----

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**SECURITIES        AND EXCHANGE COMMISSION**

**WASHINGTON,        D.C. 20549**

**FORM        10-QSB**

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

**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 1-15497**

**RecycleNet        Corporation**

**(Exact        name of small business issuer in its charter)**

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

**175        East 400 South, Suite 900, Salt Lake City Utah, 84111**

**(Address        of principal executive offices, including Zip Code)**

**801-531-0404**

**(Issuer's        telephone number)**

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**RECYCLENET        CORPORATION AND SUBSIDIARIES**

**FORM        10-QSB**

**QUARTER        ENDED September 30, 2006**

**TABLE        OF CONTENTS**

|                                                                                                                                                                           |                                                                         | **Page** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|----------|
| **PART                  I - FINANCIAL INFORMATION**                                                                                                                            |                                                                         |
|                                                                                                                                                                           |                                                                         |     |
| Item                  1.                                                                                                                                                       | Financial                  Statements                                        |     |
|                                                                                                                                                                           |                                                                         |     |
| Condensed                  Consolidated Balance Sheets - September 30, 2006 and December 31,                  2005                  (Unaudited)                                | 3                                                                            |
|                                                                                                                                                                           |                                                                         |     |
| Condensed                  Consolidated Statements of Operations for the Three and Nine Months                  Ended                  September 30, 2006 and 2005 (Unaudited) | 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                  2.                                                                                                                                                       | Management’s                  Discussion and Analysis                  | 7        |
|                                                                                                                                                                           |                                                                         |     |
| Item                  3.                                                                                                                                                       | Controls                  and Procedures                                     | 10       |
|                                                                                                                                                                           |                                                                         |     |
|                                                                                                                                                                           |                                                                         |     |
| **PART                  II - OTHER INFORMATION**                                                                                                                               |                                                                         |
|                                                                                                                                                                           |                                                                         |     |
| Item                  1.                                                                                                                                                       | Legal                  Proceedings                                           | 10       |
|                                                                                                                                                                           |                                                                         |     |
| Item                  2.                                                                                                                                                       | Unregistered                  Sales of Equity Securities and Use of Proceeds | 10       |
|                                                                                                                                                                           |                                                                         |     |
| Item                  3.                                                                                                                                                       | Default                  Upon Senior Securities                              | 10       |
|                                                                                                                                                                           |                                                                         |     |
| Item                  4.                                                                                                                                                       | Submission                  of Matters to a Vote of Security Holders         | 10       |
|                                                                                                                                                                           |                                                                         |     |
| Item                  5.                                                                                                                                                       | Other                  Information                                           | 10       |
|                                                                                                                                                                           |                                                                         |     |
| Item                  6.                                                                                                                                                       | Exhibits                                                                     | 10       |
|                                                                                                                                                                           |                                                                         |     |
| Signatures                                                                                                                                                                     | 12                                                                           |

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**PART        I - FINANCIAL INFORMATION**

**ITEM        1. FINANCIAL STATEMENTS**

**RECYCLENET        CORPORATION AND SUBSIDIARIES**

**CONDENSED        CONSOLIDATED BALANCE SHEETS**

**(UNAUDITED)**

|                                                                                                                                                                                                 |   | **September                  30,** |       | **December                  31,** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|------------|-----------------------------------|--------|
|                                                                                                                                                                                                 |   | **2006**                           |       | **2005**                          |   |
| **ASSETS**                                                                                                                                                                                           |   |                               |       |                              |   |
| **Current                  Assets**                                                                                                                                                                  |   |                               |       |                              |   |
| Cash                                                                                                                                                                                                 |   | $                                  | 299,701    |                              | $      | 226,979 |   |
| Trade                  accounts receivable, net of $2,500 allowance for bad debt                                                                                                                     |   |                               | 36,112     |                              |   | 37,396 |   |
| Other                  receivables                                                                                                                                                                   |   |                               | 271        |                              |   | 4,118 |   |
| Prepaid                  expenses                                                                                                                                                                    |   |                               | 7,450      |                              |   | 10,214 |   |
|                                                                                                                                                                                                 |   |                               |       |                              |   |   |   |
| **Total                  Current Assets**                                                                                                                                                            |   |                               | 343,534    |                              |   | 278,707 |   |
|                                                                                                                                                                                                 |   |                               |       |                              |   |   |   |
| **Property                  and Equipment**                                                                                                                                                          |   |                               |       |                              |   |   |   |
| Computer                  equipment                                                                                                                                                                  |   |                               | 70,195     |                              |   | 46,258 |   |
| Less:                  Accumulated depreciation                                                                                                                                                      |   |                               | (36,326    | )                                 |   | (30,340 | ) |
|                                                                                                                                                                                                 |   |                               |       |                              |   |   |   |
| **Net                  Property and Equipment**                                                                                                                                                      |   |                               | 33,869     |                              |   | 15,918 |   |
|                                                                                                                                                                                                 |   |                               |       |                              |   |   |   |
| Related                  party receivable                                                                                                                                                            |   |                               | 87,771     |                              |   | - |   |
|                                                                                                                                                                                                 |   |                               |       |                              |   |   |   |
| **Total                  Assets**                                                                                                                                                                    |   | $                                  | 465,174    |                              | $      | 294,625 |   |
|                                                                                                                                                                                                 |   |                               |       |                              |   |   |   |
|                                                                                                                                                                                                 |   |                               |       |                              |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                                                                                            |   |                               |       |                              |   |   |   |
| **Current                  Liabilities**                                                                                                                                                             |   |                               |       |                              |   |   |   |
| Accrued                  liabilities                                                                                                                                                                 |   | $                                  | 34,060     |                              | $      | 41,712 |   |
| Deferred                  revenue                                                                                                                                                                    |   |                               | 149,958    |                              |   | 102,027 |   |
|                                                                                                                                                                                                 |   |                               |       |                              |   |   |   |
| **Total                  Current Liabilities**                                                                                                                                                       |   |                               | 184,018    |                              |   | 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                                                                                                                                                                 |   |                               | (1,129,634 | )                                 |   | (1,259,904 | ) |
|                                                                                                                                                                                                 |   |                               |       |                              |   |   |   |
| **Total                  Stockholders' Equity**                                                                                                                                                      |   |                               | 281,156    |                              |   | 150,886 |   |
|                                                                                                                                                                                                 |   |                               |       |                              |   |   |   |
| **Total                  Liabilities and Stockholders' Equity**                                                                                                                                      |   | $                                  | 465,174    |                              | $      | 294,625 |   |

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**RECYCLENET        CORPORATION AND SUBSIDIARIES**

**CONDENSED        CONSOLIDATED STATEMENTS OF OPERATIONS**

**(UNAUDITED)**

|                                                                    |   | **For                  The****Three                  Months** |        | **For                  The Nine Months** |   |
|-------------------------------------------------------------------------|--------|---------------------------------------------------------------|-------------|------------------------------------------|--------|
|                                                                    |   | **Ended                  September 30,**                      |        | **Ended                  September 30,** |   |
|                                                                    |   | **2006**                                                      |        | **2005**                                 |   | **2006** |   | **2005** |   |
| **Sales**                                                               |   | $                                                             | 279,825     |                                     | $      | 213,116 |   | $ | 838,476 |   | $ | 614,173 |   |
| **Operating                  Expenses**                                 |   |                                                          |        |                                     |   |   |   |   |   |   |   |   |   |
| Selling,                  general and administrative expenses           |   |                                                          | 225,344     |                                     |   | 194,130 |   |   | 762,104 |   |   | 683,503 |   |
| Foreign                  currency exchange (gain) loss                  |   |                                                          | (111        | )                                        |   | 426 |   |   | 232 |   |   | 2,614 |   |
| **Total                  Operating Expenses**                           |   |                                                          | 225,233     |                                     |   | 194,556 |   |   | 762,336 |   |   | 686,117 |   |
| **Income                  (Loss) From Continuing Operations**           |   |                                                          | 54,592      |                                     |   | 18,560 |   |   | 76,140 |   |   | (71,944 | ) |
| **Discontinued                  Operations**                            |   |                                                          |        |                                     |   |   |   |   |   |   |   |   |   |
| Loss                  from discontinued operations                      |   |                                                          | -           |                                     |   | 37,305 |   |   | 4,494 |   |   | 46,637 |   |
| **Net                  Income (Loss)**                                  |   | $                                                             | 54,592      |                                     | $      | (18,745 | ) | $ | 71,646 |   | $ | (118,581 | ) |
|                                                                    |   |                                                          |        |                                     |   |   |   |   |   |   |   |   |   |
| **Basic                  Income (Loss) Per Common Share From**          |   |                                                          |        |                                     |   |   |   |   |   |   |   |   |   |
| Continuing                  operations                                  |   | $                                                             | -           |                                     | $      | - |   | $ | - |   | $ | - |   |
| Discontinued                  operations                                |   |                                                          | -           |                                     |   | - |   |   | - |   |   | - |   |
| **Basic                  Income (Loss) Per Common Share**               |   | $                                                             | -           |                                     | $      | - |   | $ | - |   | $ | - |   |
| **Diluted                  Income (Loss) Per Common Share From**        |   |                                                          |        |                                     |   |   |   |   |   |   |   |   |   |
| Continuing                  operations                                  |   | $                                                             | -           |                                     | $      | - |   | $ | - |   | $ | - |   |
| Discontinued                  operations                                |   |                                                          | -           |                                     |   | - |   |   | - |   |   | - |   |
| **Diluted                  Income (Loss) Per Common Share**             |   | $                                                             | -           |                                     | $      | - |   | $ | - |   | $ | - |   |
| **Basic                  Weighted-Average Common Shares Outstanding**   |   |                                                          | 77,108,214  |                                     |   | 76,471,792 |   |   | 77,108,214 |   |   | 76,444,869 |   |
| **Diluted                  Weighted-Average Common Shares Outstanding** |   |                                                          | 137,647,473 |                                     |   | 76,471,792 |   |   | 137,647,473 |   |   | 76,444,869 |   |

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**RECYCLENET        CORPORATION AND SUBSIDIARIES**

**CONDENSED        CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

| ***For                  The Nine Months Ended September 30,***                                                                                        |   | **2006** |    | **2005** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|----------|--------|
| **Cash                  Flows From Operating Activities:**                                                                                            |   |     |    |     |   |
| Net                  income (loss)                                                                                                                    |   | $        | 71,646  |     | $      | (118,581 | ) |
| Adjustments                  to reconcile net income (loss) to net cash provided by (used in)                  operating                  activities: |   |     |    |     |   |   |   |
| Depreciation                                                                                                                                          |   |     | 5,986   |     |   | 4,048 |   |
| Foreign                  currency exchange loss                                                                                                       |   |     | (161    | )        |   | 2,614 |   |
| Issuance                  of common shares for consulting services                                                                                    |   |     | -       |     |   | 1,250 |   |
| Changes                  in assets and liabilities:                                                                                                   |   |     |    |     |   |   |   |
| Accounts                  and other receivables                                                                                                       |   |     | 5,400   |     |   | 5,060 |   |
| Prepaid                  expenses                                                                                                                     |   |     | 3,055   |     |   | 3,193 |   |
| Accounts                  payable and accrued liabilities                                                                                             |   |     | (7,872  | )        |   | 15,606 |   |
| Deferred                  revenue                                                                                                                     |   |     | 47,188  |     |   | 28,606 |   |
| **Net                  Cash Provided By (Used In) Operating Activities**                                                                              |   |     | 125,242 |     |   | (58,204 | ) |
| **Cash                  Flows From Investing Activities:**                                                                                            |   |     |    |     |   |   |   |
| Advances                  to related party                                                                                                            |   |     | (29,147 | )        |   | - |   |
| Collection                  of advances to related party                                                                                              |   |     | -       |     |   | 4,502 |   |
| Purchase                  of property and equipment                                                                                                   |   |     | (23,925 | )        |   | (2,922 | ) |
| **Net                  Cash Provided By (Used In) Investing Activities**                                                                              |   |     | (53,072 | )        |   | 1,580 |   |
| **Effect                  of Exchange Rate Changes on Cash**                                                                                          |   |     | 552     |     |   | 2,440 |   |
| **Net                  Change in Cash**                                                                                                               |   |     | 72,722  |     |   | (54,184 | ) |
| **Cash                  at Beginning of Period**                                                                                                      |   |     | 226,979 |     |   | 274,244 |   |
| **Cash                  at End of Period**                                                                                                            |   | $        | 299,701 |     | $      | 220,060 |   |
|                                                                                                                                                  |   |     |    |     |   |   |   |
| **Non                  Cash Investing and Financing Activities:**                                                                                     |   |     |    |     |   |   |   |
| Contribution                  from spin off of Scrap China                                                                                            |   | $        | 58,624  |     | $      | - |   |

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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 —**

**Reclassification**

**NOTE        2-RELATED PARTY TRANSACTIONS**

**Related        Party Receivable**
**—**

**NOTE        3-STOCKHOLDERS’ EQUITY**

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

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|                                                                                                                                                                                        |   | **For                  the three months ended** |        | **For                  the nine months ended** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|-------------|------------------------------------------------|--------|
|                                                                                                                                                                                        |   | **September                  30,**              |        | **September                  30,**             |   |
|                                                                                                                                                                                        |   | **2006**                                        |        | **2005**                                       |   | **2006** |   | **2005** |   |
|                                                                                                                                                                                        |   |                                            |        |                                           |   |   |   |   |   |
| Weighted-average                  number of common shares used in basic income (loss) per common                  share                  calculation                                        |   |                                            | 77,108,214  |                                           |   | 76,471,792 |   |   | 77,108,214 |   |   | 76,444,869 |   |
|                                                                                                                                                                                        |   |                                            |        |                                           |   |   |   |   |   |   |   |   |   |
| Incremental                  potentially issuable common shares from assumed conversion of Class                  N (and                  Class X) common shares                            |   |                                            | 60,539,259  |                                           |   | - |   |   | 60,539,259 |   |   | - |   |
|                                                                                                                                                                                        |   |                                            |        |                                           |   |   |   |   |   |   |   |   |   |
| Weighted-average                  number of common shares and dilutive potential common shares used                  in                  diluted income (loss) per common share calculation |   |                                            | 137,647,473 |                                           |   | 76,471,792 |   |   | 137,647,473 |   |   | 76,444,869 |   |

**NOTE        5-ACQUISITIONS**

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

**Cautionary        Statement Regarding Forward-Looking Statements**

**Overview**

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**Results        of Operations**

**Sales        Revenues**

|                            |   | **For                  the Three Months Ended** |    | **For                  the Nine Months Ended** |   |
|---------------------------------|--------|-------------------------------------------------|---------|------------------------------------------------|--------|
|                            |   | **September                  30,**              |    | **September                  30,**             |   |
|                            |   | **2006**                                        |    | **2005**                                       |   | **2006** |   | **2005** |   |
|                            |   |                                            |    |                                           |   |   |   |   |   |
| Sales                  Revenues |   | $                                               | 279,800 |                                           | $      | 213,100 |   | $ | 838,500 |   | $ | 614,200 |   |

**Operating        Expenses**

|                                                 |   | **For                  the Three Months Ended** |    | **For                  the Nine Months Ended** |   |
|------------------------------------------------------|--------|-------------------------------------------------|---------|------------------------------------------------|--------|
|                                                 |   | **September                  30,**              |    | **September                  30,**             |   |
|                                                 |   | **2006**                                        |    | **2005**                                       |   | **2006** |   | **2005** |   |
|                                                 |   |                                            |    |                                           |   |   |   |   |   |   |   |   |   |
| General                  and Administrative Expenses |   | $                                               | 225,300 |                                           | $      | 194,100 |   | $ | 762,100 |   | $ | 683,500 |   |

----

**Net        Profit (Loss) from Continuing Operations**

|                                                      |   | **For                  the Three Months Ended** |   | **For                  the Nine Months Ended** |   |
|-----------------------------------------------------------|--------|-------------------------------------------------|--------|------------------------------------------------|--------|
|                                                      |   | **September                  30,**              |   | **September                  30,**             |   |
|                                                      |   | **2006**                                        |   | **2005**                                       |   | **2006** |   | **2005** |   |
|                                                      |   |                                            |   |                                           |   |   |   |   |   |
| Income                  (loss) from continuing operations |   | $                                               | 54,600 |                                           | $      | 18,600 |   | $ | 76,100 |   | $ | (71,900 | ) |

**Discontinued        Operations**

**Liquidity        and Capital Resources**

|                          |   | **September                  30,** |    | **December                  31,** |   |
|-------------------------------|--------|------------------------------------|---------|-----------------------------------|--------|
|                          |   | **2006**                           |    | **2005**                          |   |
|                          |   |                               |    |                              |   |
| Cash                  on Hand |   | $                                  | 299,700 |                              | $      | 227,000 |   |

----

**Deferred        Revenue**

|   |   | **September                  30,** |    | **December                  31,** |   |
|--------|--------|------------------------------------|---------|-----------------------------------|--------|
|   |   | **2006**                           |    | **2005**                          |   |
|   |   |                               |    |                              |   |
|   |   | $                                  | 150,000 |                              | $      | 102,000 |   |

**ITEM        3. CONTROLS AND PROCEDURES**

**PART        II - OTHER INFORMATION**

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

| **ITEM                  2.** | UNREGISTERED                    SALES OF EQUITY SECURITIES AND USE OF                    PROCEEDS |
|------------------------------|---------------------------------------------------------------------------------------------------|

| **ITEM                  3.** | **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** |
|------------------------------|--------------|

| 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                                                                                                                                                                                                                                               |
|-----------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                              |                                                                                                                                                                                                                                                                                  |
|                              |                                                                                                                                                                                                                                                                                  |
| November                  9, 2006 | /s/                  Paul                  Roszel                                       |
|                              | Paul                  Roszel, President andChairman                  of the Board of Directors                                                                                                                                                                                        |
|                              |                                                                                                                                                                                                                                                                                  |
|                              |                                                                                                                                                                                                                                                                                  |
| November                  9, 2006 | /s/                  Richard                  Ivanovick                                                                                   |
|                              | Richard                  Ivanovick, C.A., Chief                  Financial and Accounting                  Officer                                                                                                                                                                    |

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