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

                                   FORM 10-QSB

     |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

                                     001-09370
                            (COMMISSION FILE NUMBER)

                FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2005

                                       FOR

                 RECEIVABLE ACQUISITION & MANAGEMENT CORPORATION

             (Exact Name of Registrant as Specified in the Charter)

           DELAWARE                                            13-3186327
(State of Other Jurisdiction                                (I.R.S. Employer
      of Incorporation)                                   Identification Number)

                            140 Broadway, 46th Floor
                            New York, New York 10005
                                  212-858-7590

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

As of February 10, 2006, there were 16,413,037 shares of the Registrant's Common
Stock, $0.001 par value per share, outstanding.

Transitional Small Business Disclosure Format Yes |_| No |X|

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

<PAGE>

                 RECEIVABLE ACQUISITION & MANAGEMENT CORPORATION

                FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2005

                                TABLE OF CONTENTS

PART I      FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

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

            RISK FACTORS

ITEM 3.     CONTROLS AND PROCEDURES

PART II     OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS

ITEM 2.     UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 3.     DEFAULTS UPON SENIOR SECURITIES

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

ITEM 5.     OTHER INFORMATION

ITEM 6.     EXHIBITS

SIGNATURES

THIS REPORT CONTAINS FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND
UNCERTAINTIES. SUCH STATEMENTS ARE BASED ON CURRENT EXPECTATIONS, ASSUMPTIONS,
ESTIMATES AND PROJECTIONS ABOUT THE COMPANY AND ITS INDUSTRY. FORWARD-LOOKING
STATEMENTS ARE SUBJECT TO KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER
FACTORS THAT MAY CAUSE ACTUAL RESULTS, LEVELS OF ACTIVITY, PERFORMANCE,
ACHIEVEMENTS AND PROSPECTS TO BE MATERIALLY DIFFERENT FROM THOSE EXPRESSED OR
IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THE COMPANY UNDERTAKES NO OBLIGATION
TO UPDATE PUBLICLY ANY FORWARD-LOOKING STATEMENTS FOR ANY REASON EVEN IF NEW
INFORMATION BECOMES AVAILABLE OR OTHER EVENTS OCCURRING IN THE FUTURE.


                                       2
<PAGE>

                                     PART I

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS







       RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES

                             CONDENSED CONSOLIDATED
                        FINANCIAL STATEMENTS - UNAUDITED

              FOR THE THREE MONTHS ENDED DECEMBER 31, 2005 AND 2004


                                       3
<PAGE>

       RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES

        INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
              FOR THE THREE MONTHS ENDED DECEMBER 31, 2005 AND 2004

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED:

                                                                           Pages

      Balance Sheet of December 31, 2005 - Unaudited                        5-6

      Statement of Operations For the Three Months                           7
      Ended December 31, 2005 and 2004 - Unaudited

      Statement of Cash Flows For the Three Months                           8
      Ended December 31, 2005 and 2004 - Unaudited

      Notes to Condensed Consolidated Financial Statements                  9-19


                                       4
<PAGE>

       RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEET - UNAUDITED
                                DECEMBER 31, 2005

                                     ASSETS

CURRENT ASSETS
  Cash                                                             $    396,262
  Finance receivables - short term                                      191,180

          Total current assets                                          587,442
                                                                   ------------

OTHER ASSETS
  Finance receivables - long-term                                       388,154
                                                                   ------------

          Total other assets                                            388,154
                                                                   ------------

TOTAL ASSETS                                                       $    975,596
                                                                   ============

   The accompanying notes are an integral part of the condensed consolidated
                             financial statements.


                                       5
<PAGE>

       RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
          CONDENSED CONSOLIDATED BALANCE SHEET (CONTINUED) - UNAUDITED
                                DECEMBER 31, 2005

                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES
   Accounts payable - Trade                                     $     18,238
   Accrued and other expenses                                        167,030
   Preferred stock dividend payable                                   10,000
   Note Payable -short term                                           38,102
                                                                ------------

          Total current liabilities                                  233,370
                                                                ------------

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

TOTAL LIABILITIES                                                    233,370
                                                                ------------

STOCKHOLDERS'  EQUITY
   Preferred stock, par value $10 per share;
       authorized 10,000,000 shares, 80,000 shares issued
       and outstanding at December 31, 2005                          800,000
   Common stock, par value $.001 per share;
       authorized 325,000,000 shares issued and 17,808,917
       outstanding at December 31, 2005                               17,809
   Additional paid-in capital                                         (4,812)
   Accumulated (Deficit)                                             (70,771)
                                                                ------------

           Total stockholders' equity                                742,226
                                                                ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)            $    975,596
                                                                ============

   The accompanying notes are an integral part of the condensed consolidated
                             financial statements.


                                       6
<PAGE>

       RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENT OF OPERATION - UNAUDITED
              FOR THE THREE MONTHS ENDED DECEMBER 31, 2005 AND 2004

<TABLE>
<CAPTION>
                                                                    FOR THE THREE MONTHS ENDED
                                                                           DECEMBER 31,
                                                                      2005               2004
                                                                 --------------     --------------
<S>                                                              <C>                <C>
REVENUES
    Financing income                                             $       76,137     $      113,744
    Gain on sale of finance receivable                                       --             87,514
    Service income                                                       44,108             29,977
                                                                 --------------     --------------
                            TOTAL INCOME                                120,245            231,235

COSTS AND EXPENSES
    Selling, general and administrative                                 172,473            163,343
                                                                 --------------     --------------
                            Total costs and expenses                    172,473            163,343
                                                                 --------------     --------------

NET INCOME (LOSS) BEFORE OTHER INCOME                                   (52,228)            67,892

OTHER INCOME (LOSS)
   Other income (loss) - loss on sale of finance receivable              (5,409)                --
   Other income (loss) - interest                                           255                601
                                                                 --------------     --------------
                            Total other income (loss)                    (5,154)               601
                                                                 --------------     --------------

NET INCOME (LOSS) BEFORE PROVISION FOR INCOME TAX                $      (57,382)    $       68,493

PROVISION FOR INCOME TAXES                                                   --            (20,583)
                                                                 --------------     --------------

NET INCOME (LOSS)                                                       (57,382)            47,910

LESS PREFERRED STOCK DIVIDEND                                           (10,000)           (10,000)
                                                                 --------------     --------------

INCOME (LOSS) APPLICABLE TO COMMON STOCK                         $      (67,382)    $       37,910
                                                                 --------------     --------------

BASIC INCOME (LOSS) PER COMMON SHARE                             $        (0.00)    $       (0.003)
                                                                 ==============     ==============

DILUTED INCOME (LOSS)
PER COMMON SHARE                                                 $           --     $       (0.002)
                                                                 ==============     ==============

WEIGHTED AVERAGE OUTSTANDING SHARES
OF COMMON STOCK - BASIC                                              16,413,037         14,870,601
                                                                 ==============     ==============

WEIGHTED AVERAGE OUTSTANDING SHARES
OF COMMON STOCK - DILUTED                                            17,358,909         22,320,601
                                                                 ==============     ==============
</TABLE>

   The accompanying notes are an integral part of the condensed consolidated
                             financial statements.


                                       7
<PAGE>

       RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED
              FOR THE THREE MONTHS ENDED DECEMBER 31, 2005 AND 2004

<TABLE>
<CAPTION>
                                                                           2005            2004
                                                                        -----------     -----------
<S>                                                                     <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income (Loss)                                                     $   (67,382)    $    47,910
Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating activities:

Changes in Certain Assets and Liabilities
Proceeds from sale of portfolio - net of gain                               112,290         205,736
Acquisition of finance receivables, net of buybacks                              --        (100,444)
Collections applied to principal on finance receivables                     140,687         114,205
(Increase) Decrease in Prepaid expenses & exchange account                       --          97,763
(Decrease) Increase Accounts payable - Trade                                     --         (63,539)
(Decrease) Increase Accrued Expenses                                        125,843          18,119
(Decrease) Increase preferred dividend payable                              (10,000)             --
(Decrease) in note payable payable                                          (15,000)             --
(Decrease) Increase in Income Taxes                                              --         (18,455)
                                                                        -----------     -----------

          Net cash provided by (used in) operating activities               286,438         301,295
                                                                        -----------     -----------

CASH FLOWS FROM FINANCING ACTIVITIES
Repurchase of warrants                                                     (102,600)        (10,000)
                                                                        -----------     -----------

               Net cash provided by (used in) financing activities         (102,600)        (10,000)

NET INCREASE (DECREASE) IN CASH                                             183,838         291,295

CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR                               212,424         486,124
                                                                        -----------     -----------

CASH AND CASH EQUIVALENTS - END OF PERIOD                               $   396,262     $   777,419
                                                                        ===========     ===========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
  Issuance of Common Stock for:
   Conversion of notes payable                                          $    16,897     $     5,000
                                                                        ===========     ===========
</TABLE>

   The accompanying notes are an integral part of the condensed consolidated
                              financial statements


                                       8
<PAGE>

       RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                           DECEMBER 31, 2005 AND 2004

NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      A. THE COMPANY AND PRESENTATION

      The condensed consolidated unaudited interim financial statements included
      herein have been prepared by Receivable Acquisition and Management
      Corporation and Subsidiaries (the "Company"), formerly Feminique
      Corporation and Subsidiaries without audit, pursuant to the rules and
      regulations of the Securities and Exchange Commission (the "SEC"). Certain
      information and footnote disclosures normally included in the financial
      statements prepared in accordance with accounting principles generally
      accepted in the United States of America have been condensed or omitted as
      allowed by such rules and regulations, and the Company believes that the
      disclosures are adequate to make the information presented not misleading.
      It is suggested that these condensed consolidated financial statements be
      read in conjunction with the September 30, 2005 audited consolidated
      financial statements and the accompanying notes thereto. While management
      believes the procedures followed in preparing these condensed consolidated
      financial statements are reasonable, the accuracy of the amounts are in
      some respects dependent upon the facts that will exist, and procedures
      that will be accomplished by the Company later in the year.

      The management of the Company believes that the accompanying unaudited
      condensed consolidated financial statements contain all adjustments
      (including normal recurring adjustments) necessary to present fairly the
      operations, changes in stockholders' equity (deficit), and cash flows for
      the periods presented.

      On November 25, 2003, the Company incorporated a wholly owned subsidiary
      Receivable Acquisition and Management Corp of New York ("Ram"). This
      corporation plans to purchase, manage and collect defaulted consumer
      receivables.

      On April 21, 2004, the Company amended its certificate of incorporation to
      increase its authorized number of shares of common stock from 75,000,000
      shares to 325,000,000 shares. This amendment was approved by the Company's
      shareholders at its April 20, 2004 annual meeting.


                                       9
<PAGE>

       RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                           DECEMBER 31, 2005 AND 2004

NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

      B. FINANCE RECEIVABLES

      The Company on December 15, 2003, acquired defaulted consumer receivable
      portfolios for $569,071 with a face value of $15,985,138. Another
      portfolio with face value of $18,944,048 was acquired for $331,501. The
      Company accounts for its investment in finance receivables under the
      guidance of Statement of Position ("SOP") 03-3, "Accounting for Loans or
      Certain Debt Securities Acquired in a Transfer." This SOP limits the yield
      that may be accreted (accretable yield) to the excess of the Company's
      estimate of undiscounted expected principal, interest and other cash flows
      (cash flows expected at the acquisition to be collected) over the
      Company's initial investment in the finance receivables. Subsequent
      increases in cash flows expected to be collected are recognized
      prospectively through adjustment of the finance receivables yield over its
      remaining life. Decreases in cash flows expected to be collected are
      recognized as impairment to the finance receivable portfolios. The
      Company's proprietary collections model is designed to track and adjust
      the yield and carrying value of the finance receivables based on the
      actual cash flows received in relation to the expected cash flows.

      The Company acquired on April 19, 2004 a third portfolio with a face value
      of $447,390 for $31,317.

      The Company will use for this third portfolio the "Recovery Method" for
      revenue recognition under which no revenue is recognized until the
      investment amount of $31,317 has been recovered.

      The Company on September 16, 2004 put $97,763 on deposit for the fourth
      portfolio. However, the Company did not take possession of the portfolio
      and received a full refund in October 2004.

      The Company acquired on October 10, 2004 a new portfolio with a face value
      of $2,107,132 for $100,444. The Company will use for this portfolio the
      "Recovery Method" for revenue recognition under which no revenue is
      recognized until the investment amount of $100,444 has been recovered.

      On November 23, 2004 the Company sold the portfolio with an original face
      value of $18,944,048 and an acquisition price of $331,051 for a sales
      price of $293,250. The Company recognized a gain of $87,514 on the sale.
      The carrying value of the portfolio at the time of sale was $205,736.

      During the quarter ending March 31, 2005, the Company acquired portfolios
      for $487,280. The Company will use for these portfolios the "Recovery
      Method" for revenue recognition under which no revenue is recognized until
      the investment amount of $487,280 has been recovered.

      The Company acquired on April 11, 2005 a portfolio with a face value of
      $5,500,000 for $375,000. The Company will apply the "Recovery Method" for
      revenue recognition under which no revenue is recognized until the
      investment amount of $375,000 has been recovered.


                                       10
<PAGE>

       RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                           DECEMBER 31, 2005 AND 2004

NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

      B. FINANCE RECEIVABLES (CONTINUED)

      The Company acquired the fourth tranche of a forward flow on June 2, 2005
      with a face value of $619,275 for $37,660. The Company will apply the
      "Recovery Method" for revenue recognition under which no revenue is
      recognized until the investment amount of $37,660 has been recovered.

      During the quarter ending June 30, 2005, the Company acquired total
      portfolios for $412,660. The Company will use for these portfolios the
      "Recovery Method" for revenue recognition under which no revenue is
      recognized until the investment amount of $412,660 has been recovered.

      On July 12, 205, the Company sold the portfolio with an original face
      value of $3,674,498 and an acquisition price of $233,330 for a sales price
      of $168,767. The Company will recognize a loss in the fourth quarter. The
      Company retained approximately $92,000 in face value of paying accounts.

      During the quarter ending September 30, 2005, the Company acquired total
      portfolios for $239,162. The Company will use for these portfolios the
      "Recovery Method" for revenue recognition under which no revenue is
      recognized until the investment amount of $239,162 has been recovered.

      On November 22, 2005 the Company sold a portfolio with an acquisition
      price of $172,827 for $112,290. The Company recognized a loss of $5,409 on
      the sale.

      In the event that cash collections would be inadequate to amortize the
      carrying balance, an impairment charge would be taken with a corresponding
      write-off of the receivable balance. Accordingly, the Company does not
      maintain an allowance for credit losses.

      The agreements to purchase the aforementioned receivables include general
      representations and warranties from the sellers covering account holder
      death or bankruptcy, and accounts settled or disputed prior to sale. The
      representation and warranty period permitting the return of these accounts
      from the Company to the seller is typically 90 to 180 days. Any funds
      received from the seller of finance receivables as a return of purchase
      price are referred to as buybacks. Buyback funds are simply applied
      against the finance receivable balance received. They are not included in
      the Company's cash collections from operations nor are they included in
      the Company's cash collections applied to principal amount. Gains on sale
      of finance receivables, representing the difference between sales price
      and the unamortized value of the finance receivables, are recognized when
      finance receivables are sold.


                                       11
<PAGE>

       RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                           DECEMBER 31, 2005 AND 2004

NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

      B. FINANCE RECEIVABLES (CONTINUED)

      Changes in finance receivables for the three months ended December 31,
      2005 were as follows:

                                                           Three Months Ended
                                                           December 31, 2005
                                                           ------------------
      Balance at beginning of period  October 1, 2005      $          832,312
      Acquisition of finance receivables

      Cash collections applied to principal                          (140,687)

      Sale of portfolio - net of gain                                (112,290)
                                                           ------------------
      Balance at the end of the period                     $          579,335
                                                           ==================
      Estimated Remaining Collections ("ERC") *            $        2,253,000
                                                           ==================

      o     Estimated remaining collection refers to the sum of all future
            projected cash collections from acquired portfolios. ERC is not a
            balance sheet item, however, it is provided for informational
            purposes. Income recognized on finance receivables was $76,137 and
            $113,744 for the three months ending December 31, 2005 and 2004,
            respectively.

NOTE 1- C. PRINCIPLES OF CONSOLIDATION

      The condensed consolidated financial statements include the accounts of
      the Company and its subsidiaries. All significant intercompany accounts
      and transactions have been eliminated in consolidation.

      D. CASH AND CASH EQUIVALENTS

      The Company considers all highly liquid debt instruments and other
      short-term investments with an initial maturity of three months or less to
      be cash or cash equivalents. There were no cash equivalents as of December
      31, 2005.

      The Company maintains cash and cash equivalents balances at financial
      institutions that are insured by the Federal Deposit Insurance Corporation
      up to $100,000. At December 31, 2005 and 2004, the Company`s uninsured
      cash balances total $296,262 and $677,419, respectively.

      E. FURNITURE AND EQUIPMENT

      Furniture and equipment when acquired will be stated at cost. Depreciation
      will be provided using straight-line method over the estimated useful
      lives of the assets.

      Maintenance and repairs are charged to operations when incurred. When
      assets are sold or otherwise disposed of, the asset accounts and related
      accumulated depreciation accounts are relieved, and any gain or loss is
      included in operations.


                                       12
<PAGE>

      F. INCOME TAXES

      The Company has adopted the provisions of Statement of Financial
      Accounting Standards ("SFAS") No. 109, Accounting for Income Taxes. The
      statement requires an asset and liability approach for financial
      accounting and reporting of income taxes, and the recognition of deferred
      tax assets and liabilities for the temporary differences between the
      financial reporting bases and tax bases of the Company's assets and
      liabilities at enacted tax rates expected to be in effect when such
      amounts are realized or settled.

      G. USE OF ESTIMATES

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

      H. STOCK-BASED COMPENSATION

      Employee stock awards under the Company's compensation plans are accounted
      for in accordance with Accounting Principles Board Opinion No. 25 ("APB
      25"), "Accounting for Stock Issued to Employees", and related
      interpretations. The Company provides the disclosure requirements of
      Statement of Financial Accounting Standards No. 123, "Accounting for
      Stock-Based Compensation" ("SFAS 123"), and related interpretations.
      Stock-based awards to non-employees are accounted for under the provisions
      of SFAS 123 and has adopted the enhanced disclosure provisions of SFAS No.
      148 "Accounting for Stock-Based Compensation-Transition and Disclosure, an
      amendment of SFAS No. 123".

      The Company measures compensation expense for its employee stock-based
      compensation using the intrinsic-value method. Under the intrinsic-value
      method of accounting for stock-based compensation, when the exercise price
      of options granted to employees is less than the estimated fair value of
      the underlying stock on the date of grant, deferred compensation is
      recognized and is amortized to compensation expense over the applicable
      vesting period. In each of the periods presented, the vesting period was
      the period in which the options were granted. All options were expensed to
      compensation in the period granted rather than the exercise date.

      The Company measures compensation expense for its non-employee stock-based
      compensation under the Financial Accounting Standards Board (FASB)
      Emerging Issues Task Force (EITF) Issue No. 96-18, "Accounting for Equity
      Instruments that are Issued to Other Than Employees for Acquiring, or in
      Conjunction with Selling, Goods or Services". The fair value of the option
      issued is used to measure the transaction, as this is more reliable than
      the fair value of the services received. The fair value is measured at the
      value of the Company's common stock on the date that the commitment for
      performance by the counterparty has been reached or the counterparty's
      performance is complete. The fair value of the equity instrument is
      charged directly to compensation expense and additional paid-in capital.

      I. REVENUE RECOGNITION

      Revenue is recognized based on AICPA Statement of Position 03-3, if the
      management is reasonably comfortable with expected cash flows. In the
      event, expected cash flows cannot be reasonably estimated, the Company
      will use the "Recovery Method" under which revenues are only recognized
      after the initial investment has been recovered.


                                       13
<PAGE>

       RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                           DECEMBER 31, 2005 AND 2004

NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

      J. EARNINGS PER SHARE OF COMMON STOCK

      Historical net income per common share is computed using the weighted
      average number of common shares outstanding. Diluted earnings per share
      (EPS) include additional dilution from common stock equivalents, such as
      stock issuable pursuant to the exercise of stock options and warrants.
      Common stock equivalents were not included in the computation of diluted
      earnings per share when the Company reported a loss because to do so would
      be antidilutive for periods presented.

      The following is a reconciliation of the computation for basic and diluted
      EPS:

<TABLE>
<CAPTION>
                                                  December 31,       December 31,
                                                      2005               2004
                                                 --------------     --------------
<S>                                              <C>                <C>
      Net income after payment of preferred
        dividend                                 $      (67,382)    $       37,910
                                                 --------------     --------------
      Weighted-average common shares
      Outstanding (Basic)                            16,413,037         14,870,601

      Weighted-average common stock
      Equivalents
        Stock options                                   950,000            950,000
        Warrants                                      1,446,000          6,500,000
                                                 --------------     --------------

      Weighted-average common shares
      Outstanding (Diluted)                          18,809,037         22,320,601
                                                 ==============     ==============
</TABLE>

      K. RECENT ACCOUNT PRONOUNCEMENTS

      In June 2001, the FASB issued Statement No. 142 "Goodwill and Other
      Intangible Assets". This Statement addresses financial accounting and
      reporting for acquired goodwill and other intangible assets and supersedes
      APB Opinion No. 17, Intangible Assets. It addresses how intangible assets
      that are acquired individually or with a group of other assets (but not
      those acquired in a business combination) should be accounted for in
      financial statements upon their acquisition. This Statement also addresses
      how goodwill and other intangible assets should be accounted for after
      they have been initially recognized in the consolidated financial
      statements.

      In October 2003, the American Institute of Certified Public Accountants
      issued Statement of Position ("SOP") 03-03, "Accounting for Loans or
      Certain Securities Acquired in a Transfer." This SOP proposes guidance on
      accounting for differences between contractual and expected cash flows
      from an investor's initial investment in loans or debt securities acquired
      in a transfer if those differences are attributable, at least in part, to
      credit quality. This SOP is effective for loans acquired in fiscal years
      beginning after December 15, 2004. This SOP would limit the revenue that


                                       14
<PAGE>

      may be accrued to the excess of the estimate of expected future cash flows
      over a portfolio's initial cost of accounts receivable acquired. The SOP
      would require that the excess of the contractual cash flows over expected
      cash flows not be recognized as an adjustment of revenue, expense, or on
      the balance sheet. The SOP would freeze the internal rate of return,
      referred to as IRR, originally estimated when the accounts receivable are
      purchased for subsequent impairment testing. Rather than lower the
      estimated IRR if the original collection estimates are not received, the
      carrying value of a portfolio would be written down to maintain the
      original IRR. Increases in expected future cash flows would be recognized
      prospectively through adjustment of the IRR over a portfolio's remaining
      life. The SOP provides that previously issued annual financial statements
      would not need to be restated. Management has decided on the early
      adoption of the application of this SOP.

      In May 2003, the FASB issued SFAS Statement No. 150, "Accounting for
      Certain Financial Instruments with Characteristics of both Liabilities and
      Equity". This statement establishes standards for how an issuer classifies
      and measures certain financial instruments with characteristics of both
      liabilities and equity. It requires that an issuer classify a financial
      instrument that is within its scope as a liability (or an asset in some
      circumstances). This statement is effective for financial instruments
      entered into or modified after May 31, 2003 and otherwise is effective at
      the beginning of the first interim period beginning after June 15, 2003,
      except for mandatory redeemable financial instruments of nonpublic
      entities, if applicable. It is to be implemented by reporting the
      cumulative effect of a change in an accounting principle for financial
      instruments created before the issuance date of the Statement and still
      existing at the beginning of the interim period of adoption. The adoption
      of this statement did not have a significant impact on the Company's
      results of operations or financial position.

      L. RECLASSIFICATION

      Certain amounts in the December 31, 2004 Financial Statements have been
      reclassified to conform to the 2005 presentation.

NOTE 2- NOTES PAYABLE

      A. On October 2, 2003, the Company borrowed an additional $20,000 from
      Artemis Equity Hedge Fund Ltd, evidenced by a convertible promissory note
      bearing interest at 7% per annum. The note was due on or before March 30,
      2004. This note is classified as a short-term note as the holder may
      convert at their discretion. The Company issued in May 2004, 100,250
      shares of common stock to satisfy the debt.

      B. On December 11, 2003, the Company borrowed an additional $800,000 from
      Artemis Equity Hedge Fund Ltd, evidenced by a convertible promissory note
      bearing interest at 5% per annum. The note was due on or before March 31,
      2004. This note is classified as a short-term Note as the holder may
      convert at their discretion. The note may be exchanged into convertible
      preferred stock with a 5% dividend. The preferred stock is convertible at
      $10 per share. The Company issued 80,000 shares of preferred stock in June
      2004 to satisfy the debt.


                                       15
<PAGE>

       RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                           DECEMBER 31, 2005 AND 2004

NOTE 2- NOTES PAYABLE (CONTINUED)

      C. On January 29, 2004 the Company borrowed an additional $5,000 note
      bearing interest at 5% per annum. The note was convertible into common
      stock at $.20 per share. The Company issued in October 2004, 24,876 shares
      of common stock to satisfy the debt.

      D. On June 10, 2005, the Company agreed to repurchase 1,000,000 warrants
      at $.10 per warrant. The Company has paid $20,000 and will pay the
      remaining $80,000 over 16 months.

      The holder of the Note Payable owns 2,253,000 stock purchase warrants. The
      holder informed the Company that the holder will exercise all 2,253,000
      stock purchase warrants at an exercise price of $0.0075 for a total
      exercise amount of $16,897. In lieu of payment the holder agreed to a
      $16,987 reduction in the Note Payable. The reduction in payment is
      effective if the Company continues to pay the holder $5,000 through July
      2006 and a final payment in August of $3,102. The holder exercised the
      warrants on November 28 2005 and 2,253,000 shares of common stock were
      issued to reduce the note payable in the amount of $16,897. (See Note 5)

NOTE 3- STOCK OPTIONS

      In April 2004, the Company adopted a stock option plan upon approval by
      the shareholders at the Annual General Meeting under which selected
      eligible key employees of the Company are granted the opportunity to
      purchase shares of the Company's common stock. The plan provides that
      37,500,000 shares of the Company's authorized common stock be reserved for
      issuance under the plan as either incentive stock options or non-qualified
      options. Options are granted at prices not less than 100 percent of the
      fair market value at the end of the date of grant and are exercisable over
      a period of ten years or a long as that person continues to be employed or
      serve on the on the Board of Directors, whichever is shorter. At December
      31, 2005, the Company had 950,000 options outstanding under this plan.


                                       16
<PAGE>

       RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                           DECEMBER 31, 2005 AND 2004

NOTE 4- INCOME TAXES

      The income tax accounting reported within these statements is summarized
      as follows:

                                              December 31,     December 31,
                                                  2005             2004
                                              ------------     ------------
      Provision

      Current:
           Federal                            $         --     $     (9,625)
           State and Local                              --          (10,958)
                                              ------------     ------------

              Total Current                             --          (20,583)

      Deferred                                          --               --
                                              ------------     ------------

      Total provision for income taxes        $         --     $    (20,583)
                                              ============     ============

      The Company's effective tax rate is different than what would be expected
      if the statutory rates were applied to "net income (loss) before income
      taxes" primarily because of expenses deductible for financial reporting
      purposes that are not deductible for tax purposes allowed.

      There was no provision for income tax for the three months ended December
      31, 2005.

      At December 31, 2005 the Company had accumulated deficit approximating
      $70,772, available to offset future taxable income through 2023.

                                                                 December 31,
                                                                     2005
                                                                 ------------

      Deferred tax assets                                        $     21,232

      Less: valuation allowance                                       (21,232)
                                                                 ------------
      Total                                                      $         --
                                                                 ============


                                       17
<PAGE>

       RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                           DECEMBER 31, 2005 AND 2004

NOTE 5- STOCK HOLDERS' EQUITY (Equity)

      There were 325,000,000 shares of common stock authorized, with 17,808,917
      and 14,870,601 shares issued and outstanding at December 31, 2005 and
      2004, respectively. The par value for the common stock is $.001 per share.

      The following details the stock transactions for the years ended September
      30, 2005 and 2004.

      The Board of Directors approved a 1 for 15 reverse stock split at the
      shareholders meeting on April 21, 2004. The September 30, 2004 shares have
      been retroactively restated to reflect the reverse stock split.

      The Company issued 827,067 shares of common stock at $0.1995 per share in
      May 2004 to discharge a shareholder's loan of $165,000.

      The Company issued 100,250 shares of common stock at $0.1995 per share in
      May 2004 to discharge a $20,000 loan from Artemis Equity Hedge Fund.

      On January 21, 2004 the Company entered into an agreement to acquire
      General Outsourcing Services, Inc., a corporation owned by the Chairman of
      the Company. The Company issued 4,230,000 shares at $0.0014 per share in
      June 2004 in consideration of this agreement.

      On January 22, 2004 the Company entered into an employment agreement with
      its President and CEO, Max Khan to issue 4,300,000 shares. The company
      issued 4,300,000 shares of common stock at $.0014 per share in June 2004
      as employment compensation for Mr. Max Khan.

      The Company issued 388,408 shares of common stock in exchange for
      consulting services. The 388,408 shares of common stock were issued at
      $0.0014 per share as payment for consulting services.

      The Company issued 24,876 shares of common stock at $.20 per share in
      October 2004 to discharge a shareholders' loan of $5,000.

      The Company issued 200,000 shares of common stock at $.008 per share in
      February 2005 as a conversion of warrants into common stock.

      The Company repurchased 14,684 shares of common stock on June 24, 2005.
      The shares will be retired in August 2005. Currently, the purchase is
      accounted for as a prepaid asset. The shares were repurchased for $.10 per
      share for a total amount of $1,468.

      The Company received $3,750 for the exercise of 500,000 warrants at $.0075
      per share of common stock in June 2005. The Company will issue 500,000
      shares of common stock in August 2005.

      The Company issued to the holder of the note payable, 2,253,000 shares of
      common stock at $0.0075 per share on November 28, 2005 as a conversion of
      warrants into common stock. In lieu of payment in the amount of $16,897
      the shares were purchased through a $16,897 reduction of the note payable.
      (See Note 2. D)


                                       18
<PAGE>

      The Company repurchased 201,000 warrants at a price of $0.10 per warrant
      on November 18, 2005. The total repurchase price was $20,100.

      The Company repurchased 500,000 warrants at a price of $0.125 per warrant
      on November 18, 2005. The total repurchase price was $62,500.

      The Company repurchased 200,000 warrants at a price of $0.10 per warrant
      on November 18, 2005. The total repurchase price was $20,000.

      PREFERRED STOCK

      There were 10,000,000 shares of preferred stock authorized, with 80,000
      issued an outstanding as of December 30, 2005 and 2004. The par value for
      the preferred shares is $10 per share.

ITEM 2.

   MANAGEMENTS'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
                                  OPERATIONS.

This "Management's Discussion and Analysis of Financial Condition and Results of
Operations" should be read in conjunction with "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in the Annual Report
on Form 10-K as of and for the year ended September 30, 2004 as filed with the
Securities and Exchange Commission. Cautionary Statements Pursuant to Safe
Harbor Provisions of the Private Securities Litigation Reform Act of 1995:

This report contains forward-looking statements within the meaning of the
federal securities laws. These forward-looking statements involve risks,
uncertainties and assumptions that, if they never materialize or prove
incorrect, could cause the results of the Company to differ materially from
those expressed or implied by such forward-looking statements. All statements,
other than statements of historical fact, are forward-looking statements,
including statements regarding overall trends, gross margin trends, operating
cost trends, liquidity and capital needs and other statements of expectations,
beliefs, future plans and strategies, anticipated events or trends, and similar
expressions concerning matters that are not historical facts. The risks,
uncertainties and assumptions referred to above may include the following:

      o     changes in the business practices of credit originators in terms of
            selling defaulted consumer receivables or outsourcing defaulted
            consumer receivables to third-party contingent fee collection
            agencies;

      o     ability to acquire sufficient portfolios;

      o     ability to recover sufficient amounts on acquired portfolios;

      o     a decrease in collections if bankruptcy filings increase or if
            bankruptcy laws or other debt collection laws change;

      o     changes in government regulations that affect the Company's ability
            to collect sufficient amounts on its acquired or serviced
            receivables;


                                       19
<PAGE>

      o     the Company's ability to retain the services of recovery partners;

      o     changes in the credit or capital markets, which affect the Company's
            ability to borrow money or raise capital to purchase or service
            defaulted consumer receivables;

      o     the degree and nature of the Company's competition; and

      o     our ability to respond to changes in technology and increased
            competition;

      o     the risk factors listed from time to time in the Company's filings
            with the Securities and Exchange Commission.

Overview

The Company is now engaged in purchase and recovery of defaulted consumer
receivables. These receivables are acquired at deep discounts and outsourced for
collections on a contingency basis. The Company also manages Ramco Income Fund,
Ltd, a Bermuda domiciled mutual fund with $3.1 million in invested capital. The
Company continues to seek additional capital to invest into additional
portfolios. The Company also manages two SPV structures with approximately $4.5
million under management.

RESULTS OF OPERATIONS

Overview

The company continues to execute its long term strategy. With several
relationships in place with debt sellers, the company is now in discussions with
several lenders for a credit facility which will allow us to acquire larger
portfolios. The following table summarizes collections, revenues, operating
expenses, income before taxes and fully diluted net income.

<TABLE>
<CAPTION>
                                                            Three Months Ended December 31
                                            -------------------------------------------------------------
                                                2005             2004          $ Change        % Change
                                            -------------------------------------------------------------
<S>                                         <C>              <C>              <C>                    <C>
      Net Collections (excluding sale)      $   265,544      $   208,245

      Finance Income                        $    76,137      $   113,744      ($   37,607)           -49%
            as a % of Collections                    29%           54.62%

      Servicing Income                      $    44,108      $    29,977      $    14,131

      Gain on Sale                          ($    5,409)     $    87,514      $    87,514

      Operating Expenses                    $   172,473      $   163,343      $     9,130               6%

      Income Before Taxes                   ($   67,382)     $    68,493      ($  135,875)            198%
</TABLE>


                                       20
<PAGE>

Revenue

The company generated $120,245 in revenue during the quarter ended December 31,
2005 versus $231,235 for quarter ended December 31, 2004. Total revenue included
$76,137 in finance income in the quarter ended December 31, 2005 versus $113,744
finance income during the quarter ended December 31, 2004; loss of $5,409 from
portfolio sale in the quarter ended December 31, 2005 versus gain of $87,514
from portfolio sale during the quarter ended December 31, 2004 and $44,108
servicing income of $44,108 during the quarter ended December 31, 2005 versus
$29,977 in the quarter ended December 31, 2004. Finance income was lower during
the quarter during the quarter ended December 31, 2005 because the Company is
applying accretion method to only two portfolios. During the quarter ended
December 31, 2005, excluding proceeds of $ 112,290 from the sale of one
portfolio, the Company collected $265,544 versus $208,245 and portfolio sale of
$293,250 during the quarter ended December 31, 2004. The Company recognized only
$76,137 in finance income in the quarter ended December 31, 2005 versus $113,744
in finance income during the quarter ended December 31, 2004. As a percentage,
finance income recognized was 29% of total net cash collections during the
quarter ended December 31, 2005 versus 55% of total cash collected during the
quarter ended December 31, 2004.

Operating Expenses

Total operating expenses were $172,473 for the three months ended December 31,
2005 versus $163,343 for the three months ended December 31, 2004. The operating
expenses, excluding legal fees, were in line with expectations. For the three
months ended December 31, 2005 and 2004, legal and accounting expenses were
$42,900 and $31,000 respectively. The Company continues to incur expenses
related to Allied litigation. The Company reached a settlement agreement on
December 12, 2005 which was finalized on February 10, 2006. The company does not
expect the overall expenses to rise materially for the remainder of the year.

Rent and Occupancy

Rent and occupancy expenses were $7,965 for the three months ended December 31,
2005 versus $8,500 for the Quarter ended December 31, 2004.

Depreciation

The Company did not record any depreciation expense for the three months ended
December 31, 2004.

Purchase of defaulted receivables

      During the three months ended December 31, 2005, the Company acquired
defaulted consumer receivables portfolios with aggregate face value amount of
$1,242,503 at a cost of $80,000. As a part of its strategy, the Company does not
do any in-house collection, but outsources collection to carefully selected
specialist debt collection agencies. The Company is currently working with three
collection agencies on a contingency basis. The contingency fees in the
collections industry ranges from 20% to 50% depending on the age of receivables.
The Company has backup agencies in place for redundancy purposes.


                                       21
<PAGE>

Portfolio Data

The following table shows the Company's portfolio buying activity during the
quarter, among other things, the purchase price, actual cash collections and
estimated cash collection as of December 31, 2005.

<TABLE>
<CAPTION>
Purchase Period              Purchase Price(1)    Actual Cash Collections (2)        Estimated (3)
<S>                           <C>                        <C>                        <C>
  12/31/2003                  $      569,070             $    1,419,089             $      360,381
   4/19/2004                  $       31,317             $       29,868             $       33,353
  12/31/2004                  $      100,444             $      104,651             $      142,441
   2/28/2005                  $       81,076             $       67,501             $      115,977
 1/25/2005(4)                 $      233,330             $      205,210             $       33,690
 3/11/2005(5)                 $      172,872             $       48,611             $       33,000
   4/11/2005                  $      375,000             $      115,603             $      561,539
   6/2/2005                   $       37,660             $       26,616             $       74,444
   7/25/2005                  $      177,668             $       91,189             $      308,564
   9/28/2005                  $       61,974             $       13,728             $      141,207
  12/28/2005                  $       80,000             $       17,721             $      222,279
</TABLE>

(1)   Purchase price refers to the cash paid to a seller to acquire defaulted
      receivables, plus certain capitalized expenses, less the purchase price
      refunded by the seller due to the return of non-compliant accounts (also
      defined as buybacks). Non-compliant refers to the contractual
      representations and warranties between the seller and the Company. These
      representations and warranties from the sellers generally cover account
      holders' death or bankruptcy and accounts settled or disputed prior to
      sale. The seller can replace or repurchase these accounts.

(2)   Actual cash collections net of recovery cost or sale.

(3)   Total estimated collections refer to the actual cash collections,
      including cash sales, plus estimated remaining collections. The Company
      will take an impairment charge if the actual recoveries fall short of
      expected recoveries.

(4)      The Portfolio was sold in July for $168,767 and paying accounts with a
         face value of $92,000 were retained.

(5)   The Portfolio was sold in November for $112,290 and paying accounts with a
      face value of $33,000 was retained.

When the Company acquires a portfolio of defaulted receivables, it estimates the
expected recovery of the portfolio. A 36 to 60 month projection of cash
collections is created for each portfolio. Only after the portfolio has
established probable and estimable performance in excess of projections will the
accretable yield be increased and recognized as revenue. If actual cash
collections are less than the original forecast, the Company will take an
impairment charge. Collection activities commence within 30 days of purchase,
which allows for adequate time to scrub the portfolio for deceased, settled,
incarcerated and bankruptcy filed accounts.

Recovery Partners

The Company outsources all its recovery activities to carefully selected debt
collection agencies and network of collection attorneys with specific collection
expertise. The company is currently using seven collection agencies and several
law firms in the U.S. and U.K. The average contingent collections fee is 30%
which rises during the later years of recovery.


                                       22
<PAGE>

Seasonality

Collections tend to be higher in the first and second quarters of the year and
lower in the third and fourth quarter of the year, due to consumer payment
patterns in connection with seasonal employment, income tax refunds and holiday
spending habits.

Currency Risk

The Company plans to acquire defaulted receivable portfolios in the United
Kingdom and such purchase may expose the company to adverse currency risks.

Liquidity and Capital Resources

As of December 31, 2005 the Company had working capital of $354,072 versus
working capital of $848,450 as of December 31, 2004. Working capital was lower
during the quarter ended December 31, 2005 versus the quarter ended December 31,
2004 which was boosted by a large portfolio sale and conversion of all
outstanding debt into equity. The company also spent approximately $100,000 to
buyback approximately 900,000 warrants during the quarter ended December 31,
2005. The Company believes that funds generated from operations, together with
existing cash will be sufficient to finance its operations for the foreseeable
future. During the three months ended December 31, 2005, cash flow from
operations was $286,438 versus $301,295 in the quarter ended December 31, 2004.
Our primary investing activity to date has been the purchase of charged-off
consumer receivable portfolios. During the quarter ended December 31, 2005, we
invested $80,000 in a portfolio with a face value of $1,242,000 and is a part of
a forward flow arrangement that we have with the seller.

Cash generated from operations is depended upon the Company's ability to collect
on its defaulted consumer receivables. Many factors, including the economy,
purchase price and the Company's ability to retain the services of its recovery
partners, are essential to generate cash flows. Fluctuations in these factors
that cause a negative impact on the Company's business could have a material
negative impact on its expected future cash flows. During the quarters ended
December 31, 2005 and 2004, the Company generated approximately $377,834 and
$501,341 respectively from collections and portfolio sale, net of contingency
fee.

The Company continues to seek additional capital that would allow the company to
make larger portfolio acquisitions in the near future. There is no assurance
that the Company would be successful in raising the capital.

Income Taxes

We did not record any income tax provision for the quarter ended December 31,
2005 versus $20,583 for the quarter ended December 31, 2004.

Contractual Obligation

The Company has a 12 month lease with H&Q Global Services at $2,915 per month
plus variable expenses that include telecommunication, copier, postage and
delivery charges.

Market Outlook for Charged-off Receivables

Recently there has been a substantial inflow of capital into this business which
has resulted in significant increase in prices paid. We expect that over time,
many of these new entrants to the market, whose business model may be based on
less than a multi-disciplined approach to purchasing and collecting, will not
generate the returns they anticipated. This may then reduce their ability to
access capital and potentially may require them to sell their remaining
portfolios and exit the market. Also, the sellers are increasing turning to
large buyers that has hampered our ability to invest our available cash.


                                       23
<PAGE>

Critical Accounting Policy

The Company utilizes the interest method under guidance provided by the AICPA
issued Statement of Position ("SOP") 03-03 to determine income recognized on
finance receivables In October 2003, the American Institute of Certified Public
Accountants issued Statement of Position ("SOP") 03-03, "Accounting for Loans or
Certain Securities Acquired in a Transfer." This SOP proposes guidance on
accounting for differences between contractual and expected cash flows from an
investor's initial investment in loans or debt securities acquired in a transfer
if those differences are attributable, at least in part, to credit quality. This
SOP is effective for loans acquired in fiscal years beginning after December 15,
2004. The SOP would limit the revenue that may be accrued to the excess of the
estimate of expected future cash flows over a portfolio's initial cost of
accounts receivable acquired. The SOP would require that the excess of the
contractual cash flows over expected cash flows not be recognized as an
adjustment of revenue, expense, or on the balance sheet. The SOP would freeze
the internal rate of return, referred to as IRR, originally estimated when the
accounts receivable are purchased for subsequent impairment testing. Rather than
lower the estimated IRR if the original collection estimates are not received,
the carrying value of a portfolio would be written down to maintain the original
IRR. Increases in expected future cash flows would be recognized prospectively
through adjustment of the IRR over a portfolio's remaining life. The SOP
provides that previously issued annual financial statements would not need to be
restated. Management is in the process of evaluating the application of this
SOP.

                                  RISK FACTORS

IN ADDITION TO OTHER INFORMATION IN THIS REPORT, YOU SHOULD CONSIDER THE
FOLLOWING RISK FACTORS CAREFULLY. THESE RISKS MAY IMPAIR THE COMPANY'S OPERATING
RESULTS AND BUSINESS PROSPECTS AS WELL AS THE MARKET PRICE OF THE COMPANY'S
COMMON STOCK.

          PENNY STOCK REGULATIONS AND REQUIREMENTS FOR LOW PRICED STOCK

The SEC adopted regulations which generally define a "penny stock" to be any
non-Nasdaq equity security that has a market price of less than $5.00 per share,
subject to certain exceptions. Based upon the price of the Common Stock as
currently traded on the NASDAQ Bulletin Board, the Company's Common Stock is
subject to Rule 15g-9 under the Exchange Act which imposes additional sales
practice requirements on broker-dealers which sell securities to persons other
than established customers and "accredited investors." For transactions covered
by this rule, a broker-dealer must make a special suitability determination for
the purchaser and have received a purchaser's written consent to the transaction
prior to sale. Consequently, this rule may have a negative effect on the ability
of stockholders to sell common shares of the Company in the secondary market.

ITEM 3. CONTROLS AND PROCEDURES

      As of the end of the period covered by this report, we conducted an
evaluation, under the supervision and with the participation of our chief
executive officer and principal financial officer of our disclosure controls and
procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange
Act). Based upon this evaluation, our chief executive officer and principal
financial officer concluded that our disclosure controls and procedures are
effective to ensure that information required to be disclosed by us in the
reports that we file or submit under


                                       24
<PAGE>

the Exchange Act is recorded, processed, summarized and reported, within the
time periods specified in the Commission's rules and forms. There was no change
in our internal controls or in other factors that could affect these controls
during our last fiscal quarter that has materially affected, or is reasonably
likely to materially affect, our internal control over financial reporting.


                                     PART II

                                OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, the Company may become involved in various lawsuits and legal
proceedings which arise in the ordinary course of business. However, litigation
is subject to inherent uncertainties, and an adverse result in these or other
matters may arise from time to time that may harm the Company's business. Except
for the following, the Company is currently not aware of nor has any knowledge
of any such legal proceedings or claims that we believe will have, individually
or in the aggregate, a material adverse affect on our business, financial
condition or operating results:

On April 23, 2004, Reliant Industries, Inc., Michael Wong and Debbie Wong filed
a complaint with the Supreme Court of the State of New York Suffolk County
against Biopharmaceuticals, Inc. and Edward Fine. Biopharmaceuticals, Inc. is
the Company's former name. The plaintiffs allege that the Company together with
the other defendant committed fraud, breach of contract and negligence. The
plaintiffs are seeking monetary payments for any loss that they may suffer as a
result of the alleged fraud, breach of contract and negligence as well as legal
fees, punitive damages and costs disbursements. The Company denies all
allegations and intends to defend this action vigorously.

On June 29, 2005, Allied Surgical Centers Management, LLC, et al. ("Allied")
filed a complaint against the Company seeking declaratory and injunctive relief
in connection with contracts entered in April 2005 between Allied and the
Company pursuant to which the Company acquired various account receivables from
Allied (the "Contracts"). Such compliant was filed in the Superior Court of the
State of California, For the County of Los Angeles, Central District. Allied is
seeking a declaratory judgment from the court which would exclude various
account receivables (the "Disputed Account Receivables") from the Contracts.
Allied is also seeking a temporary restraining order and preliminary injunction


                                       25
<PAGE>

restricting the Company from attempting to seize or collecting the Disputed
Account Receivables. The Company filed a cross complaint on July 15, 2005. In
the cross complaint, the Company is seeking an accounting, a mandatory
injunction for specific performance of the Contracts and damages in the amount
of $21,000,000 in connection with Allied's alleged breach of contract, fraud,
intentional interference with prospective economic advantage, breach of good
faith, breach of fiduciary duty, conversion and slander. The Company and Allied
have reached a settlement in connection with this matter. Allied has dropped all
its claims and agreed to pay all funds received since the purchase of Allied's
portfolio in April, 2005. The settlement agreement was executed on February 10,
2006.

On September 9, 2005 the Company filed a complaint with the Supreme Court of the
State of New York - County of New York against Triton Capital, Inc., Southern
Capital Associates, Inc., JMS Collections, LLC., Wendt Law Office, James
Roscetti, and Dave Dwyer for breach of contract, conversion, deceptive business
practices and unjust enrichment. The Company is seeking an amount no less than
$46,931.

ITEM 2. UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS

The holder of the Note Payable was issued 2,253,000 stock purchase warrants. The
holder informed the Company that it intended to exercise all 2,253,000 stock
purchase warrants at an exercise price of $0.0075 for a total exercise amount of
$16,897. In lieu of payment, the holder agreed to a $16,987 reduction in the
Note Payable. The reduction in payment is effective if the Company continues to
pay the holder $5,000 through July 2006 and a final payment in August of $3,102.
The holder exercised the warrants on November 28 2005 and 2,253,000 shares of
common stock were issued to reduce the note payable in the amount of $16,897.

The Company repurchased 201,000 warrants at a price of $0.10 per warrant on
November 18, 2005. The total repurchase price was $20,100.

The Company repurchased 500,000 warrants at a price of $0.125 per warrant on
November 18, 2005. The total repurchase price was $62,500.

The Company repurchased 200,000 warrants at a price of $0.10 per warrant on
November 18, 2005. The total repurchase price was $20,000.


ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not Applicable.

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

Not Applicable.

ITEM 5. OTHER INFORMATION

Not Applicable

ITEM 6. EXHIBITS

        Exhibits:

        Exhibit
        Number          Description
        ------          -----------

        31.1            Certification pursuant to Section 302 of the
                        Sarbanes-Oxley Act of 2002.

        32.1            Certification pursuant to Section 906 of the
                        Sarbanes-Oxley Act of 2002.


                                       26
<PAGE>

                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the Company has caused
this report to be signed by the undersigned, thereunto duly authorized.

                                        RECEIVABLE ACQUISITION & MANAGEMENT
                                        CORPORATION

Date: February 10, 2006

                                        By: /s/ Max Khan
                                            ------------------------------------
                                            Max Khan
                                            Chief Executive Officer
                                            Chief Financial Officer
                                            Director

In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated:


                                        /s/ Max Khan
                                        ----------------------------------------
                                        By: Max Khan
                                        Chief Executive Officer,
                                        Chief Financial Officer and Director
                                        Date: February 10, 2006


                                       27