Company as a going concern.  However, the Company has sustained
substantial operating losses in recent years and has used substantial amounts of
working capital in its operations.  Realization of a major portion of the assets
reflected  on  the  accompanying  balance  sheet  is  dependent  upon  continued
operations  of the Company  which,  in turn,  is  dependent  upon the  Company's
ability to meet its financing requirements and succeed in its future operations.
Management  believes that actions  presently being taken to revise the Company's
operating and financial  requirements  provide them with the opportunity for the
Company to continue as a going concern.

         These  financial  statements do not reflect  adjustments  that would be
necessary  if the Company  were unable to continue as a "going  concern".  While
management believes that the actions already taken or planned, will mitigate the
adverse conditions and events which raise doubt about the validity of the "going
concern" assumption used in preparing these financial  statements,  there can be
no assurance that these actions will be successful.

         If the  Company  were unable to  continue  as a "going  concern",  then
substantial adjustments would be necessary to the carrying values of assets, the
reported amounts of its liabilities, the reported revenues and expenses, and the
balance sheet classifications used.

Interim Reporting

         The unaudited financial statements as of December 31, 2005, and for the
three and nine month period then ended  reflect,  in the opinion of  management,
all adjustments (which include only normal recurring  adjustments)  necessary to
fairly state the financial  position and results of operations for the three and
nine  months.   Operating  results  for  interim  periods  are  not  necessarily
indicative of the results which can be expected for full years.

Organization and Basis of Presentation

         CNH Holdings  Company,  Inc., a Nevada  corporation (the Company),  was
incorporated in Delaware on April 15, 1987, under the name of I.S.B.C. Corp. The
Company subsequently  changed its name first to Coral Companies,  Inc., and then
to CNH Holdings  Company.  Domicile  was changed to Nevada in 1997.  The Company
conducted an initial public and secondary offerings during the 1980's.

         On June 15, 1998,  the Company  acquired  Southport  Environmental  and
Development,  Inc. This  acquisition,  however,  was  subsequently  rescinded by
agreement  between the parties  and made a formal  order of the court  effective
April 19, 2000. This order put the Company in the position


<PAGE>



                      CISTERA NETWORKS, INC. AND SUBSIDIARY
                      (Formerly CNH Holdings Company, Inc.)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 1 - NATURE OF OPERATIONS AND GOING CONCERN (continued)

which it occupied at June 14, 1998, as if none of the actions which had occurred
from that time to the date of rescission had transpired. On May 5, 2003, Corvero
Networks,  Inc., a Florida corporation,  was formed by CNH Holdings Company as a
wholly-owned  subsidiary to acquire the use of certain  technology  known as the
XBridge  Technology.  This technology was then utilized as a principal component
of the  Corvero  Convergence  Platform.  The  acquisition  was  accomplished  by
entering  into a license  agreement  with  XBridge  Software,  Inc.,  a Delaware
corporation. See Note 10, for detailed description of acquisition.

         On August 31, 2004,  CNH  Holdings  Company  absorbed its  wholly-owned
subsidiary Corvero Networks,  and began doing business as Cistera Networks.  All
Corvero products adopted the Cistera name.

         The Company was in the development stage from January 1, 1992 to May 5,
2003. Since May 5, 2003, the Company has commenced planned principal  operations
and is no longer in the development stage.

         On May 27, 2005, the Company acquired XBridge Software,  Inc. through a
merger between XBridge and a Company  subsidiary.  XBridge will continue to be a
wholly-owned subsidiary of the Company.

         On September 27, 2005,  the Company  changed its name from CNH Holdings
Company to Cistera Networks, Inc.

Nature of Operations

         Cistera  Networks,  Inc.  designs and  develops  XML-based  application
appliances  utilized  in  the  IP  Communications  and  Enterprise   Application
Integration  (EAI) markets.  The Cistera  Convergence  Platform(TM)  enables the
integration  of  voice,  video  and data into the  network  infrastructure.  The
Cistera  Integration  Platform(TM)  enables companies to easily share data among
multiple applications across the business enterprise,  and with multiple trading
partners at a fraction of the cost of large, complex solutions.

NOTE 2 - SUMMARY OF ACCOUNTING POLICIES

         This  summary of  accounting  policies  for  Cistera  Networks,  Inc. &
Subsidiaries  is presented to assist in  understanding  the Company's  financial
statements.  The accounting  policies conform to generally  accepted  accounting
principles  and  have  been  consistently  applied  in  the  preparation  of the
financial statements.






<PAGE>



                      CISTERA NETWORKS, INC. AND SUBSIDIARY
                      (Formerly CNH Holdings Company, Inc.)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 2 - SUMMARY OF ACCOUNTING POLICIES (continued)

Principles of Consolidation

         The  consolidated  financial  statements  for the three and nine months
ended December 31, 2005 include the accounts of Cistera  Networks,  Inc. and its
wholly-owned  subsidiary  XBridge  Software,  Inc.  XBridge  Software,  Inc. was
acquired by the Company on May 27, 2005.

         The  results  of  subsidiaries  acquired  or sold  during  the year are
consolidated  from their effective dates of acquisition  through their effective
dates of disposition.

         All  significant  intercompany  balances  and  transactions  have  been
eliminated.

Use of Estimates

         The financial  statements  are prepared in conformity  with  accounting
principles  generally accepted in the United States of America. In preparing the
financial  statements,  management is required to make estimates and assumptions
that affect the reported  amounts of assets and  liabilities  and  disclosure of
contingent  assets  and  liabilities  as of the date of the  balance  sheet  and
statement of operations for the year then ended.  Actual results may differ from
these estimates. Estimates are used when accounting for allowance for bad debts,
collectibility  of  accounts  receivable,  amounts  due  to  service  providers,
depreciation and litigation contingencies, among others.

Cash and Cash Equivalents

         For purposes of the statement of cash flows, the Company  considers all
highly liquid debt instruments purchased with a maturity of three months or less
to be cash equivalents to the extent the funds are not being held for investment
purposes.

Concentration of Credit Risk

         The Company has no  significant  off-balance  sheet  concentrations  of
credit  risk such as foreign  exchange  contracts,  options  contracts  or other
foreign hedging arrangements.

Revenue Recognition

         Revenue and related  costs are reflected in the accounts when earned or
incurred.

Fixed Assets

         Fixed assets are recorded at cost and depreciated  using  straight-line
and  accelerated  methods  over the  estimated  useful lives of the assets which
range from three to seven  years.  Fixed assets  consisted  of the  following at
December 31, 2005 and March 31, 2005:


<PAGE>



                      CISTERA NETWORKS, INC. AND SUBSIDIARY
                      (Formerly CNH Holdings Company, Inc.)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 2 - SUMMARY OF ACCOUNTING POLICIES (continued)


                                             (Unaudited)
                                             December  31,
                                             March 31,
                                                 2005               2005
                                          ------------------  -----------------
Computer Equipment                        $          117,496  $          71,099
Trade Show Booth & Fixtures                            8,774              7,756
Office Equipment                                      72,880             53,776
Property held under capital leases                    10,205             10,205
Less accumulated depreciation                       (100,109)           (34,689)
                                          ------------------  -----------------

Total                                     $          109,246  $         108,147
                                          ==================  =================

         Maintenance  and  repairs are charged to  operations;  betterments  are
capitalized.  The  cost  of  property  sold  or  otherwise  disposed  of and the
accumulated  depreciation  thereon are eliminated  from the property and related
accumulated depreciation accounts, and any resulting gain or loss is credited or
charged to income.

         Total depreciation  expense for the nine months ended December 31, 2005
and 2004 was $37,213 and $18,614, respectively.

Intangible Assets

         The Company has adopted the Financial  Accounting  Standards Board SFAS
No., 142, "Goodwill and Other Intangible Assets." SFAS 142 requires, among other
things,  that companies no longer amortize  goodwill,  but instead test goodwill
for  impairment  at least  annually.  In addition,  SFAS 142  requires  that the
Company identify reporting units for the purposes of assessing  potential future
impairments of goodwill,  reassess the useful lives of other existing recognized
intangible   assets,  and  cease  amortization  of  intangible  assets  with  an
indefinite  useful life.  An  intangible  asset with an  indefinite  useful life
should be tested for impairment in accordance with the guidance in SFAS 142.

         Intangible  Assets  consisted of the following at December 31, 2005 and
March 31, 2005:

<TABLE>
<CAPTION>
                                            December 31,         March 31,
           Intangible Asset                     2005               2005            Amortization Period
---------------------------------------  ------------------  -----------------   ------------------------
<S>                                      <C>                 <C>                         <C>
Licensing Rights                         $                -  $         375,500           20 Years
Intellectual Property                             4,852,576                  -           15 Years
Software Development                                366,039                  -           4 Years
Less accumulated amortization                      (478,212)           (35,985)
                                         ------------------  -----------------

Total                                    $        4,740,403  $         339,515
                                         ==================  =================
</TABLE>

<PAGE>

                      CISTERA NETWORKS, INC. AND SUBSIDIARY
                      (Formerly CNH Holdings Company, Inc.)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 2 - SUMMARY OF ACCOUNTING POLICIES (continued)

         Software development costs include all development costs incurred after
the Company's software became "technologically  feasible". Prior to the software
reaching that stage, all development  costs were expensed as incurred.  Once the
software was  developed to the point of being ready for sale,  the Company began
amortizing  the costs over the term of the license  agreement it entered into, 4
years.  The  software  development  costs were  acquired in the  acquisition  of
XBridge Software, Inc.

         On May 27, 2005, the Company issued 2,000,000 shares of common stock to
acquire the assets and  liabilities  of XBridge  Software,  Inc. The shares were
valued at the market price on the effective date of the  acquisition,  which was
$2.65 per  share.  The  Company  acquired  net  assets  valued at  $782,245  and
intellectual property valued at $4,852,576.  The Company has determined that the
intellectual  property has a useful life of 15 years, and is using straight-line
amortization.

         Total amortization  expense for the nine months ended December 31, 2005
and 2004 was $266,613 and $14,081, respectively.

         The estimated amortization for the next five years is as follows:


            2006                             $           400,047
            2007                                         323,508
            2008                                         323,508
            2009                                         323,508
            2010                                         323,508
                                             -------------------
           Total                             $         1,694,079
                                             ===================

Earnings (Loss) per Share

         Basic  earnings  (loss) per share has been  computed  by  dividing  the
earnings for the period  applicable to the common  stockholders  by the weighted
average number of common shares outstanding during the years.

         Diluted loss per common  share for the nine months  ended  December 31,
2005 is not  presented as it would be  anti-dilutive.  At December 31, the total
number of  potentially  dilutive  common stock  equivalents  was  2,882,186.  At
December  31,  2004,  the total  number of  potentially  dilutive  common  stock
equivalents was 3,096,584.









<PAGE>



                      CISTERA NETWORKS, INC. AND SUBSIDIARY
                      (Formerly CNH Holdings Company, Inc.)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 2 - SUMMARY OF ACCOUNTING POLICIES (continued)

Reclassification

         Certain   reclassifications  have  been  made  in  the  2005  financial
statements to conform with the December 31, 2005 presentation.

Deferred Revenue

         Deferred  revenue  represents  contracts  for  certain  revenue  to  be
received in the future.  The deferred  revenue is recognized in subsequent years
as services are rendered.

NOTE 3 - CONCENTRATION OF RISK

         As of December 31, 2005, the Company receives  approximately 54% of its
gross  revenues  from its top three  re-sellers.  This  represents a decrease in
concentration  of business from the 90% reported in the 10KSB filed for the year
ending March 31, 2005. The loss of these  re-sellers  would adversely impact the
business of the Company.

NOTE 4 - INCOME TAXES

         As of March 31, 2005, the Company had a net operating loss carryforward
for income tax reporting purposes of approximately $3,342,000 that may be offset
against future taxable income through 2025. Current tax laws limit the amount of
loss  available to be offset  against  future  taxable income when a substantial
change in ownership  occurs.  Therefore,  the amount  available to offset future
taxable income may be limited. No tax benefit has been reported in the financial
statements,  because the Company  believes  there is a 50% or greater chance the
carry-forwards  will expire unused.  Accordingly,  the potential tax benefits of
the loss carry-forwards are offset by a valuation allowance of the same amount.

NOTE 5 - LEASE COMMITMENT

         The Company currently leases  approximately 4,264 square feet of office
space at 17304 Preston Road, Suite 975, Dallas, Texas from Memshalah Realty. The
lease payments are approximately $7,195 per month and the lease expires November
30, 2009. This office space is used as the Corporate Headquarters.









<PAGE>



                      CISTERA NETWORKS, INC. AND SUBSIDIARY
                      (Formerly CNH Holdings Company, Inc.)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 5 - LEASE COMMITMENT (continued)

         The minimum  future lease  payments  under this lease for the next five
years are:


         January 1, 2006 - March 31, 2006                 $       21,587
         April 1, 2006 - March 31, 2007                           87,057
         April 1, 2007 - March 31, 2008                           89,189
         April 1, 2008 - March 31, 2009                           91,321
         April 1, 2009 - November 30, 2009                        61,828
                                                          --------------
         Total minimum future lease payments              $      350,982
                                                          ==============

NOTE 6 - CAPITAL LEASE

         On October 20, 2004,  the Company  entered into an agreement  with Dell
Financial Services to lease five laptop computers and a laser printer. The lease
is for a period of thirty-six  months with a payment of  approximately  $369 per
month.  The Company has an end of lease  purchase  option of $1. The Company has
capitalized  a total of  $10,205  under  capital  leases for the  computers  and
printer in the  financial  statements.  The assets  are  depreciated  over their
related lease terms.  Depreciation of assets under capital leases is included in
depreciation expense for the year ended December 31, 2005.

         The minimum future lease payments under this capital lease for the next
five years are:


         January 1, 2006 - March 31, 2006                  $       1,107
         April 1, 2006 - March 31, 2007                            4,428
         April 1, 2007 - March 31, 2008                            2,953
         April 1, 2008 - March 31, 2009                                -
         April 1, 2009 - March 31, 2010                                -
                                                          --------------
         Total minimum lease payments                              8,488
         Less: Amount representing interest                       (1,698)
                                                          --------------
         Present value of net minimum
            lease payment                                 $        6,790
                                                          ==============

NOTE 7 - COMMON STOCK

         During May of 2003,  the Company  issued 440,000 shares of common stock
from the exercise of outstanding stock options.

         During  June  of  2003,   the  Company  issued   2,000,000   shares  of
"restricted" common stock to XBridge Software,  Inc. to acquire licensing rights
valued at $375,500.

         During the year ended March 31, 2004,  42,819 shares were cancelled and
returned to the Company.


<PAGE>



                      CISTERA NETWORKS, INC. AND SUBSIDIARY
                      (Formerly CNH Holdings Company, Inc.)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 7 - COMMON STOCK (continued)

         In January 2005,  the Company issued 359,580 shares of common stock for
accrued  liabilities  of  $419,986.  During the year ended March 31,  2005,  the
Company  issued  150,000  shares of common stock to XBridge  Software,  Inc. for
services valued at $270,000.

         On April 29, 2005,  the Company  issued  173,511 shares of common stock
for accrued liabilities of $482,364.

         On May 27, 2005, the Company issued 4,150,000 shares of common stock to
the shareholders of XBridge Software,  Inc. and cancelled  2,150,000 shares then
held by XBridge,  in connection with the Company's merger with XBridge Software,
Inc. In the merger,  the Company  acquired all of the assets and  liabilities of
XBridge Software,  valued at a net of $782,245, and intellectual property valued
at $4,852,576.

         On June 24, 2005,  the Company  issued  100,000  shares of common stock
from the exercise of outstanding stock options.

         Effective  September  21, 2005,  the Company's  authorized  shares were
increased from 10 million shares to 50 million shares.

         On December 31, 2005,  the Company  issued  311,600  shares of stock in
connection with the exercise of warrants issued in the 2004 private placement of
notes and warrants.

         On December 31, 2005,  the Company  issued 946,392 shares of stock upon
conversion of certain  outstanding  notes issued in the 2004 private  placement.
The amount of principal represented by these shares was $859,000.  The amount of
accrued interest represented by these shares was $87,392.  These notes converted
at $1.00 per share.

NOTE 8 - NOTES PAYABLE

         In June 2005, the Company  received loans totaling  $50,000.  The notes
are due May 30, 2006 and carry an interest rate of 8% per annum. At December 31,
2005, the total amount of principal and interest due on this note was $41,626.

NOTE 9 - RELATED PARTY PAYABLE

         On May 31,  2004,  the  Company  received  a loan  from an  officer  of
$55,755.  The note carries an interest  rate of 8% and is due December 31, 2005.
At December 31, the total amount of principal  and interest due on this note was
$59,935.

         On November  11, 2004,  the Company  received a loan from an officer of
$20,000.  The note carried an interest  rate of 8% and was due November 1, 2005.
At December  31, 2005,  the total  amount of principal  and interest due on this
note was $0.


<PAGE>



                      CISTERA NETWORKS, INC. AND SUBSIDIARY
                      (Formerly CNH Holdings Company, Inc.)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 9 - RELATED PARTY PAYABLE (continued)

         In July 2003,  XBridge  Software,  Inc. received loans totaling $33,000
from shareholders.  The loans are due on demand and carry on interest rate of 8%
per annum.  The  Company  acquired  these  loans as part of the  acquisition  of
XBridge Software in May 2005. At December 31, 2005, total principal and interest
due on these loans was $31,550.

NOTE 10 - ACQUISITIONS

         On May 5,  2003,  a License  Agreement  was  entered  into  principally
between Corvero Networks and XBridge Software, although CNH Holdings Company was
party to certain provisions. The License Agreement resulted in XBridge licensing
to Corvero all of  XBridge's  right,  title and  interest  in, and to a software
program (and concomitant hardware platforms) which had been developed by XBridge
and which were,  collectively known as the "XBridge Technology." This technology
principally allows for the development,  implementation and commercialization of
XML  integration  solutions  in the EBI and IP Telephony  markets.  CNH Holdings
Company subsequently issued 2,000,000 "restricted" common shares of its stock to
XBridge as a licensing fee. Due to the XBridge  merger,  this agreement has been
cancelled.  Cistera Networks,  Inc. owns the intellectual property developed and
licensed under XBridge Software, In

         On August 31, 2004,  CNH  Holdings  Company  absorbed its  wholly-owned
subsidiary Corvero Networks,  Inc., and began operating as Cistera Networks.  As
of that date,  all Corvero  products  adopted the Cistera name. All of Corvero's
rights  under the License  Agreement  dated May 5, 2003  passed to CNH  Holdings
Company dba Cistera Networks.

         On May 27,  2005,  the Company  issued  2,000,000  new shares of common
stock to acquire the assets and liabilities of XBridge Software, Inc. The shares
were valued at the market price on the effective date of the acquisition,  which
was $2.65 per share.  The Company  acquired  net assets  valued at $782,245  and
intellectual property valued at $4,852,576.

NOTE 11 - CONVERTIBLE DEBT

         Effective  December 13, 2004,  the Company issued and sold an aggregate
of $1,146,000 in principal  amount of Senior  Unsecured  Convertible  Promissory
Notes (the "notes"),  and issued  warrants to purchase  1,146,000  shares of our
common stock, par value $0.001 per share (the "warrants").  Of the $1,146,000.00
in notes,  $1,004,000  in  principal  amount of notes were issued for cash,  and
$142,000  in  principal  amount  of notes  were  issued in  connection  with the
cancellation of an equal amount of the Company's  outstanding  obligations.  The
total amount of principal and interest due at December 31, 2005 was  $1,270,586.
At December 31, 2005,  a number of note holders  opted to convert  their debt as
provided in their note agreements. The total number of shares issued due to this
conversion was 946,392. The amount of principal  represented by these shares was
$859,000.  The  amount of  accrued  interest  represented  by these  shares  was
$87,392. These notes converted at $1.00 per share.


<PAGE>



                      CISTERA NETWORKS, INC. AND SUBSIDIARY
                      (Formerly CNH Holdings Company, Inc.)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 11 - CONVERTIBLE DEBT (continued)

         The  notes  bear  interest  at the  rate  of 8% per  annum,  compounded
quarterly on each March 31, June 30, September 30 and December 31 that the notes
are outstanding (each, an interest compounding date). The outstanding  principal
on the notes and all accrued  interest  become due and payable on the earlier of
(a)  December  9,  2006,  or (b) the date on which a change  in  control  of the
Company occurs.

         The  outstanding  principal  and  accrued  interest  on the  notes  are
convertible into shares of common stock at a conversion rate equal to the lesser
of (a) $1.30 per share,  or (b) a 25% discount to the average  closing bid price
of the  Company's  common  stock for the five  days  including  and  immediately
preceding  the interest  compounding  date,  provided that in no event shall the
conversion  price  per  share be less than  $1.00  per  share.  The notes may be
converted, in whole or in part, at the option of the note holder on any interest
compounding date occurring after the effective date of a registration  statement
covering  the resale of shares of common stock to be issued upon  conversion  of
the notes.

         In  addition,  if the  Company  subsequently  issues  or sells  any new
securities  convertible,  exercisable or exchangeable  into shares of our common
stock  ("convertible  securities")  in a private  transaction and receives gross
proceeds of at least $500,000,  the notes may be converted,  in whole or in part
at the option of the noteholders, into the convertible securities, upon the same
terms and conditions governing the issuance of the convertible securities in the
private  transaction.  The right of the note  holders to  convert  the note into
convertible  securities does not apply to any convertible  securities  issued by
the Company (a) in connection with a merger, acquisition or consolidation of the
Company,   (b)  in  connection  with  strategic  license  agreements  and  other
partnering  arrangements  so long as such  issuances  are not for the purpose of
raising  capital,  (c) in  connection  with bona fide firm  underwritten  public
offerings of its securities,  (d) pursuant to the Company's  incentive and stock
option  plans,  (e) as a result  of the  exercise  of  options  or  warrants  or
conversion of convertible  notes or preferred stock which were granted or issued
as of December 13, 2004.

         The Company may prepay the notes in whole or in part,  upon thirty days
prior written notice to note holders;  provided that partial  prepayments may be
made only in increments of $10,000 and, provided further,  that the note holders
may  convert  the amount of the  proposed  prepayment  into shares of our common
stock,  regardless  of the  period  of  time  that  the  notes  have  then  been
outstanding.

         The  warrants  have a term of five  years  and  are  exercisable  at an
exercise  price  of  $1.30  per  share.  Subject  to an  effective  registration
statement  covering  the  resale of the  shares of common  stock  issuable  upon
exercise of the  Warrants,  the  Company  may,  upon  thirty days prior  written
notice,  redeem the  warrants for $0.10 per share,  in whole or in part,  if our
common  stock  closes with a bid price of at least $3.50 for any ten (10) out of
fifteen  (15)  consecutive  trading  days.  Because  at that  price  it would be
profitable for the warrant  holders to exercise  their  warrants  rather than to
allow the  redemption  to  proceed,  we assume  they would  choose to  exercise.
However, there is no


<PAGE>



                      CISTERA NETWORKS, INC. AND SUBSIDIARY
                      (Formerly CNH Holdings Company, Inc.)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 11 - CONVERTIBLE DEBT (continued)

assurance  that our stock  price  will  rise to the  $3.50 per share  redemption
trigger price,  or that all of the warrants will be exercised.  The total amount
of  principal  and  interest  due after the a number of private  placement  note
holders converted their note amounts to stock was $324,179.

NOTE 12 - STOCK OPTIONS

         During the year ended  March 31,  2005,  the Company  issued  1,815,000
stock  options to  employees,  contractors  and other  service  providers to the
Company.  At March 31, 2005,  no  compensation  expense had been recorded as the
exercise price of the options was equal or greater than the fair market value of
the stock. As of December 31, 2005, 1,015,000 of the total stock options are not
exercisable, as they are not yet approved or registered.

         The following  table sets forth the options  outstanding as of December
31, 2005.

<TABLE>
<CAPTION>
                                                                                             Weighted
                                                                     Option /                 Average              Weighted
                                                                     Warrants                Exercise               Average
                                                                      Shares                   Price              Fair Value
                                                                -------------------      -----------------      ---------------
<S>                                                             <C>                        <C>                  <C>
Options outstanding,
       March 31, 2005                                                     1,815,000                  $1.29                $1.43
Options outstanding from XBridge merger                                     529,945                  $0.23                $0.34
Warrants outstanding from XBridge merger                                    312,439                  $0.46                $0.46
Warrants outstanding from Private Placement                               1,146,000                  $1.30                $1.30
Outstanding warrants from Early Exercise of
  Private Placement Warrants                                                155,800                  $1.30                $1.30
Granted, Exercise price more than fair value                                      -                      -                    -
Granted, Exercise price less than fair value                                      -                      -                    -
Expired                                                                           -                      -
Exercised                                                                 (411,600)                      -
                                                                -------------------
Options outstanding,
       December 31, 2005                                                  3,547,584
                                                                ===================      =================
</TABLE>

         Exercise prices for optioned shares outstanding as of December 31, 2005
ranged  from  $1.10 to $2.00.  A summary of these  options by range of  exercise
prices is shown as follows:






<PAGE>



                      CISTERA NETWORKS, INC. AND SUBSIDIARY
                      (Formerly CNH Holdings Company, Inc.)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 12 - STOCK OPTIONS (continued)

<TABLE>
<CAPTION>
                                                                                         Weighted-            Weighted-
                                               Weighted-             Shares/              Average              Average
                          Shares /              Average             Warrants           Exercise Price        Contractual
     Exercise             Warrants             Exercise             Currently            Currently            Remaining
      Price              Outstanding             Price             Exercisable          Exercisable              Life
------------------    -----------------    -----------------    -----------------    ------------------   ------------------

<S>                   <C>                  <C>                  <C>                  <C>                  <C>
             $1.10              635,000                $1.10                    -                 $1.10        10 years
              1.30              380,000                 1.30                    -                  1.30        10 years
              2.00              700,000                 2.00              700,000                  2.00        10 years
               .01              122,028                  .01              122,028                              3 years
               .23               81,352                  .23               81,352                              3 years
               .46              325,565                  .46              325,565                              3 years
               .46              312,439                  .46              312,439                              3 years
              1.30              990,200                 1.30              990,200                              5 years
</TABLE>

         In  September,  although  the stock price had not  achieved  the levels
necessary  to allow the  Company to redeem  the  warrants,  we  offered  warrant
holders an incentive of 1/2 warrant for each warrant  exercised.  This incentive
expired on December 31, 2005. We raised an additional $405,080 from the exercise
of 311,600 warrants and issued 155,800 incentive warrants.

NOTE 13 - CONTINGENCIES

         In 2005,  the Company was made a  third-party  defendant to  litigation
that was originally  filed on June 5, 2001 in Longview,  Texas,  styled J. David
Bolton, Joanna Bolton, Whitney Gaidry,  Virginia Ille and Kenneth Ille vs. Larry
V. Tate,  Gerald Pybas,  E. Robert Barbee,  H. Paul Estey,  and Robert A. Baker;
Case No. 2001-1196-A; 188th District Court, Gregg County, Texas. Plaintiffs sued
Defendants  and the  Company  for breach of  contract  and sought  approximately
$975,000 in damages. The Defendants have sued the Company for indemnification of
Plaintiffs' claims.

         On February 7, 2006,  the parties  reached an  agreement to settle this
case at  mediation  and signed a binding  agreement  which  settles the disputes
between them. As part of that  settlement,  the Company agreed to deliver 60,000
unrestricted  stock  certificates  of the  Company's  stock to  Plaintiffs.  The
settlement  should not be taken as an  admission  of  liability  and the Company
expressly denies any such liability.







<PAGE>



                      CISTERA NETWORKS, INC. AND SUBSIDIARY
                      (Formerly CNH Holdings Company, Inc.)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 13 - CONTINGENCIES (continued)

         On August 15,  2005,  the  Company  was served  with a petition  by Mr.
Kingdon Hughes,  a former  shareholder of XBridge.  Mr. Gregory Royal, our Chief
Technology Officer, Cynthia Garr, our Executive Vice President and interim Chief
Financial  Officer,  Jim Miller,  our former Chief  Executive  Officer,  XBridge
Software, Inc. and Charles Stidham, who is a former CNH officer and a former CNH
director, were also named as defendants in the litigation.  Mr. Royal and Miller
and  Ms.  Garr  were  also  officers  and  directors  of  XBridge  prior  to our
acquisition  of XBridge.  Mr.  Stidham was the Chief  Executive  and director in
2003.  Mr.  Hughes has alleged a number of  complaints  against the  defendants,
including breach of fiduciary duty, misappropriation of corporate opportunities,
fraud,  fraudulent  inducement,  breach of contract,  tortuous interference with
contract,  fraudulent transfer, and shareholder oppression arising in connection
with the license  agreement between the Company and XBridge in May, 2003 and the
acquisition of XBridge by the Company in May, 2005.

         The Company denies these allegations and we intend to vigorously defend
this litigation.


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

         The  following  discussion  and  analysis  of the  Company's  financial
condition  and  results of  operations  should be read in  conjunction  with the
Company's  consolidated  financial  statements  and related notes that appear in
this filing. In addition to historical  consolidated financial information,  the
following  discussion  contains  forward-looking  statements that reflect plans,
estimates and beliefs. The Company's actual results could differ materially from
those discussed in the forward- looking statements.

OVERVIEW

         The Company  transitioned from the development stage and formally began
marketing IP Telephony  products in May 2003. The Company has  demonstrated  the
ability to  successfully  execute in this emerging  market and has gained market
acceptance for the product line as evidenced by customer sales transactions.

         Initially, Cistera Networks operated as a holding company, with primary
operations being conducted by a subsidiary,  Corvero Networks Inc. On August 31,
2004, the Company  announced that it was simplifying its operating  structure by
absorbing its wholly-owned  subsidiary  Corvero  Networks,  Inc. As part of this
restructuring  process,  CNH Holdings  Company  began  operating  under the name
Cistera Networks.  This phase of restructuring was successfully completed in the
third  quarter.  On May 27, 2005, the Company  acquired  XBridge  Software,  the
developer  of all of the  intellectual  property  upon which  Cistera  Networks'
products are based,  through a merger of XBridge with a wholly owned  subsidiary
of CNH Holdings Company.  Previously  Cistera Networks held an exclusive license
to market this intellectual property (IP).


<PAGE>




         The final  element of the  corporate  restructuring  occurred  when the
corporate  name  changed  from CNH  Holdings  Company  to Cistera  Networks  was
declared  effective and announced on September  27, 2005.  Concurrent  with that
change,  the  authorized  shares  were  increased  from 10 million to 50 million
shares and the OTC Bulletin Board stock symbol was changed from CNHC to CNWT.

         During the fiscal year 2006,  third quarter,  ending December 31, 2005,
Cistera  Networks  continued  to  pursue  its plan to enter  the  market  for IP
Communications  applications.  The  Company  continued  to focus on  building  a
distribution channel as the primary objective.  As part of this continued focus,
during  the  quarter  the  Company  signed  its first  agreements  with Tier One
partners  and  executed  two major  distribution  agreements  under a new master
reseller program.  Tier One are the resellers that are responsible for over half
of Cisco Systems, Inc. IP Communications business.

         The  Company  signed a master  reseller  agreement  with SBC during the
quarter and began  training  the SBC sales  force.  The  Company had  previously
partnered  informally with SBC and SBC represents  Cistera's largest reseller in
North America. Subsequent to the quarter end, SBC completed its merger with AT&T
and changed the corporate name to AT&T. SBC was Cisco's  largest  reseller of IP
Communications  solutions  in the  United  States  and AT&T was  Cisco's  second
largest reseller. Cistera's partnership is now with the combined entity, AT&T.

         The Company also signed a master  reseller  agreement with Bell Canada,
the largest  distributor  of Cisco IP  communications  solutions in the Canadian
market.

         Substantial time,  financial and personnel  resources were committed to
the early stages of launching an exclusive distribution agreement in Europe with
Comstor,  a division of Westcon  Group,  Inc.  The  agreement  was  announced on
September  13,  2005.  Comstor,  which is the largest  distributor  of Cisco IPT
solutions to the European market will distribute,  resell,  support and maintain
all  Cistera   products  in  Europe.   Management   believes  that  the  Comstor
distribution  partnership provides Cistera with a 24 month competitive advantage
by allowing the company to leverage Comstor's  existing channel  infrastructure,
including their existing  relationships with Value-Added Resellers and their key
local language expertise,  to immediately  establish the Cistera presence in the
European market.

         The  Company  also  continued  to invest  heavily in the product set to
ensure that the product can be easily sold and implemented by channel  partners.
Specifically,   the  Company  launched  version  1.6,  which   strengthened  the
administration  and technical  implementation of the product set,  increased the
scalability to 100,000  phones/end  points,  and also contained many feature set
enhancements.  The Company also  announced and  launched,  the Land Mobile Radio
Appliance,  a product that integrates  two-way radios into an IP  communications
network. The product has garnered early interest from first responders and state
and local  government.  Subsequent to the quarter,  the Company closed its first
sale of this product.

RESULTS OF OPERATIONS

         The  following  discussion  should  be read  in  conjunction  with  the
consolidated statements of financial operations, in their entirety.



<PAGE>



THREE AND NINE MONTHS ENDED DECEMBER 31, 2005 COMPARED TO THREE
AND NINE MONTHS ENDED DECEMBER 31, 2004.

         For the three and nine months ended  December 31, 2005, the Company had
total revenues of $329,699 and $1,310,418  respectively.  For the three and nine
months ended  December 31, 2004,  the Company had total revenues of $228,199 and
$1,036,507 respectively.

         Gross  margins  remained  at 70%,  consistent  with the  prior  period.
Management  feels  comfortable  with this gross  margin,  given the high initial
costs   associated  with  the   establishment   of  distribution   channels  for
international fulfillment and new distribution partners.

         The Company had a net loss of $884,870 and $1,717,131 for the three and
nine months  ended  December  31,  2005,  compared to a net loss of $389,928 and
$1,192,317  for the three and nine months ended  December 31, 2004. The increase
in the loss is  attributed  to higher  operating  expenses,  particularly  those
associated with the launch of master reseller relationships,  including building
channel inventory  positions in advance of sales, and with increased  investment
in building out the channel enablement infrastructure. The Company believes this
investment  into the channel  enablement  infrastructure  to be essential to the
success of the growth of the Company, and expects these investments to establish
the foundation for driving increased revenues.

         The Company had significant investment into Research and Development of
$130,688 and $388,748 for the three and nine months ended December 31, 2005. The
Company  has  continued  to  innovate  to ensure  competitive  advantage  in the
marketplace.  The Company did not break out R&D expenses  separately in previous
reporting periods, but does so now.

         General and Administrative expenses for the three and nine months ended
December 31, 2005 were $364,429 and $1,066,165 compared to $201,031 and $427,277
for the three and nine months ended December 31, 2004.

         Interest expenses for the three and nine months ended December 31, 2005
were $53,763 and $104,285  compared to $7,024 and $13,715 for the  corresponding
periods in 2004.  The increase was largely due to the a private  placement  that
the Company closed in December 2004 (see Note 11).

LIQUIDITY AND CAPITAL RESOURCES

         As of December 31, 2005, the Company had current assets of $341,730 and
total assets of $5,191,379  as compared to current  assets of $902,018 and total
assets of $1,349,680 at March 31, 2005 (fiscal year end 2005). The Company had a
net  working  capital  deficit of $823,942  and  $1,256,895  respectively  as of
December 31, 2005 and March 31, 2005.

         As of December 31, 2005, we had an  accumulated  deficit of $5,059,073.
We expect to continue to incur net operating losses in the near term. We believe
our  strategy  of  partnering  with tier one IPT  resellers  such as AT&T,  Bell
Canada,  and Comstor,  and utilizing their existing sales  infrastructures  will
best support our sales growth.  Therefore, the company is currently finalizing a
similar distribution/reseller partnership in the Americas.



<PAGE>



         From the  start of  operations  in May 2003  through  the end of fiscal
2005,  operations were funded primarily through  financing  obtained from select
private investors and a private placement in the third quarter of fiscal 2005.

         The Company does not have any special purpose entities,  and other than
operating  leases for office space and computer  equipment,  which are described
below, the Company does not engage in off-balance sheet financing  arrangements.
The Company does not currently have a bank line of credit.

         Future capital requirements will depend on many factors including: Rate
of revenue growth;  the expansion of marketing and sales activities;  the timing
and extent of spending to support product development efforts and expansion into
new territories; the timing of introductions of new services and enhancements to
existing  services;  and  the  continuing  market  acceptance  of the  Company's
products and services.  To the extent that existing cash and securities and cash
from  operations are  insufficient to fund future  activities,  the Company will
need to  raise  additional  funds  through  public  or  private  equity  or debt
financing.  Although  the Company is currently  not a party to any  agreement or
letter of intent with respect to potential  investments in, or acquisitions  of,
complementary businesses,  services or technologies,  the Company may enter into
these types of arrangements in the future,  which could also require  additional
equity  or debt  financing.  Additional  funds  may not be  available  on  terms
favorable to the Company or at all. If funds are not available the company could
be forced to adjust their business plan by scaling back operations, reducing the
workforce, or ceasing operations.

ITEM 3.  CONTROLS AND PROCEDURES

         The  Company's  principal  executive  officer and  principal  financial
officer are responsible for establishing and maintaining disclosure controls and
procedures for the Company.

         (a) Evaluation of Disclosure Controls and Procedures

         As of the end of the period covered by this report, the Company carried
out an  evaluation,  under the  supervision  and with the  participation  of the
Company's  management,  including the Company's President  (principal  executive
officer) and Chief  Financial  Officer  (principal  financial  officer),  of the
effectiveness of the design and operation of the Company's  disclosure  controls
and  procedures  pursuant to Rule 13a-15  under the  Securities  Exchange Act of
1934, as amended (the "Exchange Act"). Based upon the evaluation,  the Company's
President  and Chief  Financial  Officer  concluded  that,  as of the end of the
period,  the  Company's  disclosure  controls and  procedures  are  effective in
ensuring  that the  information  required  to be  disclosed  by the  Company  is
recorded, processed,  summarized and reported, within the time periods specified
in the Commission's rules and forms and include controls and procedures designed
to  ensure  that  information  required  to  be  disclosed  by  the  Company  is
accumulated  and  communicated  to  the  Company's  management,   including  its
principal  executive and principal  financial  officers as  appropriate to allow
timely decisions regarding the required disclosure.

         (b) Changes in Internal Controls

         Based on this evaluation as of December 31, 2005, there were no changes
in the  Company's  internal  controls over  financial  reporting or in any other
areas that could materially affect the


<PAGE>



Company's  internal  controls  subsequent  to  the  date  of  this  most  recent
evaluation,   including   any   corrective   actions  with  regard  to  material
deficiencies and material weaknesses.

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         In 2005,  the Company was made a  third-party  defendant to  litigation
that was originally  filed on June 5, 2001 in Longview,  Texas,  styled J. David
Bolton, Joanna Bolton, Whitney Gaidry,  Virginia Ille and Kenneth Ille vs. Larry
V. Tate,  Gerald Pybas,  E. Robert Barbee,  H. Paul Estey,  and Robert A. Baker;
Case No. 2001-1196-A; 188th District Court, Gregg County, Texas. Plaintiffs sued
Defendants  and the  Company  for breach of  contract  and sought  approximately
$975,000 in damages. The Defendants have sued the Company for indemnification of
Plaintiffs' claims.

         On February 7, 2006,  the parties  reached an  agreement to settle this
case at  mediation  and signed a binding  agreement  which  settles the disputes
between them. As part of that  settlement,  the Company agreed to deliver 60,000
unrestricted  stock  certificates  of the  Company's  stock to  Plaintiffs.  The
settlement  should not be taken as an  admission  of  liability  and the Company
expressly denies any such liability.

         On August 15,  2005,  the  Company  was served  with a petition  by Mr.
Kingdon Hughes,  a former  shareholder of XBridge.  Mr. Gregory Royal, our Chief
Technology Officer, Cynthia Garr, our Executive Vice President and interim Chief
Financial  Officer,  Jim Miller,  our former Chief  Executive  Officer,  XBridge
Software, Inc. and Charles Stidham, who is a former CNH officer and a former CNH
director, were also named as defendants in the litigation.  Mr. Royal and Miller
and  Ms.  Garr  were  also  officers  and  directors  of  XBridge  prior  to our
acquisition  of XBridge.  Mr.  Stidham was the Chief  Executive  and director in
2003.  Mr.  Hughes has alleged a number of  complaints  against the  defendants,
including breach of fiduciary duty, misappropriation of corporate opportunities,
fraud,  fraudulent  inducement,  breach of contract,  tortuous interference with
contract,  fraudulent transfer, and shareholder oppression arising in connection
with the license  agreement between the Company and XBridge in May, 2003 and the
acquisition of XBridge by the Company in May, 2005.

         The Company denies these allegations and we intend to vigorously defend
this litigation. The litigation is in its early stages and limited discovery has
been conducted at this time.

ITEM 2.  CHANGES IN SECURITIES

None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None/Not Applicable.


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

None/Not Applicable.


<PAGE>




ITEM 5.  OTHER INFORMATION

None.


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a) EXHIBITS

         The  following  documents  are filed  herewith or have been included as
exhibits to previous filings with the Commission and are incorporated  herein by
this reference:

Exhibit  No. Exhibit

3        Articles of Incorporation (1)
3.2      Bylaws (1)
3.1      Amended Articles of Incorporation (1)
10.1     License Agreement (2)
31.1     Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2     Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1     Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.2     Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

(b) Reports on Form 8-K. No reports on Form 8-K were filed
         during the period covered by this
         Form 10-QSB.

(1)      Incorporated  herein  by  reference  from  Registrant's  Form  10SB12G,
         Registration Statement, dated February 16, 2000.
(2)      Incorporated  herein by reference from Registrant's  Form 8-KSB,  dated
         May 16, 2003.





















<PAGE>



                                   SIGNATURES

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

Cistera Networks, Inc.
Registrant


DATE: February 15, 2006


/S/     A. Katrina Roche
-----------------------------------------
A. Katrina Roche
Chief Executive Officer
(Principal Executive Officer)


/S/     Cynthia A. Garr
-----------------------------------------
Cynthia A. Garr
Interim C.F.O., Executive Vice-President of Corporate Development, and Director
(Principal Financial Officer)