SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  FORM 10-QSB/A

(MARK ONE)

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

                For the quarterly period ended September 30, 2006

                                       Or

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

              For the transition period from ________ to _________

                       COMMISSION FILE NUMBER: 000-161570

                         VELOCITY ASSET MANAGEMENT, INC.
        (Exact name of Small Business Issuer as Specified in its Charter)

                  DELAWARE                               65-0008442
        (State or Other Jurisdiction                   (IRS Employer
      of Incorporation or Organization)             Identification No.)


              48 S. Franklin Turnpike, 3rd Floor, Ramsey, NJ 07446
                    (Address of Principal Executive Offices)

                                 (201) 760-1030
                (Issuer's Telephone Number, Including Area Code)

         Check whether the issuer (1), has filed all reports required to be
filed by Section 13 or 15(d) of The Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes [X] No [ ]

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

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: The Issuer had 16,082,321 shares of
common stock issued and outstanding as of November 13, 2006.

Transitional Small Business Disclosure Format (Check one): Yes [ ] No [x]
<PAGE>

                    VELOCITY ASSET MANAGEMENT SERVICES, INC.

                                  FORM 10-QSB/A
                    For the Quarter Ended September 30, 2006

                                      Index
                                                                            Page
                                                                          Number
PART I      FINANCIAL INFORMATION

Item 1      Condensed Consolidated Balance Sheets as at December 31,
            2005 and September 30, 2006 (unaudited for September 30,
            2006 period)                                                     1

            Condensed Consolidated Statements of Income for the
            three and nine month periods ended September 30, 2006
            and 2005 (unaudited)                                             3

            Condensed Consolidated Statements of Stockholders' Equity
            as of December 31, 2005 and for the nine months ended
            September 30, 2006 (unaudited for September 30, 2006)            4

            Condensed Consolidated Statements of Cash Flows for the
            nine months ended September 30, 2006 and 2005 (unaudited)        5

            Notes to Condensed Consolidated Financial Statements             6

Item 6      Exhibits                                                        16
Signatures                                                                  17
Certifications                                                              18


                                EXPLANATORY NOTE

Velocity Asset Management, Inc. is filing this Amendment to its Quarterly Report
on Form 10-QSB for the quarter ended September 30, 2006, as filed with the SEC
on November 15, 2006, for the purpose of revising its table of Condensed
Consolidated Statements of Income (Unaudited), found on page 3 of the Quarterly
Report. The figure "Net income per common share - diluted" for the three months
and for the nine months ended September 30, 2006 is $0.01, not $0.02 and $0.04,
as previously reported.

This Form 10-QSB/A is also being filed for the purpose of revising the Earnings
Per Share table and related disclosure set forth in Note 6 to Item 1.

This Form 10-QSB/A does not change our previously reported financial statements
and other financial disclosures. Items included in the original Form 10-QSB that
are not included herein are not amended and remain in effect as of the date of
the original filing. Except as noted above, this Form 10-QSB/A does not update
information that was presented in our original Quarterly Report on Form 10-QSB
filed on November 15, 2006 to reflect recent developments that have occurred
since that date.

                                       i
<PAGE>

                                     PART I
                              FINANCIAL INFORMATION

Item 1     Financial Statements

                VELOCITY ASSET MANAGEMENT, INC. AND SUBSIDIARIES
                      (Formerly known as Tele-Optics, Inc.)

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                          September 30,   December 31,
                                                              2006            2005
                                                          ------------   ------------
                                                          (unaudited)
                         ASSETS

<S>                                                       <C>            <C>
Cash and cash equivalents                                 $  5,694,944   $     90,624
Properties held for sale                                     5,954,870      6,439,240
Deposits on properties                                         200,000        241,000
Tax certificates held and accrued interest receivable          473,698        538,926
Consumer receivables                                        30,320,537     17,758,661
Property and equipment, net of accumulated depreciation         77,081         87,222
Deferred income tax asset                                      160,500        178,000
Security deposit                                                26,500         87,500
Other assets                                                   230,993        153,257
                                                          ------------   ------------

    Total assets                                          $ 43,139,123   $ 25,574,430
                                                          ============   ============
</TABLE>

               See accompanying notes to the unaudited condensed
                       consolidated financial statements.

                                       1
<PAGE>

                VELOCITY ASSET MANAGEMENT, INC. AND SUBSIDIARIES
                      (Formerly known as Tele-Optics, Inc.)

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                   September 30,    December 31,
                                                                       2006            2005
                                                                   ------------    ------------
                                                                    (unaudited)
             LIABILITIES AND STOCKHOLDERS' EQUITY
<S>                                                                <C>             <C>
Accounts payable and accrued expenses                              $    627,303    $    447,971
Estimated court and media costs                                       6,240,680       3,799,646
Line of credit                                                       11,576,864       6,094,462
Notes payable from related parties                                    2,430,000       2,430,000
Notes payable and mortgage                                              850,000       2,400,000
Convertible secured debenture                                                --       1,800,000
Income taxes payable                                                    174,472         133,132
Deferred income tax liability                                            24,600          30,200
                                                                   ------------    ------------

    Total liabilities                                                21,923,919      17,135,411
                                                                   ------------    ------------

STOCKHOLDERS' EQUITY

Preferred stock, $0.001 par value, 1,500,000 shares authorized,
   1,380,000 and -0- Series A shares issued and outstanding,
   respectively                                                           1,380              --
Common stock, $0.001 par value, 40,000,000 shares authorized,
   16,082,321 and 15,972,321 shares issued and outstanding,
   respectively                                                          16,082          15,972
Additional paid-in-capital                                           23,415,628      10,838,651
Accumulated deficit                                                  (2,217,886)     (2,415,604)
                                                                   ------------    ------------

Total stockholders' equity                                           21,215,204       8,439,019
                                                                   ------------    ------------

    Total liabilities and stockholders' equity                     $ 43,139,123    $ 25,574,430
                                                                   ============    ============
</TABLE>

               See accompanying notes to the unaudited condensed
                       consolidated financial statements.

                                       2
<PAGE>

                VELOCITY ASSET MANAGEMENT, INC. AND SUBSIDIARIES
                      (Formerly known as Tele-Optics, Inc.)

                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                          For the Three Months             For the Nine Months
                                                          Ended September 30,              Ended September 30,
                                                      ----------------------------    ----------------------------
                                                          2006            2005            2006            2005
                                                      ------------    ------------    ------------    ------------
<S>                                                   <C>             <C>             <C>             <C>
REVENUES
  Sale of real property                               $    456,166    $  1,687,537    $  1,059,732    $  3,670,889
  Income on consumer receivables                         2,356,782       1,022,131       5,653,159       2,271,378
  Interest income - tax certificates held and other        112,183          48,617         205,685         285,169
                                                      ------------    ------------    ------------    ------------

      Total revenues                                     2,925,131       2,758,285       6,918,576       6,227,436
                                                      ------------    ------------    ------------    ------------

OPERATING EXPENSES
  Cost of real property                                    398,315       1,260,486         718,991       2,990,019
  Professional fees                                        885,374         556,796       2,514,296       1,303,354
  General and administrative expenses                      608,310         246,984       1,527,097         724,259
                                                      ------------    ------------    ------------    ------------

      Total operating expenses                           1,891,999       2,064,266       4,760,384       5,017,632
                                                      ------------    ------------    ------------    ------------

      Income from operations                             1,033,132         694,019       2,158,192       1,209,804
                                                      ------------    ------------    ------------    ------------

OTHER EXPENSE
   Interest expense                                       (340,347)       (257,013)       (971,932)       (364,567)
                                                      ------------    ------------    ------------    ------------

Income before provision for income taxes                   692,785         437,006       1,186,260         845,237

Provision for income taxes                                 259,081         193,529         482,537         361,141
                                                      ------------    ------------    ------------    ------------

Net income                                            $    433,704    $    243,477    $    703,723    $    484,096

Preferred Dividend                                        (345,000)             --        (506,005)             --
                                                      ------------    ------------    ------------    ------------

Net income attributable to common
  shareholder - basic                                       88,704         243,477         197,718         484,096
                                                      ============    ============    ============    ============

Weighted average common shares - basic                  15,996,234      15,966,217      15,980,409      15,939,214
                                                      ============    ============    ============    ============

Net income per common share - basic                   $       0.01    $       0.02    $       0.01    $       0.03
                                                      ============    ============    ============    ============

Weighted average common shares - diluted                17,044,125      17,686,837      17,285,341      17,769,817
                                                      ============    ============    ============    ============

Net income per common share - diluted                 $       0.01    $       0.01    $       0.01    $       0.03
                                                      ============    ============    ============    ============
</TABLE>

               See accompanying notes to the unaudited condensed
                       consolidated financial statements.

                                       3
<PAGE>

                VELOCITY ASSET MANAGEMENT, INC. AND SUBSIDIARIES
                      (FORMERLY KNOWN AS TELE-OPTICS, INC.)

       CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                  For the Nine Months Ended September 30, 2006
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                       Preferred Stock              Common Stock
                                 --------------------------  --------------------------   Additional                      Total
                                   Number of                   Number of                   Paid in      Accumulated    Stockholders'
                                    Shares      Par Value       Shares      Par Value      Capital         Deficit        Equity
                                 ------------  ------------  ------------  ------------  ------------   ------------   ------------
<S>                                 <C>        <C>             <C>         <C>           <C>            <C>            <C>
BALANCES, December 31, 2005                --  $         --    15,972,321  $     15,972  $ 10,838,651   $ (2,415,604)  $  8,439,019

Preferred stock offering of up
to 1,200,000 shares of Series A
convertible preferred stock         1,200,000         1,200            --            --    11,998,800             --     12,000,000

Preferred stock sale to
underwriter in conjunction with
preferred stock offering of
180,000 shares of Series
A convertible preferred stock         180,000           180            --            --     1,799,820             --      1,800,000

Commissions and expenses
related to preferred stock
offering                                   --            --            --            --    (1,404,000)            --     (1,404,000)

Purchase of warrants pursuant
to preferred stock offering                --            --            --            --           120             --            120

Dividends declared on preferred stock      --            --            --            --            --       (506,005)      (506,005)

Issuance of warrants pursuant to
secured debenture                          --            --            --            --        12,347             --         12,347

Issuance of common stock to
employees                                                         110,000           110       169,890             --        170,000

Net Income                                 --            --            --            --            --        703,723        703,723
                                 ------------  ------------  ------------  ------------  ------------   ------------   ------------

BALANCES, September 30, 2006        1,380,000  $      1,380    16,082,321  $     16,082  $ 23,415,628   $ (2,217,886)  $ 21,215,204
                                 ============  ============  ============  ============  ============   ============   ============
</TABLE>

               See accompanying notes to the unaudited condensed
                       consolidated financial statements.

                                       4
<PAGE>
                     VELOCITY ASSET MANAGEMENT, INC. AND SUBSIDIARIES
                          (Formerly known as Tele-Optics, Inc.)

                     CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                       (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                 For the Nine Months Ended
                                                                                       September 30,
                                                                               ----------------------------
                                                                                   2006            2005
                                                                               ------------    ------------
<S>                                                                            <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income                                                                     $    703,723    $    484,096

Adjustments to reconcile net income to net cash used by operating activities
  Depreciation                                                                       24,056          30,658
  Non cash expenses                                                                 182,347          21,088
  Deferred income tax benefit                                                        11,900          64,700
  (Increase) decrease in:
    Properties held for sale                                                        484,370      (3,378,529)
    Deposits on properties                                                           41,000        (147,500)
    Tax certificates held and accrued interest receivable, net of discounts          65,228         121,924
    Consumer receivables                                                        (12,561,876)    (12,767,953)
    Prior year income tax receivable                                                     --         (68,693)
    Security deposit                                                                 61,000              --
    Other assets                                                                    (77,736)        427,128
  Increase in:
    Accounts payable and accrued expenses                                           179,332         182,321
    Estimated court and media costs                                               2,441,034       3,758,355
    Income taxes payable                                                             41,340         212,935
                                                                               ------------    ------------
      Net cash used in operating activities                                      (8,404,282)    (11,059,470)
                                                                               ------------    ------------

CASH FLOWS FROM INVESTING ACTIVITIES
    Acquisition of property and equipment                                           (13,915)        (53,520)
                                                                               ------------    ------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from borrowings                                                        5,482,402      10,135,194
  Repayments of borrowings                                                       (3,350,000)       (354,579)
  Proceeds received from stock and warrants sales and offerings                  13,800,120         200,024
  Commissions and related expenses paid on stock offering                        (1,404,000)       (135,262)
  Payment of dividends                                                             (506,005)             --
                                                                               ------------    ------------
    Net cash provided by financing activities                                    14,022,517       9,845,377
                                                                               ------------    ------------

Net increase in cash and cash equivalents                                         5,604,320      (1,267,613)

Cash and cash equivalents, beginning of year                                         90,624       1,423,123
                                                                               ------------    ------------

Cash and cash equivalents, end of year                                         $  5,694,944    $    155,510
                                                                               ============    ============

Supplemental disclosure of cash flow information:
  Cash paid for interest                                                       $    735,903    $    236,256
  Cash paid for taxes                                                          $    461,054    $    152,199
</TABLE>

               See accompanying notes to the unaudited condensed
                       consolidated financial statements.

                                       5
<PAGE>

                VELOCITY ASSET MANAGEMENT, INC. AND SUBSIDIARIES
                      (Formerly known as Tele-Optics, Inc.)

            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2006
                                   (UNAUDITED)


NOTE 1 - ORGANIZATION AND ACCOUNTING POLICIES

The condensed consolidated financial statements of Velocity Asset Management,
Inc. ("VAMI") and its subsidiaries, Velocity Investments, LLC ("Velocity"), J.
Holder, Inc. ("J. Holder"), VOM, LLC, ("VOM"), TLOP Acquisition Company, LLC
("TLOP") and SH Sales, Inc. ("SH") (the "Subsidiaries", and together with
Velocity Asset Management, Inc., the "Company") included herein have been
prepared by the Company and are unaudited; however, such information is in
accordance with Security and Exchange Commission regulations and reflects all
adjustments (consisting solely of normal recurring adjustments), which are, in
the opinion of management, necessary for a fair presentation of the financial
position, results of operations, and cash flows for the interim periods to which
the report relates. The results of operations for the period ended September 30,
2006 are not necessarily indicative of the operating results that may be
achieved for the full year.

Certain information and footnote disclosures, normally included in consolidated
financial statements prepared in accordance with accounting principles generally
accepted in the United States of America, have been condensed or omitted. It is
suggested that these condensed consolidated financial statements be read in
conjunction with the audited, consolidated financial statements and notes
thereto included in the Company's Form 10-KSB for the year ended December 31,
2005.

The Company has one continuing industry segment - the acquisition, management,
collection, and servicing of distressed consumer assets.

Properties Held for Sale
------------------------

Properties held for sale consist of real property purchased by the Company for
resale and are carried at the lower of cost or market value. This includes the
cost to purchase the property and repairs or other costs required to present the
property ready for resale. The Company recognizes income and related expenses
from the sale of real property at the date the sale closes.

Tax Certificates Held
---------------------

The Company records its New Jersey municipal tax liens at cost. Interest income
is recognized using the effective interest method ("interest method").

Consumer Receivables
--------------------

The Company purchases consumer receivable portfolios at a substantial discount
from their face amount due to a deterioration of credit quality between the time
of origination and the Company's acquisition of the portfolios. Income is
recognized using either the interest method or cost recovery method. Upon
acquisition, the Company reviews each consumer receivable portfolio to determine
whether each such portfolio is to be accounted for individually or whether such
portfolio will be assembled into static pools of consumer receivable portfolios
based on common risk characteristics. Once the static portfolio pools are
created, management estimates the future anticipated cash flows for each pool.
If management can reasonably estimate the expected timing and amount of future
cash flows, the interest method is applied. However, if the expected future cash
flows cannot be reasonably estimated, the Company uses the cost recovery method.

Prior to January 1, 2005, the Company accounted for its investment in consumer
receivables portfolios using the interest method under the guidance of Practice
Bulletin 6, "Amortization of Discounts on Certain Acquired Loans ("PB-6")."
Effective January 1, 2005, the Company adopted and began to account for its
investment in consumer receivable portfolios using the interest rate method
under the guidance of American Institute of Certified Public Accountants
("AICPA") Statement of Position ("SOP") 03-3, "Accounting for Loans or Certain
Securities Acquired in a Transfer." SOP 03-3 addresses accounting for
differences between contractual cash flows and cash flows expected to be
collected from an investor's initial investment in loans or debt if those
differences are attributable, at least in part, to credit quality. Increases in
expected cash flows are recognized prospectively through adjustment of the
internal rate of

                                       6
<PAGE>

                VELOCITY ASSET MANAGEMENT, INC. AND SUBSIDIARIES
                      (Formerly known as Tele-Optics, Inc.)

            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2006
                                   (UNAUDITED)


NOTE 1 - ORGANIZATION AND ACCOUNTING POLICIES (Continued)

return ("IRR") while decreases in expected cash flows are recognized as
impairment.

Under both the guidance of SOP 03-3 and PB-6, as amended, when expected cash
flows are higher than prior projections, the increase in expected cash flows
results in an increase in the IRR and therefore, the effect of the cash flow
increase is recognized as increased revenue prospectively over the remaining
life of the affected pool. However, when expected cash flows are lower than
prior projections, SOP 03-3 requires that the expected decrease be recognized as
impairment by decreasing the carrying value of the affected pool (rather than
lowering the IRR) so that the pool will amortize over its expected life using
the original IRR. A pool can become fully amortized (zero carrying balance on
the balance sheet) while still generating cash collections. In this case, all
cash collections are recognized as revenue when received.

Under the cost recovery method, no revenue is recognized until the Company has
fully collected the cost of the portfolio, or until such time that the Company
considers the collections to be probable and estimable and begins to recognize
income based on the interest method as described above. At September 30, 2006,
the Company had no consumer receivable portfolios accounted for under the cost
recovery method.

The Company establishes valuation allowances for all acquired loans subject to
SOP 03-3 to reflect only those losses incurred after acquisition (that is, the
present value of cash flows initially expected at acquisition that are no longer
expected to be collected). Valuation allowances are established only subsequent
to acquisition of the receivables. At September 30, 2006, the Company had no
valuation allowance on its receivables.

Income Taxes
------------

The Company follows the provisions of Statement of Financial Accounting
Standards ("SFAS") No. 109, "Accounting for Income Taxes" ("SFAS No. 109"). SFAS
No. 109 requires recognition of deferred tax liabilities and assets for the
expected future tax consequences of events that have been included in the
financial statements or tax returns. Under this method, deferred tax liabilities
and assets are determined based on the difference between the financial
statement and tax bases of assets and liabilities using enacted tax rates in
effect for the year in which the differences are expected to reverse.

Stock Based Compensation
------------------------

The Company adopted SFAS No. 123 (revised 2004), "Share-Based Payment" ("SFAS
No. 123R"), which supersedes Accounting Principles Board ("APB") Opinion No. 25,
"Accounting for Stock Issued to Employees" ("APB No. 25"). The revised statement
addresses the accounting for share-based payment transactions with employees and
other third parties, eliminates the ability to account for share-based
transactions using APB No. 25 and requires that the compensation costs relating
to such transactions be recognized in the consolidated financial statements.
SFAS No. 123R requires additional disclosures relating to the income tax and
cash flow effects resulting from share-based payments. The Company adopted the
modified prospective application method of SFAS No.123R, effective January 1,
2006, and the adoption of SFAS No. 123R had an immaterial impact on its
consolidated results of operations and earnings per share. There were no
outstanding awards at the date of adoption.

Additionally, regarding the treatment of non-employee stock based compensation,
the Company follows the guidance of the Emerging Issues Task Force ("EITF")
96-18, "Accounting for Equity Instruments That Are Issued to Other Than
Employees for acquiring, or in Conjunction with Selling, Goods or Services".

Change in Presentation
----------------------

The Company has elected to present its balance sheets on an unclassified basis
to better conform to industry practice. The balance sheet for December 31, 2005
has been reclassified for comparative purposes in order to conform to the
presentation in the current financial statement.

                                       7
<PAGE>

                VELOCITY ASSET MANAGEMENT, INC. AND SUBSIDIARIES
                      (Formerly known as Tele-Optics, Inc.)

            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2006
                                   (UNAUDITED)


NOTE 1 - ORGANIZATION AND ACCOUNTING POLICIES (Continued)

New Accounting Pronouncements
-----------------------------

In July 2006, the FASB issued FASB Interpretation (FIN) No. 48, "Accounting for
Uncertainty in Income Taxes--An Interpretation of FASB Statement No. 109" (FIN
48). This Interpretation clarifies the accounting for uncertainty in income
taxes recognized in a company's financial statements. FIN 48 requires companies
to determine whether it is "more likely than not" that a tax position will be
sustained upon examination by the appropriate taxing authorities before any part
of the benefit can be recorded in the financial statements. It also provides
guidance on the recognition, measurement and classification of income tax
uncertainties, along with any related interest and penalties. FIN 48 will also
require significant additional disclosures. This Interpretation will be
effective for fiscal years beginning after December 15, 2006. The Company will
implement this Interpretation in the first quarter of 2007 on a prospective
basis. The Company is currently evaluating the potential impact this
Interpretation will have on its financial position and results of operations,
but does not believe the impact of the adoption will be material.

In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements" (SFAS
157), which provides guidance on how to measure assets and liabilities that use
fair value. SFAS 157 will apply whenever another US GAAP standard requires (or
permits) assets or liabilities to be measured at fair value but does not expand
the use of fair value to any new circumstances. This standard also will require
additional disclosures in both annual and quarterly reports. SFAS 157 will be
effective for financial statements issued for fiscal years beginning after
November 15, 2007, and will be adopted by us beginning in the first quarter of
2008. The Company is currently evaluating the potential impact this standard may
have on its financial position and results of operations, but does not believe
the impact of the adoption will be material.

In September 2006, the SEC staff issued Staff Accounting Bulletin (SAB) No. 108,
"Considering the Effects of Prior Year Misstatements when Quantifying
Misstatements in Current Year Financial Statements" (SAB 108). SAB 108 was
issued in order to eliminate the diversity of practice in how public companies
quantify misstatements of financial statements, including misstatements that
were not material to prior years' financial statements. The Company will
initially apply the provisions of SAB 108 in connection with the preparation of
its annual financial statements for the year ending December 31, 2006. The
Company has evaluated the potential impact SAB 108 may have on its financial
position and results of operations and does not believe the impact of the
application of this guidance will be material.


NOTE 2 - INVESTMENTS

Properties Held for Sale
------------------------

Properties held for sale consist of the following:

                                                   September 30,    December 31,
                                                       2006            2005
                                                   ------------    ------------
Property Inventory                                 $  5,930,173    $  6,024,038
Assignments and Judgments                                24,697         415,202
                                                   ------------    ------------
     Total                                         $  5,954,870    $  6,439,240
                                                   ============    ============

                                       8
<PAGE>

                VELOCITY ASSET MANAGEMENT, INC. AND SUBSIDIARIES
                      (Formerly known as Tele-Optics, Inc.)

            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2006
                                   (UNAUDITED)


NOTE 2 - INVESTMENTS (Continued)


Tax Certificates Held and Accrued Interest Receivable
-----------------------------------------------------

Municipal tax liens consist of the following:

                                                   September 30,    December 31,
                                                       2006            2005
                                                   ------------    ------------
Tax Lien Certificates                              $    248,698    $    302,228
Accrued Interest                                        225,000         236,698
                                                   ------------    ------------
     Total                                         $    473,698    $    538,926
                                                   ============    ============

NOTE 3 - CONSUMER RECEIVABLES

Changes in consumer receivables for the three and nine months ended September
30, 2006 and 2005 were as follows:

<TABLE>
<CAPTION>
                                             Three Months Ended    Three Months Ended    Nine Months Ended     Nine Months Ended
                                             September 30, 2006    September 30, 2005    September 30, 2006    September 30, 2005
                                             ------------------    ------------------    ------------------    ------------------
<S>                                          <C>                   <C>                   <C>                   <C>
Balance at beginning of period               $       23,740,758    $        9,285,665    $       17,758,661    $        3,237,852
                                             ------------------    ------------------    ------------------    ------------------
Acquisitions of consumer receivables,
  net of returns                                      7,018,057             7,230,849            14,858,873            13,994,242
                                             ------------------    ------------------    ------------------    ------------------
Cash collections                                     (2,795,060)           (1,532,839)           (7,950,156)           (3,497,666)
Accreted income recognized on
  consumer receivables                                2,356,782             1,022,131             5,653,159             2,271,378
                                             ------------------    ------------------    ------------------    ------------------
Cash collections applied to principal                  (438,278)             (510,708)           (2,296,997)           (1,226,288)
                                             ------------------    ------------------    ------------------    ------------------

Balance at end of period                     $       30,320,537    $       16,005,806    $       30,320,537    $       16,005,806
                                             ==================    ==================    ==================    ==================
</TABLE>

As of September 30, 2006, the Company had $30,320,537 in consumer receivables.
Based upon management's current estimation of future cash collections, principal
reductions are estimated to be as follows:

September 30, 2007                                                $   4,843,011
September 30, 2008                                                    6,436,014
September 30, 2009                                                    7,794,180
September 30, 2010                                                    7,999,167
September 30, 2011                                                    3,248,165
                                                                  -------------
     Total                                                        $  30,320,537
                                                                  =============

                                       9
<PAGE>

                VELOCITY ASSET MANAGEMENT, INC. AND SUBSIDIARIES
                      (Formerly known as Tele-Optics, Inc.)

            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2006
                                   (UNAUDITED)


NOTE 3 - CONSUMER RECEIVABLES (Continued)

The accretable yield represents the amount of income the Company can expect to
generate over the remaining life of its existing portfolios based on estimated
cash flows as of September 30, 2006 and 2005, respectively. Changes in the
accretable yield are as follows:

<TABLE>
<CAPTION>
                                               Three Months Ended    Three Months Ended    Nine Months Ended     Nine Months Ended
                                               September 30, 2006    September 30, 2005    September 30, 2006    September 30, 2005
                                               ------------------    ------------------    ------------------    ------------------
<S>                                            <C>                   <C>                   <C>                   <C>
Balance at beginning of period                 $       21,680,716    $        8,668,872    $       15,618,641    $        2,879,823
Accreted income recognized on consumer
  receivables                                          (2,356,782)           (1,022,131)           (5,653,159)           (2,271,378)
Additions                                               6,127,807             6,528,803            15,486,259            13,567,099
                                               ------------------    ------------------    ------------------    ------------------

Balance at end of period                       $       25,451,741    $       14,175,544    $       25,451,741    $       14,175,544
                                               ==================    ==================    ==================    ==================
</TABLE>

NOTE 4 - LINE OF CREDIT

On January 27, 2005 (the "Closing Date"), Velocity entered into a Loan and
Security Agreement (the "Loan Agreement") with Wells Fargo Foothill, Inc., a
California corporation (the "Lender"), pursuant to which the Lender agreed to
provide Velocity with a $12,500,000 credit facility to finance the acquisition
of individual pools of unsecured consumer receivables that are approved by the
Lender under specific eligibility criteria set forth in the Loan Agreement.

On the Closing Date, the following agreements were also entered into with the
Lender: a Continuing Guaranty, under which the Company provides a secure
guaranty of Velocity's obligations under the Loan Agreement; a Security and
Pledge Agreement, by and among the Company and the Lender, under which the
Company pledged all of the Company's assets to secure the credit facility; and a
Subordination Agreement, by and among the Company and the Lender.

Pursuant to the Loan Agreement, the Lender has agreed to advance to Velocity up
to $12,500,000 to be used to finance up to 60% of the purchase price of
individual pools of unsecured consumer receivables that are approved by the
Lender under specific eligibility criteria set forth in the Loan Agreement. The
interest rate on the loan is 3.50% above the prime rate of Wells Fargo Bank,
N.A. Amounts borrowed under the credit facility had been due and payable ratably
over a twenty-four month period.

On February 27, 2006, Velocity entered into a First Amendment to the Loan
Agreement with the Lender, pursuant to which the Lender agreed to amend the Loan
Agreement dated January 27, 2005. Pursuant to the Amended and Restated Loan
Agreement, the Lender extended the Credit Facility until January 27, 2009 and
agreed to increase the advance rate under the credit facility to 67.5% of the
purchase price of individual pools of unsecured consumer receivables that are
approved by the Lender. The Lender also agreed to reduce the interest rate on
the loan from 3.50% above the prime rate of Wells Fargo Bank, N.A. to 2.50%
above such prime rate. In addition, repayment terms under the credit facility
were extended to thirty months.

On May 19, 2006, as a result of the Series A 10% Convertible Preferred Stock
Offering (the "offering") discussed in Note 11 - STOCK OFFERING, the Lender
agreed to reduce the interest rate on Velocity's credit facility from 2.50% to
1.50% above the prime rate of Wells Fargo Bank, N.A. immediately and increase
the advance rate on the credit facility to 75.0% effective June 1, 2006. The
rate of interest at September 30, 2006 was 9.75%.

As of September 30, 2006 and December 31, 2005, the Company had $11,576,864 and
$6,094,462 outstanding on the line, respectively.

                                       10
<PAGE>

                VELOCITY ASSET MANAGEMENT, INC. AND SUBSIDIARIES
                      (Formerly known as Tele-Optics, Inc.)

            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2006
                                   (UNAUDITED)


NOTE 5 - NOTES PAYABLE AND MORTGAGE

On April 15, 2005, the Company issued three promissory notes in the principal
amounts of $100,000, $150,000 and $100,000 to accredited investors in a private
placement. Each of the notes bore interest at the rate of 7% per annum and
interest was payable in quarterly installments commencing September 30, 2005.
The entire principal for each note was initially due and payable on April 15,
2006 unless the holder thereof provided written notice 90 days prior to April
15, 2006 that it elected to extend the note, in which event, the entire
principal amount would become due and payable on April 15, 2007. On May 14, 2006
the $150,000 promissory note was redeemed at the Company's option. The remaining
notes were extended. As of September 30, 2006, the remaining notes in the
aggregate amount of $200,000 were held by a related party to the president and
CEO. These notes are due and payable on April 15, 2007.

On October 5, 2005, the Company issued a promissory note in the principal amount
of $60,000 to Ragan & Ragan, PC, a related entity, in a private placement (See
Note 7 - RELATED PARTY TRANSACTIONS). The note bears interest at the rate of 7%
per annum. The entire principal and accrued interest of the note is due and
payable on October 5, 2006 unless the holder thereof provides written notice 30
days prior to October 5, 2006 that it elects to extend its note, in which event;
the entire principal amount is due and payable on October 5, 2007. (See Note 12
- SUBSEQUENT EVENTS)

On October 5, 2005, the Company issued a promissory note in the principal amount
of $70,000 to an accredited investor in a private placement. The note bears
interest at the rate of 7% per annum. The entire principal and accrued interest
of the note is due and payable on October 5, 2006 unless the holder thereof
provides written notice to the Company 30 days prior to October 5, 2006 that it
elects to extend its note, in which event; the entire principal amount is due
and payable on October 5, 2007.

On January 13, 2006, and February 10, 2006, the Company issued two promissory
notes in the respective principal amounts of $100,000 and $50,000 to an
accredited investor in a private placement. Each of the notes bore interest at
the rate of 10% per annum. The entire principal and accrued interest of each
note was due and payable on January 13, 2007 and February 10, 2007,
respectively, unless the holder thereof provided written notice to the Company
30 days prior to its maturity date that it elected to extend the note, in which
event the entire principal amount is due and payable on January 13, 2008 and
February 10, 2008, respectively. These notes were redeemed at the Company's
option on May 26, 2006.

On June 2, 2005, J. Holder acquired a residential property in Melbourne, Florida
(the "Melbourne Property"). The property was purchased for $3.25 million from
Detroit-based Comerica Bank, which had acquired the property through a
foreclosure. Acquisition financing of $3,350,000 was provided to J. Holder by a
group of investors ("Investor Group"). Of the $3,350,000 in acquisition
financing provided by the Investor Group, $1,270,000 was provided by Dr. Michael
Kelly and Mr. David Granatell, who subsequently became members of the Board of
Directors. Additionally, Mr. Robert Kleinert and Ms. Cornelia Yoke, related
parties of the President and CEO of the Company, provided an additional $900,000
of financing in connection with the Melbourne Property. The acquisition
financing in the amount of $3,350,000 and the subsequent financing in the amount
of $900,000 are due and payable upon the sale of the Melbourne Property. On
September 19, 2006, $400,000 of the outstanding note was redeemed by J. Holder.
As part of the redemption all $51,222 of accrued interest on the $400,000 was
forgiven.

On September 21, 2005, J. Holder entered into a $1,000,000 mortgage and security
agreement, the proceeds of which were utilized to renovate the Melbourne
Property. Renovations on the property were approximately $1,000,000. All
principal accrues interest at a fixed annual rate of 12.0% per annum. J. Holder
is required to make monthly interest only payments of $10,000 until October 21,
2007 at which time all principal, accrued interest and other charges are due and
payable. This note was redeemed and paid in full on August 4, 2006.

Interest expense for the three month periods ended September 30, 2006 and 2005
was $340,347 and $257,013, respectively. Interest expense for the nine month
periods ended September 30, 2006 and 2005 was $971,932 and $364,567,
respectively.

                                       11
<PAGE>

                VELOCITY ASSET MANAGEMENT, INC. AND SUBSIDIARIES
                      (Formerly known as Tele-Optics, Inc.)

            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2006
                                   (UNAUDITED)


NOTE 6 - EARNINGS PER SHARE

                  Basic earnings per share are computed using the weighted
average number of shares outstanding during each period. Diluted earnings per
share are computed using the weighted average number of shares outstanding
during each period, plus the incremental shares outstanding assuming the
exercise of dilutive stock options. Outstanding options and warrants to
non-employees convertible into 1,177,160 shares of common stock for the three
and nine months ended September 30, 2006, respectively, and 927,160 shares of
common stock for the three and nine months ended September 30, 2005,
respectively, were not included in the income per share calculation because
their effect would have been anti-dilutive. Convertible preferred stock,
convertible into 5,520,000 and 2,487,033 shares of common stock for the three
and nine months ended September 30, 2006, respectively, were not included in the
income per share calculation because their effects would have been
anti-dilutive. Convertible notes, convertible into -0- shares of common stock
and 277,951 shares of common stock for the three and nine months ended September
30, 2006, respectively, were not included in the income per share calculation
because their effect would been anti-dilutive.


The following table sets forth the computation of basic and diluted earnings per
share:

<TABLE>
<CAPTION>
                                                            Three months ended            Nine months ended
                                                              September 30,                  September 30,
                                                      ----------------------------   ----------------------------
                                                          2006            2005           2006            2005
                                                      ------------    ------------   ------------    ------------
<S>                                                   <C>             <C>            <C>             <C>
Numerator:
     Net income                                       $    433,704    $    243,477   $    703,723    $    484,096

     Preferred dividend                                   (345,000)             --       (506,005)             --
                                                      ------------    ------------   ------------    ------------
     Net income attributable to common shareholders
       - Basic and Diluted                            $     88,704    $    243,477   $    197,718    $    484,096
                                                      ------------    ------------   ------------    ------------

Denominator:

     Weighted average shares - Basic                    15,996,234      15,966,217     15,980,409      15,939,214
     Effect of dilutive securities:
     Stock options                                       1,047,891       1,720,620      1,304,932       1,830,603
                                                      ------------    ------------   ------------    ------------

     Weighted average shares - Diluted                  17,044,125      17,686,837     17,285,341      17,769,817
                                                      ------------    ------------   ------------    ------------

     Net income per common share - Basic                      0.01            0.02           0.01            0.03
                                                      ============    ============   ============    ============

     Net income per common share - Diluted                    0.01            0.01           0.01            0.03
                                                      ============    ============   ============    ============
</TABLE>

NOTE 7 - RELATED PARTY TRANSACTIONS

The Company engages Ragan & Ragan, PC, an entity owned by officers of the
Company, to pursue legal collection of its receivable portfolios with respect to
obligors and properties located in the State of New Jersey. The fee arrangements
between each of the Company's subsidiaries and Ragan & Ragan, P.C., each dated
as of January 1, 2005, have been reviewed and approved by all the members of a
committee appointed by the Board of Directors other than Mr. Ragan, Sr. who
abstained. John C. Kleinert and James J. Mastriani comprised the committee.

<TABLE>
<CAPTION>

The professional fees paid to Ragan and Ragan, P.C. were as follows:                      Nine Months         Nine Months
                                                                                             Ended               Ended
                                                                                      September 30, 2006   September 30, 2005
                                                                                      ------------------   ------------------
<S>                                                                                   <C>                  <C>
                                                                                      $          964,397   $          815,103
                                                                                      ==================   ==================
</TABLE>

On October 5, 2005, the Company sold a promissory note in the principal amount
of $60,000 to Ragan & Ragan, P.C.

Interest paid to related parties for the three months ended September 30, 2006
and 2005 was $63,155 and $59,190, respectively. Interest paid to related parties
for the nine months ended September 30, 2006 and 2005 was $347,169 and $78,958,
respectively, (See Note 5 - NOTES PAYABLE AND MORTGAGE for disclosure of all
related party debt transactions).

                                       12
<PAGE>

                VELOCITY ASSET MANAGEMENT, INC. AND SUBSIDIARIES
                      (Formerly known as Tele-Optics, Inc.)

            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2006
                                   (UNAUDITED)


NOTE 8 - STOCK BASED CONSIDERATION TO EMPLOYEES

The 2004 Equity Incentive Program of the Company, (the "Employee Plan")
authorizes the issuance of up to 1,000,000 shares of common stock in connection
with the grant of options or issuance of restricted stock awards.

To the extent that the Company derives a tax benefit from options exercised by
employees, if any, such benefit will be credited to additional paid-in capital
when realized on our income tax return. There were no tax benefits realized by
the Company during the quarter ended September 30, 2006. No options have been
granted to date.

Prior to the quarter ended September 30, 2006, the Company had not issued any
restricted stock awards. The following summarizes the transactions of shares of
common stock under the Employee Plan during the three month quarter ended
September 30, 2006:

<TABLE>
<CAPTION>
                             Number of         Number of        Market      Compensation
      Employee            Shares Granted     Shares Vested      Value          Expense
----------------------   ----------------   ---------------   ----------    ------------
<S>                           <C>                <C>            <C>         <C>
James J. Mastriani            200,000            100,000        $ 1.55      $    155,000
Craig Buckley                   8,000              8,000          1.50            12,000
Adam Atkinson                   1,000              1,000          1.50             1,500
Lisa Cullen                     1,000              1,000          1.50             1,500
                                                                            ------------
                                                                            $    170,000
                                                                            ============
</TABLE>

Mr. Mastriani's remaining shares will vest in increments of 25,000 shares on
November 27, 2006, February 27, 2007, May 27, 2007 and August 27, 2007, provided
that he is employed by the Company on each date.

In accordance with SFAS 123(R), the Company recorded approximately $170,000 of
expense related to grants of common stock which vested during the three and nine
months ended September 30, 2006.


The intrinsic value for restricted stock is calculated based on the market price
of our Common Stock as of the end of the period. As of September 30, 2006,
approximately $140,000 of unrecognized stock compensation expense on 100,000
shares of Common Stock related to unvested restricted stock awards (net of
estimated forfeitures) is expected to be recognized over a weighed-average
period of .91 years.

                                       13
<PAGE>

                VELOCITY ASSET MANAGEMENT, INC. AND SUBSIDIARIES
                      (Formerly known as Tele-Optics, Inc.)

            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2006
                                   (UNAUDITED)


NOTE 9 - STOCK BASED CONSIDERATION TO NON-EMPLOYEES

At September 30, 2006, the Company had outstanding warrants to purchase
4,126,660 shares of its common stock at prices ranging from $1.04 to $3.10 per
share. The first warrants (3,199,500 shares of common stock, as adjusted for the
13:1 reverse stock split in April 2004) were granted pursuant to the Merger
Agreement effective February 3, 2004 and expire after a period of five years.
The second warrants (677,160 shares of common stock) were granted pursuant to a
private offering as compensation for services rendered and expire on March 31,
2009. The remaining warrant (200,000 shares of common stock) was granted in
connection with the October 2005 convertible debt financing and has an
expiration date of October 10, 2010. On May 19, 2006, the Company entered into
an amendment to the Securities Purchase Agreement, effective April 1, 2006, for
the October 2005 convertible debt financing, pursuant to which it extended the
initial payment due date of its outstanding Convertible Secured Debenture
("Debenture") and issued to the holder thereof an additional warrant to purchase
50,000 shares of the Company's common stock at an exercise price of $3.10 per
share. The warrants became effective as of April 1, 2006.

At September 30, 2006, the Company had an option outstanding to an independent
consultant in exchange for services rendered for 250,000 shares of common stock
at an exercise price per share of $2.50.

On September 1, 2005, the Company entered into an Independent Consulting
Agreement (the "Agreement") with Lomond International, Inc., an unrelated
corporation (the "Consultant"), pursuant to which the Consultant agreed to
provide certain specified business advisory services for a period of one year.
As compensation for such services, the Company sold to the Consultant, as a
commencement bonus, a warrant to purchase 50,000 shares of the Company's common
stock with an exercise price of $2.50 per share, and an expiration date of March
31, 2009, for an aggregate purchase price of $2,500. The warrant will
participate in all forward and reverse stock splits and stock dividends and will
have a one-time piggy-back registration right on the warrant and the shares of
common stock underlying the warrant. On November 11, 2005, the Business Advisory
Agreement, dated September 1, 2005, between the Company and Lomond
International, Inc. was amended, retroactive to the date of the agreement, to
eliminate any compensation payable by the Company to Lomond International Inc.
in connection with any debt or equity investment of any kind. As consideration
for such amendment, Lomond was paid a fee of $25,000.

NOTE 10 - CONVERTIBLE SECURED DEBENTURE

On October 27, 2005, the Company issued a 10% Secured Convertible Debenture, due
April 27, 2007, in the aggregate principal amount of $1.8 million (the
"Debenture"). In addition, the Company issued a warrant to purchase 200,000
shares of the Company's common stock at an exercise price of $3.10 per share.

The Debenture was issued with an initial conversion price of $4.00 per share.
The Debenture bore interest at 10% per annum, payable monthly on the first day
of each calendar month, beginning on November 1, 2005. Interest was payable in
cash or, at the Company's option, in shares of common stock provided certain
conditions were satisfied. The holder of the Debenture was granted (i) a
security interest in the assets of the Company, and (ii) a pledge of VAMI's
ownership of its subsidiaries, which is subject to existing liens, existing
indebtedness, permitted liens and permitted indebtedness. Additionally, the
subsidiaries guaranteed the obligations of the Company under the Debenture. The
Debenture was also guaranteed personally by John C. Kleinert, the Company's
President and Chief Executive Officer, W. Peter Ragan, Sr., the Company's Vice
President and W. Peter Ragan, Jr., President of Velocity.

The holder may not exercise the warrant to the extent that, after giving effect
to exercise, as the case may be, the holder would beneficially own in excess of
4.99% of the outstanding common stock of the Company.

On April 1, 2006, the holder extended the initial payment due date of the
Debenture to June 27, 2007, and in consideration thereof, the Company issued an
additional warrant to purchase 50,000 shares of the Company's common stock at an
exercise price of $3.10 per share. On May 19, 2006, the Company used $1,823,000
of the proceeds related to a preferred stock offering to repay in full the
interest and principal under the Debenture.

NOTE 11 - PREFERRED STOCK OFFERING

On May 18, 2006, the Company consummated its public offering (the "offering") of
1,200,000 shares of Series A 10% Convertible Preferred Stock ("Preferred Stock")
resulting in gross proceeds of $12,000,000 to the Company. The underwriters were
granted an overallotment option to purchase up to an additional 180,000 shares
of Preferred Stock with an exercise price of $10.00 per share. The underwriters
were also issued a warrant to purchase 120,000 shares of Preferred Stock with an
exercise price of $10.00 per share. The public price per share for the offering
was $10.00. The shares of Series A Convertible Preferred Stock are listed on the
American Stock Exchange under the symbol JVI.PR.

Each share of Preferred Stock is convertible into four (4) shares of Common
Stock. If after May 18, 2009, the Company's common stock exceeds the conversion
price of the Preferred Stock by more than 35% and is traded on a national
exchange, the Company may terminate the conversion right. If the Company issues
a conversion cancellation notice, the Company will have the right to redeem the
stock after May 18, 2009 for cash, at the Company's option, at $10.00 per share,
plus accrued and unpaid dividends to the redemption date.

On May 31, 2006, the underwriters exercised their overallotment option to
purchase 180,000 shares of the Preferred Stock at $10.00 per share.

                                       14
<PAGE>

                VELOCITY ASSET MANAGEMENT, INC. AND SUBSIDIARIES
                      (Formerly known as Tele-Optics, Inc.)

            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2006
                                   (UNAUDITED)


NOTE 12 - SUBSEQUENT EVENTS

On October 11, 2006, the Company redeemed two promissory notes in the principal
amounts of $60,000 and $70,000 each at the Company's option. The $60,000 note
was held by Ragan & Ragan, P.C., a related entity.

                                       15
<PAGE>

Item 6       Exhibits and Reports on Form 8-K

(a)      Exhibits

         31.1     Certification of Principal Executive Officer pursuant to
                  Section 302 of the Sarbanes-Oxley Act of 2002
         31.2     Certification of Principal financial Officer pursuant to
                  Section 302 of the Sarbanes-Oxley Act of 2002.
         32.1     Certification of Principal Executive Officer pursuant to 18
                  U.S.C. Section 1350
         32.2     Certification of Principal Financial Officer pursuant to 18
                  U.S.C. Section 1350.

         ____________________

                                       16
<PAGE>

                                   SIGNATURES

         In accordance with the requirements of the Securities Exchange Act of
1934 the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.



                                       VELOCITY ASSET MANAGEMENT, INC.

Dated:  November 24, 2006              By: /s/ JOHN C. KLEINERT
                                           -------------------------------------
                                           John C. Kleinert
                                           Chief Executive Officer and President

                                       17