Summary of SWORDFISH FINANCIAL, INC.

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

Forward Looking Statements

Some of the statements made in this Form 10-Q constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to the safe harbor provisions of the reform act. Forward-looking statements may be identified by the use of the terminology such as may, will, expect, anticipate, intend, believe, estimate, should or continue or the negatives of these terms or other variations on these words or comparable terminology. To the extent that this report contains forward-looking statements regarding the financial condition, operating results, business prospects or any other aspect of our business, you should be aware that our actual financial condition, operating results and business performance may differ materially from that projected or estimated by us in the forward-looking statements. We have attempted to identify, in context, some of the factors that we currently believe may cause actual future experience and results to differ from their current expectations. These differences may be caused by a variety of factors including, but not limited to, adverse economic conditions, intense competition, including entry of new competitors, inability to obtain sufficient financing to support our operations, progress in research and development activities, variations in costs, fluctuations in foreign currencies against the U.S. dollar in countries where we source products, adverse federal, state and local government regulation, unexpected costs, lower sales and net income (or higher net losses, than forecasted), price increases for equipment, inability to raise prices, failure to obtain new customers, the possible fluctuation and volatility of our operating results and financial condition, inability to carry out marketing and sales plans, loss of key executives and other specific risks that may be alluded to in this report.

The following discussion and analysis of financial condition, results of operations, liquidity and capital resources should be read in conjunction with our audited consolidated financial statements and notes thereto appearing elsewhere in this report, which have been prepared assuming that we will continue as a going concern, and in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2011. As discussed in Note 1 to the condensed consolidated financial statements, our recurring net losses and inability to generate sufficient cash flows to meet our obligations and sustain our operations raise substantial doubt about our ability to continue as a going concern. Management's plans concerning these matters are also discussed in Note 1 to the condensed consolidated financial statements. This discussion contains forward-looking statements that involve risks and uncertainties, including information with respect to our plans, intentions and strategies for our businesses. Our actual results may differ materially from those estimated or projected in any of these forward-looking statements.

Overview

Swordfish Financial, Inc., (f/k/a Nature Vision, Inc. and Photo Control Corporation) (the "Company" or "we") was incorporated as a Minnesota corporation in 1959. On August 31, 2004, the Company changed its name to Nature Vision, Inc. in connection with a merger transaction with Nature Vision Operating Inc. (f/k/a Nature Vision, Inc.) a Minnesota corporation that was incorporated in 1998. As a part of the merger, Nature Vision Operating Inc. became a wholly-owned subsidiary of the Company. On August 17, 2009, the shareholders of the Company owning a majority of the outstanding common stock voted to change its name to Swordfish Financial, Inc. The shares of the Company trade on the OTCQB Market under the symbol, "SWRF."

Swordfish Financial operates as a diversified financial asset recovery company for high net worth individuals and companies with orphaned or dormant assets held in financial institutions around the world. Swordfish Financial will recognize its share of the recovered assets on its financial statements upon the successful completion of each recovery project. Swordfish Financial plans to take the financial capital resources recovered and invest in companies that have the mission of being eco-friendly and providing a better standard of living for our world's people.

Despite cost reduction initiatives, the Company will be unable to pay its obligations in the normal course of business or service its debt in a timely manner throughout 2012 without completing a recovery project, raising additional debt or equity capital. There can be no assurance that the Company will complete a recovery project, raise additional debt or equity capital.

The Company is currently evaluating strategic alternatives that include the following: (i) raising of capital, or (ii) issuance of debt instruments. This process is ongoing and can be lengthy and has inherent costs. There can be no assurance that the exploration of strategic alternatives will result in any specific action to alleviate the Company's 12 month working capital needs or result in any other transaction.

Results of Operations

Plan of Operations

Operating Expenses

Total operating expenses were $52,706 for the three months ended June 30, 2012 compared to $208,639 for the three months ended June 30, 2011. The decrease of $155,933 for the three months ended June 30, 2012 is attributable primarily to $96,246 decrease in consulting expenses and $50,000 expense recorded for stock based compensation.

Total operating expenses were $545,987 for the six months ended June 30, 2012 compared to $609,560 for the six months ended June 30, 2011. The decrease of $63,573 for the six months ended June 30, 2012 is attributable primarily to $167,792 decrease in consulting expenses, decrease of $21,060 in shareholder meeting expenses, $73,000 increase in legal fees, $8,704 increase in telephone expenses, and $44,792 increase in recovery project expenses.

Other Income and Expenses

Interest expense for the three and six months ended June 30, 2012 and 2011 are composed of accrued interest expense on the Company's outstanding notes payable and judgments. Interest income for the three and six months ended June 30, 2012 and 2011 represented accrued interest on the note receivable - related party.

Loss from Operations

The Company recognized a loss from operations of $52,706 for the three months ended June 30, 2012, compared to a loss from operations of $208,629 for the three months ended June 30, 2011. The decrease in the pretax loss is as a result of the change in general and administrative expenses as discussed above.

The Company recognized a loss from operations of $545,987 for the six months ended June 30, 2012, compared to a loss from operations of $609,560 for the six months ended June 30, 2011. The decrease in the pretax loss is as a result of the change in administrative expense as discussed above.

Net Loss

The Company recognized a net loss of $115,434 for the three months ended June 30, 2012 compared to a net loss of $235,520 for the three months ended June 30, 2011. The increase in the net loss is as a result of the change in administrative expenses as discussed above.

The Company recognized a net loss of $906,466 for the six months ended June 30, 2012 compared to a net loss of $722,725 for the six months ended June 30, 2011. The increase in the net loss is as a result of the change in administrative expenses as discussed above.

Liquidity and Capital Resources

The Company's cash flow from operating, investing and financing activities, as
reflected in the consolidated statements of cash flows, is summarized in the
following table for the six months ended June 30:

 (thousands)                                          2012            2011
Cash provided by (used for):
Operating activities                               $ (177,404 )    $ (227,543)
Investing activities                                        0                0
Financing activities                                  159,050          227,020
Increase (decrease) in cash and cash equivalents   $ (18,354)      $     (523)

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. We incurred net losses of $906,466 and $722,724 respectively, for the six months ended June 30, 2012 and 2011 and had an accumulated deficit of $9,855,006 as of June 30, 2012. We have managed our liquidity during the first six months of 2012 through advances from shareholders and the sale of common stock.

Despite cost reduction initiatives, the Company will be unable to pay its obligations in the normal course of business or service its debt in a timely manner throughout 2012 without realizing one of its recovery projects, raising additional capital or issuing debt instruments.

The Company is currently evaluating strategic alternatives that include the following: (i) raising of new capital, or (ii) issuance of debt instruments. This process is ongoing and may be lengthy and has inherent costs. There can be no assurance that the exploration of strategic alternatives will result in any specific action to alleviate the Company's 12 month working capital needs or result in any other transaction.

The Company believes that the effect of inflation has not been material during the six months ended June 30, 2012.

Off-Balance Sheet Financing Arrangements

As of June 30, 2012, there were no off-balance sheet arrangements, unconsolidated subsidiaries and commitments or guaranties of other parties.

Critical Accounting Policies

The Company's critical accounting policies are identified in the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2011 in Management's Discussion and Analysis of Financial Condition and Results of Operations under the heading "Critical Accounting Policies." There were no significant changes to the Company's critical accounting policies during the six months ended June 30, 2012.