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CORRESP
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      Trestle Holdings, Inc. corresp 051116

    November
      16, 2005

    VIA
      EDGAR

    Mr.
      David
      Burton

    Securities
      and Exchange Commission

    Division
      of Corporate Finance

    450
      Fifth
      Street, N.W.

    Washington,
      D.C. 20549-1004

    Tel
      (202)
      551-3626

    Fax
      202)
      772-9218

    Re: Trestle
      Holdings, Inc

    Form
      10-KSB for year ended December 31, 2004

    Filed
      March 30, 2005

    Form
      10-QSB as of June 30, 2005

    File
      No.
      0-23000

    Dear
      Mr.
      Burton:

    This
      letter is in response to our telephone conversation held on November 15, 2005.
      As we stated in our letter to you dated November 4, 2005, Trestle Holdings,
      Inc.
      planned to engaged Certified Public Accounts to audit the financial statements
      of InterScope Technologies. The Auditors began work on November 15, 2005 and
      immediately determined that the accounting related to certain intangible assets
      was not done in accordance with GAAP. Please see the discussion below.
      Consequently, if the intangible assets were accounted for properly and not
      amortized and written off for impairment then the acquisition of InterScope
      is
      not a significant acquisition in accordance with Regulation
      S-B, Item 310 (c) Financial Statements of Businesses Acquired or to be
      Acquired.
      Our
      calculation of materiality showing the effect of the proper GAAP accounting
      treatment follows:

              P&L
                before GAAP

              P&L
                after GAAP Adjustment

             Trestle Loss

            $(5,065,000)

            $(5,065,000)

             InterScope Loss

               Other

            (864,525)

            (864,525)

             Intangible Amortization

            (356,061)

             Intangible
              Impairment

            (534,091)

             InterScope Total Loss

            (1,754,677)

             (864,
              525)

             Combined
              Total

            $(6,819,677)

            $(5,929,525)

             Percentage

            25.72%

            14.58%

    During
      our conversation you requested that we answer the following three
      questions:

    1.
      How
      and when did the intangible assets (purchased technology) appear on the
      books?

    2.
      Why
      did former management deem it proper to amortize and impair the intangibles?

    3.
      Why
      did we determine that this is not in accordance with GAAP?

    We
      are
      pleased to provide you with the following answers:

    1.
      The
      following methodology was used to establish the balance in Purchase Technology
      for InterScope Technology, Inc. at June 30, 2003 and eventually write-off the
      balance at December 31, 2004.

    On
      May
      28, 2003, Cape Andover Capital Partners (CACP), the primary secured creditor
      of
      the assets of InterScope Technologies, Inc., gave notice to InterScope that
      the
      company was in default of its obligations to CACP with regard to the June 2002
      note payment which was due on April 30, 2003.  Hence, a new entity,
      ISCOPE
      Acquisition Corporation was created on June 3, 2003. This entity then purchased
      the assets of InterScope, including the name “InterScope Technologies”.
       Also at that time, the senior and junior secured debt of Interscope
      was
      carried over to ISCOPE as debt and common stock.  As ISCOPE was a closely
      held private company, management did not retain a third party to perform a
      valuation of the intangible assets; as such the difference between the assets
      and the debt/equity was recorded as purchased technology on ISOPE’s general
      ledger.   ISCOPE then began amortizing this intangible asset
      balance
      of $1,068,184 on a straight-line basis beginning July 2003 and continued to
      record amortization expense through December 31, 2004.   InterScope
      was then renamed SCOPE DL and dissolved in Delaware on July 14, 2003.
      The
      law firm of McGuire Woods handled all legal work regarding the notice of default
      to the shareholders and dissolution of InterScope Technologies, Inc., and the
      creation of ISCOPE Acquisition Corporation.

    2.
      From
      the inception of ISCOPE, the company continued to be funded by the two
      principals of CACP, Tony Taddey and Sam Corliss.  Over the course of
      the
      next 18 months, the Company raised approximately $800,000 to finance its ongoing
      operations while continuing to search for a suitable liquidating event.
      During late 2004, it became questionable whether the company would be able
      to
      secure additional funding from its primary sources and, as such, at December
      31,
      2004, the controller decided that the most conservative accounting treatment
      pertaining to the balance in purchased technology was to write-off the remaining
      balance.

    3.
      During
      the preliminary review of the December 31, 2004 balance sheet and the related
      statement of operations, shareholders equity and cash flows for the year then
      ended, the auditors determined that the previously discussed accounting
      treatment related to the decision to write-off the remaining balance of
      purchased technology was not in accordance with GAAP.  To correct this
      mistake the appropriate accounting treatment would be to reverse the entries
      that were booked to amortize and to write-off the intangible asset balance
      during the year ended December 31, 2004.  These adjustments would result
      in
      an adjusted net loss for the year ended December 31, 2004 of $864,525 versus
      the
      previously recorded loss of $1,754,678.

    The
      following summarizes the rationale for reversing the original entries of
      amortizes and writing off the intangible assets.

    As
      discussed, originally the residual balance of identifiable assets, net of
      identifiable liabilities and common stock on the date of InterScope's 2003
      reorganization was $1,068,184. We believe that the intangible asset has an
      indefinite life (similar to goodwill) and is not allocated to specific
      intangible asset categories because the value of the intangible is related
      primarily to intellectual property. Accordingly, the treatment of this asset
      is
      governed by FAS
      142 - Goodwill and Other Intangible Assets and FAS 144 - Accounting for the
      Impairment or Disposal of Long-Lived Assets.
      Under
      this treatment, it is inappropriate to amortize an intangible asset that is
      related to intellectual property.

    However,
      the intangible asset may be impaired if there is no future benefit of the
      intangible. On December 4, 2004 InterScope and Trestle entered into an LOI
      to
      purchase InterScope’s assets for one million dollars in stock and approximately
      two hundred thousand dollars in cash. At that time InterScope had $267,000
      in
      assets on its books excluding the intangibles. Trestle’s primary motivation in
      buying the company’s assets was InterScope’s intellectual property. Therefore,
      it is not reasonable for InterScope’s management to believe that the intangibles
      had no value at the time when there was an agreement to purchase the assets
      for
      $1.2 million.

    Hopefully,
      this provides you with sufficient information to address this matter. I have
      support obtained from the 2006 GAAP Guide for your reference if you would like
      me to email it to you or fax it.

    Should
      you have any questions or further comments please contact either me or Eric
      Stoppenhagen, our Vice President of Finance, at 949-673-1907.

    Sincerely,

    TRESTLE
      HOLDINGS, INC.

    By:
      _/s/
      BARRY HALL___________

    Barry
      Hall

    President
      & Chief Financial Officer