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

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

| Utah                                                                          | 87-0301924                                       |
|-------------------------------------------------------------------------------|--------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) | (IRS                Employer Identification No.) |
| ** **                                                                    | ** **                                       |

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**RECYCLENET      CORPORATION AND SUBSIDIARIES**

**FORM      10-QSB**

**QUARTER      ENDED March 31, 2006**

**TABLE      OF CONTENTS**

|                                                                                                                                                        |                                                                                                        | **Page** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|----------|
| **PART                I - FINANCIAL INFORMATION**                                                                                                           |                                                                                                        |
|                                                                                                                                                        |                                                                                                        |     |
| Item                1.                                                                                                                                      | Financial                Statements                                                                         |     |
|                                                                                                                                                        |                                                                                                        |     |
| Condensed                Consolidated Balance Sheets - March 31, 2006 and December 31,                2005(Unaudited)                                       | 3                                                                                                           |
|                                                                                                                                                        |                                                                                                        |     |
| Condensed                Consolidated Statements of Operations for the Three Months Ended                March 31,                2006 and 2005 (Unaudited) | 4                                                                                                           |
|                                                                                                                                                        |                                                                                                        |     |
| Condensed                Consolidated Statements of Cash Flows for the Three Months Ended                March 31,                2006 and 2005 (Unaudited) | 5                                                                                                           |
|                                                                                                                                                        |                                                                                                        |     |
| Notes                to Condensed Consolidated Financial Statements                                                                                         | 6                                                                                                           |
|                                                                                                                                                        |                                                                                                        |     |
| Item                2.                                                                                                                                      | Management’s                Discussion and Analysis                                                   | 7        |
|                                                                                                                                                        |                                                                                                        |     |
| Item                3.                                                                                                                                      | Controls                and Procedures                                                                      | 9        |
|                                                                                                                                                        |                                                                                                        |     |
|                                                                                                                                                        |                                                                                                        |     |
| **PART                II - OTHER INFORMATION**                                                                                                              |                                                                                                        |
|                                                                                                                                                        |                                                                                                        |     |
| Item                1.                                                                                                                                      | Legal                Proceedings                                                                            | 9        |
|                                                                                                                                                        |                                                                                                        |     |
| Item                2.                                                                                                                                      | Changes                in Securities and Small Business Issuer Purchase of Equity                Securities | 9        |
|                                                                                                                                                        |                                                                                                        |     |
| Item                3.                                                                                                                                      | Default                Upon Senior Securities                                                               | 9        |
|                                                                                                                                                        |                                                                                                        |     |
| Item                4.                                                                                                                                      | Submission                of Matters to a Vote of Security Holders                                          | 9        |
|                                                                                                                                                        |                                                                                                        |     |
| Item                5.                                                                                                                                      | Other                Information                                                                            | 9        |
|                                                                                                                                                        |                                                                                                        |     |
| Item                6.                                                                                                                                      | Exhibits                and Reports on Form 8-K                                                             | 10       |
|                                                                                                                                                        |                                                                                                        |     |
| Signatures                                                                                                                                                  | 11                                                                                                          |

----

**PART      I - FINANCIAL INFORMATION**

**ITEM      1. FINANCIAL STATEMENTS**

**RECYCLENET      CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

**(UNAUDITED)**

|                                                                                                                                                                                             |   | **March                31** |       | **December                31,** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|---------------------------------|--------|
|                                                                                                                                                                                             |   | **2006**                    |       | **2005**                        |   |
| **ASSETS**                                                                                                                                                                                       |   |                        |       |                            |   |
| **Current                Assets**                                                                                                                                                                |   |                        |       |                            |   |
| Cash                                                                                                                                                                                             |   | $                           | 218,012    |                            | $      | 226,979 |   |
| Trade                accounts receivable, net of $2,500 allowance for bad debt                                                                                                                   |   |                        | 40,802     |                            |   | 37,396 |   |
| Other                receivables                                                                                                                                                                 |   |                        | 4,488      |                            |   | 4,118 |   |
| Prepaid                expenses                                                                                                                                                                  |   |                        | 11,972     |                            |   | 10,214 |   |
|                                                                                                                                                                                             |   |                        |       |                            |   |   |   |
| **Total                Current Assets**                                                                                                                                                          |   |                        | 275,274    |                            |   | 278,707 |   |
| Advances                to related party                                                                                                                                                         |   |                        | 64,910     |                            |   | - |   |
|                                                                                                                                                                                             |   |                        |       |                            |   |   |   |
| **Property                and Equipment**                                                                                                                                                        |   |                        |       |                            |   |   |   |
| Computer                equipment                                                                                                                                                                |   |                        | 47,045     |                            |   | 46,258 |   |
| Less:                Accumulated depreciation                                                                                                                                                    |   |                        | (31,563    | )                               |   | (30,340 | ) |
|                                                                                                                                                                                             |   |                        |       |                            |   |   |   |
| **Net                Property and Equipment**                                                                                                                                                    |   |                        | 15,482     |                            |   | 15,918 |   |
|                                                                                                                                                                                             |   |                        |       |                            |   |   |   |
| **Total                Assets**                                                                                                                                                                  |   | $                           | 355,666    |                            | $      | 294,625 |   |
|                                                                                                                                                                                             |   |                        |       |                            |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                                                                                          |   |                        |       |                            |   |   |   |
| **Current                Liabilities**                                                                                                                                                           |   |                        |       |                            |   |   |   |
| Accrued                liabilities                                                                                                                                                               |   | $                           | 43,949     |                            | $      | 41,712 |   |
| Deferred                revenue                                                                                                                                                                  |   |                        | 114,333    |                            |   | 102,027 |   |
|                                                                                                                                                                                             |   |                        |       |                            |   |   |   |
| **Total                Current Liabilities**                                                                                                                                                     |   |                        | 158,282    |                            |   | 143,739 |   |
|                                                                                                                                                                                             |   |                        |       |                            |   |   |   |
| **Stockholders'                Equity**                                                                                                                                                          |   |                        |       |                            |   |   |   |
| Class                N convertible shares (and Class X shares of Amalco) - $0.01 par value;                70,896,789 shares authorized; 60,539,259 shares issued and                outstanding |   |                        | 605,393    |                            |   | 605,393 |   |
| Common                shares - $0.01 par value; 179,103,211 shares authorized; 77,108,214                shares                issued and outstanding                                            |   |                        | 771,082    |                            |   | 771,082 |   |
| Additional                paid-in capital                                                                                                                                                        |   |                        | 34,315     |                            |   | 34,315 |   |
| Accumulated                deficit                                                                                                                                                               |   |                        | (1,213,406 | )                               |   | (1,259,904 | ) |
|                                                                                                                                                                                             |   |                        |       |                            |   |   |   |
| **Total                Stockholders' Equity**                                                                                                                                                    |   |                        | 197,384    |                            |   | 150,886 |   |
|                                                                                                                                                                                             |   |                        |       |                            |   |   |   |
| **Total                Liabilities and Stockholders' Equity**                                                                                                                                    |   | $                           | 355,666    |                            | $      | 294,625 |   |

----

**RECYCLENET      CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

**(UNAUDITED)**

| ***For                the Three Months Ended March 31,***           |   | **2006** |       | **2005** |   |
|---------------------------------------------------------------------|--------|----------|------------|----------|--------|
| **Sales**                                                           |   | $        | 265,846    |     | $      | 187,133 |   |
|                                                                |   |     |       |     |   |   |   |
| **Operating                Expenses**                               |   |     |       |     |   |   |   |
| Selling,                general and administrative expenses         |   |     | 271,985    |     |   | 205,829 |   |
| Foreign                currency exchange loss                       |   |     | 1,493      |     |   | 691 |   |
|                                                                |   |     |       |     |   |   |   |
| **Total                Operating Expenses**                         |   |     | 273,478    |     |   | 206,520 |   |
|                                                                |   |     |       |     |   |   |   |
| **Loss                From Continuing Operations**                  |   |     | (7,632     | )        |   | (19,387 | ) |
|                                                                |   |     |       |     |   |   |   |
| **Discontinued                Operations**                          |   |     |       |     |   |   |   |
| Loss                from discontinued operations                    |   |     | (4,494     | )        |   | - |   |
|                                                                |   |     |       |     |   |   |   |
| **Net                Loss**                                         |   | $        | (12,126    | )        | $      | (19,387 | ) |
|                                                                |   |     |       |     |   |   |   |
| **Basic                Loss Per Common Share From**                 |   |     |       |     |   |   |   |
| Continuing                Operations                                |   | $        | (0.00      | )        | $      | (0.00 | ) |
| Discontinued                Operations                              |   |     | (0.00      | )        |   | (0.00 | ) |
| **Basic                Loss Per Common Share**                      |   | $        | (0.00      | )        | $      | (0.00 | ) |
|                                                                |   |     |       |     |   |   |   |
| **Basic                Weighted-Average Common Shares Outstanding** |   |     | 77,108,214 |     |   | 76,421,792 |   |

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**RECYCLENET      CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

| ***For                The Three Months Ended March 31,***                                              |   | **2006** |    | **2005** |   |
|--------------------------------------------------------------------------------------------------------|--------|----------|---------|----------|--------|
|                                                                                                   |   |     |    |     |   |
| **Cash                Flows From Operating Activities:**                                               |   |     |    |     |   |
| Net                loss                                                                                |   | $        | (12,126 | )        | $      | (19,387 | ) |
| Adjustments                to reconcile net loss to net cash from operating                activities: |   |     |    |     |   |   |   |
| Depreciation                                                                                           |   |     | 1,224   |     |   | 1,255 |   |
| Foreign                currency exchange gain                                                          |   |     | (1,493  | )        |   | (691 | ) |
| Changes                in assets and liabilities:                                                      |   |     |    |     |   |   |   |
| Accounts                and other receivables                                                          |   |     | (3,844  | )        |   | 988 |   |
| Prepaid                expenses                                                                        |   |     | (1,817  | )        |   | 1,693 |   |
| Accounts                payable and accrued liabilities                                                |   |     | 3,110   |     |   | 2,575 |   |
| Deferred                revenue                                                                        |   |     | 12,321  |     |   | (11,890 | ) |
| **Net                Cash Used In Operating Activities**                                               |   |     | (2,625  | )        |   | (25,457 | ) |
|                                                                                                   |   |     |    |     |   |   |   |
| **Cash                Flows From Investing Activities:**                                               |   |     |    |     |   |   |   |
| Advances                to related party                                                               |   |     | (64,910 | )        |   | - |   |
| Collection                of advances to related party                                                 |   |     | -       |     |   | 1,509 |   |
| Purchase                of property and equipment                                                      |   |     | (795    | )        |   | - |   |
| **Net                Cash (Used In) Provided By Investing Activities**                                 |   |     | (65,705 | )        |   | 1,509 |   |
|                                                                                                   |   |     |    |     |   |   |   |
| **Cash                Flows From Financing Activities**                                                |   |     |         |     |   |  |   |
| Contribution                from spin off of Scrap China                                               |   |     | 58,624  |     |   | - |   |
| **Net                Cash Provided by Financing Activities**                                           |   |     | 58,624  |     |   | - |   |
| **Effect                of Exchange Rate Changes on Cash**                                             |   |     | 739     |     |   | (2,195 | ) |
|                                                                                                   |   |     |    |     |   |   |   |
| **Net                Change in Cash**                                                                  |   |     | (8,967  | )        |   | (26,143 | ) |
|                                                                                                   |   |     |    |     |   |   |   |
| **Cash                at Beginning of Period**                                                         |   |     | 226,979 |     |   | 274,244 |   |
|                                                                                                   |   |     |    |     |   |   |   |
| **Cash                at End of Period**                                                               |   | $        | 218,012 |     | $      | 248,101 |   |

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**RECYCLENET      CORPORATION AND SUBSIDIARIES**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

**NOTE      1-ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES**

**Basis      of Presentation —**

**NOTE      2-RELATED PARTY TRANSACTIONS**

**Advances      to Related Party**
**—**

**NOTE      3-STOCKHOLDERS’ EQUITY**

**NOTE      4-BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE**

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**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS **

**Cautionary      Statement Regarding Forward-Looking Statements**

**Overview**

**Results      of Operations**

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**Sales      Revenues**

|                          |   | **For                the Three Months Ended****March                31,** |    |
|-------------------------------|--------|---------------------------------------------------------------------------|---------|
|                          |   | **2006**                                                                  |    | **2005** |   |
|                          |   |                                                                      |    |   |   |
| Sales                Revenues |   | $                                                                         | 265,800 |   | $ | 187,100 |   |

**Operating      Expenses **

|                                                 |   | **For                the Three Months Ended****March                31,** |    |
|------------------------------------------------------|--------|---------------------------------------------------------------------------|---------|
|                                                 |   | **2006**                                                                  |    | **2005** |   |
|                                                 |   |                                                                      |    |   |   |
| General                  and Administrative Expenses |   | $                                                                         | 272,000 |   | $ | 205,800 |   |

**Net      Loss from Continuing Operations**

|                    |   | **For                the Three Months Ended****March                31,** |   |
|-------------------------|--------|---------------------------------------------------------------------------|--------|
|                    |   | **2006**                                                                  |   | **2005** |   |
|                    |   |                                                                      |   |   |   |
| Net                loss |   | $                                                                         | (7,600 | ) | $ | (19,400 | ) |

**Discontinued      Operations**

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| Liquidity                and Capital Resources |       | **March                31,** | ** ** | **December                31,** | ** ** |
|------------------------------------------------|------------|------------------------------|------------|---------------------------------|------------|
| ** **                                     | ** ** | **2006**                     | ** ** | **2005**                        |       |
|                                           |       |                         |       |                            |       |
| Cash                on Hand                    |       | $                            | 218,000    |                            | $          | 227,000 |   |

| **Deferred                Revenue** |   | **March                31,** |    | **December                31,** |   |
|-------------------------------------|--------|------------------------------|---------|---------------------------------|--------|
|                                |   | **2006**                     |    | **2005**                        |   |
|                                |   |                         |    |                            |   |
|                                |   | $                            | 114,000 |                            | $      | 102,000 |   |

**ITEM      3. CONTROLS AND PROCEDURES**

**PART      II - OTHER INFORMATION**

| **ITEM              1.** | **LEGAL                PROCEEDINGS** |
|--------------------------|--------------------------------------|

| **ITEM                2.** | **CHANGES                IN SECURITIES AND SMALL BUSINESS ISSUER PURCHASE OF EQUITY                SECURITIES** |
|----------------------------|-----------------------------------------------------------------------------------------------------------------|

| **ITEM                3.** | **DEFAULT                UPON SENIOR SECURITIES** |
|----------------------------|---------------------------------------------------|

| **ITEM                4.** | **SUBMISSION                OF MATTERS TO A VOTE OF SECURITY                HOLDERS** |
|----------------------------|---------------------------------------------------------------------------------------|

| **ITEM                5.** | **OTHER                INFORMATION** |
|----------------------------|--------------------------------------|

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| **ITEM                6.** | **EXHIBITS                AND REPORTS ON FORM 8-K** |
|----------------------------|-----------------------------------------------------|

| Exhibit | Description                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                      |
| 31.1    | Certification                of the Chief Executive Officer pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002                                                      |
| 31.2    | Certification                of the Chief Financial Officer pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002                                                      |
| 32.1    | Certification                of Chief Executive Officer pursuant to U.S.C Section 1350 as adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002 |
| 32.2    | Certification                of Chief Financial Officer pursuant to U.S.C Section 1350 as adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002 |

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**SIGNATURES**

|                        | RecycleNet                Corporation                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| May                15, 2006 | /s/                Paul                Roszel                                                                           |
|                        | Paul                Roszel, President and Chairman of the Board of                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                        | Directors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| May                15, 2006 | /s/                Richard                Ivanovick                                                                                                                       |
|                        | Richard                Ivanovick, C.A., Chief Financial and                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                        | Accounting                Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

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