*Table
            of Contents*





**SECURITIES
      AND EXCHANGE COMMISSION**


WASHINGTON,
      D.C. 20549




**FORM
      10-KSB**





**ANNUAL
      REPORT PURSUANT TO SECTION 13 OR 15(D) OF**


**THE
      SECURITIES EXCHANGE ACT OF 1934**


**FOR
      THE FISCAL YEAR ENDED SEPTEMBER 30, 2007**





**Commission
      File Number 0-17750**





**RECEIVABLE
      ACQUISITION & MANAGEMENT CORPORATION**


(Exact
      Name of Registrant as Specified in its Charter)





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





**2500
      PLAZA 5 HARBORSIDE FINANCIAL CENTER**


**JERSEY
      CITY, NJ 07311**


**201-633-4715**


(Address,
      including zip code, and telephone number,


including
      area code, of registrant’s principal executive offices)





**SECURITIES
      REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:**


None





**SECURITIES
      REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:**


**Common
      Stock $.001 par value**





Check
      whether the issuer (1) has filed all reports required to be filed by Section
      13
      or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
      (or for such shorter period that the registrant was required to file such
      reports), and (2) has been subject to such filing requirements for the past
      90
      days.


Yes
x 
No
o




Check
      if
      there is no disclosure of delinquent filers pursuant to Item 405 of Regulation
      S-B is contained herein, and will not be contained, to the best of registrant’s
      knowledge, in definitive proxy or information statements incorporated by
      reference in Part III of this Form 10-KSB or any amendment to this Form
      10-KSB.





Issuer’s
      revenues for its most recent fiscal year: $352,944





The
      aggregate market value of voting stock held by non-affiliates of the registrant
      as of December 28, 2007 was approximately $422,500 (based on the last reported
      sale price of $0.025 per share on January 4, 2007).





The
      number of shares of the registrant’s common stock outstanding as of was
      16,944,150.





Transitional
      Small Business Disclosure Format: Yes o  No x





Indicate
      by check mark whether the registrant is a shell Company (as defined in Rule
      12b-2 of the Exchange Act) Yes o  No x







*Table
        of Contents*




**RECEIVABLE
      ACQUISITION & MANAGEMENT CORPORATION**


**FORM
      10-KSB**


**FOR
      THE FISCAL YEAR ENDED SEPTEMBER 30, 2007**




TABLE
      OF CONTENTS




PART
                I
            DESCRIPTION
                OF BUSINESSITEM
                1.
            RISK
                FACTORS
            3ITEM
                2.
            DESCRIPTION
                OF PROPERTY
            12ITEM
                3.
            LEGAL
                PROCEEDINGS
            12ITEM
                4.
            SUBMISSION
                OF MATTERS TO A VOTE OF SECURITY
                HOLDERS
            13PART
                IIITEM
                5.
            MARKET
                FOR COMMON EQUITY AND RELATED STOCKHOLDER
                MATTERS
            14ITEM
                6.
            MANAGEMENT’S
                DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
            15ITEM
                7.
            FINANCIAL
                STATEMENTS
            19ITEM
                8.
            CHANGES
                IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
                AND FINANCIAL DISCLOSURE
            37ITEM
                8A.
            CONTROLS
                AND PROCEDURES
            37ITEM
                8B.
            OTHER
                INFORMATION
            37PART
                IIIITEM
                9.
            DIRECTORS,
                EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
                PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE
                ACT
            37ITEM
                10.
            EXECUTIVE
                COMPENSATION
            38ITEM
                11.
            SECURITY
                OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
                MANAGEMENT AND RELATED STOCKHOLDER MATTERS
            39ITEM
                12.
            CERTAIN
                RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR
                INDEPENDENCE
            39ITEM
                13.
            EXHIBITS
            39ITEM
                14.
            PRINCIPAL
                ACCOUNTANT FEES AND SERVICES
            40




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




-2-
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**ITEM
      1**.**DESCRIPTION
      OF BUSINESS.**





We
      are a
      Delaware corporation whose principal executive offices are located at 2500
      Plaza
      5, Harborside Financial Center, Jersey City, NJ 0731. Unless the context
      otherwise requires, the terms "we", "us" or "our" as used herein refer to
      Receivable Acquisition & Management Corporation and our
      subsidiary.





**Overview**





Receivable
      Acquisition & Management Corporation (the “Company”) is in the business of
      acquiring and collecting portfolios of performing, sub-performing and
      non-performing consumer and commercial receivables. These portfolios generally
      consist of one or more of the following types of consumer
      receivables:





·
            charged-off
                receivables -- accounts that have been written-off by the originators
                and
                may have been previously serviced by collection
                agencies;





·
            freshly
                charged-off accounts that have not been assigned for
                collection;





·
            sub-performing
                receivables -- accounts where the debtor is currently making partial
                or
                irregular monthly payments, but the accounts may have been written-off
                by
                the originators; and





·
            performing
                receivables - accounts where the debtor is making regular payments
                or pays
                upon normal and customary
                procedures.





We
      generally acquire non-performing and sub-performing consumer and commercial
      receivable portfolios at a significant discount to the amount actually owed
      by
      the debtors or insurers. We acquire these portfolios after a qualitative and
      quantitative analysis of the underlying receivables and establish a purchase
      price based on expected recovery and our internal rate of return hurdle. After
      purchasing a portfolio, we outsource collections to carefully selected
      collection agencies and we actively monitor its performance and review and
      adjust our collection and servicing strategies accordingly.





We
      purchase receivables from creditors and others through privately negotiated
      direct sales and auctions in which sellers of receivables seek bids from several
      pre-qualified debt purchasers. These receivables consist primarily of credit
      cards, auto deficiencies, student loans, retail installment contracts, medical
      and other types of receivables. We pursue new acquisitions of consumer
      receivable portfolios on an ongoing basis through:





·
            our
                direct relationships with credit originators; and





·
            brokers
                who specialize in the sale of consumer receivable
                portfolios.




Our
      objective is to maximize our return on investment on acquired consumer
      receivable portfolios. As a result, before acquiring a portfolio, we analyze
      the
      portfolio to determine how to best maximize collections in a cost efficient
      manner and carefully analysis of collection agencies selected to service a
      portfolio. We believe in outsourcing 99% of its recovery efforts. We believe
      that we can never be experts in collecting all the various types of debt. We
      retain a handful of accounts internally for benchmarking purposes. Our
      philosophy is to keep overhead low and concentrate on our strengths of analysis
      and purchasing the portfolios at the right price and managing the recovery
      process.




The
      recovery process is largely done by collection agencies and law firms. Recovery
      process is generally handed over to lawyers when it is determined the debtor
      has
      the ability to satisfy his/her obligation but normal collection activities
      have
      not resulted in resolution.




-3-
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          of Contents*





In
      many
      ways investments are tailored to coincide with our recovery partner’s strengths.
      In the United States, we believe there are approximately 4,800 collection
      agencies and law firms. Most are generalists and some are specialist in the
      various segments of the market. In many cases we have a choice dependent upon
      the circumstances of the investment. We look for certain tangible and intangible
      qualities in our recovery partners. Companies that have made investment in
      infrastructure that allow them to perform on an efficient and timely basis
      are
      selected. Prior to assigning a portfolio for collection standard informal audit
      of the recovery partner is done.




In
      the
      event of legal action, we seek attorneys/collection law firms that are located
      in the state of the debtor. The proximity of the agent to the debtor has a
      significant influence on the debtors’ actions.




We
      use an
      internally developed incentive-based fee structure to negotiate the contingency
      fees of the recovery partners. This is a tiered method of paying the partner
      an
      increasing percentage of collections if they meet pre-agreed to hurdles. These
      hurdles are recovery of our investment plus returns in defined time periods.
      In
      most cases, an underestimation of the collection process involves the extension
      of the collection horizon. For instance, a debtor that is not in a position
      to
      immediately settle their obligation at the moment the obligation is purchased,
      is most likely to be in a position of being able to clear his/her credit in
      the
      foreseeable future if they are capable of gainful employment or expects their
      financial lot to improve. We will not write off these types of debtors but
      may
      extend our collection horizon to include the moment in time when
      collection/settlement is possible. We continuously weigh the benefits of selling
      the obligations versus holding it in anticipation of settlement. If we can
      realize an acceptable return within the expected horizon by selling the loan,
      the Company will do so. In most cases an obligation becomes collectible at
      a
      point in time. Periodically, we will evaluate our portfolios to identify
      accounts with profiles that are inconsistent with our collection strategies.
      Such accounts can be offered for sale to a network of investors, collection
      agencies and law firms.





Post
      acquisition administration of each portfolio and each account is vital to our
      business. Real time monitoring of portfolio performance and activity at the
      account level allows us to keep our recovery partners on their toes. The Company
      uses database software that has all the information of a debtor and fees,
      interest and collections are regularly reconciled with reports from the
      collection agencies. Each portfolio administrator can manage up to 25,000
      accounts on an ongoing basis. The software allows us to export data into Excel
      for more portfolio analysis.





For
      the
      years ended September 30, 2007 and September 30, 2006, our revenues were
      approximately $352,944 and $717,878 respectively, and our net loss was
      approximately ($344,694) and $48,904, respectively. During these same years
      our
      cash collections were approximately $868,462 and $1,141,093 respectively and
      servicing incomes were approximately $106,075 and $212,934,
      respectively.




**Industry
      Overview**





The
      purchasing, servicing and collection of charged-off, sub-performing and
      performing consumer receivables is an industry that is driven by:





·
            levels
                of consumer debt;





·
            defaults
                of the underlying receivables; and





·
            utilization
                of third-party providers to collect such
                receivables.




We
      believe that as a result of the difficulty in collecting these past due
      receivables and the desire of originating institutions to focus on their core
      businesses and to generate revenue from these receivables, originating
      institutions are increasingly electing to sell these portfolios. However, due
      to
      rapid rise in prices, the Company is looking for investment opportunities in
      Europe.


-4-
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          of Contents*




**Strategy** ******





Our
      strategy is to acquire portfolios and outsource collections. We believe we
      differentiate ourselves from the rest of the field based on the
      following:





·
            knowledge
                of quantitative and qualitative
                variables


·
            knowledge
                of the history of debt under consideration for
                purchase


·
            understanding
                of portfolio’s characteristics than the originator/seller of the debt.


·
            How
                the debt is originated - telemarketing, direct mail solicitation,
                face to
                face in the office, home, or casual event. We further look at why
                the
                individual took on the debt - was it to buy something of need or
                a
                spontaneous purchase.


·
            Demographic
                of the debtor- socio economic category.


·
            Outsource
                to specialist recovery firms and avoiding pressure to keep internal
                collection personnel busy.





We
      have
      invested significant resources in developing a proprietary analytical tool
      that
      takes into accounts all the value objects. Our proprietary database analysis
      application is able to cleanse and format raw data, sort and produce reports
      and
      statistics that analyze the predictability of collection of a pool under
      consideration such as geographic dispersion, statute analysis, recovery history,
      etc. This is coupled with a bottom up approach resulting in selection of
      portfolios with highest probability of collection, and valuation and finally
      pricing. Final purchase decisions are based on our multiple regression models
      that determine the likelihood of payment by analyzing both the demographic
      and
      account-level data of a given portfolio and comparing it our database of
      accounts and feedback from our recovery partners This is coupled with internally
      developed statistical models that attempt to score and map out a potential
      recovery curve of a given portfolio.  By implementing a multi-tier
      approach, our analysis will result in the selection of portfolios with highest
      probability of collection, and valuation and finally rational pricing. 
This rigorous disciplined approach does not permit paying more than established
      range.




We
      believe we can grow the business by managing collections efficiently, paying
      the
      right price for portfolios, expanding relationships with credit originators,
      country diversification and maintaining a low fixed overhead although we cannot
      provide guarantees. We believe that as a result of our management's experience
      and expertise, and the fragmented yet growing market in which we operate, we
      are
      well-positioned to successfully implement our strategy.




**Consumer
      Receivables Business**





Due
      to
      capital constraint, the Company has not been able to purchase large portfolios
      and the portfolios it has acquired are through the following
      sources:





·
            our
                relationships with industry participants, collection agencies, and
                resellers;





·
            brokers
                who specialize in the sale of consumer and commercial receivable
                portfolios; and





·
            other
                sources.





We
      utilize our relationships with brokers, recovery partners and sellers of
      portfolios to locate portfolios for purchase. Our senior management is
      responsible for:





·
            coordinating
                due diligence, including in some cases on-site visits to the seller's
                office;





·
            stratifying
                and analyzing the portfolio
                characteristics;





·
            valuing
                the portfolio;





·
            preparing
                bid proposals;


·
            negotiating
                pricing and terms;





·
            closing
                the purchase; and





·
            the
                receipt of account documentation for the acquired
                portfolios.




-5-
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          of Contents*




The
      seller or broker typically supplies us with either a sample listing or the
      actual portfolio being sold on compact disk, a diskette or other form of media.
      We analyze each consumer receivable portfolio to determine if it meets our
      purchasing criteria. We may then prepare a bid or negotiate a purchase price.
      If
      a purchase is completed, senior management monitors the portfolio's performance
      and uses this information in determining future buying criteria and
      pricing.





We
      purchase receivables at discounts from the balance actually owed by the
      consumer. We determine how much to bid on a portfolio and a purchase price
      by
      evaluating many different variables, such as:




·
            The
                number of collection agencies previously attempting to collect the
                receivables in the portfolio;





·
            the
                average balance of the receivables;





·
            the
                age of the receivables;





·
            number
                of days since charge-off;





·
            payments
                made since charge-off; and





·
            demographics





Once
      a
      receivable portfolio has been identified for potential purchase, we prepare
      various analyses based on extracting customer level data from external sources,
      other than the issuer, to analyze the potential collectibility of the portfolio.
      We also analyze the portfolio by comparing it to similar portfolios previously
      serviced by our recovery partners or potential recovery partners. In addition,
      we perform qualitative analyses of other matters affecting the value of
      portfolios, including a review of the delinquency, charge off, placement and
      recovery policies of the originator as well as the collection authority granted
      by the originator to any third party collection agencies, and, if possible,
      by
      reviewing their recovery efforts on the particular portfolio. After these
      evaluations are completed, members of our senior management discuss the
      findings, decide whether to make the purchase and finalize the price at which
      we
      are willing to purchase the portfolio.





We
      purchase most of our consumer receivable portfolios directly from originators
      and other sellers including, from time to time, our recovery partners through
      privately negotiated direct sales or through a bidding process. In order for
      us
      to consider a potential seller as a source of receivables, a variety of factors
      are considered. Sellers must demonstrate that they have:





·
            adequate
                internal controls to detect fraud;





·
            the
                ability to provide post sale support;
                and





·
            the
                capacity to honor buy-back and return warranty
                requests.





Generally,
      our portfolio purchase agreements provide that we can return certain accounts
      to
      the seller. However, we may acquire a portfolio with few, if any, rights to
      return accounts to the seller. After acquiring a portfolio, we conduct a
      detailed analysis to determine which accounts in the portfolio should be
      returned to the seller. Although the terms of each portfolio purchase agreement
      differ, examples of accounts that may be returned to the seller
      include:





·
            debts
                paid prior to the cutoff date;




·
            debts
                in which the consumer filed bankruptcy prior to the cutoff
                date;




-6-
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·
            debtor
                is incarcerated; and





·
            debts
                in which the consumer was deceased prior to cutoff
                date.





·
            In
                case of commercial receivables, recourse is limited to fraud and
                lack of
                documentation.




***Receivable
      Servicing***





Our
      objective is to maximize our return on investment on acquired consumer
      receivable portfolios. As a result, before acquiring a portfolio, we analyze
      the
      portfolio to determine how to best maximize collections in a cost efficient
      manner. Once a portfolio has been acquired, we or our recovery partner generally
      download all receivable information provided by the seller into our account
      management system and reconcile certain information with the information
      provided by the seller in the purchase contract. We or our recovery partners
      send notification letters to obligors of each acquired account explaining,
      among
      other matters, our new ownership and asking that the obligor contact us. In
      addition, we notify the three major credit reporting agencies of our new
      ownership of the receivables. We presently outsource all our collections to
      collection agencies. After assignment to a collection agency we actively monitor
      and review the collection agency’s performance on an ongoing basis.





*Customer
      Service*





The
      customer service department is responsible for:





·
            handling
                incoming calls from debtors and collection agencies that are responsible
                for collecting on our consumer receivable
                portfolios;





·
            coordinating
                customer inquiries and assisting the collection agencies in the collection
                process.





·
            Commercial
                servicing is exclusively handled by servicer with limited involvement
                of
                the Company.




***Portfolio
      Sales***





We
      sell
      portfolios if they do not meet our internal rate of return hurdle or if we
      can
      achieve our returns through a sale.





***Marketing***





The
      Company has established relationships with brokers who market consumer
      receivable portfolios from banks, finance companies and other credit providers.
      The Company has exclusive marketing agreements with certain Credit Union Leagues
      and continues to expand in that space. In addition, the Company subscribes
      to
      national publications that list consumer receivable portfolios for sale. The
      Company also directly contacts banks, finance companies or other credit
      providers to solicit consumer receivables for sale.





***Competition***





Our
      business of purchasing distressed consumer receivables is highly competitive
      and
      fragmented, and we expect that competition from new and existing companies
      will
      increase. We compete with:





·
            other
                purchasers of consumer receivables, including third-party collection
                companies; and





·
            other
                financial services companies who purchase consumer
                receivables.




Some
      of
      our competitors are larger and more established and may have substantially
      greater financial, technological, personnel and other resources than we have,
      including greater access to capital markets.




-7-
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***Management
      Information Systems***





We
      have
      upgraded our information system to make tracking of collection activities more
      efficient. In addition, we rely on the information technology of our third-party
      recovery partners and periodically review their systems to ensure that they
      can
      adequately service our consumer receivable portfolios.




***Employees***





As
      of
      September 30, 2007, we had four full-time employees.





**Risk
      Factors**





You
      should carefully consider these risk factors in evaluating the Company. In
      addition to the following risks, there may also be risks that we do not yet
      know
      of or that we currently think are immaterial that may also impair our business
      operations. If any of the following risks occur, our business, results of
      operation or financial condition could be adversely affected, the trading price
      of our common stock could decline and shareholders might lose all or part of
      their investment.





**We
      may not be able to purchase consumer or commercial receivable portfolios at
      favorable prices or on sufficiently favorable terms or at all and our success
      depends upon the continued availability of consumer receivable portfolios that
      meet our purchasing criteria and our ability to identify and finance the
      purchases of such portfolios.**





The
      availability of consumer and commercial receivable portfolios at favorable
      prices and on terms acceptable to us depends on a number of factors outside
      of
      our control, including:





·
            the
                growth of consumer debt;





·
            the
                continued volume of consumer receivable portfolios available for
                sale;
                and





·
            competitive
                factors affecting potential purchasers and sellers of consumer receivable
                portfolios.





We
      have
      seen at certain times that the market for acquiring consumer receivable
      portfolios is becoming more competitive, thereby possibly diminishing our
      ability to acquire such receivables at attractive prices in future periods.
      The
      growth in consumer debt may also be affected by:





·
            a
                slowdown in the economy;





·
            reductions
                in consumer spending;





·
            changes
                in the underwriting criteria by originators;
                and





·
            changes
                in laws and regulations governing consumer
                lending.





Any
      slowing of the consumer debt could result in a decrease in the availability
      of
      consumer receivable portfolios for purchase that could affect the purchase
      prices of such portfolios. Any increase in the prices we are required to pay
      for
      such portfolios in turn will reduce the profit, if any, we generate from such
      portfolios.





**Our
      quarterly operating results may fluctuate and cause our stock price to
      decline.**





Because
      of the nature of our business, our quarterly operating results may fluctuate,
      which may adversely affect the market price of our common stock. Our results
      may
      fluctuate as a result of any of the following:





·
            the
                timing and amount of collections on our consumer receivable
                portfolios;




·
            our
                inability to identify and acquire additional consumer receivable
                portfolios;





·
            a
                decline in the estimated value of our consumer receivable portfolio
                recoveries;




-8-
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          of Contents*




·
            increases
                in operating expenses associated with the growth of our operations;
                and





·
            general
                and economic market conditions.





·
            Currency
                fluctuations can have an impact on our recoveries from U.K.
                portfolios.





**We
      may not be able to recover sufficient amounts on our consumer receivable
      portfolios to recover the costs associated with the purchase of those portfolios
      and to fund our operations.**




In
      order
      to operate profitably over the long term, we must continually purchase and
      collect on a sufficient volume of receivables to generate revenue that exceeds
      our costs.





Our
      ability to recover on our portfolios and produce sufficient returns can be
      negatively impacted by the quality of the purchased receivables. In the normal
      course of our portfolio acquisitions, some receivables may be included in the
      portfolios that fail to conform to certain terms of the purchase agreements
      and
      we may seek to return these receivables to the seller for payment or replacement
      receivables. However, we cannot guarantee that any of such sellers will be
      able
      to meet their payment obligations to us. Accounts that we are unable to return
      to sellers may yield no return. If cash flows from operations are less than
      anticipated as a result of our inability to collect sufficient amounts on our
      receivables, our ability to satisfy our debt obligations, purchase new
      portfolios and our future growth and profitability may be materially adversely
      affected.





**We
      are subject to intense competition for the purchase of consumer receivable
      portfolios and, as a result of this competition, if we are unable to purchase
      receivable portfolios, our profits, if any, will be limited.**





We
      compete with other purchasers of consumer receivable portfolios, with
      third-party collection agencies and with financial services companies that
      manage their own consumer receivable portfolios. We compete on the basis of
      reputation, industry experience and performance. Some of our competitors have
      greater capital, personnel and other resources than we have. The possible entry
      of new competitors, including competitors that historically have focused on
      the
      acquisition of different asset types, and the expected increase in competition
      from current market participants may reduce our access to consumer receivable
      portfolios. Aggressive pricing by our competitors could raise the price of
      consumer receivable portfolios above levels that we are willing to pay, which
      could reduce the number of consumer receivable portfolios suitable for us to
      purchase or if purchased by us, reduce the profits, if any, generated by such
      portfolios. If we are unable to purchase receivable portfolios at favorable
      prices or at all, our revenues and earnings could be materially
      reduced.





**Failure
      of our third party recovery partners to adequately perform collection services
      could materially reduce our revenues and our profitability, if
      any.**





We
      are
      dependent upon outside collection agencies to service all our consumer
      receivable portfolios. Any failure by our third party recovery partners to
      adequately perform collection services for us or remit such collections to
      us
      could materially reduce our revenues and our profitability. In addition, our
      revenues and profitability could be materially adversely affected if we are
      not
      able to secure replacement recovery partners and redirect payments from the
      debtors to our new recovery partner promptly in the event our agreements with
      our third-party recovery partners are terminated, our third-party recovery
      partners fail to adequately perform their obligations or if our relationships
      with such recovery partners adversely change.





**Our
      collections may decrease if bankruptcy filings increase.**





During
      times of economic recession, the amount of defaulted consumer receivables
      generally increases, which contributes to an increase in the amount of personal
      bankruptcy filings. Under certain bankruptcy filings, a debtor's assets are
      sold
      to repay credit originators, but since the defaulted consumer receivables we
      purchase are generally unsecured we often would not be able to collect on those
      receivables. We cannot assure you that our collection experience would not
      decline with an increase in bankruptcy filings. If our actual collection
      experience with respect to a defaulted consumer receivables portfolio is
      significantly lower than we projected when we purchased the portfolio, our
      earnings could be negatively affected.




-9-
 *Table
          of Contents*





**We
      may not be able to continue our operations if we are unable to generate funding
      from third party financing sources**





If
      we are
      unable to access external sources of financing, we may not be able to fund
      and
      grow our operations. The failure to obtain financing and capital as needed
      would
      limit our ability to:





·
            purchase
                consumer receivable portfolios; and





·
            achieve
                our growth plans.




**We
      use estimates for recognizing revenue on a majority of our consumer receivable
      portfolio investments and our earnings would be reduced if actual results are
      less than estimated.**





We
      recognize finance income on a majority of our consumer receivable portfolios
      using the interest method. We only use this method if we can reasonably estimate
      the expected amount and timing of cash to be collected on a specific portfolio
      based on historic experience and other factors. Under the interest method,
      we
      recognize finance income on the effective yield method based on the actual
      cash
      collected during a period, future estimated cash flows and the portfolio's
      carrying value prior to the application of the current quarter's cash
      collections. The estimated future cash flows are reevaluated quarterly. If
      future cash collections on these portfolios were less than what was estimated,
      we would recognize less than anticipated finance income or possibly an expense
      that would reduce our earnings during such periods. Any reduction in our
      earnings could materially adversely affect our stock price.




**We
      may not be successful at acquiring receivables of new asset types or in
      implementing a new pricing structure.**





We
      may
      pursue the acquisition of receivable portfolios of asset types in which we
      have
      little current experience. We may not be successful in completing any
      acquisitions of receivables of these asset types and our limited experience
      in
      these asset types may impair our ability to collect on these receivables. This
      may cause us to pay too much for these receivables, and consequently, we may
      not
      generate a profit from these receivable portfolio acquisitions.





**The
      loss of any of our executive officers may adversely affect our operations and
      our ability to successfully acquire receivable portfolios.**





Our
      Chairman, Gobind Sahney, our President and Chief Executive Officer, Max Khan,
      are responsible for making substantially all management decisions, including
      determining which portfolios to purchase, the purchase price and other material
      terms of such portfolio acquisitions. These decisions are instrumental to the
      success of our business. The loss of the services of Gobind Sahney or Max Khan
      could disrupt our operations and adversely affect our ability to successfully
      acquire and service receivable portfolios.




**Government
      regulations may limit our ability to recover and enforce the collection of
      our
      receivables.**





Federal,
      state and municipal laws, rules, regulations and ordinances may limit our
      ability to recover and enforce our rights with respect to the receivables
      acquired by us. These laws include, but are not limited to, the following
      federal statutes and regulations promulgated thereunder and comparable statutes
      in states where consumers reside and/or where creditors are
      located:




·
            the
                Fair Debt Collection Practices Act;





·
            the
                Federal Trade Commission Act;




-10-
 *Table
          of Contents*




·
            the
                Truth-In-Lending Act;





·
            the
                Fair Credit Billing Act;





·
            the
                Equal Credit Opportunity Act; and





·
            the
                Fair Credit Reporting Act.





Additional
      laws may be enacted that could impose additional restrictions on the servicing
      and collection of receivables. Such new laws may adversely affect the ability
      to
      collect the receivables.





Because
      the receivables were originated and serviced pursuant to a variety of federal
      and/or state laws by a variety of entities and involved consumers in all 50
      states, the District of Columbia and Puerto Rico, there can be no assurance
      that
      all original servicing entities have at all times been in substantial compliance
      with applicable law. Additionally, there can be no assurance that we or our
      recovery partners have been or will continue to be at all times in Substantial
      compliance with applicable law. The failure to comply with applicable law could
      materially adversely affect our ability to collect our receivables and could
      subject us to increased costs and fines and penalties. In addition, our
      third-party recovery partners may be subject to these and other laws and their
      failure to comply with such laws could also materially adversely affect our
      revenues and earnings.




The
      Company is also subject to various debt collection and privacy regulations
      of
      countries where is operates.





**Class
      action suits and other litigation in our industry could divert our management's
      attention from operating our business and increase our
      expenses.**





Certain
      originators and recovery partners in the consumer credit industry have been
      subject to class actions and other litigation. Claims include failure to comply
      with applicable laws and regulations and improper or deceptive origination
      and
      servicing practices. If we become a party to such class action suits or other
      litigation, our results of operations and financial condition could be
      materially adversely affected.





**If
      a significant portion of our shares available for resale are sold in the public
      market, the market value of our common stock could be adversely
      affected.**





Sales
      of
      a substantial number of shares of our common stock in the public market could
      cause a decrease in the market price of our common stock. We had approximately
      16,928,917 shares of common stock issued and outstanding as of the date hereof.
      In addition, options to purchase approximately 950,000 shares of our common
      stock were outstanding as of the date here of. We may also issue additional
      shares in connection with our business and may grant additional stock options
      to
      our employees, officers, directors and consultants under our stock option plans
      or warrants to third parties. As of September 30, 2007 there were 950,000 shares
      available for such purpose. If a significant portion of these shares were sold
      in the public market, the market value of our common stock could be adversely
      affected.





**Our
      common stock will be subject to the “Penny Stock” rules of the
      SEC.** ******




The
      Securities and Exchange Commission has adopted Rule 15g-9 which establishes
      the
      definition of a "penny stock," for the purposes relevant to us, as any equity
      security that has a market price of less than $5.00 per share or with an
      exercise price of less than $5.00 per share, subject to certain exceptions.
      For
      any transaction involving a penny stock, unless exempt, the rules require:


·
            that
                a broker or dealer approve a person's account for transactions in
                penny
                stocks; and


·
            the
                broker or dealer receive from the investor a written agreement to
                the
                transaction, setting forth the identity and quantity of the penny
                stock to
                be purchased.




-11-
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          of Contents*




In
      order
      to approve a person's account for transactions in penny stocks, the broker
      or
      dealer must:





·
            obtain
                financial information and investment experience objectives of the
                person;
                and


·
            make
                a reasonable determination that the transactions in penny stocks
                are
                suitable for that person and the person has sufficient knowledge
                and
                experience in financial matters to be capable of evaluating the risks
                of
                transactions in penny stocks.





The
      broker or dealer must also deliver, prior to any transaction in a penny stock,
      a
      disclosure schedule prescribed by the Commission relating to the penny stock
      market, which, in highlight form:





·
            sets
                forth the basis on which the broker or dealer made the suitability
                determination; and


·
            that
                the broker or dealer received a signed, written agreement from the
                investor prior to the transaction.





Generally,
      brokers may be less willing to execute transactions in securities subject to
      the
      "penny stock" rules. This may make it more difficult for investors to dispose
      of
      our common stock and cause a decline in the market value of our stock.





Disclosure
      also has to be made about the risks of investing in penny stocks in both public
      offerings and in secondary trading and about the commissions payable to both
      the
      broker-dealer and the registered representative, current quotations for the
      securities and the rights and remedies available to an investor in cases of
      fraud in penny stock transactions. Finally, monthly statements have to be sent
      disclosing recent price information for the penny stock held in the account
      and
      information on the limited market in penny stocks.





**ITEM
      2. DESCRIPTION OF PROPERTY.**





Our
      executive and administrative offices are located at 2500 Plaza 5, Harborside
      Financial Center, Jersey City, NJ 07311 and 162 S. Rancho Santa Fe, Suite B
      85,
      Encinitas, California 92024, respectively. We believe that our existing
      facilities are adequate for our current and anticipated needs. We lease our
      New
      Jersey facility at approximately $3,000 per month and such lease expires on
      February 28, 2009. We lease our California facilities at $1,800 per month and
      such lease expires in March 2009.





**ITEM
      3**.**LEGAL
      PROCEEDINGS.**





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





·
            On
                April 23, 2004, Reliant Industries, Inc., Michael Wong and Debbie
                Wong
                filed a complaint with the Supreme Court of the State of New York
                Suffolk
                County against Biopharmaceuticals, Inc. and Edward Fine.
                Biopharmaceuticals, Inc. is the Company’s former name. The plaintiffs
                allege that the Company together with the other defendant committed
                fraud,
                breach of contract and negligence. The plaintiffs are seeking monetary
                payments for any loss that they may suffer as a result of the alleged
                fraud, breach of contract and negligence as well as legal fees, punitive
                damages and costs disbursements. The Company denies all allegations
                and
                intends to defend this action vigorously. To date there has been
                no
                progress on this case and the Company is not incurring any
                expenses.




-12-
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·
            On
                June 29, 2005, Allied Surgical Centers Management, LLC, et al. (“Allied”)
                filed a complaint against the Company seeking declaratory and injunctive
                relief in connection with contracts entered in April 2005 between
                Allied
                and the Company pursuant to which the Company acquired various account
                receivables from Allied (the “Contracts”). Such compliant was filed in the
                Superior Court of the State of California, For the County of Los
                Angeles,
                Central District. Allied is seeking a declaratory judgment from the
                court
                which would exclude various account receivables (the “Disputed Account
                Receivables”) from the Contracts. Allied was also seeking a temporary
                restraining order and preliminary injunction restricting the Company
                from
                attempting to seize or collecting the Disputed Account Receivables.
                The
                Company filed a cross complaint on July 15, 2005. In the cross complaint,
                the Company was seeking an accounting, a mandatory injunction for
                specific
                performance of the Contracts and damages in the amount of $21,000,000
                in
                connection with Allied’s alleged breach of contract, fraud, intentional
                interference with prospective economic advantage, breach of good
                faith,
                breach of fiduciary duty, conversion and slander. The Company and
                Allied
                have reached a settlement in connection with this matter. Allied
                has
                dropped all of its claims and agreed to pay all funds received since
                the
                purchase of Allied’s portfolio in April 2005. The settlement agreement was
                executed on February 10, 2006 and the Company received the first
                settlement payment on March 1, 2006 and continues to receive payments
                according to the settlement
                agreement.




·
            On
                September 9, 2005, the Company filed a complaint with the Supreme
                Court of
                the State of New York - County of New York against Triton Capital,
                Inc.,
                Southern Capital Associates, Inc., JMS Collections, LLC., Wendt Law
                Office, James Roscetti, and Dave Dwyer for breach of contract, conversion,
                deceptive business practices and unjust enrichment. The Company was
                seeking an amount no less than $46,931. The Company reached a settlement
                with the Defendants and recovered $7,092 in July
                2007.




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





None.




-13-
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          of Contents*




**PART
      II**





ITEM
      5.MARKET
      FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.





Since
      October 2004, our common stock, par value $.001 per share, had been quoted
      on
      the Nasdaq Bulletin Board under the symbol “RCVA”. Prior to May 2004, there was
      no market for our common stock. The last reported price as of December , 2007
      was $0.__ per share.





Quarter
                Ended
            High
                ($)
            Low
                ($)December
                31, 2005
            .25
            .10March
                31, 2006
            .60
            .15June
                30, 2006
            .40
            .20September
                30, 2006
            .35
            .08December
                31, 2006
            .25
            .14March
                31, 2007
            .15
            .07June
              30, 2007
            .14
            .07September
              30, 2007
            .11
            .06




**Holders**





As
      of
      December 31, 2007 we had approximately 485 holders of our common stock. The
      number of record holders was determined from the records of our transfer agent
      and does not include beneficial owners of common stock whose shares are held
      in
      the names of various security brokers, dealers, and registered clearing
      agencies.





**Dividends**




We
      have
      never declared or paid any cash dividends on our common stock. We do not
      anticipate paying any cash dividends to stockholders in the foreseeable future.
      In addition, any future determination to pay cash dividends will be at the
      discretion of the Board of Directors and will be dependent upon our financial
      condition, results of operations, capital requirements, and such other factors
      as the Board of Directors deem relevant.





**Equity
      Compensation Plans**





As
      of
      September 30, 2007, we had the following securities authorized for issuance
      under the equity compensation plans:





Plan
                Category
            
            Number
                of Securities to be issued upon exercise of outstanding options,
                warrants
                and rights
            
            Weighted-average
                exercise price of outstanding options, warrants and rights
            
            Number
                of securities remaining available for future issuance under equity
                compensation plans (excluding securities reflected in column
                (a)Equity
                compensation plans approved by security holders
            
            
            2,500,000
            
            $
            0.15
            
            
            950,000Equity
                compensation plans not approved by security holders
            
            
            —
            
            
            —
            
            
            —Total
            
            
            2,500,000
            
            $
            0.15
            
            
            950.,000




-14-
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          of Contents*




**ITEM
      6.****MANAGEMENT'S
      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
      OPERATIONS**




The
      information in this section should be read in conjunction with our consolidated
      financial statements and notes to the consolidated financial statements
      beginning on page 18 and the Risk Factors beginning on page 7.




**Results
      of Operations**




**Year
      Ended September 30, 2007 Compared to Year Ended September 30,
      2006**




**Revenues**




Total
      revenue for the twelve months ended September 30, 2007 was $352,944 compared
      to
      $717,878 for the year ended September 30, 2006. The Company booked finance
      income from only 2 portfolios for most of the year and applied the recovery
      method to the remaining portfolios. The servicing income was generated from
      Ramco Income Fund Ltd and other investment vehicles managed by the Company.
      The
      finance income is net of all collections expenses because the Company outsources
      all its collections on a contingency basis.




For
      the
      twelve months ended September 30, 2007, we acquired new portfolios with a face
      value in excess of $4,757,555 at a cost of $379,911 compared to $16,000,000
      at a
      cost of $974,548 during the year ended September 30, 2006. The Company has
      been
      unable to make greater investments due to rise in prices paid for charged off
      consumer credit charge-offs. The face value represents the outstanding balance
      owed by debtors at the time of purchase and the Company expects to collect
      only
      a small percentage of the outstanding balance. The Company used the accretion
      method based on SOP03-3 for revenue recognition and recovery method for small
      portfolios.




During
      the year ended September 30, 2007, we serviced a pool of charged-off consumer
      accounts on behalf of Ramco Income Fund Limited and from other investment
      vehicles. Servicing fees received under this arrangement declined by 50% to
      $106,075 in the year ended September 30, 2007 when compared to $212,934 in
      the
      year ended September 30, 2006. The Fund has been redeeming investors and making
      limited investments, which has resulted in sharp decline in servicing fees
      from
      the Fund which has been offset by fees from other vehicles. Upon the redemption
      of underlying investors in the Fund, the Company will receive a majority of
      the
      residual cash flow from all portfolios acquired for each series of investors.
      The cumulative residual from the Fund cannot be estimated at this
      time.




**Total
      operating expenses**




Total
      operating expenses in the year ended September 30, 2007 declined by
      approximately 3% or $21,962 to $633,064 compared to $655,026 for the year ended
      September 30, 2006. The Company expects the overall expenses to decline next
      year.




The
      largest component of total operating expenses is collection, legal and
      accounting of approximately $179,154. Normal operating expenses related to
      California and New York offices, salaries and employee benefits accounted for
      the remainder of the Company’s expenses. The Company expects operating expensed
      to decline slightly from the current level.




**Other
      income and expense**





For
      the
      year ended September 30, 2007, the Company incurred interest expense of $42,699
      and interest income of $3,330 compared to interest expense of $7,503 and
      interest income of $864 during the year ended September 30, 2006. The Company
      has no other contingent expense.




**Income
      taxes**




For
      the
      year ended September 30, 2007, the Company has not recorded any income tax
      liability.




**Net
      Income (loss)**





Net
      loss
      for the twelve months ended September 30, 2007 was $344,694 versus net income
      of
      $48,904 for the twelve months ended September 30, 2006.




-15-
 *Table
          of Contents*




**Liquidity
      and Capital Resources**




**Liquidity**




For
      the
      year ended September 30, 2007 the Company had working capital of $165,049 versus
      $250,631 for the year ended September 30, 2006. Working capital for year ended
      September 30, 2007 declined by 34%
      or
      $85,416 from year ended September 30, 2006. The decline is largely due lower
      collection and issuance of notes for the repurchase of 2,000,000 shares. The
      Company had $286,530 in cash and continues to generate sufficient cash to fund
      operations for the foreseeable future. We expect to raise additional capital
      through structured notes for any additional portfolio purchases, for which
      we
      cannot provide any guarantee.




**Cash
      Flows and Expenditures**




**Year
      ended September 30, 2007 compared to September 30, 2006**




During
      the year ended September 30, 2007, the Company spent $397,808 on portfolio
      acquisitions and collected, excluding portfolio sales, $873,761 compared to
      the
      year ended September 30, 2006 during which the Company spent $974,548 on
      portfolio acquisitions and collected, excluding portfolio sales, $1,141,093
      net
      of all fees. The Company has financing in place to acquire portfolios if they
      become available at reasonable prices.




During
      the year we generated $106,075 servicing revenue compared to $212,934 in
      servicing revenue during 2006 primarily from Ramco Income Fund, Ltd and other
      investment vehicles. Servicing fees from the Fund has declined due to
      redemptions and limited additional investments.




We
      currently utilize various business channels for the collection of charged off
      credit cards and other receivables. The Company is currently using ten (10)
      collection agencies and several law firms on a contingency basis.




Cash
      flow
      from operations was $148,872 during the year ended September 30, 2007, compared
      to ($9,841) in the year ended September 30, 2006. Cashflow improved due to
      gain
      on sale of receivables.




Our
      primary investing activity is the purchase of new receivable portfolios. We
      purchase receivable portfolios directly from issuers and from resellers as
      well
      as from brokers that represent various issuers. We carefully evaluate portfolios
      and bid on only those that meet our selective targeted return profile.




Capital
      expenditures for fixed assets were not material for the year ended September
      30,
      2007 and all purchases of capital expenditures were funded with internal cash
      flow.




Net
      cash
      from financing activities was ($16,982) during the year ended September 30,
      2007
      compared to negative ($47,943) in 2006. During the twelve month ended September
      30, 2007, the Company issued an eighteen month amortizing note for net proceeds
      of $300,000.




**Portfolio
      Data**




The
      following table shows the Company’s portfolio buying activity during the
      quarter, among other things, the purchase price, actual cash collections and
      estimated cash collection as of September 30, 2006 .




**Purchase
                  Period**
              
              **Purchase
                  Price(1)**
              
              **Actual
                  Cash Collection (2)**
              
              **Estimated
                  (3)**12/31/2003
              
              $
              569,070
              
              $
              1,717,189
              
              $
              68,0864/11/2005
              
              $
              375,000
              
              $
              362,482
              
              $
              67,7967/25/2005
              
              $
              177,668
              
              $
              235,053
              
              $
              74,3013/9/2006
              
              $
              121,972
              
              $
              108,239
              
              $
              76,7134/7/2006
              
              $
              331,974
              
              $
              300,427
              
              $
              59,4816/7/2006
              
              $
              70,020
              
              $
              101,051
              
              $
              7,69512/31/04-12/20/06
              
              $
              780,875
              
              $
              700,216
              
              $
              445,8681/7/2007
              
              $
              324,248
              
              $
              199,309
              
              $
              184,967


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





(2)
            Actual
                cash collections net of recovery
                cost.





(3)
            Total
                estimated collections refer to the actual cash collections, including
                cash
                sales, plus estimated remaining collections of which we can provide
                no
                guarantee regarding the success of the outstanding remaining collections.
                The Company will take an impairment charge if the actual recoveries
                fall
                short of expected recoveries.







-16-
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          of Contents*




**Capital
      Resources**





The
      cash
      flow from portfolios currently owned and the forward flow in pipeline would
      be
      adequate to meet our operating expenses. The Company continues to explore other
      sources of capital for larger portfolio acquisitions.




**Inflation**





We
      believe that inflation has not had a material impact on our results of
      operations for the year ended September 30, 2007.





**Critical
      Accounting Policies**





The
      Company utilizes the interest method under guidance provided by the AICPA issued
      Statement of Position (“SOP”) 03-03 to determine income recognized on finance
      receivables




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




**Special
      Note on Forward-Looking Statements**




This
      report contains “forward-looking statements” within the meaning of the federal
      securities laws. All statements, other than statements of historical facts,
      included or incorporated into this Form 10-K are forward-looking statements.
      The
      words “believe,” “expect,” “anticipate,” “estimate,” “project,” and similar
      expressions often characterize forward looking statements. These statements
      may
      include, but are not limited to, projections of collections, revenues, income
      or
      loss, estimates of capital expenditures, plans for future operations, products
      or services, and financing needs or plans, as well as assumptions relating
      to
      these matters. These statements include, among others, statements found under
      “Management’s Discussion and Analysis of Financial Condition and Results of
      Operations” and “Business.”




Actual
      results could differ materially from those contained in the forward-looking
      statements due to a number of factors, some of which are beyond our control.
      Factors that could affect our results and cause them to differ from those
      contained in the forward-looking statements include:




·
            the
                availability of financing;


·
            our
                ability to maintain sufficient liquidity to operate our business
                including
                obtaining new capital to enable us to purchase new receivables;


·
            our
                ability to purchase receivable portfolios on acceptable terms;


·
            our
                continued servicing of the receivables in our securitization transactions
                and for the unrelated third party;


·
            our
                ability to recover sufficient amounts on receivables to fund operations;


·
            our
                ability to hire and retain qualified personnel to recover our receivables
                efficiently;


·
            changes
                in, or failure to comply with, government regulations; and


·
            the
                costs, uncertainties and other effects of legal and administrative
                proceedings.




-17-
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          of Contents*




Forward-looking
      statements speak only as of the date the statement was made. They are inherently
      subject to risks and uncertainties, some of which we cannot predict or quantify.
      Future events and actual results could differ materially from the
      forward-looking statements. When considering each forward-looking statement,
      you
      should keep in mind the risk factors and cautionary statements found throughout
      this Form 10-K and specifically those found below. We are not obligated to
      publicly update or revise any forward looking statements, whether as a result
      of
      new information, future events, or for any other reason.




In
      addition, it is our policy generally not to make any specific projections as
      to
      future earnings, and we do not endorse projections regarding future performance
      that may be made by third parties.





-18-
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          of Contents*


**RECEIVABLE
      ACQUISITION AND MANAGEMENT**


**CORPORATION
      AND SUBSIDIARIES**





**CONSOLIDATED**


**FINANCIAL
      STATEMENTS**





**YEARS
      ENDED SEPTEMBER 30, 2007 AND 2006**




**PAGE(S)****REPORT
                OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
                FIRM**
            20**FINANCIAL
                STATEMENTS:**Consolidated
                Balance Sheets as of September 30, 2007 and
                2006
            21Consolidated
                Statements of Income (Operations) For the Years
                Ended September 30, 2007 and 2006
            22Consolidated
                Statements of Stockholders’ Equity (Deficit) for
                the Years Ended September 30, 2007 and 2006
            23Consolidated
                Statements of Cash Flows for the Years Ended
                September 30, 2007 and 2006
            24Notes
                to Consolidated Financial
                Statements
            25-36





-19-
 *Table
          of Contents*


**BAGELL,
      JOSEPHS, LEVINE & COMPANY, L.L.C.**


**Certified
      Public Accountants**


**406
      Lippincott Drive**


**Suite
      J**


**Marlton,
      New Jersey 08053**


**(856)
      346-2828 Fax (856) 396-0022**




**REPORT
      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**




To
      Receivable Acquisition and Management Corporation and Subsidiaries


2500
      Plaza 5, Harborside Financial Center, Jersey City, New Jersey, 07311





We
      have
      audited the accompanying balance sheets of Receivable Acquisition and Management
      Corporation and Subsidiaries (the “Company”) as of September 30, 2007 and 2006,
      and the related statements of operations, stockholders’ equity (deficit) and
      cash flows for each of the years in the two-year period ended September 30,
      2007
      and 2006. These financial statements are the responsibility of the Company's
      management. Our responsibility is to express an opinion on these financial
      statements based on our audits.




We
      conducted our audits in accordance with standards of the Public Company
      Oversight Board (United States). Those standards require that we plan and
      perform the audit to obtain reasonable assurance about whether the financial
      statements are free of material misstatement. The Company is not required to
      have, nor were we engaged to perform, an audit of its internal control over
      financial reporting. Our audits included consideration of internal control
      over
      financial reporting as a basis for designing audit procedures that are
      appropriate in the circumstances, but not for the purpose of expressing an
      opinion on the effectiveness of the Company’s internal control over financial
      reporting. An audit also includes examining, on a test basis, evidence
      supporting the amounts and disclosures in the financial statements, assessing
      the accounting principles used and significant estimates made by management,
      as
      well as evaluating the overall financial statement presentation. We believe
      that
      our audits provide a reasonable basis for our opinion.




In
      our
      opinion, the consolidated financial statements referred to above present fairly,
      in all material respects, the financial position of Receivable Acquisition
      and
      Management Corporation and Subsidiaries as of September 30, 2007 and 2006,
      and
      the results of its operations and its cash flows for each of the years in the
      two-year period ended September 30, 2007 in conformity with accounting
      principles generally accepted in the United States of America.





**/s/BAGELL,
      JOSEPHS, LEVINE & COMPANY, L.L.C.**


BAGELL,
      JOSEPHS, LEVINE & COMPANY, L.L.C.


Certified
      Public Accountants


Marlton,
      New Jersey 08053








January
      3, 2008




-20-
 *Table
          of Contents*




**RECEIVABLE
                  ACQUISITION AND MANAGEMENT CORPORATION AND
                  SUBSIDIARIES****CONSOLIDATED
                  BALANCE SHEETS****SEPTEMBER
                  30, 2007 AND 2006****ASSETS****2007**
              
              **2006****CURRENT
                  ASSETS**Cash
              
              $
              286,530
              
              $
              154,640Prepaid
                  Expenses
              
              
              1,241
              
              
              15,000Finance
                  receivables - short term
              
              
              123,959
              
              
              279,703**Total
                  current assets**
              
              
              411,730
              
              
              449,343**OTHER
                  ASSETS**Finance
                  receivables - long-term
              
              
              248,290
              
              
              567,881**Total
                  other assets**
              
              
              248,290
              
              
              567,881**TOTAL
                  ASSETS**
              
              $
              660,020
              
              $
              1,017,224**LIABILITIES
                  AND STOCKHOLDERS' EQUITY****CURRENT
                  LIABILITIES**Accrued
                  and other expenses
              
              $
              53,924
              
              $
              34,052Preferred
                  stock dividend payable
              
              
              —
              
              
              20,000Stock
                  to be issued
              
              
              1,500
              
              
              1,500Notes
                  Payable -short term
              
              
              191,257
              
              
              141,260Income
                  tax expense
              
              
              —
              
              
              1,900**Total
                  current liabilities**
              
              
              246,681
              
              
              198,712**LONG
                  TERM LIABILITIES**Note
                  payable -long term
              
              
              133,021
              
              
              —**TOTAL
                  LIABILITIES**
              
              
              379,702
              
              
              198,712**STOCKHOLDERS'
                  EQUITY**Preferred
                  stock, par value $10 per share;10,000,000
                  shares authorized in 2007 and 2006 and 0 and 80,000 sharesissued
                  and outstanding at September 30, 2007 and 2006,
                  respectively
              
              
              —
              
              
              800,000Common
                  stock, par value $.001 per share;325,000,000
                  shares authorized in 2007 and 2006and
                  16,928,917 and 17,808,917 shares issued and outstandingat
                  September 30, 2007 and 2006, respectively
              
              
              16,929
              
              
              17,809Additional
                  paid-in capital
              
              
              627,380
              
              
              —Retained
                  earnings (accumulated deficit)
              
              
              (363,991
              )
              
              703**Total
                  stockholders' equity**
              
              
              280,318
              
              
              818,512**TOTAL
                  LIABILITIES AND STOCKHOLDERS' EQUITY**
              
              $
              660,020
              
              $
              1,017,224
 The
      accompanying notes are an integral part of the consolidated financial
      statements.


-21-
 *Table
          of Contents*




**RECEIVABLE
                  ACQUISITION AND MANAGEMENT CORPORATION AND
                  SUBSIDIARIES****CONSOLIDATED
                  STATEMENTS OF INCOME
                  (OPERATIONS)****FOR
                  THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006****2007**
              
              **2006****REVENUES**Financing
                  income
              
              
              228,525
              
              
              305,353Gain
                  on sale of finance receivables
              
              
              18,344
              
              
              199,591Service
                  income and other
              
              
              106,075
              
              
              212,934**TOTAL
                  INCOME**
              
              
              352,944
              
              
              717,878**COSTS
                  AND EXPENSES**Selling,
                  general and administrative
              
              
              633,064
              
              
              655,026**Total
                  costs and expenses**
              
              
              633,064
              
              
              655,026**NET
                  INCOME (LOSS) BEFORE OTHER INCOME (LOSS)**
              
              
              (280,120
              )
              
              62,852**OTHER
                  INCOME (LOSS)**Other
                  income (loss) - sale of finance recievables
              
              
              (25,205
              )
              
              (5,409
              )Interest
                  income
              
              
              3,330
              
              
              864Interest
                  expense
              
              
              (42,699
              )
              
              (7,503
              )**Total
                  other income (loss)**
              
              
              (64,574
              )
              
              (12,048
              )**NET
                  INCOME (LOSS) BEFORE PROVISION FOR INCOME TAX**
              
              $
              (344,694
              )
              $
              50,804**PROVISION
                  FOR INCOME TAX**
              
              
              —
              
              
              (1,900
              )**NET
                  INCOME (LOSS)**
              
              
              (344,694
              )
              
              48,904**LESS
                  PREFERRED STOCK DIVIDEND**
              
              
              (20,000
              )
              
              (30,000
              )**INCOME
                  (LOSS) APPLICABLE TO COMMON STOCK**
              
              $
              (364,694
              )
              $
              18,904**BASIC
                  INCOME (LOSS) PER COMMON SHARE**
              
              $
              (0.02
              )
              $
              0.00**DILUTED
                  INCOME (LOSS)****PER
                  COMMON SHARE**
              
              $
              (0.02
              )
              $
              —**WEIGHTED
                  AVERAGE OUTSTANDING SHARES****OF
                  COMMON STOCK - BASIC**
              
              
              16,944,150
              
              
              17,457,079**WEIGHTED
                  AVERAGE OUTSTANDING SHARES****OF
                  COMMON STOCK - DILUTED**
              
              
              18,840,150
              
              
              19,553,079
 The
      accompanying notes are an integral part of the consolidated financial
      statements.


-22-
 *Table
          of Contents*




**RECEIVABLE
                  ACQUISITION AND MANAGEMENT CORPORATION AND
                  SUBSIDIARIES****CONSOLIDATED
                  STATEMENTS OF STOCKHOLDERS'
                  EQUITY****FOR
                  THE YEARS ENDED SEPTEMBER 30, 2007 and 2006****Additional****Preferred**
              
              **Common
                  Stock**
              
              **Paid-In**
              
              **Accumulated****Shares**
              
              **Amount**
              
              **Shares**
              
              **Amount**
              
              **Capital**
              
              **Deficit**
              
              **Total**BALANCE,
                  SEPTEMBER 30, 2005
              
              
              80,000
              
              $
              800,000
              
              
              15,555,917
              
              $
              15,556
              
              $
              83,144
              
              $
              (3,389
              )
              $
              895,311Exercise
                  of warrants at $.0075 per share for common stock
              
              
              —
              
              
              —
              
              
              2,253,000
              
              
              2,253
              
              
              14,644
              
              
              —
              
              
              16,897Repurchase
                  of warrants
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              (82,500
              )
              
              —
              
              
              (82,500
              )Repurchase
                  of warrants
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              (15,288
              )
              
              (4,812
              )
              
              (20,100
              )Preferred
                  Stock Dividend
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              (10,000
              )
              
              (10,000
              )Repurchase
                  of warrants
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              (10,000
              )
              
              (10,000
              )Preferred
                  Stock Dividend
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              (10,000
              )
              
              (10,000
              )Preferred
                  Stock Dividend
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              (10,000
              )
              
              (10,000
              )Net
                  Loss For The Year Ended September 30, 2006
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              48,904
              
              
              48,904BALANCE,
                  SEPTEMBER 30, 2006
              
              
              80,000
              
              $
              800,000
              
              
              17,808,917
              
              $
              17,809
              
              $
              -
              
              $
              703
              
              $
              818,512Issuance
                  of common stock - exericise of warrants
              
              
              —
              
              
              —
              
              
              200,000
              
              
              200
              
              
              1,300
              
              
              —
              
              
              1,500(200,000
                  shares issued) at $.0075 per sharesRepurchase
                  of 2,000.000 shares of common stockfor
                  $ .10 $ per share
              
              
              —
              
              
              —
              
              
              (2,000,000
              )
              
              (2,000
              )
              
              (198,000
              )
              
              
              
              
              (200,000
              )Conversion
                  of 80,000 preferred sharesto
                  800,000 common shares
              
              
              (80,000
              )
              
              (800,000
              )
              
              800,000
              
              
              800
              
              
              799,200
              
              
              —
              
              
              —Conversion
                  of $20,000 preferred stock dividend payable to 70,000 common
                  shares
              
              
              
              
              
              
              
              
              70,000
              
              
              70
              
              
              19,930
              
              
              
              
              
              20,000Repurchase
                  of 150,000 shares of common stock
              
              
              —
              
              
              —
              
              
              (150,000
              )
              
              (150
              )
              
              (14,850
              )
              
              
              
              
              (15,000
              )for
                  $ .01 per sharePreferred
                  Stock Dividend
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (20,000
              )
              
              (20,000
              )Conversion
                  of extra $20,000 preferred stockdividend
                  payable to 200,000 common shares
              
              
              —
              
              
              —
              
              
              200,000
              
              
              200
              
              
              19,800
              
              
              
              
              
              20,000Repurchase
                  of 150,000 shares of common stockfor
                  $ .01 per share
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              —Net
                  loss for the year ended September 30, 2007
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              —
              
              
              (344,694
              )
              
              (344,694
              )BALANCE,
                  SEPTEMBER 30, 2007
              
              
              —
              
              $
              —
              
              
              16,928,917
              
              $
              16,929
              
              $
              627,380
              
              $
              (363,991
              )
              $
              280,318


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


-23-
 *Table
          of Contents*




**RECEIVABLE
                  ACQUISITION AND MANAGEMENT CORPORATION AND
                  SUBSIDIARIES****CONSOLIDATED
                  STATEMENTS OF CASH FLOWS****FOR
                  THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006****2007**
              
              **2006****CASH
                  FLOWS FROM OPERATING ACTIVITIES:**Net
                  income (loss)
              
              $
              (344,694
              )
              $
              48,904**Adjustments
                  to reconcile net income (loss) to****net
                  cash provided by (used in) operating activities:****Changes
                  in Certain Assets and Liabilities**Proceeds
                  from sale of portfolio - net of gain
              
              
              227,907
              
              
              142,415Acquisition
                  of finance receivables, net of buybacks
              
              
              (345,806
              )
              
              (974,548
              )Collections
                  applied to principal on finance receivables
              
              
              593,235
              
              
              816,861(Increase)
                  in prepaid expenses
              
              
              (1,241
              )
              
              (15,000
              )(Decrease)
                  accounts payable - trade
              
              
              —
              
              
              (18,239
              )(Decrease)
                  increase accrued expenses
              
              
              19,871
              
              
              (12,134
              )(Decrease)
                  increase in income taxes
              
              
              (1,900
              )
              
              1,900**Net
                  cash provided by (used in) operating activities**
              
              
              147,372
              
              
              (9,841
              )**CASH
                  FLOWS FROM FINANCING ACTIVITIES**Proceeds
                  from exercise of warrants
              
              
              —
              
              
              1,500Payments
                  on notes payable
              
              
              (261,982
              )
              
              (206,843
              )Proceeds
                  from notes payable
              
              
              300,000
              
              
              300,000Dividends
                  paid on preferred stock
              
              
              —
              
              
              (30,000
              )Increase
                  in liability for stock to be issued
              
              
              1,500
              
              
              —Repurchase
                  of retired common stock
              
              
              (55,000
              )
              
              —Repurchase
                  of warrants
              
              
              —
              
              
              (112,600
              )**Net
                  cash (used in) financing activities**
              
              
              (15,482
              )
              
              (47,943
              )**NET
                  INCREASE (DECREASE) IN CASH**
              
              
              131,890
              
              
              (57,784
              )**CASH
                  AND CASH EQUIVALENTS - BEGINNING OF YEAR**
              
              
              154,640
              
              
              212,424**CASH
                  AND CASH EQUIVALENTS - END OF PERIOD**
              
              $
              286,530
              
              $
              154,640**SUPPLEMENTAL
                  DISCLOSURE OF CASH FLOW INFORMATION****Issuance
                  of Common Stock for:**Conversion
                  of notes payable
              
              $
              —
              
              $
              21,897Conversion
                  of preferred stock
              
              $
              800,000
              
              $
              —Conversion
                  of preferred stock dividend payable
              
              $
              40,000
              
              $
              —


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




-24-
 *Table
          of Contents*




**RECEIVABLE
      ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**SEPTEMBER
      30,** **2007
      AND 2006**




**NOTE
      1-**  **SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES**





**A.**
            **THE
                COMPANY AND
                PRESENTATION**





Receivable
      Acquisition and Management Corporation and Subsidiaries (the “Company”) was
      formerly Biopharmaceutics, Inc., In June 1999 pursuant to a meeting of the
      Board
      of Directors, Biopharmaceutics Inc, adopted a resolution and filed a Certificate
      of Amendment to the Certificate of Incorporation and changed the name of
      Biopharmaceutics, Inc., to Feminique Corporation.





On
      November 25, 2003, the Feminique Corporation incorporated a wholly-owned
      subsidiary Receivable Acquisition and Management Corp of New York. The Company
      purchases, manages and collects defaulted consumer receivables.





On
      April
      21, 2004, Feminique Corporation amended its certificate of incorporation to
      increase its authorized number of shares of common stock from 75,000,000 shares
      to 325,000,000 shares. This amendment was approved by Feminique Corporation’s
      shareholders at its April 20, 2004 annual meeting. The shareholders also changed
      the name of Feminique Corporation to Receivable Acquisition and Management
      Corporation.




**B.**
            **FINANCE
                RECEIVABLES**





The
      Company accounts for its investment in finance receivables under the guidance
      of
      Statement of Position (“SOP”) 03-3, “Accounting for Loans or Certain Debt
      Securities Acquired in a Transfer.” This SOP limits the yield that may be
      accreted (accretable yield) to the excess of the Company’s estimate of
      undiscounted expected principal, interest and other cash flows (cash flows
      expected at the acquisition to be collected) over the Company’s initial
      investment in the finance receivables. Subsequent increases in cash flows
      expected to be collected are recognized prospectively through adjustment of
      the
      finance receivables yield over its remaining life. Decreases in cash flows
      expected to be collected are recognized as impairment to the finance receivable
      portfolios. The Company’s proprietary collections model is designed to track and
      adjust the yield and carrying value of the finance receivables based on the
      actual cash flows received in relation to the expected cash flows.




-25-
 *Table
          of Contents*




**RECEIVABLE
      ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**


**SEPTEMBER
      30, 2007 AND 2006**




**NOTE
      1-**  **SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**





**C.**
            **FINANCE
                RECEIVABLES
                (CONTINUED)**





During
      the quarter ended March 31, 2007, the Company acquired total portfolios for
      $324,248. The Company will use for these portfolios the "Recovery Method" for
      revenue recognition under which no revenue is recognized until the investment
      amount of $324,248 has been recovered. As of September 30, 2007 the amount
      $89,356 has been recovered.





During
      the quarter ended March 31, 2007 the Company sold several portfolios for a
      total
      sales price of $231,036. The Company recognized a net gain of $3,129 on these
      sales. The Company retained approximately $488,335 in face amount of these
      portfolios. As of September 30, 2007 the carrying value of these portfolios
      are
      $24,428.





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


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





Changes
      in finance receivables for the year ended September 30, 2007 and 2006 were
      as
      follows:




2007
              
              2006Balance
                  at beginning of year October 1, 2006 and 2005
              
              $
              847,584
              
              $
              832,312Acquisition
                  of finance receivables - net
              
              
              345,807
              
              
              974,548Cash
                  collections applied to principal
              
              
              (593,235
              )
              
              (816,861
              )Sale
                  of portfolio - net of gain
              
              
              (227,907
              )
              
              (142,415
              )Balance
                  at the end of the year
              
              $
              372,249
              
              $
              847,584Estimated
                  Remaining Collections ("ERC")*
              
              $
              984,907
              
              $
              2,648,346


*Estimated
      remaining collection refers to the sum of all future projected cash collections
      from acquired portfolios. ERC is not a balance sheet item, however, it is
      provided for informational purposes. Income recognized on finance receivables
      was $228,525 and $305,353 for the years ended September 30, 2007 and 2006
      respectively.




-26-
 *Table
          of Contents*




**RECEIVABLE
      ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**


**SEPTEMBER
      30, 2007 AND 2006**




**NOTE
      1-**  **SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**





**C.**
            **FINANCE
                RECEIVABLES
                (CONTINUED)**





Under
      SOP-03-3 debt security impairment is recognized only if the fair market value
      of
      the debt has declined below its amortized costs. Currently no amortized costs
      are below fair market value. Therefore, the Company has not recognized any
      impairment for the finance receivables.





**D.**
            **PRINCIPLES
                OF CONSOLIDATION**





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





**E.**
            **CASH
                AND CASH EQUIVALENTS**





The
      Company considers all highly liquid debt instruments and other short-term
      investments with an initial maturity of three months or less to be cash or
      cash
      equivalents. There were no cash equivalents as of September 30, 2007 and
      2006.





The
      Company maintains cash and cash equivalents balances at financial institutions
      that are insured by the Federal Deposit Insurance Corporation up to $100,000.
      At
      September 30, 2007 and 2006,
      the Company’s uninsured cash balances total $186,000 and $80,000,
      respectively.





**E.**
            **INCOME
                TAXES**





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





**F.**
            **USE
                OF ESTIMATES**





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




-27-
 *Table
          of Contents*




**RECEIVABLE
      ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**


**SEPTEMBER
      30, 2007 AND 2006**





**NOTE
      1-**  **SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**





**G.**
            **STOCK-BASED
                COMPENSATION**





Effective
      December 31, 2005, the Company adopted the provisions of Financial Accounting
      Standards Board Statement of Financial Accounting Standard ("SFAS") No. 123(R),
      "Share-Based Payments," which establishes the accounting for employee
      stock-based awards. Under the provisions of SFAS No.123(R), stock-based
      compensation is measured at the grant date, based on the calculated fair value
      of the award, and is recognized as an expense over the requisite employee
      service period (generally the vesting period of the grant). The Company adopted
      SFAS No. 123(R) using the modified prospective method and, as a result, periods
      prior to December 31, 2005 have not been restated. The Company recognized
      stock-based compensation for awards issued under the Company's stock option
      plans in other income/expenses included in the Consolidated Statement of
      Operations. Additionally, no modifications were made to outstanding stock
      options prior to the adoption of SFAS No. 123(R), and no cumulative adjustments
      were recorded in the Company's financial statements.




Prior
      to
      December 31, 2005, the Company accounted for stock-based compensation in
      accordance with provisions of Accounting Principles Board Opinion No. 25 ("APB
      No. 25"), "Accounting for Stock Issued to Employees," and related
      interpretations. Under APB No. 25, compensation cost was recognized based on
      the
      difference, if any, on the date of grant between the fair value of the Company's
      stock and the amount an employee must pay to acquire the stock. The Company
      grants stock options at an exercise price equal to 100% of the market price
      on
      the date of grant. Accordingly, no compensation expense was recognized for
      the
      stock option grants in periods prior to the adoption of SFAS No.
      123(R).




The
      Company measures compensation expense for its non-employee stock-based
      compensation under the Financial Accounting Standards Board (FASB) Emerging
      Issues Task Force (EITF) Issue No. 96-18, "Accounting for Equity Instruments
      that are Issued to Other Than Employees for Acquiring, or in Conjunction with
      Selling, Goods or Services". The fair value of the option issued is used to
      measure the transaction, as this is more reliable than the fair value of the
      services received.




The
      fair
      value is measured at the value of the Company's common stock on the date that
      the commitment for performance by the counterparty has been reached or the
      counterparty's performance is complete. The fair value of the equity instrument
      is charged directly to compensation expense and additional paid-in
      capital.





**H.**
            **REVENUE
                RECOGNITION**





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




-28-
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          of Contents*




**RECEIVABLE
      ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**


**SEPTEMBER
      30, 2007 AND 2006**




**NOTE
      1-**  **SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**





**I.** **EARNINGS
      (LOSS) PER SHARE OF COMMON STOCK**





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





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




September
                  30,
              
              September
                  30,2007
              
              2006Net
                  income (loss)
              
              $
              (344,694
              )
              $
              48,904Weighted-average
                  common sharesOutstanding
                  (Basic)
              
              
              16,944,150
              
              
              17,457,079Weighted-average
                  common stockEquivalentsStock
                  options
              
              
              —
              
              
              950,000Warrants
              
              
              —
              
              
              1,146,000Weighted-average
                  common sharesOutstanding
                  (Diluted)
              
              
              18,840,150
              
              
              19,553,079


For
      the
      year ended September 30, 2007 options and warrants were not included in the
      computation of diluted EPS because inclusion would have been antidilutive.
      There
      were 1,896,000 and common stock equivalents at September 30, 2007.




-29-
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          of Contents*




**RECEIVABLE
      ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**


**SEPTEMBER
      30, 2007 AND 2006**




**NOTE
      1-**  **SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**





**K.** **RECENT
      ACCOUNT PRONOUNCEMENTS (CONTINUED)**





In
      September 2006, the SEC staff issued Staff Accounting Bulletin No. 108,
      Considering the Effects of Prior Year Misstatements when Quantifying
      Misstatements in Current Year Financial Statements (SAB 108). SAB 108 was issued
      in order to eliminate the diversity in practice surrounding how public companies
      quantify financial statement misstatements. SAB 108 requires that registrants
      quantify errors using both a balance sheet and income statement approach and
      evaluate whether either approach results in a misstated amount that, when all
      relevant quantitative and qualitative factors are considered, is material.
      SAB108 must be implemented by the end of the Company's first fiscal year ending
      after November 15, 2007. The Company does not expect SAB 108 to have any
      material impact on financial reporting or disclosures.




In
      March
      2006, the FASB issued FASB Statement No. 156, Accounting for Servicing of
      Financial Assets - an amendment of FASB Statement No. 140. This
      Statement:




1.
      Requires an entity to recognize a servicing asset or servicing liability each
      time it undertakes an obligation to service a financial asset by entering into
      a
      servicing contract under certain situations.




2.
      Requires all separately recognized servicing assets and servicing liabilities
      to
      be initially measured at fair value, if practicable.




3.
      Permits an entity to choose either the amortization method or the fair value
      measurement method subsequent measurement methods for each class of separately
      recognized servicing assets and servicing liabilities:




4.
      At its
      initial adoption, permits a one-time reclassification of available-for-sale
      securities to trading securities by entities with recognized servicing rights,
      without calling into question the treatment of other available-for-sale
      securities under Statement 115, provided that the available-for-sale
      securities are
      identified in some manner as offsetting the entity's exposure to changes in
      fair
      value of servicing assets or servicing liabilities that a servicer elects to
      subsequently measure at fair value.




5.
      Requires separate presentation of servicing assets and servicing liabilities
      subsequently measured at fair value in the statement of financial position
      and
      additional disclosures for all separately recognized servicing assets and
      servicing liabilities.




We
      do not
      expect FASB No. 156 to have a material impact on our financial reporting, and
      we
      are currently evaluating the impact, if any, the adoption of FASB No. 156 will
      have on our disclosure requirements. The statement becomes effective after
      the
      beginning of the first fiscal year that begins after September 30,
      2006.




In
      September 2006, the FASB issued FASB Statement No. 157, Fair Value Measurements.
      This Statement defines fair value, establishes a framework for measuring fair
      value in generally accepted accounting principles (GAAP), and expands
      disclosures about fair value measurements.




-30-
 *Table
          of Contents*




**RECEIVABLE
      ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**


**SEPTEMBER
      30, 2007 AND 2006**




**NOTE
      1-**  **SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**





**K.**
            **RECENT
                ACCOUNT PRONOUNCEMENTS
                (CONTINUED)**




This
      Statement applies under other accounting pronouncements that require or permit
      fair value measurements, the Board having previously concluded in those
      accounting pronouncements that fair value is the relevant measurement attribute.
      Accordingly, this Statement does not require any new fair value measurements.
      FASB Statement No. 157 will be effective for our financial statements issued
      for
      our fiscal year beginning October 1, 2008. We do not expect the adoption of
      FASB
      Statement No. 157 to have a material impact on our financial reporting, and
      we
      are currently evaluating the impact, if any, the adoption of FASB Statement
      No.
      157 will have on our disclosure requirements




In
      June
      2006, the Financial Accounting Standards Board ("FASB") issued FASB
      Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an
      interpretation of FASB Statement No. 109" (FIN 48), which prescribes a
      recognition threshold and measurement attribute for the financial statement
      recognition and measurement of a tax position taken or expected to be taken
      in a
      tax return. FIN 48 also provides guidance on recognition, classification,
      interest and penalties, accounting in interim periods, disclosure and
      transition. FIN 48 will be effective for our fiscal year beginning October
      1,
      2007. We do not expect the adoption of FIN 48 to have a material impact on
      our
      financial reporting and disclosure.




-31-
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**RECEIVABLE
      ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**


**SEPTEMBER
      30, 2007 AND 2006**








**NOTE
      2-**  **** **NOTES
      PAYABLE**





**A.**
            On
                June 10, 2005, the Company agreed to repurchase 1,000,000 warrants
                at $.10
                per warrant. The Company has paid $30,000 and will pay the remaining
                $70,000 over 16 months. The note has been paid
                off.





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





**B.**
            The
                Company issued on April 10, 2006 a private convertible note offering
                in
                the amount of $300,000. The company intended to repay the holder
                of the
                convertible note in 18 payments of $ 18,155 from the date of issuance
                of
                the convertible note at a rate of 11% per annum on or before October
                7,
                2007 (the “Maturity Date”). However, the Company repaid $116,000 of the
                principal on May 11, 2006. The repayment terms, as of May 11, 2006
                were
                restated as $11,738, per month until October 7, 2007. The interest
                rate of
                11% per annum will not change. The note has been paid in full on
                March 31,
                2007.





**C.**
            The
                Company issued on October 30, 2006 a note payable for the value of
                $150,000 in exchange for the retirement of 2,000,000 shares of common
                stock for $200,000. The company paid $50,000 in cash and issued a
                note
                payable of $150,000 for the balance. The terms are as follows: The
                Company
                is currently paying $3,000 per month. The current balance of the
                note as
                of September 30, 2007 is $111,899.





**D.**
            The
                Company issued on January 8, 2007 a private note offering in the
                amount of
                $300,000. The Company intends to pay the holder of the note in 24
                fixed
                monthly payments of $14,546 from the date of issuance of the note
                at a
                rate of 15% per annum on or before January 9, 2009 (the "Maturity
                Date”).
                The current balance of the note as of September 30, 2007 is
                $212,379.






-32-
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**RECEIVABLE
      ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**


**SEPTEMBER
      30, 2007 AND 2006**








**NOTE
      2-**  **** **NOTES
      PAYABLE (CONTINUED)**




Principal
                  DueSchedule
                  of Long- Term Notes Payable
              
              September
                  30, 2007Notes
                  Payable
              
              
              324,278Less:
                  Current Portions
              
              
              (191,257
              )**Total
                  Long term notes payable**
              
              
              133,021As
                  of September 30, 2007 the estimated long-term notes payable mature
                  as
                  follows:2008
              
              
              191,2572009
              
              
              36,0002010
              
              
              36,0002011
              
              
              36,0002012
              
              
              25,021**Total
                  Notes Payable**
              
              
              324,278




**NOTE
      3-**  **STOCK
      OPTIONS**





In
      April
      2004, the Company adopted a stock option plan upon approval by the shareholders
      art the Annual General Meeting under which selected eligible key employees
      of
      the Company are granted the opportunity to purchase shares of the Company’s
      common stock. The plan provides that 37,500,000 shares of the Company’s
      authorized common stock be reserved for issuance under the plan as either
      incentive stock options or non-qualified options. Options are granted at prices
      not less than 100 percent of the fair market value at the end of the date of
      grant and are exercisable over a period of ten years or a long as that person
      continues to be employed or serve on the on the Board of Directors, whichever
      is
      shorter. At September 30, 2007, the Company had 950,000 options outstanding
      under this plan.





**NOTE
      4-**  **INCOME
      TAXES** ****





Income
      Taxes are provided for the tax effects of transactions reported in the financial
      statements and consist of taxes currently due. Deferred taxes related to
      differences between the basis of assets and liabilities for financial and income
      tax reporting will either be taxable or deductible when the assets or
      liabilities are recovered or settled. The difference between the basis of assets
      and liabilities for financial and income tax reporting are not material
      therefore, the provision for income taxes from operations consist of income
      taxes currently payable.




-33-
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          of Contents*




**RECEIVABLE
      ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**


**SEPTEMBER
      30, 2007 AND 2006**




**NOTE
      4-**  **INCOME
      TAXES** **** **(CONTINUED)**




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




September
                  30,
              
              September
                  30,2007
              
              2006ProvisionCurrent:Federal
              
              $
              -
              
              $
              500State
                  and Local
              
              
              -
              
              
              1,400Total
                  Current
              
              
              -
              
              
              1,900Deferred
              
              
              -
              
              
              -Total
                  provision for income taxes
              
              $
              -
              
              $
              -


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




There
      was
      no provision for income tax for the year ended September 30, 2007.




At
      September 30, 2007 the Company had an accumulated deficit approximating
      $363,991, available to offset future taxable income through 2027.




September
                  30,2007Deferred
                  tax assets
              
              $
              127,396Less:
                  valuation
              
              
              (120,397
              )Totals
              
              $
              —




-34-
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          of Contents*




**RECEIVABLE
      ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**


**SEPTEMBER
      30, 2007 AND 2006**




**NOTE
      5-** **STOCK
      HOLDERS’ EQUITY**





**COMMON
      STOCK**





There
      were 325,000,000 shares of common stock authorized, with 16,928,917 and
      17,808,917 shares issued and outstanding at September 30, 2007 and 2006,
      respectively. The par value for the common stock is $.001 per
      share.





The
      following details the stock transactions for the years ended September 30,
      2007
      and 2006.





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





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




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




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




The
      Company received $1,500 for the exercise of 200,000 warrants at $.0075 per
      share
      in September 2006. The Company issued 200,000 shares of common stock in November
      2006.




The
      Company repurchased 150,000 shares of common stock during May 2006. The shares
      were accounted for as a prepaid asset until November 2006. The shares were
      repurchased for $.10 per share for a total amount of $15,000. The shares were
      cancelled in November 2006.




On
      October 31, 2006 the Company reached an agreement with a shareholder to buyback
      2,000,000 shares of that shareholder's common stock at $.10 per share for a
      total amount of $200,000. The stock purchase was completed on October 31, 2006.
      The shares were cancelled in November 2006.




On
      February 23, 2007, The Company issued an additional 200,000 shares of common
      stock to Artemis Hedge Fund, Ltd. to resolve all outstanding accrued
      dividends.




-35-
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**RECEIVABLE
      ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**


**SEPTEMBER
      30, 2007 AND 2006**




**NOTE
      5-** **STOCK
      HOLDERS’ EQUITY** **(CONTINUED)**




**PREFERRED
      STOCK**





On
      October 28, 2006 the Company reached an agreement with Artemis Hedge Fund Ltd
      the holder of 80,0000 Series A Convertible Preferred Stock at $10 par value
      to
      convert the preferred shares into 800,000 shares of the Company's common stock
      .
      Additionally the Company agreed to issue 70,000 shares of common stock for
      all
      accrued dividends. There were 10,000,000 shares of preferred stock authorized,
      no shares outstanding as of September 30, 2007.




There
      were 10,000,000 shares of preferred stock authorized, with 80,000 issued and
      outstanding as of September 30, 2006. The par value for the preferred shares
      is
      $10 per share.




**NOTE
      6-**  **SUBSEQUENT
      EVENTS**




**PURCHASE
      OF FINANCE RECEIVABLE**





The
      Company purchased during the month of October 2007 a portfolio of distressed
      debt with a face value of $5,770,917 for 3.5% of the face value. The total
      purchase price was $201,982.





**SALE
      OF FINANCE RECEIVABLE**





During
      the quarter ended of December 2007 the Company sold several portfolios of
      finance receivables for 3.78% aggregate face value. The sale price was
      $224,488.




**ISSUANCE
      OF SHARES**





During
      the month of October 2007 the Company issued 200,000 common shares in exchange
      for warrants exercised in May 2007 for $.0075 per share. The Company was
      carrying the unissued shares as a liability for stock to be issued as of
      September 30, 2007





**RELATED
      PARTY**





The
      Company receives servicing fees from Ramco Income Fund Limited. The Company
      manages Ramco Income Fund Limited a Bermuda entity. The servicing fees were
      $106,075 and $212,934 for the years ended September 30, 2007 and
      2006.


-36-
 *Table
          of Contents*




**ITEM
      8.****CHANGES
      IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
      DISCLOSURE**





None.




**ITEM
      8A.****CONTROLS
      AND PROCEDURES**





As
      of the
      end of the period covered by this report, we conducted an evaluation, under
      the
      supervision and with the participation of our chief executive officer and chief
      financial officer of our disclosure controls and procedures (as defined in
      Rule
      13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based upon this evaluation,
      our chief executive officer and chief financial officer concluded that our
      disclosure controls and procedures are effective to ensure that information
      required to be disclosed by us in the reports that we file or submit under
      the
      Exchange Act is recorded, processed, summarized and reported, within the time
      periods specified in the Commission's rules and forms. There was no change
      in
      our internal controls or in other factors that could affect these controls
      during our last fiscal year that has materially affected, or is reasonably
      likely to materially affect, our internal control over financial
      reporting.





**Item
      8A(T). Controls and Procedures.**





Not
      applicable





**ITEM
      8B.****OTHER
      INFORMATION**





None.




**PART
      III**





**ITEM
      9.****DIRECTORS
      AND EXECUTIVE OFFICERS OF THE REGISTRANT**





The
      following table sets forth the names, age, and position of each of our directors
      and executive officers.




Name
              
              Age
              
              Present
                  Principal EmploymentMax
                  Khan
              
              41
              
              Director,
                  President, CEO and CFOGobind
                  Sahney
              
              45
              
              ChairmanSteven
                  Lowe
              
              47
              
              Director
                  and Secretary




Set
      forth
      below is biographical information for each officer and director.





GOBIND
      SAHNEY, age 45, 1987 to 2004, Chairman & CEO, Young Entrepreneurs Society,
      Inc. (YES) a credit card marketing Company.1997 to 2004, Chairman &
President, Sahney & Company, a corporate finance advisory firm. Mr. Sahney
      is a lifetime member of the


-37-
 *Table
          of Contents*


National
      Eagle Scout Association; member Babson College Board of Trustees; the Babson
      College Asian Advisory Board; Mr. Sahney is a graduate of Babson College with
      dual degrees in Finance and Accounting. Born in 1961, Mr. Sahney lives in San
      Diego and has 2 children.





MAX
      KHAN,
      age 41, has been in the financial industry since 1987. He began his career
      as a
      financial consultant in New York. Mr. Khan founded Alliance Global Finance
      Inc.
      in 1992 with focus on corporate finance and investment banking. Mr. Khan served
      as president of Alliance Global Finance from 1991 through October 2003. Mr.
      Khan
      is also the co-founder of NewTrad Investors Inc., a hedge fund advisory firm
      specializing in advising Japanese institutions in their diversification into
      alternative assets. Mr. Khan has a Bachelors Degree in Accounting and Economics
      from City University of New York and MBA from Pace University (New York). He
      is
      married with 2 children and lives in New York.





Steven
      Lowe, age 46, is a practicing attorney. He is the founder of Lowe Law. Mr.
      Lowe
      graduated from Vanderbilt University and received his JD from University of
      Connecticut School of Law.




**SECTION
      16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE**





Section
      16(a) of the Exchange Act requires the Company’s directors, executive officers
      and persons who own more than ten percent of the Company’s outstanding Common
      Stock to file with the SEC and the Company reports on Form 4 and Form 5
      reflecting transactions affecting beneficial ownership. Based solely on a review
      of the copies of the reports furnished to us, or written representations that
      no
      reports were required to be filed, we believe that during the fiscal year ended
      September 30, 2007 all Section 16(a) filing requirements applicable to our
      directors, officers, and greater than 10% beneficial owners were complied with.




**ITEM
      10.****EXECUTIVE
      COMPENSATION**





The
      following table sets forth all compensation awarded, earned or paid for services
      rendered in all capacities to us during fiscal years 2006 and 2007 to:




·
            Each
                person who served as our chief executive officer during 2006 and
                2007; and




Our
      other
      executive officers whose total annual salary and bonus in 2006 and 2007 exceeded
      $100,000.




**SUMMARY
                COMPENSATION TABLE**Name
                and principal position
              (a)
            Year
              (b)
            Salary
                ($)
              (c)
            Bonus
                ($)
              (d)
            Stock
                Awards ($)
              (e)
            Option
                Awards ($)
              (f)
            Non-Equity
                Incentive Plan Compensation ($)
              (g)
            Nonqualified
                Deferred Compensation Earnings ($)
              (h)
            All
                Other Compensation ($)
              (i)
            Total
                ($)
              (j)Max
                Khan
            2007
            $100,000
            
            
            
            
            
            
            $100,0002006
            $100,000
            
            
            
            
            
            
            $100,000





-38-
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            of Contents*




**EMPLOYMENT
      AND SEPARATION AGREEMENT**





The
      Company has an employment agreement with Max Khan. The employment agreement
      expired on April 30, 2007. Under the existing employment provided Mr. Khan
      was
      entitled to receive $180,000 in annual compensation. Mr. Khan and the Company
      did not enter into a separation agreement.




**ITEM
      11.****SECURITY
      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER
      MATTERS**





The
      following table sets forth information at September 30, 2007 concerning
      ownership of the Company’s common shares by each director and executive officer
      and each person who owns of record, or is known to the Company to own
      beneficially, more than five percent of the Company’s common
      shares.




NAME
                    AND ADDRESS
                
                AMOUNT
                    AND
                  NATURE
                    OFBENEFICIAL
                    OWNER
                
                BENEFICAL
                    OWNERSHIP
                
                PERCENT
                    OF CLASSGobind
                    Sahney
                
                
                870,000
                
                
                5.14
                %Lisa
                    Sahney Trust
                
                
                1,740,000
                
                
                10.28
                %Max
                    Khan
                
                
                2,900,000
                
                
                17.13
                %Mehtab
                    Sultana
                
                
                1,300,000
                
                
                7.68
                %Steven
                    Lowe (1)
                
                
                50,000Claudia
                    DiNatale
                
                
                1,759,148
                
                
                10.39
                %Artemis
                    Equity Hedge Fund
                
                
                1,070,000
                
                
                6.32
                %All
                    Directors and Officers as a group (3 persons)
                
                
                3,820,000
                
                
                22.56
                %


(1)
            Represents
                fully vested options granted in
                2005.




**ITEM
      12.****CERTAIN
      RELATIONSHIPS AND RELATED TRANSACTIONS**




None.




**ITEM
      13.****EXHIBITS**





The
      following exhibits are incorporated herein by reference or are filed with this
      report as indicated below.




ExhibitNumber
              
              Description31.1
              
              Certification
                  pursuant to Exchange Act Rules 13a-14 and 15d-14 as adopted pursuant
                  to
                  Section
                  302 of the Sarbanes-Oxley Act of 2002.32.1
              
              Certification
                  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
                  302 of the Sarbanes-Oxley Act of 2002.




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**ITEM
      14. PRINCIPAL ACCOUNTANT FEES AND
      SERVICES**





Audit
      and
      Non-Audit Fees





Aggregate
      fees for professional services rendered for the Company by Bagell, Josephs
      Levine & Company, L.L.C for the fiscal years ended September 30, 2007 and
      2006 are set forth below. The aggregate fees included in the Audit category
      are
      fees billed for the fiscal years for the audit of the Company's annual financial
      statements and review of financial statements and statutory and regulatory
      filings or engagements. The aggregate fees included in each of the other
      categories are fees billed in the fiscal years. (All references to "$" in this
      Proxy Statement are to United States dollars.)




September
                  30,
                2007
              
              September
                  30,
                2006Audit
                  Fees
              
              $
              24,000
              
              $
              32,000Audit
                  Related Fees
              
              $
              5,000
              
              $
              5,000Tax
                  Fees
              
              $
              0
              
              $
              0All
                  Other Fees
              
              $
              0
              
              $
              0Total
              
              $
              29,000
              
              $
              37,000
  Audit
        Fees for the fiscal years ended September 30, 2007 and 2006 were for
        professional services rendered for the audits of the consolidated financial
        statements of the Company, quarterly review of the financial statements included
        in Quarterly Reports on Form 10-QSB, consents, and other assistance required
        to
        complete the year end audit of the consolidated financial
        statements.





Audit-Related
      Fees as of the fiscal years ended September, 2007 and 2006 were for assurance
      and related services reasonably related to the performance of the audit or
      review of financial statements and not reported under the caption Audit
      Fees.





Tax
      Fees
      as of the fiscal years ended September 30, 2007 and 2006 were for professional
      services related to tax compliance, tax authority audit support and tax
      planning.





There
      were no fees that were classified as All Other Fees as of the fiscal years
      ended
      September, 2007 and 2006.





As
      the
      Company does not have a formal audit committee, the services described above
      were not approved by the audit committee under the de minimus exception provided
      by Rule 2-01(c)(7)(i)(C) under Regulation S-X. Further, as the Company does
      not
      have a formal audit committee, the Company does not have audit committee
      pre-approval policies and procedures.


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**SIGNATURES**





In
      accordance with Section 13 or 15(d) of the Securities Exchange Act, the
      registrant caused this report to be signed on its behalf by the undersigned,
      thereunto duly authorized.




RECEIVABLE
      ACQUISITION & MANAGEMENT CORPORATION






**/s/
      Max Khan**


By: 
      Max Khan


Chief
      Executive Officer, Chief
      Financial/Accounting Officer, and Director


Date:
      January 14, 2008






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




**/s/
      Max Khan**


By:
      Max
      Khan


Chief
      Executive/Accounting Officer, Chief
      Financial Officer and Director


Date:
      January 14, 2008






**/s/
      Gobind Sahney**


By:
      Gobind Sahney


Chairman
      of the Board


Date:
      January 14, 2008






By:
        Steven Lowe
 Director
 Date:
        January 14, 2008




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