----

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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: June 30, 2005**

**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,)**

----

**RECYCLENET      CORPORATION AND SUBSIDIARIES**

**FORM      10-QSB**

**QUARTER      ENDED June 30, 2005**

**TABLE      OF CONTENTS**

|                                                                                                                                                               |                                                                                                        | **Page** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|----------|
| **PART                I - FINANCIAL INFORMATION**                                                                                                                  |                                                                                                        |
|                                                                                                                                                               |                                                                                                        |     |
| Item                1.                                                                                                                                             | Financial                Statements                                                                         |     |
|                                                                                                                                                               |                                                                                                        |     |
| Condensed                Consolidated Balance Sheets - June 30, 2005 and December 31, 2004                (Unaudited)                                              | 3                                                                                                           |
|                                                                                                                                                               |                                                                                                        |     |
| Condensed                Consolidated Statements of Operations for the Six Months Ended June                30,                2005 and 2004 (Unaudited)           | 4                                                                                                           |
|                                                                                                                                                               |                                                                                                        |     |
| Condensed                Consolidated Statements of Cash Flows for the Three and Six Months                Ended                June 30, 2005 and 2004 (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 | 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                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)**                                                                                                                                                                                      |   |   |   |   |   |
|                                                                                                                                                                                                 |   | **June                  30,** |   | **December                  31,** |   |
|                                                                                                                                                                                                 |   | **2005** |   | **2004** |   |
| **ASSETS**                                                                                                                                                                                           |   |   |   |   |   |
| **Current                  Assets**                                                                                                                                                                  |   |   |   |   |   |
| Cash                                                                                                                                                                                                 |   | $ | 223,969 |   | $ | 274,244 |   |
| Trade                  accounts receivable, net of $2,500 allowance for bad debt                                                                                                                     |   |   | 13,896 |   |   | 13,027 |   |
| Other                  receivables                                                                                                                                                                   |   |   | 3,109 |   |   | 10,314 |   |
| Prepaid                  expenses                                                                                                                                                                    |   |   | 5,500 |   |   | 4,693 |   |
| Advances                  to related party - current                                                                                                                                                 |   |   | 1,540 |   |   | 4,573 |   |
| **Total                  Current Assets**                                                                                                                                                            |   |   | 248,014 |   |   | 306,851 |   |
| **Property                  and Equipment**                                                                                                                                                          |   |   |   |   |   |   |   |
| Computer                  equipment                                                                                                                                                                  |   |   | 44,147 |   |   | 41,306 |   |
| Less:                  Accumulated depreciation                                                                                                                                                      |   |   | (27,230 | ) |   | (24,578 | ) |
| **Net                  Property and Equipment**                                                                                                                                                      |   |   | 16,917 |   |   | 16,728 |   |
| **Total                  Assets**                                                                                                                                                                    |   | $ | 264,931 |   | $ | 323,579 |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                                                                                            |   |   |   |   |   |   |   |
| **Current                  Liabilities**                                                                                                                                                             |   |   |   |   |   |   |   |
| Trade                  accounts payable                                                                                                                                                              |   | $ | - |   | $ | 664 |   |
| Accrued                  liabilities                                                                                                                                                                 |   |   | 19,044 |   |   | 18,141 |   |
| Deferred                  revenue                                                                                                                                                                    |   |   | 136,224 |   |   | 96,525 |   |
| **Total                  Current Liabilities**                                                                                                                                                       |   |   | 155,268 |   |   | 115,330 |   |
| **Stockholders'                  Equity**                                                                                                                                                            |   |   |   |   |   |   |   |
| Class                  N convertible shares (and Class X shares of Amalco) $0.01 par value;                  70,896,789 shares authorized; 61,175,681 shares issued and                  outstanding |   |   | 611,757 |   |   | 611,757 |   |
| Common                  shares - $0.01 par value; 179,103,211 shares authorized; 76,471,792                  and                  76,421,792 shares issued and outstanding, respectively             |   |   | 764,718 |   |   | 764,218 |   |
| Additional                  paid-in capital                                                                                                                                                          |   |   | 34,315 |   |   | 33,565 |   |
| Accumulated                  deficit                                                                                                                                                                 |   |   | (1,301,127 | ) |   | (1,201,291 | ) |
| **Total                  Stockholders' Equity**                                                                                                                                                      |   |   | 109,663 |   |   | 208,249 |   |
| **Total                  Liabilities and Stockholders' Equity**                                                                                                                                      |   | $ | 264,931 |   | $ | 323,579 |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |

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| **RECYCLENET                CORPORATION AND SUBSIDIARIES**            |   |                                    |       |                                  |   |       |   |     |       |
|-----------------------------------------------------------------------|--------|-----------------------------------------|------------|---------------------------------------|--------|------------|--------|----------|------------|
| **CONDENSED                CONSOLIDATED STATEMENTS OF OPERATIONS**    |   |                                    |       |                                  |   |       |   |     |       |
| **(UNAUDITED)**                                                       |   |                                    |       |                                  |   |       |   |     |       |
|                                                                  |   | **For                The Three Months** |       | **For                The Six Months** |   |
|                                                                  |   | **Ended                June 30,**       |       | **Ended                June 30,**     |   |
|                                                                  |   | **2005**                                |       | **2004**                              |   | **2005**   |   | **2004** |       |
| **Sales**                                                             |   | $                                       | 213,924    |                                  | $      | 198,424    |   | $        | 401,057    |   | $ | 389,559 |   |
|                                                                  |   |                                    |       |                                  |   |       |   |     |       |   |   |   |   |
| **Operating                Expenses**                                 |   |                                    |       |                                  |   |       |   |     |       |   |   |   |   |
| Selling,                general and administrative expenses           |   |                                    | 292,876    |                                  |   | 206,138    |   |     | 498,705    |   |   | 379,968 |   |
| Foreign                currency exchange gain (loss)                  |   |                                    | 1,497      |                                  |   | (1,124     | )      |     | 2,188      |   |   | (515 | ) |
|                                                                  |   |                                    |       |                                  |   |       |   |     |       |   |   |   |   |
| **Total                Operating Expenses**                           |   |                                    | 294,373    |                                  |   | 205,014    |   |     | 500,893    |   |   | 379,453 |   |
|                                                                  |   |                                    |       |                                  |   |       |   |     |       |   |   |   |   |
| **Income                (Loss) From Continuing Operations**           |   |                                    | (80,449    | )                                     |   | (6,590     | )      |     | (99,836    | ) |   | 10,106 |   |
|                                                                  |   |                                    |       |                                  |   |       |   |     |       |   |   |   |   |
| **Discontinued                Operations**                            |   |                                    |            |                                  |   |            |   |     |       |   |   |   |   |
| Loss                from discontinued operations                      |   |                                    | -          |                                  |   | (336       | )      |     | -          |   |   | (919 | ) |
|                                                                  |   |                                    |       |                                  |   |       |   |     |       |   |   |   |   |
| **Net                Income (Loss)**                                  |   | $                                       | (80,449    | )                                     | $      | (6,926     | )      | $        | (99,836    | ) | $ | 9,187 |   |
|                                                                  |   |                                    |       |                                  |   |       |   |     |       |   |   |   |   |
| **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**   |   |                                    | 76,452,012 |                                  |   | 76,296,792 |   |     | 76,436,985 |   |   | 76,234,292 |   |
|                                                                  |   |                                    |       |                                  |   |       |   |     |       |   |   |   |   |
| **Diluted                Weighted-Average Common Shares Outstanding** |   |                                    | 76,452,012 |                                  |   | 76,296,792 |   |     | 76,436,985 |   |   | 137,409,973 |   |

----

| **RECYCLENET                CORPORATION AND SUBSIDIARIES**                                                                                      |   |     |    |     |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|----------|--------|
| **CONDENSED                CONSOLIDATED STATEMENTS OF CASH FLOWS**                                                                              |   |     |    |     |   |
| **(UNAUDITED)**                                                                                                                                 |   |     |    |     |   |
|                                                                                                                                            |   |     |    |     |   |
| ***For                The Six Months Ended June 30,***                                                                                          |   | **2005** |    | **2004** |   |
|                                                                                                                                            |   |     |    |     |   |
| **Cash                Flows From Operating Activities:**                                                                                        |   |     |    |     |   |
| Net                income (loss)                                                                                                                |   | $        | (99,836 | )        | $      | 9,187 |   |
| Adjustments                to reconcile net income (loss) to net cash provided by (used in)                operating                activities: |   |     |    |     |   |   |   |
| Depreciation                                                                                                                                    |   |     | 2,651   |     |   | 1,089 |   |
| Foreign                currency exchange (gain) loss                                                                                            |   |     | 2,188   |     |   | (515 | ) |
| Issuance                  of common shares for consulting services and amortization of shares                  held in escrow                   |   |     | -       |     |   | 4,140 |   |
| Issuance                of common shares for marketing expense                                                                                  |   |     | 1,250   |     |   | - |   |
| Changes                in assets and liabilities:                                                                                               |   |     |    |     |   |   |   |
| Accounts                and other receivables                                                                                                   |   |     | 6,121   |     |   | 11,817 |   |
| Prepaid                expenses                                                                                                                 |   |     | (807    | )        |   | 5,192 |   |
| Accounts                payable and accrued liabilities                                                                                         |   |     | 2,578   |     |   | 12,859 |   |
| Deferred                revenue                                                                                                                 |   |     | 39,878  |     |   | 49,583 |   |
| **Net                Cash Provided By (Used In) Operating Activities**                                                                          |   |     | (45,977 | )        |   | 93,352 |   |
|                                                                                                                                            |   |     |    |     |   |   |   |
| **Cash                Flows From Investing Activities:**                                                                                        |   |     |    |     |   |   |   |
| Collection                of advances to related party                                                                                          |   |     | 2,931   |     |   | 2,915 |   |
| Purchase                of investments held for sale                                                                                            |   |     | -       |     |   | (112,185 | ) |
| Purchase                of property and equipment                                                                                               |   |     | (2,897  | )        |   | (1,322 | ) |
| **Net                Cash Provided By (Used In) Investing Activities**                                                                          |   |     | 34      |     |   | (110,592 | ) |
|                                                                                                                                            |   |     |         |     |   |  |   |
| **Cash                Flows From Financing Activities**                                                                                         |   |     | -       |     |   | - |   |
|                                                                                                                                            |   |     |    |     |   |   |   |
| **Effect                of Exchange Rate Changes on Cash**                                                                                      |   |     | (4,332  | )        |   | (2,185 | ) |
|                                                                                                                                            |   |     |    |     |   |   |   |
| **Net                Change in Cash**                                                                                                           |   |     | (50,275 | )        |   | (19,425 | ) |
|                                                                                                                                            |   |     |    |     |   |   |   |
| **Cash                at Beginning of Period**                                                                                                  |   |     | 274,244 |     |   | 213,296 |   |
|                                                                                                                                            |   |     |    |     |   |   |   |
| **Cash                at End of Period**                                                                                                        |   | $        | 223,969 |     | $      | 193,871 |   |

----

**RECYCLENET      CORPORATION AND SUBSIDIARIES**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

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

**Basis      of Presentation —**

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

**NOTE      2-STOCKHOLDERS’ EQUITY**

*Grantor      Balance Sheet Presentation of Unvested, Forfeitable Equity Instruments Granted      to a Nonemployee*

**NOTE      3-BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE**

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|                                                                                                                                                                                        |   | **For                  The Three Months** |       | **For                  The Three Months** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|------------|-------------------------------------------|--------|
|                                                                                                                                                                                        |   | **Ended                  June 30,**       |       | **Ended                  June 30,**       |   |
|                                                                                                                                                                                        |   | **2005**                                  |       | **2004**                                  |   | **2005** |   | **2004** |   |
|                                                                                                                                                                                        |   |                                      |       |                                      |   |   |   |   |   |
| Weighted-average                  number of common shares used in basic income (loss) per common                  share                  calculation                                        |   |                                      | 76,452,012 |                                      |   | 76,296,792 |   |   | 76,436,985 |   |   | 76,234,292 |   |
|                                                                                                                                                                                        |   |                                      |       |                                      |   |   |   |   |   |   |   |   |   |
| Incremental                  potentially issuable common shares from assumed conversion of Class                  N                  common shares                                          |   |                                      | -          |                                      |   | - |   |   | - |   |   | 61,175,681 |   |
|                                                                                                                                                                                        |   |                                      |       |                                      |   |   |   |   |   |   |   |   |   |
| Weighted-average                  number of common shares and dilutive potential common shares used                  in                  diluted income (loss) per common share calculation |   |                                      | 76,452,012 |                                      |   | 76,296,792 |   |   | 76,436,985 |   |   | 137,409,973 |   |

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

**Cautionary      Statement Regarding Forward_Looking Statements**

**Overview**

**Results      of Operations**

----

**Sales      Revenues**

|                          |   | **For                the Three Months Ended****June                30,** |    | **For                the Six Months Ended****June                30,** |   |
|-------------------------------|--------|--------------------------------------------------------------------------|---------|------------------------------------------------------------------------|--------|
|                          |   | **2005**                                                                 |    | **2004**                                                               |   | **2005** |   | **2004** |   |
|                          |   |                                                                     |    |                                                                   |   |   |   |   |   |
|                          |   |                                                                     |    |                                                                   |   |   |   |   |   |
| Sales                Revenues |   | $                                                                        | 213,900 |                                                                   | $      | 198,400 |   | $ | 401,000 |   | $ | 389,600 |   |

**Operating      Expenses **

|                                                 |   | **For                the Three Months Ended****June                30,** |    | **For                the Six Months Ended****June                30,** |   |
|------------------------------------------------------|--------|--------------------------------------------------------------------------|---------|------------------------------------------------------------------------|--------|
|                                                 |   | **2005**                                                                 |    | **2004**                                                               |   | **2005** |   | **2004** |   |
|                                                 |   |                                                                     |    |                                                                   |   |   |   |   |   |
|                                                 |   |                                                                     |    |                                                                   |   |   |   |   |   |
| General                  and Administrative Expenses |   | $                                                                        | 292,900 |                                                                   | $      | 206,100 |   | $ | 498,700 |   | $ | 389,600 |   |

**Net      Income (Loss)**

|                             |   | **For                the Three Months Ended****June                30,** |    | **For                the Six Months Ended****June                30,** |   |
|----------------------------------|--------|--------------------------------------------------------------------------|---------|------------------------------------------------------------------------|--------|
|                             |   | **2005**                                                                 |    | **2004**                                                               |   | **2005** |   | **2004** |   |
|                             |   |                                                                     |    |                                                                   |   |   |   |   |   |
|                             |   |                                                                     |    |                                                                   |   |   |   |   |   |
| Net                profit (loss) |   | $                                                                        | (80,400 | )                                                                      | $      | (6,900 | ) | $ | (99,800 | ) | $ | 9,200 |   |

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**Liquidity      and Capital Resources**

**Deferred      Revenue**

**ITEM      3. CONTROLS AND PROCEDURES**

**PART      II - OTHER INFORMATION**

**ITEM      1.**
**LEGAL      PROCEEDINGS**

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| **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** |
|--------------------------|--------------------------------------|

| **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 |

----

**SIGNATURES**

|                         | RecycleNet                Corporation                                                                                                                                                                                                                                                         |
|------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                         |                                                                                                                                                                                                                                                                                          |
|                         |                                                                                                                                                                                                                                                                                          |
| July                29, 2005 | /s/                Paul                Roszel                                         |
|                         | Paul                Roszel,                                                                                                                                                                                                                                                                   |
|                         | President                and Chairmanof                the Board of Directors                                                                                                                                                                                                                 |
|                         |                                                                                                                                                                                                                                                                                          |
|                         |                                                                                                                                                                                                                                                                                          |
| July                29, 2005 | /s/                Richard                Ivanovick                                                                                     |
|                         | Richard                Ivanovick, C.A.,                                                                                                                                                                                                                                                       |
|                         | Chief                Financial and Accounting                Officer                                                                                                                                                                                                                          |

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